Apex Silver Reports First Quarter 2004 Results DENVER, May 4 /PRNewswire-FirstCall/ -- Apex Silver Mines Limited today reported a net loss of $4.2 million, or $0.10 per share, for the first quarter of 2004, compared to a net loss of $1.7 million, or $0.05 per share for the first quarter of 2003. The higher net loss was primarily attributed to $1.5 million paid for financial advisory and consulting services, including services related to the offering, an approximately $0.4 million increase in exploration expenditures and $0.6 million higher mark-to- market losses related metal hedging activities in the first quarter of 2004 compared to 2003. In calendar 2003, Apex Silver realized about $0.7 million in mark-to-market gains. At March 31, 2004, Apex Silver's cash and cash equivalents amounted to $391 million compared to $41 million at December 31, 2003. In the first quarter 2004, Apex Silver realized a total of $353.3 million in net cash proceeds by successfully completing a 10.3-million share offering and issuing $150 million of 2.875% Convertible Senior Subordinated Notes due 2024. At March 31, 2004, Apex Silver had 47.4 million shares outstanding. On April 1, 2004 Apex Silver received the remaining $48.3 million in net proceeds from the additional issuance of 2.875% Convertible Senior Subordinated Notes due 2024, increasing cash position to approximately $440 million. "With well over $400 million in cash, Apex Silver is exceptionally well positioned to advance the financing and development of its wholly-owned San Cristobal project in southwestern Bolivia," said Keith Hulley, Apex Silver's President and Chief Executive Officer. "We remain firmly on course to bring this long-life mine into production as one of the largest and lowest cost producers of silver and zinc in the world." Apex Silver Engages Two Major Commercial Banks to Provide Advisory Services On March 24, 2004 Barclays Bank PLC and BNP Paribas signed a Mandate Letter with Apex Silver to provide the company with advice and services related to securing commercial bank debt financing for San Cristobal. This agreement represents the official launch of the third and final stage in securing the total financing package for the development and construction of this major project. "We are delighted to enter into a formal relationship with two of the most established commercial banks in the mining business," said Mark Lettes, Apex Silver's Chief Financial Officer. "Team members from Barclays and BNP Paribas have been working with us in various capacities for many years and are bringing a wealth of international experience to the process." Apex Silver is a mining exploration and development company. Since its inception in 1993 and with the discovery of San Cristobal, it has assumed an increasingly important profile within the silver sector. Its San Cristobal flagship project, located in the Potosi district in southwestern Bolivia, is one of the world's largest open-pit silver-zinc-lead deposits. At the designated production rate of 40,000 tonnes of ore per day, San Cristobal is expected to produce concentrates containing approximately 27 million ounces of silver, 570 million pounds of zinc and 200 million pounds of lead per year in the first five full years of production, making it one of the largest producers of these key metals. The common shares of Apex Silver trade on the American Stock Exchange under the symbol "SIL." This press release contains forward-looking statements regarding the company, within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the development of its mining development projects as well as its global exploration program. Actual results relating to any and all of these subjects may differ materially from those presented. Factors that could cause results to differ materially include fluctuations in silver, zinc and lead prices, fluctuations in the company's share price, the timing and availability of financing on acceptable terms, changes in components of cash operating costs, variations in ore grade and processing rates. The company assumes no obligation to update this information. For additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in the company's Form 10-K filed with the SEC for the year ended December 31, 2003. For further information, please contact Igor Levental, Vice President Investor Relations and Corporate Development, Apex Silver Mines Corporation, 303-764-9162. APEX SILVER MINES LIMITED An Exploration and Development Stage Company Summary Financial Information (In thousands of United States dollars, except for per share data (Unaudited) Quarter Ended Quarter Ended March 31, March 31, 2004 2003 Income and Expenses Interest and other income $495 $155 Trading gains/(losses) (627) 20 Exploration (1,144) (734) Administrative (2,961) (1,128) Amortization and depreciation (8) (6) Net Loss $(4,245) $(1,693) Net loss per Ordinary Share-basic and diluted $(0.10) $(0.05) Weighted average Ordinary Shares outstanding 43,879,777 36,384,879 SUMMARY BALANCE SHEET DATA 03/31/04 12/31/03 Cash and cash equivalents $390,965 $40,899 Working capital 389,644 41,168 Property, plant and equipment (net) 99,610 97,979 Notes payable long term 150,000 599 Shareholder's equity 349,438 143,986 DATASOURCE: Apex Silver Mines Limited CONTACT: Igor Levental, Vice President Investor Relations and Corporate Development of Apex Silver Mines Corporation, +1-303-764-9162

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