Apex Silver Announces Agreement With Certain Convertible Note Holders

DENVER, CO, Jan 12 (MARKET WIRE) --
Apex Silver Mines Limited, (AMEX: SIL) (the "Company") today announced
that it has reached agreement with holders of approximately 43% of the
Company's $290 million convertible subordinated notes on the principle
terms of a plan of reorganization under Chapter 11 of the U.S. Bankruptcy
Code. As contemplated by the proposed plan of reorganization, if the
class of convertible subordinated note holders accepts the plan, senior
creditors under the Company's guarantees of the San Cristobal mine's
project financing facility will waive and release their senior claims and
holders of convertible subordinated notes will receive a pro rata share
of approximately $45 million in cash plus common stock of the reorganized
Company. However, if the class of convertible subordinated note holders
rejects the proposed plan, the class would receive an allocation of cash
only after payment in full of the senior creditors. In such
circumstances, the convertible subordinated note holders would receive
common stock of the reorganized Company, but might not receive any cash
distributions. The consummation of the proposed plan of reorganization is
subject to the satisfaction of numerous conditions, including approval by
the bankruptcy court of a disclosure statement relating to the proposed
plan and the closing of the previously announced sale of the Company's
interest in the San Cristobal mine and related assets to Sumitomo
Corporation. The Company expects to commence the Chapter 11 filing this
week, possibly as early as Monday, January 12.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act and Section 21E of the Exchange Act,
including statements regarding the Company's reorganization under Chapter
11 of the Bankruptcy Code and certain of the anticipated terms of the plan
of reorganization. These statements are subject to risks and
uncertainties, including the ability of the Company to continue business
operations during the Chapter 11 proceeding; whether the Company's
anticipated financial resources during the proceedings will be sufficient
to fund its operations; the ability of the Company to obtain court
approval of various motions it expects to file as part of the Chapter 11
proceeding; the ability of the Company to consummate a plan of
reorganization as currently planned; risks associated with third party
motions in the Chapter 11 proceeding, which may interfere with the
Company's ability to develop and consummate a plan of reorganization; the
potential adverse effects of the Chapter 11 proceeding on the Company's
liquidity, results of operations or business, including its vendor terms
and its ability to motivate and retain key executives and other necessary
personnel while seeking to implement its plan of reorganization. The
Company assumes no obligation to update this information. Additional
risks relating to the Company may be found in the Company's periodic and
current reports filed with the Commission.

CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
(303) 839-5060
Sr. Vice President Corporate Affairs

Copyright 2009, Market Wire, All rights reserved.

-0-