Apex Announces Significant Momentum in National Awareness of Alaskan Artic Gas as the Key to Long Term Energy Security.

SALT LAKE CITY -- - Natural Gas Pipeline to Provide in Excess of 50 Years of Secure Supplies - Apex in Play with Industry Giants -

Apex Resources Group (OTC:BB-APXR) today reported on Alaskan Governor, Frank Murkowski's initiative to create national awareness of Arctic gas as the key to long-term U.S. energy security.

"Americans concerned about securing a long-term source of clean energy should join Alaska in supporting a pipeline to bring North Slope natural gas to domestic markets," told a national gasoline conference in Houston on Thursday.

Speaking to the American Conference Institute at its Alaska Gas Pipeline symposium, Murkowski said Alaska's 35 trillion cubic feet of gas - (worth approximately $245 billion at today's price of natural gas of $7.00 per thousand cubic feet) - a 300 percent spike in gas prices, recent federal legislative victories and ongoing state efforts are combining to make the long hoped-for gasoline a reality.

"The Alaska natural gas pipeline will provide 50 years or more of secure supplies that will provide all Americans with a degree of stability they could never achieve through a complete dependence on imported gas," Murkowski added.

Other key conference speakers included Yukon Territory, Premier Dennis Fentie and U.S. Department of Energy Undersecretary, Mark Maddos. The conference topics also included sessions on recent U.S. federal energy legislation, U.S. and Canadian gas markets and possible alternatives to the gasline. Governor Murkowski also discussed the natural gas pipeline and the Alaska Railroad extension corridor with Premier Fentie during a separate meeting.

In his address, Murkowski credited Alaska's Congressional Delegation for winning passage of critical federal gas line support, including loan guarantees, tax credits, expedited judicial review and other incentives. He also said his administration is exploring innovative approaches to encourage gasline construction, such as taking an equity position and assuming shippers' risk for its share of the gas reserves.

The governor also said he is working to encourage development of both oil and gas by reforming state permitting, improving transportation infrastructure and extending the season for exploration on Arctic tundra.

Murkowski's address is part of his ongoing effort to provide job opportunities for Alaskans, generate revenue to the state and secure energy sources to the nation by building a natural gas pipeline. The pipeline is expected to employ tens of thousands of Alaskans and generate hundreds of millions of dollars for the state.

The administration is negotiating with the producers group which includes: ConocoPhillips, BP and Exxon, and also with TransCanada. These two groups have applied to negotiate tax and royalty conditions of a gas line under the Stranded Gas Act. The governor is also talking with MidAmerican Energy Holdings Company, the Alaska Natural Gas Development Authority, the Alaska Gasline Port Authority, Embridge and Calpine outside the framework of the stranded Gas Act.

The governor plans to present a final contract to the Legislature to consider for approval during the legislative session that starts in January. He also updated the audience on the current progress toward opening the Arctic National Wildlife Refuge for oil development.

The department's Bureau of Land Management (BLM) authorized the first commercial development of the National Petroleum Reserve in Alaska, allowing the companies to go forward with developing the tracts, which are located in the northeastern corner of the reserve. Production from these fields, which together hold more than 330 million barrels of oil, will start by 2006, according to the Bureau of Land Management. They will supplement production from the Alpine fields, which hold 429 million barrels and have a daily oil output of about 100,000 barrels.

The petroleum reserve, the size of Indiana, was set aside in 1923 for its energy potential, but until recently it has been ignored in favor of the region to the east, around the giant Prudhoe Bay field.

The Bush administration believes the new Congress next year will approve oil drilling in the separate Arctic National Wildlife Refuge, which may hold up to 16 billion barrels of crude.

On October 13, 2004, Apex Resources Group Inc. announced the application for the $7 Billion MacKenzie Valley Pipeline had been filed with the regulatory bodies. The massive application has been in the works for two years and is now in the hands of the National Energy Board of Canada.

On October 26, Apex Resources Group Inc. announced further development of a $20 Billion Dollar Alaska Highway Gas Pipeline from Alaska through Canada to the lower 48 States.

The Canadian Beaufort Sea Area, which borders Alaska's North Slope, is estimated by the National Energy Board of Canada, to contain total reserves of 1.01 billion barrels of oil (worth approximately $50 billion) and 9.00 trillion cubic feet of gas (worth approximately $63 billion).

In June 1997, Apex Resources Group Inc. purchased a 3.745% working interest in the Beaufort Sea Area Well known as Itiyok 1-27 consisting of 640 acres containing reserves of 108 billion cubic feet of gas and recoverable oil reserves of 8.976 MM barrels. The best current estimate of the total discovered resource in the basin is 1.01 billion barrels of oil and 9.00 trillion cubic feet of gas according to the National Energy Board.

With oil ranging at $50.00 per barrel and gas close to $7.00 per 1,000 cubic feet, Apex interest in proven reserves would be 45 Million Dollars and with an additional potential to be drilled out would represent 323 Million Dollars. Once the pipeline is completed and on-line, it will be a tremendous cash flow to Apex Resources Group Inc.

Earlier this year Apex Resources received correspondence from Imperial Oil Resources outlining proposed revisions to the Beaufort Sea Operating Agreement intended to simplify and clarify the agreement for future operations. Management reviewed the proposed revisions and agreed with the general principals. Apex operating partners in the Beaufort Sea Project are:

Apex Resources Group Inc. (OTC BB-APXR)

Anadarko Canada Corporation (NYSE: APC)

BP Canada Energy Resources Company BP PLC (NYSE: BP)

BRL Enterprises Inc.

Canalands Resources Corporation

CanNat Resources Inc. (TSE: CNQ)

Canadian Forest Oil Ltd. (NYSE: FST)

Devon ARL Corporation (NYSE: DVN)

EnCana Oil & Gas Partnership (TSE: ECA)

Imperial Oil Resources (TSE: IMO)

Mosbacher Operating Ltd.

Petro-Canada (TSE: PCA)

Talisman Energy Inc. (TSE: TSX)

Trans Dominion Energy Corp. (NASDAQ: TRLG)

677862 Alberta Ltd. (TSE: ACOX)

These are significant discoveries and the need to transport these reserves via a pipeline through Canada to the Southern States is paramount. An 8,000 page application has been filed with regulators by a consortium to build a $7 Billion Pipeline down the Mackenzie Valley. The consortium consists of Imperial Oil Resources, ConocoPhillips, Shell Canada Limited and the Aboriginal Pipeline Group. Within days of this application being filed, the US Congress approved $18 Billion of loan guarantees to construct a $20 Billion pipeline to transport gas from Alaska via Canada to the lower 48 States.

With the U.S. Interior Department on Friday November 12, 2004 finally approving a plan by ConocoPhillips and partner Anadarko Petroleum Corp. to develop five tracts around the oil-rich Alpine field on Alaska's North Slope and the application for the $7 Billion Mackenzie Valley Pipeline and also the further development of the $20 Billion Dollar Alaska Highway Gas Pipeline, drilling and exploration activities will become more feasible. This will lead to an increase in the value of leaseholds and working interests, thus greatly increasing Apex Resources Group Inc. 3.745% working interest in the Beaufort Sea Well Area.

By the Board of Directors,

APEX RESOURCES GROUP INC.