Apex Reports News of Significant Activity in the Beaufort Sea and Exploration in the Alaskan Brooks Range Foothills; Beginning of Massive Development by Oil & Gas Giants.

SALT LAKE CITY -- Apex Resources Group Inc. (OTC BB: APXR), today reported on news that Pioneer Natural Resources and its partner Armstrong Alaska are planning to develop their discovery at Oooguruk in the Beaufort Sea from a drill site pad in the State of Alaska.

In a project description submitted to the Alaska Department of Natural Resources Division of Oil and Gas, Pioneer said the five acre drill site will be in approximately four feet of water, and will develop both Kuparuk and Nuiqsut (Jurassic) reservoirs with a peak rate of 20,000 barrels of oil per day. The development will include approximately 48 wells and three-phase production will be transported to shore in a buried subsea "pipe-in-pipe" flowline. The companies plan to have permits in the fourth quarter of 2005, begin offshore drill installation in late 2005-early 2006, development drilling beginning in the second quarter of 2007 and oil start-up planned for the fourth quarter of 2007.

Concurrently, Petro-Canada and Anadarko reach an agreement to jointly explore the Brooks Range Foothills in Alaska. Anadarko will be the operator of the joint venture.

Petro-Canada said the agreement involves pooling of more than 1.5 million acres of state and Arctic Slope Regional Corp. lease holdings, as well as the pooling of data and knowledge in the area. Encana Oil and Gas (USA) Inc. will continue to hold a 33.33 interest in the Anadarko data and lease holds in the pooled area. Prior to the joint venture, Petro-Canada had an interest in 430,000 acres in the Foothills.

Forest Oil stated the West Foreland No. 2 well has drilled up structure to the West Foreland No. 1 well and tested 15 million cubic feet of gas a day from two zones. The Three Mile Creek Unit No. 1 exploration well flowed at a rate of 1 million cubic feet per day on initial testing from shallow Beluga intervals and additional testing will be completed in the Spring.

"We are witnessing a tremendous increase in activity due to the major companies like Devon Energy and Chevron drilling in the area and the building of the US$20 billion dollar Alaska natural gas pipeline and the US$7 billion dollar Mackenzie Valley pipeline in the area."

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.

"Apex Resources' proven interests in gas reserves could generate US$45 million with the potential for an additional US$323 million (based on gas prices at US$7.00 per 1,000 cubic feet). With more and more drilling and exploration in the area of Apex Resources' investment, these projections may prove to be conservative and drive revenue far beyond our initial expectations," Hickey concluded.

Apex Texas Petroleum Division Update

Apex has been informed by PB energy Partners that due to heavy demand the drilling rig will now be available the week of February 28 to begin drilling on the JB Henry Dome #1 Well in McMullen County, Texas. Apex owns a 2.5% working interest for a cost of US$25,308.00.

This is a re-entry of an existing producing well and the plan is to drill to depths approximately 10,500 feet and horizontal for 1,500 feet. The drill time should occur over 10 days and will be followed by the completion and testing operations. It is expected that testing should by completed by mid March.

Apex Land Division Update

In 2004 Apex signed Purchase Agreements for two recreational lots at Cowichan Lake, in South Central Vancouver Island, British Columbia. These prime view properties are located at Upper Point Ideal Road. The lots are CA$125,000 for Lot 4 and CA$120,000 for Lot 2.

Lot 2 is .81 acres in area and Lot 4 is 1.05 acres in area. The Agreements were for CA$10,000.00 deposit on signing.

The closing on Lot 4 was on January 21, 2005 and a further payment of CA$39,015.44 was made that included CA$30,000.00 balance of down payment and CA$9,015.44 for Title Transfer, Goods and Services Tax and accountant fees. The closing date for Lot 2 is expected to occur by early March.

This purchase is in addition to the large acreage ocean front lots with houses that Apex owns at the Abbecombec Ocean Village Resort on the shores of Clam Bay, 40 miles east of Halifax. Also, Apex properties include 40 acres of land at Woodland Valley Ranch in Apache County, Arizona and 75 acres of land at Elk Valley Ranch which is also located in Apache County, Arizona.

Apex Land Division will continue to search for value added properties for investment purposes.

"Certainly Apex is well positioned for growth with both it's land holdings and mineral leases. These diversified assets could be highly lucrative to the Company to derive revenue from more than one source," stated John Hickey, Director.

The foregoing contains forward looking statements. For this purpose any statements contained in this document that are not statements of historical fact may be deemed to be forward looking statements. Without limiting the foregoing, such words a "may", "will", "believes", "anticipates", "estimates", "continue", or comparable terminology intends to identify forward looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending upon a variety of factors, including, but not limited to, the successful negotiation and execution of the definitive acquisition agreement and receipt of certain exhibits and schedules requested by Apex Resources Group Inc.