Apex Reports on News of Native Aboriginal Group Dismissing Canada's Pipeline Demands; Major Oil Partners Still Committed to Moving Arctic Projects Ahead.

SALT LAKE CITY -- Apex Resources Group Inc. (OTC BB: APXR), today reported on news that native communities in Canada's North are making demands for cash in exchange for rights to build a C$7 (U.S. $5.6) billion gas pipeline across their lands, given the economic changes the project will bring (source: Reuters Canada).

The major oil partners, including Imperial Oil, stated that they are still committed to the project, which would run southern markets from the MacKenzie Delta on the Beaufort Sea. The pipeline possesses the potential to be a source of much needed economic development for the aboriginal people.

The oil companies said last week the land issues and regulatory delays should be resolved before the hearings start in the autumn.

Specifically, the lands of the Gwich'in people make up a large part of the northwestern corner of the Northwest Territories. The companies also need to deal with the Sahtu, Inuvialuit and Deh Cho First Nations. The talks with the companies focused on contracting, employment and education, as well as land deals.

Canadian Deputy Prime Minister Anne McLellan stated this week she agreed with the oil companies that the aboriginal communities are asking the industry to provide things that should not be part of access agreements, such as annual taxes. The federal government is searching for solutions, but has no legal role in the discussions.

"We are pleased that all parties, the aboriginal people, the government and the major oil companies are committed to one common goal - a reasonable solution. The pipeline, through these discussions and negotiations, is the evident and necessary outcome. The economy of the North American continent depends on it," stated John Hickey, Director.

In June 1997, Apex Resources Group purchased a 3.745% working interest in the Beaufort Sea Area known as the Itiyok 1-27 Well, which was drilled in 1983. A review of the well data and geological prognosis indicates that a 640 acre area would contain proven recoverable gas reserves of 108 Bscf and proven recoverable oil reserves of 8,976 MSTB working interest net reserves of 4.04 Bscf and 336 MSTB. Seismic data indicates a structure closure of approximately 40 square KM with a gross potential reserve of 1.16 TCF and 160 MMSTB (working interest net - 34 Bscf and 4.7 MMSTB). The lands in which the Apex Resources Group Inc. owns an interest comprised of 21.54 square KM containing gross potential reserves of 625 Bscf of gas and 86 MMSTB of oil (working interest 23.4 Bscf of gas and 3.2 MMSTB of oil).

With oil at approximately US$50.00 per barrel and gas close to US$7.00 per cubic feet, Apex interest in proven reserves would be 45 Million US Dollars and with an additional potential to be drilled out would represent 323 Million US Dollars. In October 2004 the announcement of the development of the Mackenzie Valley Pipeline became of significant importance to Apex interest in the Beaufort Sea.

A substantial portion of the gas to be transmitted from the Beaufort Sea through Alberta will be used to further develop the Alberta Oil Sands (formerly the Alberta Tar Sands).The Alberta Oil Sand reserves that are retrievable today are estimated to be 280-300 billion barrels of oil and total reserves for Alberta including oil not recoverable by using current technology are estimated at 1700-2500 billion barrels. Cyclic steam stimulation (CSS) and steam assisted gravity drainage are currently being used in recovery of oil from the sands. The steam will be generated by the use of the gas to be transmitted by the new pipeline.

Husky Energy Inc. (HSE.TO) announced recently that it will go forward with plans for a new US$10Billion oilsands project and will begin looking for partners after it clears regulatory rules this year. Husky hopes to begin production from its leases by 2009 using the steam assisted gravity drainage mentioned above. It had been reported that initial production will be 50 thousand barrels of oil per day and increase production up to 200 thousand barrels per day in various increase stages. Husky, controlled by Li Ka-shing, a Hong Kong billionaire, is in talks with the Chinese state-owned oil companies about possible partnerships.

As consumption increases, the need for Northern gas is substantially increased, creating more value for Apex' holdings.

By the Board of Directors,
APEX RESOURCES GROUP INC.
Investor Relations: Cynthia DeMonte/DeMonte Associates
575 Madison Avenue - Suite 1006
New York, New York 10022
Tel: [phone]
e-mail: [e-mail]
        www.demonte.com
        www.ApexResourcesGroup.com
John M. 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.