Apex Reports on News of Shell Canada's Commitment to Pipeline.

SALT LAKE CITY -- Apex Resources Group Inc. (OTC BB: APXR), today reported on news that Shell Canada Ltd. is still committed to proceeding with the $7-billion Mackenzie Valley natural gas pipeline (source:GlobeandMail.com).

Clive Mather, CEO of Shell Canada, told the Calgary Chamber of Commerce, "Mackenzie Delta for us is a very, very important project and we are committed to doing it, but we want to see some unblocking of the regulatory processes so we can actually get this thing started again."

Shell Canada (SHC-T) and partner Imperial Oil(IMO-T) are joined in the pipeline consortium with international energy giants Exxon Mobil(XOM-Z) and ConocoPhillips.

"It is increasingly apparent through Clive Mather's remarks that Shell Canada plans to move ahead as part of the consortium for the Mackenzie Valley pipeline. It is our contention that the meetings occurring nationwide in Canada are creating an impetus to keep this process moving and expedite agreements for all parties involved. The pipeline is inevitable!," 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 comprise 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).

Itiyok 1-27

    Part 1 - Proven Gas & Oil Reserves: (640 acre area)

    Total: - A) 108 Bscf- Gas
             B) 8.976 MM STB - Oil

    Apex Working Interest - (3.745%)

             A) 4.04 Bscf - Gas @US$7.25/ft(3) = US $29.29 Million
                (Gas)

             B) 336,000 STB - Oil @US$55.00/B = US$18.480 Million
                (Oil) US$47.77  Million (Gas&Oil)

    Part 2 - Probable Gas & Oil Reserves: (40KM(2))

    Total: - A) 1.16 TCF - Gas
             B) 160 MM STB - Oil

    Apex Working Interest - (3.745%)

             A) 34 Bscf - Gas @ US$7.25/ ft(3) = US$246.5 Million
                 (Gas)
             B) 4.7 MM STB - Oil @ US55.00/B = US$258.5 Million (Oil)
                US$505. Million (Gas & Oil)

    Part 3 - Possible Gas & Oil Reserves: (21.54 KM(2))

    Total: - A) 625 Bscf - Gas
             B) 86 MM STB - Oil

    Apex Working Interest - (3.745%)

             A) 23.4 Bscf - Gas @US$7.25/ft(3) = US$169.65 Million
                (Gas)

             B) 3.2 MM STB - Oil @US55.00/B =US$176. Million (Oil)
                US$345.65 Million(Gas & Oil)

                       Total of All 3 US $898.42 Million (Gas & Oil)

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$10 Billion 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 thousands barrels of oil per day and increase production up to 200 thousands 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.

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.