Apex Reports on News of U.S. $2.6 Trillion Budget Bill Allowing Major Oil & Gas Companies to Drill in Alaska's Arctic National Wildlife Refuge Could Not Be Blocked.

SALT LAKE CITY -- Proposal Would Allow for Sale of Gas Leases in the 19 Million-Acre Refuge Expected to Generate U.S. $2,668 per Acre Versus U.S. $53. per Acre 15 Years Ago

Apex Resources Group Inc. (OTCBB: APXR), today reported on news from Bloomberg.com that indicated the attempt to block a proposal in a U.S.$2.6 trillion 2006 budget bill that would allow Exxon Mobil Corp. and other companies to drill for oil in the 19 million acre Alaskan Arctic National Wildlife Refuge has failed.

The proposal would allow the government to sell oil and gas leases in part of the Arctic National Wildlife Refuge. The proposal anticipates lease revenue of U.S. $2.5 billion.

The U.S. Department of the Interior says the federal government's share of the lease revenue will be U.S.$1.2 billion in 2007. Total lease revenue in the Arctic National Wildlife Refuge would be split evenly between the federal treasury and the state of Alaska.

"The urgency to exploit sources of domestic fuel and allow oil companies to commence drilling in this oil and gas rich area is very apparent. Although much debate arises during times of change - there is one consistent catalyst for that change - the need to bring oil and gas to the lower 48 states as other alternatives of this magnitude are non-existent," stated John Hickey, Director.

In June 1997, Apex Resources Group purchased a 3.745% working interest in the Itiyok 1-27 Well in the Beaufort Sea, 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).

With oil in the US$55.00 per barrel range and gas over US$7.00 per 1,000 cubic feet, Apex interest in proven reserves would be 45 US Million Dollars and with an additional potential to be drilled out would represent 323 US Million Dollars.

Apex Petroleum Division Texas Update

Apex has been informed by PB Energy Partners that the drilling is continuing on the JB Henry Dome #1 Well in McMullen County, Texas. Apex owns a 2.5% working interest.

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. As of this date, the driller has reached the target depth of cutting a hole in the casing two miles down. They can now go back and forth through the opening. The next step involves gently making the turn prior to going lateral. This will take a few days to complete. The drill time should occur over the next week and will be followed by the completion and testing operations. It is expected that testing should be completed by late March. Further update will be released as work continues. If the well is commercial, Apex would receive US$7,500.00 per month for every one million cubic feet of gas production. The Engineers estimate we could hit as high as 3 to 5 million cubic feet of gas per day.

Plaquemines Parish, Louisiana Well Update

The operator (Royal "T" Oil) has turned over their interest in the Plaquemines Parish, Bastian Bay Well #16152 to Imperial Petroleum Inc. Imperial is preparing to do a work over of the Well at a cost of US$906,800.00 as outlined in the current cash call.

The participants in the Well were given a choice of proceeding and pay the additional funds or going on a non-consent situation in which each participant will give up half the net working interest after Imperial has recouped their expenditures. Board of The Management and Apex has agreed to go non-consent to a further expenditure at this time and reduce its 6.25% to 3.125% net revenue interest.

Based on gas prices in the US$7.00 range and an estimated daily gas flow of 1.5 million cubic feet, it is anticipated the Imperial would recover its expenditures within 8 months and Apex would start receiving revenue of approximately US$8000.00 per month for the life of the Well.

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 date for Lot 2 is March 15, 2005 at a cost of $42,165.06. 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.

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 its land holdings and petroleum interests", stated John M. Hickey, Director.

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.