Apex Resources Group Inc. Announces Update on Two Gas Well Drilling Programs.

SALT LAKE CITY -- Publicly traded Apex Resources Group Inc. (OTCBB:APXR) announces update on two gas well drilling programs.

Louisiana

Apex Resources Group Inc. owns a 6.25% interest in State Lease 16152 Gas Well at Bastian Bay, Plaquemines Parish, Louisiana. This well has proven approximately two million cubic feet of gas per day. This is extremely good and Apex is expected to receive monthly revenues of approximately $15,000.00 per month after working interest and royalty payments.

The well was turned on earlier this year and was about to begin flow testing when the pressure dropped and it unexpectedly filled with water.

The operator (Royal "T" Oil) shut the well in and worked with engineers to develop a strategy to remove the water and hook up to the gas lines. It was decided to leave the well shut in for a couple of months to let the pressure build. As of Aug. 27, 2004, the bottom pressure in the well is 8000 pounds and the top pressure is 1550 pounds. The plan is to have a crew open the well by mid-September, remove as much water as possible and flow test the gas prior to hooking up the sales line.

Texas

Apex owns a 2.5% working interest in the BB Gayle #1 Gas Well at Mannahuilla Creek in Goliad County, Texas. The operator (PB Energy USA Inc.) provided the following report on Aug. 26, 2004.

"The Jackson formation was perforated from 5325' to 5345' coinciding with the dipole sonic log shows and the mud log shows. The formation was shot over pressured at 2200# and immediately dropped to 1800#. It built up to 1900# within a few minutes. The well was opened and allowed to flow to zero pressure, flowing load water initially and then a steady blow of gas.

On Aug. 24 the wellhead pressure was 1600#. A swabbing unit was rigged up and the well was swabbed down to just above the perforations with a constant gas blow throughout. It was shut in overnight with zero pressure. The pressure built to 60# in the 10 hours overnight and fluid was tagged at 4800'. Material from the formation was recovered at 5200', the sample being mostly clay. When opened the well was full of gas.

We have a definite gas zone but the formation is tight and will get a frac program and cost estimate from Schlumberger. Our engineer on site feels that we have a commercial well."

As soon as additional information, cost estimates and budget information is received we will communicate again to the partners.

Further updates will be released as work progresses.

By the Board of Directors

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 as "many", "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.