Apollo Resources Subsidiary Completes Land Deal for First Biodiesel Refinery in the State of Oklahoma.

DALLAS -- Apollo Resources International, Inc. (OTCBB:AOOR) today announced that its 50% owned subsidiary, Earth Biofuels, has completed the purchase of approximately four acres of land in Durant, Okla. (previously mentioned in Apollo's release on May 17, 2005) which will serve as the site for construction of a ten million gallon per year biodiesel refinery. This biodiesel facility will be the first of its kind in the state of Oklahoma. The site currently serves as the location of a retired feed mill that has been a landmark in Durant for over 50 years.

"There were three or four sites that we looked at, but this was the place to build," stated Tommy Johnson, CEO of Earth Biofuels and President of Apollo Alternative Fuels. "When we have completed the site preparation, the city and the people of Durant will share a renewed pride in the area."

The site had fallen into a state of disrepair in recent years, but Earth Biofuels will completely transform the location into a state-of-the-art biodiesel production facility. Construction of the refinery is set to begin immediately, and initial production is expected to start as early as October of this year.

Mr. Johnson said, "The idea to build in the location was the brainchild of Mr. Tommy Kramer, Executive Director of the Industrial Authority for the city of Durant, who has been invaluable in putting this deal together. He was able to bring all of his resources to the table and show us why so many companies are locating in Durant."

Mr. Kramer stated, "Senator Jay Paul Gumm and Representative John Carey of Durant were extremely supportive of this biodiesel refinery and supported HB1398 to provide state tax credits to facilitate the production of this environmentally safe alternative fuel."

State bill HB1398 has recently been approved by both chambers of the Oklahoma state legislature and sent to Governor Henry for signing. The bill provides a tax credit to biodiesel producers in Oklahoma. Under the proposed new law, biodiesel producers may receive tax credits of up to $0.20 per gallon, and totaling up to $5 million per year, per facility.

"We see many proposed tax benefits in every state in which we consider building, but this credit takes it to the next level," stated Johnson. "Biodiesel makes so much sense, economically and environmentally. The passing of this bill tells us that the state of Oklahoma recognizes these benefits, and is encouraging biodiesel production as rapidly as possible."

Apollo Resources International (www.apolloresources.com) is a public energy company focused on the acquisition and development of upstream oil & natural gas production assets. In the Four Corners area of New Mexico, Apollo has over 1.5 million barrels of oil in recoverable reserves and 10 billion cubic feet of natural gas reserves. Apollo owns approximately 1,800 miles of pipeline easements and pipelines in Oklahoma, Texas, Kansas, and Illinois. Apollo also has government certified 4.3 million barrels of oil in recoverable reserves through the acquisition of JSC Kaliningradneft in the Russian province of Kaliningrad. Additionally, the Company evaluates and develops existing and future alternative energy sources, such as biodiesel fuel. Earth Biofuels is a subsidiary of Apollo with headquarters in Jackson, Miss., and may be contacted by calling Jay Johnson at 580-775-1729.

This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.