Apex Sees New Development in Alaskan Pipeline Project

Apex Resources Group announces further development of a $20 Billion natural gas pipeline from Alaska through Canada.

On October 11, 2004 the U.S Congress approved $18 Billion of loan guarantees to construct a $20 Billion natural gas pipeline to transport gas from Alaska through Canada to the lower 48 States.

The major owners of Alaska gas reserves, Conoco Phillips, ExxonMobil Corp. and BP Plc have stated previously that the pipeline cannot be built without government incentives.

President George W. Bush and his opponent in the November 2nd presidential election, Senator John Kerry, both are in support of loan guarantees for the pipeline construction.

This announcement follows the previously announced $7 Billion natural gas pipeline to be built through the Mackenzie Valley in Canada. The 8000 page application for construction of this pipeline has been filed with regulators.

Apex Resources Group Inc. interest in the Itiyok 1-27 well in the Beaufort Sea, which was drilled in 1983 is a 3.745% working interest. 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. Apex's working interest net reserves are 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 (Apex's 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 (Apex's working interest 23.4 Bscf of gas and 3.2 MMSTB of oil.) Apex Resources Group Inc. acquired this interest in 1997.

With oil at over $50.00 per barrel and gas over $6.00 per 1000 cubic feet, Apex interest in proven reserves would be 45 Million Dollars and with an additional potential to be drilled out would represent 323 Million Dollars.

Once the pipeline is completed and on-line it will be a tremendous cash flow to Apex Resources Group Inc.