Apolo Gold completes exploration program on Sumatra gold project

Vancouver-based gold miner Apolo Gold Inc. announced Monday it had completed its exploration program on the KBU gold project in Lampung, Sumatra and has compared its test results with drilling and test results previously obtained on the NUP, which is located nearby KBU.

The company said it had to focus its production activity in 2005 on the Camp Zone area on NUP property where previous drill results in 2003 showed significantly higher mineralized values.

Previous drilling on the NUP determined a mineralized zone of approximately 500 meters in length on what is referred to as the Camp Zone.

Earlier in 2004, the Company commenced an exploration adit to intercept the Camp Zone vein. This adit is about 100 meters in length and it is estimated that it should intercept the vein by the end of December 2004. The adit intercept will verify a previously drill indicated one (1) meters in width. The Company then intends to mine this vein to the south, which extends at least 160 meters. Previous results showed Drill holes #3 and #8 intercepted 1 meter wide of 47 grams and 82 grams gold per tonne and 1,400 grams and 1,300 grams silver for an average of 64 grams gold and 1,350 grams silver per tonne. Shaft #4 averaged 28 grams gold and 1,300 grams silver per tonne.

As a mineable width is at least two meters, and drill results were one meter, the Company has reduced these values by 50%.

As this Camp Zone area is open to the south and to depth, the Company intends to carry out additional drilling on this zone in 2005, which could appreciably extend known mineralized values. Current estimates indicate at least three years of production available before additional drill data expected in 2005, which could extend production significantly.

While the Company is pursuing the vein to the south, it also intends to follow the vein to the north where the vein in known to extend at least 320 meters. Previous drill results on a portion of this zone, indicated an average 6.5 grams gold and 165 grams silver per tonne. As this zone is also open north and to depth, additional drilling is also planned for this area in 2005.

Additional underground mining equipment will be required and has been located in Indonesia. This equipment will be purchased early in 2005 along with delivery of the remaining electrowinning processing equipment.

Te company also announced it had executed an amendment to its agreement on the KBU property, wherein it will now pay $25,000 on or before December 15, 2004 and the remaining payments currently due plus payments due in January and February 2005, totaling $200,000 are deferred until March 31, 2005. (*)