Release: Apolo Gold Inc.: Sumatra operations update

(VANCOUVER, BC 09/02/2004) -- Apolo Gold Inc. (OTC BB: APLL), completed the overhaul of its mill on the KBU site in early August, 2004. This overhaul was more extensive and time consuming than originally estimated but the mill has now been operating successfully for an average of 8 hours per day since the middle of August 2004. The Company intends to expand its daily operation to 16 hours per day in the next week. It is anticipated a third shift, which will allow 24 hour continuous operations, will be added shortly thereafter.

Throughput at the mill site has been reduced to approximately 9 tonnes per hour in order to allow for ample grinding time of the ore in the ball mill. This provides more complete particle liberation from the rock and allows for an increase in gold and silver recoveries in the falcon bowl separators. The resulting concentrates are then upgraded on a Deister table to produce a high grade gravity concentrate which is currently being stored until the electrowinning treatment circuit is operational.

Current production is derived from Trench 25 area. Recent sampling from 6 separate samples over a 6 meter width show an average of 3.78 grams gold per tonne and 552.50 grams silver per tonne.

The Company's metallurgical consultant, Process Research Associates, is conducting a further analysis of the mill's metallurgical performance. This is based on production data to date and on samples recently received by them from Indonesia. This work is expected to lead to further modifications in the process circuit in order to optimize and maximize gold and silver recoveries at the concentrate stage. The final processing stage, producing saleable gold and silver ore from these concentrates, will be carried out in an electrowinning plant to be assembled at the site. Final engineering designs are being completed by Process Research Associates in tandem with the arrival of additional processing equipment including a grinding mill with classifier, agitator tanks, gravity concentrator, gravity table, and a cyclone unit.

Peter Bojtos, P. Eng., a geologist and mining engineer with extensive production experience in international mining operations, will provide more comprehensive technical and procedural consulting services regarding operational matters at the mine site. Bojtos is currently an Advisor to the Board. The increased consulting services of Bojtos regarding production issues will allow the Company President to focus entirely on exploration maters on KBU and NUP and to conduct further field work regarding clarification of the copper deposit on the south end of the NUP property.(end of release)

APOLO GOLD INC. 1458-409 Granville St. Vancouver, B.C. V6C 1T2