Release: Apolo Gold: Sumatra Production Update

(VANCOUVER, BC--(MARKET WIRE)--Jul 22, 2004) -- Apolo Gold Inc. (OTC BB:APLL.OB - News), started its KBU mill in in Lampung province in April 2004, following "terms of use" arrangements announced in December 2003. The objective was to test the mill equipment, and sort out timing issues related to the flow of material. This initial run produced significant information with approximately 1,000 tonnes of material processed at an average of 8 tonnes per hour utilizing about 60% of mills' capacity at the time. As a result of this initial production, several equipment upgrades were identified and over the past eight weeks, various integral parts of the mill were refurbished and upgraded in order to enhance optimum gold and silver recovery.

This upgrade and refurbishing will be completed in a few days and the Company expects its throughput of material to increase to 15 tonnes per hour. Equipment issues have been addressed and a new operating permit will allow the mill to operate for up to 16 hours each day.

Concentrate samples derived from the mill area were shipped to Process Research Associates for metallurgical testing. Testing of the concentrate that averaged 273 grams Au and 1232 grams Ag/tonne was conducted using PRA's electrowinning equipment similar to that purchased and received by Apolo in Sumatra. This equipment produced a recovery of 95% Au and 70% Ag. The Company's electrowinning equipment is on site and awaiting other ancillary equipment and installation and will form an essential part of the engineered model for the enhanced gold and silver recovery process.

During the period of Mill equipment upgrade and refurbishment, the Company's geological personnel conducted tests on two areas of the KBU, one near the mill site and the other being referred to as Trench 25, located south of the mill. The samples taken were 2 metre channel cuts, contiguous over 12 metres, which averaged 2.41 grams Au and 442 grams Ag/tonne. Further samples taken from Trench 25 were 2 metre channel samples, contiguous over 8 metres, averaging 2.40 grams Au and 280 grams Ag/tonne. This includes a 2 metre width of 8.19 grams Au and 920 grams Ag/tonne.

The Company's first production next week will be from the mill site area followed by the Trench 25 area and the Company will report production results in August, 2004.

APOLO GOLD INC

1458-409 Granville St.

Vancouver, B.C. V6C 1T2

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