STANDARD MINE - JIPANGU

Announce it entered into a stock purchase agreement with Jipangu Inc. ("Jipangu") pursuant to which a wholly-owned subsidiary of Jipangu has agreed to purchase Florida Canyon Mining, Inc., Standard Gold Mining, Inc., and Apollo Gold Exploration Inc. for US$14 million (the "Mine Purchase"), subject to certain conditions. In addition, Apollo and Jipangu have entered into a subscription agreement for a US$3.5 million private placement under which Jipangu would purchase up to 11,650,000 units of Apollo priced at Cdn$0.35 per unit, with each unit consisting of one common share of Apollo and 0.17167 of a warrant (for a total of up to 2,000,000 warrants), with each whole warrant exercisable for two years at Cdn$0.39 for one common share. If the private placement were completed and the warrants were exercised, Jipangu would own in the aggregate 19.7% of Apollo's common shares based on 106,556,449 common shares. For details please refer to pa306475.pdf pp1.

The mine entered into commercial production, producing 5,937 oz gold for the quarter ended.

Apollo Gold has poured its first gold/silver dore bar from the Standard gold mine near Winnemucca, Nevada. The Standard gold mine received the required operating permits in May, 2004, and immediately started the construction and development of the open pit/heap leach gold mine approximately four miles south of Apollo's Florida Canyon mine in Nevada.