APX Apex Resources Inc

Asia Packaging Group Inc. (TSX VENTURE:APX) ("Asia Packaging" or the "Company")
is pleased to announce its interim financial statements for the three-month
period ending June 30, 2011.


Interim Financial Results

Highlights



--  During the Company's first quarter it achieved 10.1% growth in revenues
    over the same period of 2010 to $10.5 million. 
--  Gross profit achieved during the quarter was $2.6 million representing a
    5.9% increase over the same period of 2010. Higher value products
    continued to support gross margins at over 24% during the quarter. 
--  The Company achieved EBITDA before stock based compensation of $2.5
    million during the first quarter representing a 7.1% improvement over
    the same period of last year. 
--  The commencement of a non-cash charge for stock based compensation
    caused net income to fall 9.6% for the period to $1.8 million compared
    with $2.0 million during the same period of 2010. 
--  On April 26, 2011, the Company closed its Qualifying Transaction
    together with an $8 million private placement of units. A portion of the
    proceeds from this financing have been used to complete an expansion of
    the Company's manufacturing facility and to purchase manufacturing
    equipment. 
--  As a means of securing additional business, the Company is seeking
    acquisition opportunities. During the first quarter the Company placed a
    refundable deposit on one acquisition target and is in the process of
    conducting due diligence on this company. 
--  As at June 30, 2011, the Company had $9.9 million in cash and no debt. 



"We are pleased to report that our Yichun facility is operating smoothly and we
are continuing to grow our business in the higher margin medical and plastic
packaging markets," stated Mr. Wenge Hong, President and CEO of Asia Packaging.
"We are very excited about our expansion and working towards equipping this
facility and adding customers over the coming months." 


During the first quarter, revenues increased by 10% over the same period of the
previous year. This increase was primarily due to a 14.5% increase in medical
packaging sales and 10.7% increase in plastic packing materials. Selling prices
also contributed to the sales increase as CPP film prices increased by 13.1% and
plastic cups increased by 10.4%. 


During the first quarter, gross margin remained at approximately 25% as the
Company continued to maintain a higher margin product mix. 


SUMMARY FINANCIAL STATEMENTS:



                                   --------------------------------------
                                       Three Months Period Ended          
                                                June 30                   
Canadian $                                    (Unaudited)          Change
                                   -----------------------------          
                                         Q1 2011         Q1 2010          
                                   --------------------------------------
Revenue                               10,463,381       9,502,066     10.1%
Gross profit                           2,566,755       2,423,174      5.9%
Gross margin (% of Sales)                   24.5%           25.5%    -3.8%
Operating expenses                       475,927         139,928    240.1%
Income from operations                 2,090,828       2,283,246     -8.4%
Other income                              18,456               0      N/A
Income taxes                             304,692         286,146      6.5%
Net income                             1,804,592       1,997,100     -9.6%

EBITDA                                 2,226,520       2,372,046     -6.1%
EBITDA before stock-based                                                 
 compensation                          2,539,590       2,372,046      7.1%

Earnings per share                                                        
  Basic                                    0.014           0.019          
  Diluted                                  0.014           0.019          
Weighted average number of                                                
 shares                                                                   
  Basic                              127,823,450     106,300,000          
  Diluted                            131,843,450     106,300,000          
                                   --------------------------------------



During the three months ended June 30, 2011, the Company achieved EBITDA before
stock based compensation of $2.5 million, a 7.1% increase over the same period
of last year. Cash flow from operating activities of $706,000 was supplemented
by the $8 million unit offering which improved the cash position to $9.9 million
at the end of the first quarter.


Financing and Growth Initiatives

On April 26, 2011, the Company closed the proposed Qualifying Transaction.
Concurrent with the Qualifying Transaction, the Company completed a non-brokered
private placement of 20,288,800 units at $0.40 per unit. Each unit is comprised
of one common share in the capital of the Company and one-half of one common
share purchase warrant. Each full warrant is exercisable into one common share
for a period of two years following the closing of the Qualifying Transaction,
at $0.60 in the first year and $1.00 in the second year.


Over the past 18 months, the Company has invested $1.2 million to construct two
new manufacturing buildings adjacent to its existing plant in Yichun City. The
new buildings represent 11,800 square meters of additional manufacturing area.
In addition, the Company has invested $3.9 million in new equipment for the new
facilities with an additional $3.1 million to be invested as equipment is
received. 


As a means of utilizing the added capacity, the company has entered into
discussions with potential acquisitions. The strategy of the Company is to
secure additional customers and licenses thru such acquisitions. During the
first quarter the Company made a $1.5 million non-interest bearing deposit to
secure a right of first refusal for one acquisition. The Company is currently in
the process of conducting due diligence and expects to complete this process by
December 1, 2011. 


About Asia Packaging Group Inc. 

Asia Packaging Group, through its wholly-owned subsidiaries in the People's
Republic of China ("PRC"), is in the business of manufacturing packaging
products and services to the food and pharmaceutical industries in China. The
Company operates a 38,000 square meter plant located in Yichun City, Jiangxi
Province in PRC.


This news release contains certain statements that may be deemed "forward
looking statements". Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company believes
the expectations expressed in such forward looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance
and actual results may differ materially from those in forward looking
statements. Forward looking statements are based on the beliefs, estimates and
opinions of the Company's management on the date the statements are made. The
Company undertakes no obligation to update these forward looking statements,
except as required by law, in the event that management's beliefs, estimates or
opinions, or other factors, should change.

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