Asia Pacific Resources: Somboon Potash Project Awarded Board of Investment Promotional Privileges; Negotiations with Norsk Hydro Expanded to Include Participation of an Asian Potash Consumer.

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 8, 1999--Asia Pacific(NASDAQ:APQCF) (TSE:APQ.) (FRANKFURT:APQ)

Board of Investment Approval

Asia Pacific Resources Ltd. is pleased to announce that the proposed Somboon potash mine, in northeast Thailand, has been granted Promotional Privileges under the Thai Investment Promotion Act.

The Investment Promotion Act provides various taxation and other incentives for investment in approved projects in Thailand, and the Somboon project was approved for such incentives at the February 26, 1999, meeting of the Board of Investment in Bangkok.

Under the Act, the project will be granted an eight year tax holiday beginning at the start of production, followed by a further five year period at 50 percent of the normal corporate tax rate. The corporate tax rate in Thailand is 30 percent. In addition, exemption or reduction of normal customs and import duties in respect of imported equipment and machinery, for the project construction and operation, is granted.

Other privileges include guarantees against nationalization, competition from state enterprises and price controls.

Project Permitting

Asia Pacific has also begun the permitting process to enable the project to proceed to construction. Applications for Special Prospecting Licenses, the first stage of a two-stage Mining Licence application process have been filed, and the Environmental Impact Assessment is expected to be filed later this month. It is anticipated that the major project permits may be secured within a six to eight month period.

Project land requirements

Total land required for the Somboon mine and mill has now been purchased. This will facilitate the construction of the processing plant and all associated access, storage and loading requirements, including the railroad link to the existing State Railroad of Thailand system. The cost of the land acquired is approximately US$7.5 million.

Negotiations with Norsk Hydro 

Finally, Asia Pacific wishes to confirm that project negotiations with Norsk Hydro Asia Pte. are ongoing. By mutual agreement, Asia Pacific and Hydro have included the equity and offtake participation of an Asian potash consumer in their negotiations. Being bound by confidentiality agreements with both parties, Asia Pacific does not intend to make any further statements until all negotiations are concluded.

The Somboon project is located near Udon Thani, Thailand, about 500 kms from Bangkok. The proposed potash mine will have a capacity of two million tonnes of potassium chloride per annum and production is planned to commence in the second half of 2002.

Gerald D. Wright, Co-Chairman and C.E.O.