Asia Pacific Resources Ltd.: Convertible Debentures Extended to October 2001.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--June 27, 2000

Asia Pacific Resources Ltd. (NASDAQ:APQCF) (TSE:APQ.) (FRANKFURT:APQ) is pleased to announce that it has negotiated an extension to the maturity date of its 10% Secured Convertible Debentures (July / August 1998). By agreement, the maturity date for the debentures has been extended to October 13, 2001.

The principal amount of the debentures is US$24.46 million, and the estimated sum due to debenture holders on the original maturity date (August 13, 2000) would have been US$31.749 million. At the new maturity date (October 13, 2001), the estimated sum due to debenture holders will be US$37.083 million. As before, no cash payments are due to debenture holders prior to maturity.

As consideration for the granting of this extension, debenture holders will be entitled to convert the debt due at any time for common shares in Asia Pacific Resources Ltd. at a conversion price of US$2.32 (or C$3.43 at the current exchange rate) per share. If conversion occurs on or before the new maturity date, up to 16 million shares may be issued, representing approximately 20.2% of the then, fully diluted common shares of the company. This is subject to the approval of shareholders at the Company's August 9, 2000, Annual General Meeting and the appropriate regulatory bodies.

If the necessary shareholders' approval is not obtained, on conversion of any Debentures, any portion not satisfied through the issuance of shares will be payable in cash, the amount of which will be equal to the number of additional shares the Debenture holder would have received on conversion if able to convert all of its Debentures multiplied by the weighted average trading price of Asia Pacific shares on the Toronto Stock Exchange on the day notice of conversion is given.

The funds initially received from the debenture holders enabled Asia Pacific Resources Ltd. to increase its direct and indirect interest in Asia Pacific Potash Corp. (APPC) (the potash concession holder) from 62.5% to 90.0%, an effective increase in project revenues of some 44%.

Gerald Wright, the C.E.O. said "This extension represents a vote of support by our debenture holders, who remain focused on the favourable outlook for potash in Asia, the development prospects for the project and the long term equity value of the company. By addressing the debentures proactively, this agreement allows us to get on with the business of finalizing the financing package and construction terms of the project."

APPC is well advanced on the development of the two million tonnes per annum Somboon Potash Project, in Udon Thani province, northeast Thailand. The project permitting processes and debt financing phases are advancing, and APPC anticipates the start of construction in the first half of 2001.

Gerald D. Wright, Chief Executive Officer