Asia Pacific Resources Ltd.: Project Update.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Oct. 31, 2001

Asia Pacific Resources Ltd. (OTCBB:APQCF) (TSE:APQ.) (FRANKFURT:APQ)

MINERALS ACT AMENDMENTS

During the past two years the Thai House of Representatives and the Senate have respectively proposed various amendments to the Minerals Act to facilitate the development of large-scale underground mines such as Asia Pacific's Somboon potash project. A key amendment proposed by the House is the right to conduct underground mining at depths greater than 50 meters without permission of the land owner.

On October 19, 2001 a joint House/Senate committee was formed to study both proposals and prepare revised amendments, which can be recommended to both House and Senate for approval. Should this committee be unable to reach agreement the House, following a six-month waiting period, may unilaterally approve the amendments as originally proposed which would then become law.

As for any major natural resource project, permitting for the Somboon project has been a lengthy and complex process. Asia Pacific Potash Corporation (APPC), the Company's Thai subsidiary, has now completed most of the steps and, upon the amendments to the Mineral Act becoming law, will immediately apply for the necessary mining licenses.

ONGOING EXPLORATION AND DEVELOPMENT PROGRAMS

APPC continues to fulfill its exploration and development commitments under the approved Environmental Impact Assessment for the Somboon Potash Mine and the Special Atchayabats (Special Prospecting Licenses). International Environmental Management Consultants (IEM) of Bangkok has been engaged to provide ongoing baseline environmental monitoring services.

PROPOSED FINANCING

APR announced on October 9, 2001 that it would be raising $23 million in new funding. A total of $10 million (including $5 million from Olympus Capital) has already been committed, subject to certain conditions which include that Olympus Capital be satisfied that reasonable progress has been made towards obtaining mining licenses.

SOMBOON PROJECT

APPC is developing the two million tonne per annum Somboon potash mine near Udon Thani in northeast Thailand. When completed, this mine will be one of the world's largest potash mines. Significant potash resources have been identified in two high-grade deposits. The initial mine development will be at Somboon, with future developments on a similar scale likely at the Udon deposit, located within the Concession Area, a few kilometres north of Somboon.

On behalf of the Board of Directors, Robert G. Connochie, Chairman, President and Chief Executive Officer

The information provided in this news release may contain forward-looking statements within the meaning of the Safe Harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on Asia Pacific Resources Ltd.'s current expectations and beliefs and are subject to a number of risks and uncertainty that can cause actual results to differ materially from those described in the forward looking statements.