Asia Pacific Resources Somboon Potash Development Update.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--March 2, 2000

Asia Pacific(NASDAQ:APQCF) (TSE:APQ.) (FRANKFURT:APQ)

MOU EXECUTED WITH BECHTEL ON TECHNICAL SERVICES

Further to the company's News Release of December 21, 1999, Asia Pacific Potash Corp. (APPC) has now executed a Memorandum of Understanding (MOU) with Bechtel International Inc. (Bechtel). The MOU relates to the negotiation of a Technical Services Agreement (TSA) under which Bechtel will provide engineering design, project scope book preparation, execution planning, scheduling and cost estimating for the Somboon potash project. The TSA is expected to lead to a Fixed Price, Lump Sum Turnkey Contract with Bechtel to undertake detailed engineering, procurement, construction and commissioning of the Project. It is anticipated that the TSA services will be completed within a six month timeframe. Bechtel is a premier engineering, construction, development and management organization with a century of experience and 30,000 non-manual employees worldwide.

United Infrastructure Company International Ltd. (UIC), an affiliate of Bechtel, are well advanced on their project due diligence and it is anticipated that this will be completed in the near future. APPC and UIC will then negotiate the terms and conditions associated with UIC's intention to acquire a 20% equity interest in the Somboon project. Such negotiations would also include the development of a tripartite Joint Development Agreement (JDA) and a Shareholders' Agreement for the project. It is proposed that APPC will maintain a 60% equity interest in the project, while UIC and Norsk Hydro Asia Pte. Ltd. would each hold 20% equity interests.

PORT AND LOGISTICS

Asia Pacific has executed a Letter of Intent (LOI) with the Unithai Group of Companies (Unithai) in respect of transportation, logistics and export port development for the proposed Somboon project.

Under the LOI, the Parties agree to work together towards forming a Joint Venture to finance and develop an appropriate transportation plan, port facilities and railroad maintenance facilities to serve the Project, as well as for future production facilities developed by APPC within the Udon Thani potash concession area.

Unithai represents the Thailand arm of the IMC Pan Asia Alliance Group, a regional organization with primary interests in shipping, transportation, logistics, engineering and infrastructure development, and has specific experience in the transportation and handling of bulk products. Unithai holds a potentially suitable port development site, for the construction and operation of a potash export facility, at Laem Chabang on the eastern seaboard of the Gulf of Thailand.

ENVIRONMENTAL PERMITTING

The Project Environmental Impact Assessment (EIA) has now been reviewed by the Office of Environmental Policy and Planning (OEPP) and the Environmental Division of the Department of Mineral Resources (DMR) and has progressed to the final stage of the environmental permitting process, review by the OEPP Panel of Experts. Following approval of the EIA, APPC will make formal application for long term Mining Licences for the project.

PROJECT DEBT FINANCING

APPC has continued its dialogue with a number of commercial banks and international agencies in connection with project debt financing. APPC is currently assessing proposals, in conjunction with the other proposed Project participants, to select the Lead Arranger(s) for the required financing and anticipates concluding the process in the near future.

UDON POTASH DEPOSIT

APPC maintains a 100% interest in the Udon potash deposit, located to the north of the Somboon ore-body. APPC has commenced a strategic seven-hole diamond drilling in-fill program which is intended to conclude exploration programs for the definition of the Udon resource.

The Udon resource is presently defined by a total of 82 drillholes and 275 kms of 2-dimensional seismic surveys. The purpose of the present program is to drill strategically located boreholes within the potash deposit to complete the field geological information necessary for APPC to prepare for the commissioning of a formal feasibility study for the future development of this major potash deposit.

The infill program will permit authoritative estimation of the geological resource and probable mineable reserves, by confirming the stratigraphy, structure and continuity of the resource. The estimated cost of the program is C$450,000 and it is expected to be completed within two months.

Gerald D. Wright, Chief Executive Officer and Co-chairman