Asia Pacific Resources-Udon South Potash Project Update.

TORONTO -- Asia Pacific Resources (TSX:APQ)(FRANKFURT AND STUTTGART STOCK EXCHANGES:APQ)(OTCBB:APQCF) has provided the following update in respect of the Udon South project:

Development of the Udon South project remains the Company's first priority. Exploration, engineering and environmental activities for the Udon South Project have all been completed and the project, subject to the grant of the Mining License, is ready for financing and construction.

The process of obtaining the Mining License has proved to be more bureaucratic than anticipated by the Company or apparent in the legislation. Rising potash prices and increasing demand, particularly in Asia, mean that the benefits of this project to Thailand are very significant and are well understood by many officials connected to the project. Local parties which object to the project, who are in the minority, obstructed government officials during the survey process and continue to escalate their objections to the project.

During the last three months, the Department of Primary Industries and Mining (DPIM) completed the survey of the mine boundaries. However, the DPIM have made a new request that the plant site boundary also be surveyed before the survey results may be posted on the community notice boards. This activity must be completed before the stakeholder research program can commence.

The Environmental Department has not completed the required review of the supplementary improvements to the Environmental Impact Assessment pending completion of the survey. The Department has also requested a notification from the DPIM of an approved Mine Plan which details how the Company will mine and process the deposit.

In June 2005, the Company's agreement with PAG Worldwide Limited was terminated.

The Company continues in discussions with potential partners and financers primarily from China and Thailand. While the Company has responded to a number of due diligence enquiries, no agreements have been reached and there is no assurance of any agreements being finalized.

It is worth emphasizing that, over the lifetime of the Udon mine, in excess of US$4.4 billion of cash will remain in Thailand directly generated by this project. The indirect benefits together with savings from current imports of potash to Thailand add substantially to the economic benefits to Thailand.

FORWARD LOOKING STATEMENTS

This document contains "Forward Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, and Asia Pacific's future plans are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward looking statements are based upon estimates and opinions of management on the date the statements are made, and the Company does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.

Asia Pacific Resources shares are traded on the TSX as well as the Frankfurt and Stuttgart Stock Exchanges, under the symbol APQ, and on the OTCBB under the Symbol APQCF.

Asia Pacific Resources Ltd. (TSX:APQ) (FRANKFURT:APQ) (OTC Bulletin Board:APQCF)