Asia Pacific Submits Mining Lease Application.

Business Editors

TORONTO--(BUSINESS WIRE)--May 29, 2003

Asia Pacific Resources Ltd. today announced that it had submitted the Application for four Mining Leases for the mining area covering the potash deposits in Udon Thani, in North East Thailand in compliance with the terms of the Concession Agreement between the Company and the Thai government.

The four Leases cover the Udon South deposit as described in the existing Environmental Impact Assessment. The EIA, conducted in accordance with Thai environmental law and guidelines, was approved by the Thai government in January 2001.

The Udon South resource is world class and is estimated at 302 million tonnes at an average grade of 23.5% K2O. The deposit contains a high value core averaging 7.2m in thickness.

"We are pleased that ten years of work has now culminated in a Project that is fully drilled out, tested and designed," said John Bovard, President and CEO of Asia Pacific Resources. "Expert technical data have confirmed the Project's economic viability using a staged development, starting with one million tonnes of potash per annum and subsequently scaling up to two million tonnes per annum based on several factors including the development of the market.

"Following the submission of this Application, there is a structured process under Thai law that leads to the review and approval of the application," continued Mr. Bovard. "This process will allow us to demonstrate that the Udon mine will provide substantial benefits to the economy of Thailand in general and to local communities in particular. The project will create long term jobs, generate royalties and taxes, and enhance infrastructure. It will allow the Government of Thailand to improve the country's balance of trade and to underscore its interest in attracting investment from abroad for the benefit of Thai citizens."

Asia Pacific Resources holds a 90% beneficial interest in Asia Pacific Potash Corporation (APPC), the company holding the Concession covering the Udon South potash deposit. The remaining 10% interest in APPC is held by the government of Thailand. 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.

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