Asia Pacific and United Infrastructure Execute Somboon Potash Development M.O.U.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 21, 1999

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

Asia Pacific Potash Corporation ("APPC"), an affiliate of Asia Pacific Resources Limited ("APR"), and UIC International, Ltd. II ("UIC"), a wholly owned affiliate of Bechtel Enterprises Holdings, Inc., ("BEn") are pleased to announce the signing of a Memorandum of Understanding ("MOU") for the purpose of forming a strategic alliance for the financing and development of the Somboon potash project in Thailand. The parties intend to enter into a development agreement, with UIC subsequently becoming an equity participant in the project subject to satisfactory completion of due diligence and other terms and conditions.

The MOU represents the culmination of a process of evaluation by APPC to identify and secure an additional strategic development partner suited to meet the criteria for the timely development of the project. Earlier this year, APPC and Norsk Hydro Asia Pte, Ltd. ("Hydro") signed an agreement relating to the development of the Somboon project.

The Somboon potash project is located near Udon Thani in northeast Thailand. The project includes a proposed two million tonnes per annum potash mine, processing plant, rail and seaport facilities.

APPC will maintain a 60% equity interest in the project and Hydro will hold a 20% equity interest. UIC intends, subject to the terms of this M.O.U., to acquire the remaining 20% equity interest. Asia Pacific Resources Ltd. holds, directly and indirectly, a 90% interest in APPC, with the Government of the Kingdom of Thailand holding the balance of 10%.

Finalization of the negotiations with UIC, together with the terms of the existing agreement with Hydro shall enable APPC to provide its required equity investment for the Somboon Project.

Bechtel was one of the several major construction companies which had submitted letters of interest in respect of construction participation and equity investment in the project. The award of the engineering, procurement and construction contract to Bechtel will be subject to, amongst other factors, the parties reaching an agreement upon UIC's equity participation and investment. UIC will assist APPC to jointly develop and seek financing for the project.

Bechtel Enterprises and UIC

Bechtel Enterprises is the project development, financing and ownership arm of the Bechtel organization, a world-class engineering and construction company. Since 1990, BEn has assisted in arranging over US$15 billion in financing for client projects. The company also takes ownership interests in projects, having developed and invested in 48 projects, representing a total asset value in excess of US$18 billion. BEn works with project sponsors to develop, build, own, and operate large-scale infrastructure projects in energy and power generation; water and wastewater systems; transportation networks; mining, process, petroleum, chemical, and industrial facilities; and telecommunications and other technology ventures. UIC is a wholly owned affiliate of Bechtel Enterprises which focuses on international infrastructure opportunities. It has access to all of BEn's global resources.

Bechtel

Since its origins in 1898, the Bechtel organization has been a leader in the engineering and construction industry, providing premier technical, management, and related services to develop, manage, engineer, build, and operate installations for customers worldwide. Headquartered in San Francisco, Bechtel has worked on more than 19,000 commercial, industrial, and infrastructure projects in 140 countries. Still privately held and led by the Bechtel family through four generations, today Bechtel's 30,000 non-manual employees in 50 offices around the world apply their resources, technical expertise, commitment, and creativity to deliver value to customers on projects in every corner of the globe. Bechtel's Mining and Metals company offers a wide array of services - from studies to engineering, procurement, and construction - for the ferrous, non-ferrous, precious and light metals markets, as well as industrial minerals markets.

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