Asia Pacific signs Memorandum of Understanding, further drilling results received.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Jan. 20, 1997-- ASIA PACIFIC RESOURCES (TSE;VSE APQ, NASDAQ APQCF) On January 17, 1997, at a signing ceremony in Bangkok, Thailand, attended by the Rt. Hon Jean Chretien, Prime Minister of Canada and Mr. Chavalit Yongchaiyudh, Prime Minister of Thailand, Asia Pacific Resources Ltd. and Metro Resources Ltd. executed a Memorandum of Understanding in respect of the Udon Thani Potash Project under which the parties will jointly fund project activities, including completion of a bankable feasibility study, for an initial two million tonnes per annum potash mine in northeast Thailand.

The parties will maintain their present equity positions in the project; 62.5 percent for Asia Pacific Resources Ltd. and 27.5 percent for Metro Resources Ltd., and, upon successful completion of the bankable study, the parties will jointly secure the necessary equity and debt financing for the initial potash mine which is estimated to have a capital cost of approximately US$400 million.

Further Drilling Results

Further drilling results have been received from the on-going field program at the company's potash concession in northeast Thailand. An additional seven drill holes have been completed as part of the infill and boundary definition program for the Udon potash field, the larger of the two potash fields discovered to date. -0-

Hole #    Sylvinite thickness (m)  Depth to sylvinite (m)
106              4.2                      238
108             11.0                      256
113              2.0                      362
114                0                      272 (lower salt)
116             10.3                      227
119              8.6                      304
59C              7.4                      357

Holes 113 and 114 were drilled as boundary definition holes, while the other holes were infill holes. Hole 59C was drilled at the location of a hole planned, but not completed during an earlier program.

In the previous News Release (dated January 20, 1997) results for the drilling holes were reported erroneously. After re-checking of drill hole data, the actual sylvinite intersects were found to be: -0-

Hole #107        3.5 m (not 3.1m as reported)
Hole #112       10.7 m (not 10.0m as reported)

Drilling and seismic programs are continuing at the project site.

BANKABLE FEASIBILITY STUDY

Asia Pacific Potash Corp. has now signed contracts with H.A. Simons Ltd., Golder Associates Ltd. and Sandwell Inc. in connection with completion of the bankable feasibility study. The study is expected to be completed by the end of the second quarter of this year.

NOTE: This News Release was prepared by the Board of Directors on behalf of Asia Pacific Resources Ltd. which is solely responsible for its contents.

CONTACT: Asia Pacific Resources Ltd.

Gerald D. Wright, 604/681-8003

604/662-3180 (FAX)

Website: http://www.crewgroup.com

e-mail: [e-mail]