For Immediate Release: November 23, 1998

ASE: PXN
Cusip: 704276 10 4

PAXTON FOREST PRODUCTS INC. - Announces New Chipping System

The Company is pleased to announce that Paxton Forest Products Inc. (a wholly owned subsidiary) has entered into an agreement with Weyerhaeuser Kamloops. Construction has begun at our Monte Lake facility of a new infeed line consisting of a debarker/sorter/chipper, financed by Weyerhaeuser Kamloops.

This line will be fully operational by January, 1999 with chipping beginning as early as December, 1998. This new system represents a major improvement to the efficiency of our mill operations. Historically, our mill waste factor (wood with no recoverable value) ran about 35-40%. Now, 90% of this fiber will be recovered as chips and sold to Weyerhaeuser Kamloops through a 5 year chip purchase agreement.

Production at our Monte Lake Mill will increase by 15-20%, and quality will be improved by the sorting, culling, and debarking process. Response time on volume orders will be greatly reduced by the new capacity for a "one diameter only" mill run, which will also have a positive effect on inventory, production turnaround and inventory space.

The new chipping system will have the capacity to produce approximately 10 loads of pulps chips per day in excess of our residual recovery chipping needs. This will represents a substantial increase in revenue with minimal costs.

On behalf of the Board of Directors
PAXTON INTERNATIONAL RESOURCES LTD.

Michael Stephenson
President and Director

The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

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