For Immediate Release: April 12, 1999

ASE: PXN
Cusip: 704276 10 4

PAXTON FOREST PRODUCTS INC. - Chipping System Fully Operational

The Company is pleased to announce that Paxton Forest Products Inc. (PFP), a wholly owned subsidiary of Paxton International Resources Ltd., has completed construction of a new infeed line consisting of a debarker/sorter/chipper. This line has been fully operational since April 5, 1999 and chipping has been in effect since January 1, 1999.

PFP has entered into a 5-year chip purchase agreement with Weyerhaeuser, Kamloops. This new inline chipping system will produce approximately 4 loads of pulp chips per day in excess of our residual recovery chipping needs. PFP, through the sale of chips, has seen an increase in revenue of $97,000 in the first quarter 1999.

This new system represents a major improvement to the mill operations at Monte Lake and PFP has seen an increase of 25% in production efficiency. Quality has been further improved by the sorting, culling, and debarking process.

The final cost of this system has come in as budgeted at $730,000 including taxes. PFP has, through revenues, reduced the current debt for this system to $498,000.

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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