PRESS RELEASE

[High Level, AB] December 19, 2009 - Employees of Tolko Industries Ltd.’s High Level Lumber Division ratified a new collective agreement as a result of a vote held at High Level, Alberta, Saturday afternoon.

Area Manager Mark Stevens is encouraged by the vote outcome.

“This is a very difficult time for many sectors of the economy, especially the Canadian forest industry. Our employees have shown that they appreciate this and that they are committed to work with Tolko to help us manage costs and enhance our competitiveness.

“As a result, we will resume mill operations as soon as our logging contractors can build a sufficient log inventory to provide for uninterrupted operations,” says Stevens. The sawmill and planer of High Level Lumber Division will operate for the first week of January to process existing inventories.

“We still face challenging economic times that will require focus, strong cost control, and continued productivity improvements,” says Stevens.

Among other changes, the new labour agreement provides for a variable wage process that will see wages reduced during periods of poor market conditions, return to their present level during improved market conditions, and increased in good market conditions. The term of the agreement is through to July 31, 2012.

Tolko’s High Level Lumber Division employs 290 directly and 300 indirectly. Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia with manufacturing operations across Western Canada.

For further information:

Sheri Greeno
Communications Advisor
Tolko Industries Ltd.
250.549.5341 / 250.306.2090
E-mail

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