PRESS RELEASE

Slave Lake, Alberta – Tolko Industries Ltd. (Tolko) announced today that its Board of Directors has approved construction of a new greenfield Oriented Strand Board (OSB) plant in Slave Lake, Alberta, the first stage of its multi-staged value added initiative in Alberta.

Al Thorlakson, Tolko’s President & CEO, says this facility will have a capital cost in excess of $200 million and will provide 125 direct jobs in the mill and up to an additional 125 contract jobs in the woodlands. “This mill will commercialize the work we’ve undertaken in partnership with the Alberta Research Council on some proprietary projects,” said Thorlakson. “Development plans are also underway to ensure the long-term viability of our existing Slave Lake plant as an OSB and value added, specialty products facility.”

“Tolko’s Slave Lake expansion is a significant investment in northern Alberta as well as an investment in First Nations communities to create ongoing employment opportunities and business partnerships,” said Pearl Calahasen, Minister of Aboriginal Affairs and Northern Development.

Tolko also announced today that they have signed an Agreement with Buchanan Lumber for creation and development of a value added hardwood plant near High Prairie.

“The Agreement we have reached with Buchanan Lumber allows us to enter into the second stage of our value added initiative and is integral to our plans to produce more value added products at our existing High Prairie facility,” said Rick Huff, Tolko’s Vice-President & General Manager OSB & Kraft Papers. “However, the scale of this plan is dependent on the available incremental timber supply. We are currently working with the Alberta government and other stakeholders to secure the wood supply we need to determine the scale of this value added facility.”

Dave Knight, Tolko’s Regional Woodlands Manager, says Tolko has a progressive history of positive relationships with stakeholders including precedent setting joint Forest Management Agreements with industry partners and signing of the first joint forest tenure agreement with Whitefish Lake First Nation. “We also recently signed a Memorandum of Understanding with the Lesser Slave Lake Indian Regional Council that provides a model for employment, business and tenure stability going forward. We look forward to continuing partnerships with all stakeholders as we increase our investment in Alberta and create employment opportunities.”

Tolko Industries Ltd. (Tolko) is a Canadian owned forest products company based in Vernon, British Columbia that manufactures and markets specialty forest products to world markets. With eighteen manufacturing Divisions and three sales offices across Western Canada, Tolko is a major producer and marketer of lumber, plywood, oriented strand board, and kraft paper. In Alberta, Tolko operates three forest product manufacturing facilities and woodlands. The Company provides direct employment to over 630 people in Alberta, with this number increasing to over 1800 during peak harvesting season.

For more information:

Visit the Tolko EWP project webiste: www.tolkoewp.com

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