NEWS RELEASE

For immediate release: June 22, 2001

Northwestern Saskatchewan, will be the site for a new oriented strand board (OSB) mill that has just been approved by the Government of Saskatchewan.

Tolko Industries Ltd., Meadow Lake Tribal Council, Northwest Communities Wood Products Ltd. and the Crown Investments Corporation (CIC) will own the world-class facility. Tolko will own 75% of the facility and will manage and operate the OSB mill.

"This is an innovative and challenging project," said Al Thorlakson, President and CEO of Tolko. "We are pleased to be part of this cooperative initiative to develop the sustainable resources in northwest Saskatchewan. Tolko looks forward to working in collaboration with both the Meadow Lake Tribal Council, the NorthWest Metis Communities, and with other stakeholders."

The $200 million project will generate an estimated 200 person years of work during construction, 130 permanent manufacturing jobs and 130 positions in associated woodlands activities. With a capacity of 600 million square feet (3/8" equivalent) of OSB, the new mill will be designed and constructed to utilize both hardwood and softwood timber, requiring an annual fibre supply of approximately 900,000 cubic metres. Plant construction is forecast to begin in spring 2002 with plant production scheduled for late 2003. In keeping with the environmental philosophies of all the participating companies, the plant will meet or exceed all environmental regulations and strive for a position of environmental leadership.

"We are excited by the opportunity to establish ourselves in Saskatchewan, which will further diversify our geographical operations," added Thorlakson.

Tolko Industries Ltd. is a private, family-owned forest products company based in Vernon, BC, with operations in BC, Alberta and Manitoba.

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For further information, please contact:
Bob Patterson
Manager of Corporate Services
Phone: 250-545-4411

Dave Knight
Alberta Resource Manager
Phone: 780-523-2101

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