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Last updated on April 20, 2014 at 8:28 EDT

Resolute to Indefinitely Idle Mersey Mill in Nova Scotia

June 15, 2012

US $

MONTREAL, June 15, 2012 /PRNewswire/ – Resolute Forest Products (NYSE:
RFP) (TSX: RFP) today announced that it will indefinitely idle the
Mersey newsprint mill located in Brooklyn, Nova Scotia. The facility,
owned by Bowater Mersey Paper Company Limited (BMPCL), is a joint
venture between Resolute (51%) and the Washington Post (49%). The
indefinite idling will be effective on Sunday, June 17, 2012. 

“The mill produces newsprint primarily for export markets and is unable
to compete due to declining prices in those markets, caused mainly by
unfavorable currency fluctuations, stated Richard Garneau, President
and Chief Executive Officer of Resolute.  “The decision to indefinitely
idle production at the facility was difficult as we are mindful of the
impact it will have on affected employees and local communities. We
have worked diligently with the provincial government, our employees,
union leadership and other stakeholders but simply could not overcome
the inherent challenges.”

The Company remains committed to customer service and delivery of
high-quality products and will work closely with customers to ensure a
smooth transition.

This indefinite idling will reduce capacity by approximately 250,000
metric tons of newsprint. Approximately 320 employees at the Mersey
paper mill, associated woodlands, Oakhill sawmill and Brooklyn Power
Corporation will be affected by this action. Resolute will continue to
work collaboratively with governments to ensure that impacted employees
are provided support during this transition.

The Company is currently assessing the feasibility of selling all of its
assets in Nova Scotia, including its private timberlands, the paper
mill, sawmill and Brooklyn Power.

About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products
industry with a diverse range of products, including newsprint,
commercial printing papers, market pulp and wood products. The Company
owns or operates 21 pulp and paper mills and 22 wood products
facilities in the United States, Canada and South Korea. Marketing its
products in more than 90 countries, Resolute has third-party certified
100% of its managed woodlands to sustainable forest management
standards. The shares of Resolute Forest Products trade under the stock
symbol RFP on both the New York Stock Exchange and the Toronto Stock
Exchange.

Resolute and other member companies of the Forest Products Association
of Canada, as well as a number of environmental organizations, are
partners in the Canadian Boreal Forest Agreement. The group works to
identify solutions to conservation issues that meet the goal of
balancing equally the three pillars of sustainability linked to human
activities: environmental, social and economic. Resolute is also a
member of the World Wildlife Fund’s Climate Savers program, in which
businesses establish ambitious targets to voluntarily reduce greenhouse
gas emissions and work aggressively toward achieving them.

SOURCE RESOLUTE FOREST PRODUCTS INC.


Source: PR Newswire