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Last updated on April 19, 2014 at 5:20 EDT

Catalyst Paper and Pacifica Deep Sea Terminals Inc. unable to close agreement on sale of Elk Falls site

December 19, 2012

RICHMOND, BC, Dec. 19, 2012 /PRNewswire/ – Catalyst Paper today announced that
the sale of its Elk Falls site in Campbell River to Pacifica Deep Sea
Terminals Incorporated did not close and the sale agreement has been
terminated. The sale of the 400-acre industrial site and adjacent
properties was initially expected to close on September 5, 2012.  A
non-refundable prepayment of a portion of the purchase price was
received and the transaction timeline was extended multiple times up to
the ultimate deadline of December 18, 2012.

“It’s disappointing that this transaction with Pacifica could not be
completed even with the extended timeline. This is a fully serviced
property in an excellent location and we remain confident that the
right fit between site and buyer will be found that will bring new jobs
and opportunities to Campbell River,” said Kevin J. Clarke, Catalyst
President and Chief Executive Officer. “In the meantime, site personnel
are maintaining safety, security and environmental requirements and
complying with all applicable legislation.”

The former pulp and paper site was indefinitely curtailed in 2009 and
closed permanently in 2010. It has since been decommissioned with
removal of chemicals, process wastes, and key papermaking equipment. 
The landfills remain intact as does the wastewater system which
continues to operate in preparation for the site’s redevelopment to
other industrial uses. The Elk Falls mill began operation in 1952, and
at its peak, produced 784,000 tonnes of pulp, paper and kraft paper
annually.

Catalyst Paper manufactures diverse specialty mechanical printing
papers, newsprint and pulp. Its customers include retailers, publishers
and commercial printers in North America, Latin America, the Pacific
Rim and Europe. With three mills, located in British Columbia, Catalyst
has a combined annual production capacity of 1.5 million tonnes. The
company is headquartered in Richmond, British Columbia, Canada and is
ranked by Corporate Knights magazine as one of the 50 Best Corporate
Citizens in Canada.

Forward-Looking Statements

Certain matters set forth in this news release are forward-looking.
These forward-looking statements reflect management’s current views and
are based on certain assumptions including assumptions as to future
operating conditions and courses of action, economic conditions and
other factors management believes are appropriate. Such forward looking
statements are subject to risks and uncertainties that may cause actual
results to differ materially from those contained in these statements,
including the possibility that a buyer will not be obtained or other
conditions of the sale will not be fulfilled, and those risks and
uncertainties identified under the heading “Risks and Uncertainties” in
Catalyst’s management’s discussion and analysis contained in Catalyst’s
annual report for the year ended December 31, 2011 and report for the
third quarter of 2012, which are available at www.sedar.com.

SOURCE Catalyst Paper Corporation


Source: PR Newswire