Canfor Announces Indefinite Closure of its Chetwynd Sawmill

Vancouver, British Columbia, Canada, 05 December 2007 -– Canfor Corporation (TSX:CFP) announced today that due to the continued poor lumber markets and a high Canadian dollar, it will close its Chetwynd sawmill indefinitely once existing log inventories are used and finished products shipped. This is expected to occur in late January or early February of 2008.

Approximately 188 employees will be affected by the decision and will be indefinitely laid off. The mill has an annual capacity of 244 million board feet.

“This announcement is in keeping with the company’s decision to restructure its production schedules to reflect the demands of the market place and ensure the needs of key customers continue to be met,” said Jim Shepard, Canfor president and CEO.

Canfor is a leading integrated forest products company based in Vancouver, British Columbia, with interests in 33 facilities in British Columbia, Alberta, and Quebec in Canada, and in Washington, North Carolina, and South Carolina in the United States. The company is the largest producer of softwood lumber in Canada. It also produces oriented strand board (OSB), plywood, remanufactured lumber products, and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange (TSX: CFP).