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Canfor Corporation
Vancouver, British Columbia, Canada, 08 January 2008 – In view of the ongoing operating losses and expected market conditions, including exchange rates going forward, Canfor Corporation (TSX:CFP) has undertaken a review of the carrying value of all assets.

Where the carrying value of assets is not expected to be recoverable from future cash flows, they are written down to fair value. As a result Canfor expects its fourth quarter results to include a pre-tax impairment charge of approximately CAD 256 million (CAD 188 million net of future income taxes) related to its long-lived assets and other assets. Of the pre-tax impairment charge, approximately CAD 90 million relates to the lumber segment, CAD 141 million to the panels segment, and CAD 25 million to corporate and other segments.

The amount related to corporate and other segments includes a write-down of CAD 10.6 million in the fair value of investments in asset-backed commercial paper, (ABCP), which is in addition to the amount recorded in the third quarter, with the result that a total provision of 20% of the face value of the investments will have been recorded. This impairment charge is based on current estimates and is subject to change.

Canfor’s fourth quarter and fiscal 2007 results are expected to be released on 22 February 2008.

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 while also producing 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).

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