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Canfor Curtails Production at Northwood to Check Recovery Boiler

Vancouver, British Columbia, Canada 01 June 2012 -- (MARKETWIRE via COMTEX) -- Canfor Pulp Products Inc. (TOR:CA:CFX) has curtailed production at the Canfor Pulp Limited Partnership's Northwood pulp mill to investigate a failure in one of its two recovery boilers. No injuries were reported in the incident, but the number one recovery boiler has been shut down to determine the cause of the malfunction. As a result, only one of the two production lines in the mill is currently operating.

The cost of repair and the duration of curtailment cannot be reliably determined until a detailed inspection of the facility is completed. However, based on a preliminary review, the curtailment will be for at least a three week duration, with an estimated reduction in production of northern bleached softwood kraft (NBSK) pulp of approximately 25,000 metric tons.

To mitigate the effect of the incident, management intends to continue operation of the second production line at the mill and will advance certain mill maintenance activities previously scheduled to be performed during a planned mill shutdown in September. Production at the partnership's Intercontinental pulp mill and Prince George pulp and paper mill is not affected by the curtailment at Northwood.

As a result of mitigation efforts by the company, including property damage and business interruption insurance coverage, the curtailment is not expected to have a material effect on the financial condition of the company or the partnership.

About Canfor Pulp Products Inc.

Canfor Pulp Products Inc. (CPPI) is the successor to the Canfor Pulp Income Fund following the completion of the conversion of the fund from an income trust structure to a corporate structure by court approved plan of arrangement under the Business Corporations Act (British Columbia) (the BCBCA) on 01 January 2011 (the conversion). The conversion involved the exchange, on a one-for-one basis, of all outstanding fund units for common shares of CPPI. On completion of the conversion, on 01 January 2011, the unitholders of the fund became the sole shareholders of CPPI which became sole owner of all of the outstanding fund units.

Immediately following the conversion, the fund was wound up, CPPI received all of the assets and assumed all of the liabilities of the fund and CPPI became the direct holder of the 49.8% interest in the partnership previously held by the fund. On 02 March 2012, CPPI increased its partnership interest to 100%.

For more information about CPPI and the partnership, visit www.canforpulp.com.

About Canfor Pulp Limited Partnership

The partnership is a limited partnership formed on 21 April 2006, under the laws of Manitoba to acquire and carry on the NBSK pulp and paper business of Canfor. The business consists of two NBSK pulp mills and one NBSK pulp and paper mill located in Prince George, British Columbia, and a marketing group based in Vancouver, British Columbia.



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