Richmond, British Columbia, Canada, 01 March 2010 – Catalyst Paper Corporation (TSX:CTL) today announced that USD 318,676,000 in principal amount of the old notes, or 89.96% of the outstanding old notes, had been validly tendered as of the expiration of the early tender and withdrawal date of 5:00 p.m., Eastern Time, on 25 February 2010, in connection with the previously announced private exchange offer and consent solicitation (as amended and supplemented, the exchange offer), of Catalyst’s 11% senior secured notes due 15 December 2016 (the new notes) for its outstanding 8 5/8% senior notes due 15 June 2011 (the old notes). 

In light of the tenders received to date, Catalyst has determined to reduce the minimum tender condition to USD 318,676,000 in principal amount of the old notes, which represents the principal amount of old notes that have been validly tendered as of the early payment date and which remains the principal amount of old notes tendered. Accordingly, this reduction in the minimum tender condition is in effect a waiver of that condition. As required by applicable law, Catalyst is extending the expiration date of the exchange offer from 5:00 p.m., Eastern Time, on 02 March 2010, to midnight on 05 March 2010, unless further extended. Because the withdrawal date of the exchange offer has expired, holders that have already tendered their old notes in the exchange offer may not withdraw their tenders or revoke their consents, unless Catalyst re-opens the withdrawal period in its discretion, or as otherwise provided in the offer documents.

The terms of the exchange offer are set forth in the amended and restated offering memorandum and consent solicitation, and, together with the accompanying letter of transmittal, the offer documents. While the minimum tender condition has effectively been waived, the exchange offer is subject to certain other conditions, which Catalyst may assert or waive at any time in whole or in part in its discretion, subject to its obligations under the previously announced support agreement with an ad hoc group of holders of the old notes.

Eligible holders can obtain the offer documents by contacting the information agent, MacKenzie Partners, Inc., at (212) 929-5500 or toll free at (800) 322-2885. Offer documents will only be provided to persons who can certify that they are eligible holders or that they are representatives acting on behalf of eligible holders.

The exchange offer will be made, and the new notes will be offered and issued, in transactions exempt from the registration requirements of the U.S. Securities Act of 1933, as amended. Accordingly, the exchange offer will only be made to holders of old notes (i) that are both “qualified institutional buyers,” as that term is defined in Rule 144A under the Securities Act, and “accredited investors,” as that term is defined in Rule 501(a) under the Securities Act, or (ii) outside the United States, that are persons other than “U.S. persons,” as that term is defined in Rule 902 under the Securities Act, in offshore transactions in reliance upon Regulation S under the Securities Act (collectively, the eligible holders). In Canada, the exchange offer will be made pursuant to the exemption from the prospectus and registration requirement found in S.2.14 of National Instrument 45-106 Prospectus and Registration Exemptions (NI 45-106)