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Catalyst Paper's Snowflake Mill Interrupted by Fire

Richmond, British Columbia, Canada, 20 April 2011 – Catalyst Paper (TSX:CTL) today advised that it expects both paper machines will be back in production 21 April after a fire in the storage yard at its Snowflake, Arizona, mill on 18 April destroyed approximately 11,000 metric tons of recovered old newspapers (ONP).

The fire did not have any significant impact on any of the mill’s production equipment. Quick and professional actions from the mill staff and workforce, coupled with the great response from numerous fire companies in the Snowflake area, prevented a more serious outcome. There were no serious injuries reported. All appropriate authorities were notified, and an investigation into the cause of the fire is underway. The combined impact of the inventory loss, equipment damage, and fighting the fire is expected to be under the insurance deductible of $5.0 million.

With 12 hours of de-inked pulp inventory on hand, customer orders are being met with limited disruption. In-transit and on-site truck inventories of ONP are more than adequate for the next month of production.

The Snowflake mill has an annual production capacity of 337,000 metric tons of recycled newsprint and uncoated specialty papers and is chain-of-custody certified to the Forest Stewardship Council standard. The operation supports recovery and domestic recycling of more than 430,000 tons of waste paper annually, and is the second largest private sector employer in northeast Arizona.

Catalyst Paper manufactures diverse specialty printing papers, newsprint, and pulp. Its customers include retailers, publishers, and commercial printers in North America, Latin America, the Pacific Rim, and Europe. With four mills located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.9 million metric tons. The company is headquartered in Richmond, British Columbia, Canada, and its common shares trade on the Toronto Stock Exchange under the symbol CTL. Catalyst is listed on the Jantzi Social Index and is also ranked by Corporate Knights as one of the 50 Best Corporate Citizens in Canada.


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