Strikes stop production at several Metsä Group mills

Overview • Q2 2023 operating loss of $67 million including a $57 million reversal of a previously recognized inventory write-down; • Strong earnings continued at the Company’s European and US South operations with persistent challenges in British Columbia • Sustained pressure on global lumber market fundamentals and pricing, particularly in North America • Increased North American lumber production & shipments despite ongoing curtailments in British Columbia and permanent closure of Chetwynd facilities and temporary closure of Houston sawmill • Significant deterioration in global pulp market fundamentals; closure of the pulp line at Prince George Pulp and Paper Mill; subsequent to quarter-end, short curtailment of Northwood NBSK pulp mill amidst British Columbia port strike

Flambeau River Paper announced the shutdown of its #3 paper machine to be effective immediately. #3 paper machine primarily produces commodity white papers and has been impacted by the ongoing and unprecedented rise in pulp costs coupled with an in-elasticity of commodity paper price. Flambeau River Papers’ #1 and #2 paper machines along with the Flambeau pulp mill, woodyard and utilities will continue to operate uninterrupted on a 24 hour, 7 day a week schedule. It is important to point out that PM 1 and PM 2 produce primarily specialty and value-added papers. The size and capabilities of these two paper machines, along with integrated nature of the mill, make them competitive and well suited for continued success in these markets. Over the last five years the mill has worked hard and qualified propriety specialty papers on these machines. Also manufactured on PM 1 and PM 2 are Flambeau’s other value-added papers such as Torchglow and Glacier Opaque branded papers, custom FDA compliant papers, fluorescent colored papers, wet-strength papers, saturating base stocks, deeply colored papers, watercolor papers, book papers, endleaf papers, lightweight offset papers, converting and drawing stocks. Paper grades historically produced on PM 3 such as Offset Papers and Laser Bond papers will not be part of the productive capacity of FRP as we proceed forward. We will work in concert with you and communicate the status of pending orders and shipments.

John Baird, Chairman of the Canfor Corporation Board of Directors, announced that Don Kayne, President and Chief Executive Officer, plans to retire at the end of the year. Mr. Kayne has been with Canfor for 46 years and has held the position of President and Chief Executive Officer since 2011. Under his leadership, the Company has grown and transformed from its British Columbia roots into a global entity with operations in Alberta, the United States and Sweden. As a respected industry leader, he has been a constant champion for the forest products sector, serving in a variety of industry roles including Chair of the Forest Products Association of Canada, the BC Council of Forest Industries and the Bi-national Softwood Lumber Board. Canfor is also announcing the appointment of Susan Yurkovich as the Company’s next Chief Executive Officer. Currently serving as Canfor’s Senior Vice President of Global Business Development, Ms. Yurkovich brings three decades of experience working in the natural resources sector to the role, 12 of those years with Canfor.