GreenFirst Forest Products Inc. announces that it intends to complete a spin-out transaction of Kap Corporation, whereby the shares of Kap will be held directly by the shareholders of the Company. The Spin-out is expected to be completed in Q4 2024. GreenFirst will hold a shareholder meeting on September 12, 2024, where shareholders will be able to vote on the Spin-out. The record date for shareholders entitled to vote at the Meeting will be August 8, 2024. The Spin-out of Kap is part of the natural progression of the decentralization and deconsolidation of the newsprint mill that was originally disclosed by GreenFirst in the Fall of 2023. The Spin-out will enable GreenFirst to focus on its core business of being a pure-play lumber producer, offering shareholders a stake in any future upside from the development of Kap. Under the new structure, Kap will be able to explore numerous possibilities that were not feasible under the original GreenFirst ownership structure. As a separate company, Kap will consider independent financing alternatives and partnerships in the future. Kap Paper Inc. is the only chip consuming facility in Northeastern Ontario and the Spin-out provides Kap Paper with the potential to pursue new opportunities to support the green economy as part of a broader Northern Ontario forest strategy.