Arbec Forest Products reduces greenhouse gases

Apr. 2, 2012, Saint-Léonard, QB – Arbec Forest Products is pleased to
announce the validation of an important greenhouse gas (GHG) reduction project on the
basis of the prestigious Verified Carbon Standard (VCS). Arbec is a Québec-based
company specialized in the production of softwood lumber and oriented strand board
(OSB). Over the past few months, the company undertook a project seeking to eliminate
the combustion of fossil fuel at its sawmill located in L’Ascension-de-notre-Seigneur,
Quebec. As a result, the company was able to significantly reduce its GHG emissions
and obtain carbon credits suitable for the international voluntary market.

The project implemented by Arbec consisted in the installation of a new biomass fed
boiler and the conversion of two wood dryers previously fired with butane gas. The new
boiler is fed only with tree bark, a residue generated at the sawmill. The use of biomass
as a source of renewable energy will allow Arbec to considerably reduce its GHG
emissions associated with its wood drying operation and building heating. Over a period
of 10 years, it is expected that the project will reduce emissions by a total of
approximately 90 000 tons CO2e.

Before obtaining carbon credits, the project had to be audited by an independent
organization on the basis of the certification rules established by the VCS, one of the
most rigorous standards for the international voluntary carbon market.

Obtaining this certification guarantees the quality of the GHG emissions reductions
achieved by Arbec, namely because VCS assures that the GHG emissions reductions
are real, quantifiable, verifiable and that they have been obtained through efforts that go
beyond business-as-usual. By reducing GHG emissions by more than 9 000 tons CO2e
per year, Arbec’s project is the most important project to have been validated in Québec
under the VCS and the third one to obtain this recognition in the province. This
achievement is a clear sign of the important efforts undertaken by the company to
minimize the environmental impact of its operations.

ÉcoRessources Carbone, a Québec-based company specialized in greenhouse gas
management and in carbon finance, helped Arbec through the VCS certification
process. The third party validation was carried out by the US based auditor First
Environment.

About Arbec Forest Products

Arbec Forest Products is a privately owned corporation, fully integrated and
operating in Eastern Canada. Arbec owns three sawmills and an Oriented Strand
Board (OSB) plant in Québec and another OSB plant in New-Brunswick.