Fortress Paper increases power supply to Hydro Quebec

May 13, 2014, Vancouver, BC – Fortress Paper Ltd. announced
that the Fortress Specialty Cellulose mill located in Thurso, Quebec has
successfully been awarded by Hydro Quebec a power supply agreement for an
additional 5.2 megawatts of power to be produced at its cogeneration facility.

Once finalized, the amount of green power supplied by the
FSC Mill's cogeneration facility to Hydro Quebec will increase from the current
amount of 18.8 megawatts of power to 24 megawatts of power. This increase will
result in significant incremental revenue, which will translate into an anticipated
overall cost savings at the FSC Mill of approximately $2.7 million annually
with an opportunity for further optimization.

The FSC Mill is expected to begin delivering the additional
power in April 2015, at the latest, with a provision to start delivering power
as early as the fourth quarter of 2014.

Yvon Pelletier, President of Fortress Specialty Cellulose
Inc., commented: "The acceptance of our power supply bid is indicative of
our positive partnership with Hydro Quebec and will allow us to better utilize
the potential of our cogeneration facility and produce more environmentally
friendly green energy for the region. The increased revenue from the additional
5.2 megawatts of power delivered under this new agreement will further improve
the economics of the FSC Mill and reflects the value of the cogeneration
facility."