Commissioning begins for Mackenzie bioenergy project

October 10, 2014, Vancouver, B.C. – Confiex has announced
that its Mackenzie bioenergy project has reached the commissioning phase.

Conifex expects that the continuous 72-hour run test required
to achieve the commercial operation date, in accordance with the Electricity
Purchase Agreement with BC Hydro, will commence shortly. Upon achieving COD,
the Mackenzie power plant will commence providing power under the EPA and
generating revenues.

The plant was developed adjacent to the company's idled
Mackenzie Site I sawmill complex and is currently within its capital budget of
approximately $100 million, including testing and commissioning costs.