Conifex announces restart of Mackenzie bioenergy project

September 16, 2013, Vancouver, BC – September 16, 2013, Vancouver, BC – Conifex Timber Inc.
announced that it has received $100 million in project financing that
will allow them to restart their planned 36MW bioenergy power project in
Mackenzie, British Columbia. Conifex expects to receive formal commitment
for the project financing shortly.

Conifex had previously entered into an agreement with BC
Hydro to sell clean renewable biomass-produced electricity into B.C.'s energy
grid. The residuals from Conifex’s Mackenzie sawmill will be used as the
primary fuel source for the renewable energy production. 

Conifex estimates that the bioenergy project, using a 36 MW
steam turbine, will be able to produce 230 gigawatt hours of energy each year
and generate annual revenues of approximately $25 million annually. 

The project financing will be subject to customary closing
conditions, including completion of definitive documentation, which shall
contain customary representations, warranties and covenants for a project
financing of the type contemplated.