Domtar to increase renewable power at Kamloops

Apr. 9, 2010, Kamloops, BC – Domtar Corporation will proceed with two projects to
improve energy conservation, increase renewable power generation, and reduce
particulate emissions at its Kamloops, British Columbia, pulp mill. The capital
investment of $57.6 million will be entirely funded by credits received from
the Canadian government's Pulp and Paper Green Transformation Program.

"We
welcome and appreciate the support we have received from Natural Resources
Canada under this program," says Eric Ashby, general manager of the Domtar
Kamloops mill. "The funding for these projects, together with support from
BC Hydro's Integrated Power Offer for industrial customers, were instrumental
for Domtar in moving forward with these important improvements."

The
first phase of work related to these projects is expected to begin in late May
2010, during the mill's annual maintenance shutdown.

Domtar
was allocated credits totalling $143 million for investments aimed at improving
energy efficiency and environmental performance under the Pulp and Paper Green
Transformation Program. It owns and operates a total of four pulp and paper
mills in Canada, all eligible for this program.