Fortress Paper completes cogeneration facility

October 2, 2013, Vancouver, B.C. – Fortress Paper Ltd. announced
that the company has successfully completed the mandatory 100 hour grid test
for its cogeneration facility at its Fortress Specialty Cellulose Mill. As a result, the
cogeneration facility is now delivering power to the Hydro Quebec grid at the
contracted commercial rate.

Chadwick
Wasilenkoff, Chief Executive Officer of Fortress Paper, remarked, "We are
very pleased that the final stage of testing for the cogeneration facility at
the FSC Mill has been successfully completed and that the Company is now
delivering power to the Hydro Quebec grid at the contracted rate. This will
reduce our production costs at the mill and create a legacy of environmentally
friendly power production for the region."