Fraser Papers to restart upgraded lumbermill

Nov. 9, 2009, Plaster Rock, NB – Fraser Papers’ lumbermill in Plaster Rock, New
Brunswick, is scheduled to restart operations on November 16, 2009.
Approximately 175 employees have been recalled to work.

The
Plaster Rock lumbermill recently completed a $17.6-million modernization that
included the installation of a new biomass fueled boiler, a new lumber drying
kiln, and upgraded saw line equipment. The project, completed under budget,
will eliminate the mill's dependence on oil and lower its conversion costs by
approximately 20%. It was financed through a commercial loan made by the
Business and Financial Support Group of Business New Brunswick, which has a
mandate to fund initiatives that improve energy efficiency and productivity at
existing business operations in New Brunswick.

Fraser
Papers has informed its suppliers that it will start receiving saw logs on
November 9, 2009, at pre-defined price levels to support the restart of the
mill. The lumbermill is expected to restart on November 16, with the planer
mill to restart approximately three weeks later. Lumber shipments to customers
are expected to commence in early December.