Sawmill reopens, prepares for pellets

July 12, 2011, Kitwanga, BC – After being
shut down for more than two years, the Kitwanga, British Columbia, sawmill is
back in business. Lumber production resumed in June 2011 after Prince George,
British Columbia-based wood pellet maker Pacific BioEnergy acquired the mill in
fall 2009 from the Kitwanga Lumber Co.

Kitwanga mainly mills dimension lumber and
square timbers from western hemlock, balsam, and some cedar. Fibre is supplied
via the Terrace-based PacFor company, which manages three forest licences that
provide the sawmill with an estimated 150,000 cubic metres/year of wood.
Pacific BioEnergy is pursuing an agreement with the Gitanyow to supply another 100,000
cubic metres/year and is exploring fibre supply opportunities with the Gitxsan.

“The re-opening of the Kitwanga mill has really been a
collaborative effort on the part of our employees, contractors, suppliers, the
Gitanyow, the Gitxsan and the local community.

“With the sawmill back in operation, we can
focus our attention on development of a wood pellet manufacturing plant for
Kitwanga,” says Pacific BioEnergy vice president Brad Bennett. “We are working
to identify a site for the mill and on engineering and environmental
challenges, and hope to have an announcement in a matter of months, not
years.”