Mr. Ray Ferris reports

WEST FRASER TO SELL HINTON PULP IN ALBERTA; ENTER INTO LONG-TERM FIBRE SUPPLY AGREEMENT

West Fraser Timber Co. Ltd. has signed an agreement to sell its unbleached softwood kraft pulp mill in Hinton, Alta., to Mondi Group PLC, a global leader in sustainable packaging and paper.

The transaction establishes a long-term partnership between the two companies in the region. Pursuant to the transaction, West Fraser will continue to supply fibre to the Hinton mill under long-term contract, through residuals from West Fraser's Alberta sawmills. Mondi's intention, subject to pre-engineering and permitting, is to invest 400 million euros in the expansion of the Hinton mill, primarily for a new 200,000-tonne-per-annum kraft paper machine, anticipated to be operational from the second half of 2027.

"This transaction creates a sustainable long-term future for the pulp mill, while maintaining the integrated fibre supply chain in place with West Fraser's operations in the region," said Ray Ferris, West Fraser's president and chief executive officer. "The relationship with Mondi puts the Hinton pulp mill in the hands of a global industry leader, with the vision and experience to maximize opportunities for local employees and the community. We look forward to a mutually beneficial long-term relationship with Mondi and our other stakeholders in Alberta."

Mondi is an integrated packaging and paper company employing 22,000 people across 100 production sites in more than 30 countries. Mondi has a premium listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.

Commenting on the acquisition, Andrew King, Mondi Group chief executive officer, said: "We are delighted to be making this investment in Canada and look forward to working with our Hinton colleagues, West Fraser as a long-term partner and other local stakeholders towards improving the mill's environmental footprint, and securing its sustainable future."

West Fraser expects to record a significant impairment loss in connection with the disposal of the Hinton pulp mill, given the nominal proceeds. The estimated carrying value of the assets and liabilities being disposed of was $115-million and $111-million as of Dec. 31, 2022, and March 31, 2023, respectively.

The transaction is anticipated to close following successful completion of customary regulatory reviews and satisfaction of customary conditions. West Fraser will provide a further update during its second quarter results conference call.

TD Securities Inc. is acting as exclusive financial adviser and McMillan LLP is acting as legal adviser to West Fraser.

About West Fraser Timber Co. Ltd.

West Fraser is a diversified wood products company with more than 60 facilities in Canada, the United States, the United Kingdom and Europe. From responsibly sourced and sustainably managed forest resources, the company produces lumber, engineered wood products (OSB (oriented standard board), LVL (laminated veneer lumber), MDF (medium-density fibreboard), plywood and particleboard), pulp, newsprint, wood chips, other residuals and renewable energy. West Fraser's products are used in home construction, repair and remodelling, industrial applications, papers, tissue, and box materials.

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