Mr. Ray Ferris reports

WEST FRASER TO SELL TWO PULP MILLS IN WESTERN CANADA TO ATLAS HOLDINGS

West Fraser Timber Co. Ltd. has signed a definitive agreement for the sale of West Fraser's Quesnel River pulp mill in Quesnel, B.C., and its Slave Lake pulp mill in Slave Lake, Alta. to Atlas Holdings. Atlas owns and operates several pulp, paper and wood products businesses in Canada and the United States.

The agreement announced today includes related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel River pulp facility.

Upon closing of the transaction, the Quesnel River and Slave Lake pulp mills will be operated by Millar Western Forest Products, which joined the global Atlas family of manufacturing and distribution businesses in 2017. Millar Western is a more-than-100-year-old Canadian forest products company headquartered in Edmonton with existing pulp mill operations in Alberta, establishing a strong foundation and a bright future for the Quesnel River and Slave Lake pulp mills.

Combined total cash proceeds from the sale are $120-million (U.S.).

"We believe this transaction provides these two great assets and teams a strong strategic future while allowing West Fraser to focus our resources on our objective to be the premier wood building products company in North America," said Ray Ferris, West Fraser's president and chief executive officer. "Atlas Holdings and Millar Western bring deep experience in the pulp sector, and we look forward to continuing to work together as a key fibre supplier to Quesnel River pulp."

"This transaction will provide the dedicated and skilled teams at Quesnel River and Slave Lake with a solid future. Our team intends to continue investing in these high-quality mills, and we look forward to collectively strengthening our product offerings and value proposition to the global BCTMP [bleached chemical thermo-mechanical pulp] marketplace," said David Anderson, chief executive officer of Millar Western.

"Millar Western is highly respected as a leader in wood products in the region and beyond, and we look forward to welcoming the Quesnel River and Slave Lake mills to the Atlas family of companies," said Atlas partner Neil Mahajan.

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

TD Securities Inc. is acting as exclusive financial adviser and McMillan LLP is acting as legal adviser to West Fraser. Davies Ward Phillips & Vineberg LLP is acting as legal adviser to Atlas.

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, LVL, MDF, 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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