Consumables

Canfor Pulp Limited Partnership Announces Progress Update on Impact of Fire at Prince George Pulp and Paper Mill

Wednesday 23. January 2008 - Pulp production lost during this period is estimated to be approximately 28,000 tonnes.

Canfor Pulp Limited Partnership (the “Partnership”) (TSX:CFX.UN) has reviewed alternatives for chip supply to the mill, which was discontinued due to the previously reported fire in the chip screening and in-feed system, and has determined that it is expected to take approximately 5 weeks to implement interim measures to provide chip feed to the digesters and recommence pulp production at this mill. Pulp production lost during this period is estimated to be approximately 28,000 tonnes.

The Partnership has also determined that the extent of the damage will require a replacement of the chip screening facility. Once pulp production is restarted, the intention is to operate the mill utilizing a modified chip screen and feed system until a new chip screening facility can be constructed.

To mitigate the impact on customers, the paper machine is currently operating utilizing pulp supplied from the Partnership’s Intercontinental and Northwood pulp mills.

The Partnership has property damage and business interruption insurance coverage to limit the financial loss to the Partnership. The loss is not expected to have a material impact on the financial condition of the Partnership.