Consumables

Fraser Papers Announces Temporary Shutdown of Sawmill

Tuesday 22. January 2008 - Fraser Papers Inc. ("Fraser Papers") (TSX:FPS) announced today the temporary shutdown of its 70 MMfbm lumbermill in Ashland, Maine. Weak housing markets in the United States and resultant low lumber prices have contributed to unsustainable operating losses at the mill.

The mill will close once current log supplies are processed and is expected to remain closed for approximately four months, depending on market conditions. The shutdown will impact approximately 70 employees at the mill. The Company’s sawmill located in Masardis, Maine, is unaffected by the announcement.