Western Forest Products Proposes Binding Arbitration Process

Western Forest Products Inc. (“Western” or the “Company”) announced that the Company has invited the United Steelworkers Local 1-1937 (“Union”) to join a binding arbitration process with independent mediators Vince Ready and Amanda Rogers. Active negotiations between the Company and the Union have stalled and no future mediation dates have been scheduled at this time. Progress was made on several proposals during mediated talks this month and the Company remains available to resume discussions at any time.

“Our employees, contractors, their families, our customers and operating communities are all counting on us to resolve the labour dispute,” said Don Demens, President and Chief Executive Officer of Western. “While we were encouraged by the progress we made during previous mediated talks, with no future dates scheduled, this step demonstrates our commitment to getting employees back to work and products to our customers.”

The strike, which commenced on July 1, affects all the Company’s United Steelworkers certified manufacturing and timberlands operations in British Columbia, impacting approximately 1,500 of the Company’s hourly employees and approximately 1,500 employees working for the Company’s timberland operations and contractors.

About Western Forest Products Inc.

Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets. With operations and employees located primarily on the coast of British Columbia and Washington State, Western is a premier supplier of high-value, specialty forest products to worldwide markets. Western has a lumber capacity in excess of 1.1 billion board feet from eight sawmills and four remanufacturing facilities. The Company sources timber from its private lands, long-term licenses, First Nations arrangements, and market purchases. Western supplements its production through a wholesale program providing customers with a comprehensive range of specialty products.

Contact:

Susan Dolinski – Vice President Corporate Affairs – (604) 648-4556

Source: Western Forest Products Inc.