Conifex Provides Operational Updates

Conifex Timber Inc. (“Conifex”) announced that it is temporarily curtailing its Mackenzie, British Columbia sawmill operations for two weeks commencing October 11, 2022. BC Ministry of Forests policies and practices which position sawmills in the BC Interior region at the high end of the industry cost curve, combined with a steep decline in lumber prices during a period of softer global market demand, have necessitated Conifex take this step. Conifex will continually monitor and assess industry and market conditions as they evolve. It is anticipated that the temporary curtailment will impact production capacity by approximately 7 million board feet in the fourth quarter.

“This was a difficult decision. We regret the impact this will have on our employees, their families and the community. We are exploring various initiatives to address concerns that disadvantage sawmill workers, the District of Mackenzie and other forest industry stakeholders,” said Ken Shields, Chairman and CEO.

Power Plant Update

Conifex continues working with its engineers and contractors to resume operations at its power plant, for which necessary repairs have been faced with global supply chain issues impacting replacement parts. Conifex currently expects to resume power generation in or about early December 2022. Conifex is working with its adjusters on an insurance claim to recover business interruption and property damage costs, subject to customary deductibles and limits.

About Conifex Timber

Conifex and its subsidiaries’ primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution. Conifex’s lumber products are sold in the United States, Canadian and Japanese markets. Conifex also produces bioenergy at its power generation facility at Mackenzie, BC.

Contact:

Winny Tang – Chief Financial Officer – (604) 216-2949

Source: Conifex Timber Inc.