Canfor Completes Acquisition of Millar Western Assets

*Net income from continuing operations of $49 million ($1.14 per diluted share) vs. $97 million ($2.25 per diluted share) *Adjusted operating earnings1 (non-GAAP) of $49 million ($1.14 per diluted share) vs. $108 million ($2.51 per diluted share) *Adjusted EBITDA2 (non-GAAP) of $124 million (13.5% margin) vs. $208 million (22.1% margin) *Cash provided by operating activities from continuing operations of $77 million vs. $63 million

HIGHLIGHTS • Pulp sales of 2,513 thousand tons (-6% vs. 2Q22). • Paper sales1 of 294 thousand tons (-9% vs. 2Q22). • Adjusted EBITDA2 and Operating cash generation3 : R$3.9 billion and R$2.2 billion, respectively. • Adjusted EBITDA2/ ton from pulp of R$1,269/ton (-40% vs. 2Q22). • Adjusted EBITDA2/ton from paper of R$2,481/ton (+14% vs. 2Q22). • Average net pulp price in export market: US$562/ton (-23% vs. 2Q22). • Average net paper price1 of R$7,002/ton (+13% vs. 2Q22). • Pulp cash cost ex-downtime of R$918/ton (+7% vs. 2Q22). • Leverage of 2.2 times in USD and 2.0 times in BRL. • Cerrado Project completes 70% of physical progress and 57% of financial progress. Forecast for the start of operations to occur by June 2024.

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