Tembec Shareholders Approve Transaction with Rayonier Advanced Materials

Third Quarter of 2022 Highlights *Third quarter 2022 (“Q3 2022”) net loss was $23.3 million or a $0.13 loss per share (diluted), compared to net earnings of $30.7 million or $0.16 per share in the second quarter of 2022 (“Q2 2022”). This quarter marked the one-year point for the Company operating its acquired forest- products assets. *Lumber continued to experience price volatility in Q3 2022, with an average selling price of $780/ mfbm compared to $1,255/mfbm in Q2 2022. Steeply rising interest rates and inflation reduced demand for lumber products from the second quarter onward, and remain a concern impacting US housing starts and homebuilders’ confidence. *On September 23, 2022, the Company entered into a credit agreement with a tier-1 Canadian bank for up to $140.0 million consisting of a term loan of $15.0 million and an asset-backed revolving credit facility of up to $125.0 million (collectively, the “Credit Facility”). This refinancing replaced a high yield secured term loan (US$87.3 million outstanding at extinguishment)and a $65.0 million asset-backed loan facility (undrawn at time of extinguishment). *On November 7, 2022, the Company announced the sale of its 203,000 acres of private forest land south of Kapuskasing, Ontario, to a third party for cash proceeds of $49.2 million.

Domtar Corporation announced it will restart a paper machine at its Ashdown, Arkansas, mill to add the capacity necessary for the company to meet increasing customer demand. After a period of time to ramp up production, the machine is expected to resume full operation in January 2022, allowing Domtar to add 185,000 tons of uncoated freesheet capacity to its manufacturing network. The strategic initiative will help the company maintain its leadership position in the North American uncoated freesheet paper market and deliver the service and quality its customers expect. The company estimates the restart will cost approximately $10 million. A portion of the increased paper capacity may be utilized to increase thermal coated paper capacity at Domtar's West Carrolton, Ohio, facility to meet improving demand for its thermal point of sale paper.

UPM Raflatac plans to open a new state-of-the-art slitting and distribution terminal in the Toronto, Canada metropolitan area. The new facility will improve service and quality to UPM Raflatac’s customers in Eastern Canada and Northeastern U.S., while strengthening relationships in the region. “We have made significant investments in our production capabilities to meet the demand for self-adhesive paper and film products. The recent decision to expand our global network of terminals with a brand-new facility in Canada is a testament to our long history of enabling our customers to grow,” said Morgan Dundas, Sales Director, UPM Raflatac Americas.