Resolute Announces Construction of Sawmill in Northwestern Ontario

Thu Jan 31, 2013 11:11am EST

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MONTREAL,  Jan. 31, 2013  /PRNewswire/ - Resolute Forest Products (NYSE:
 RFP) (TSX: RFP) today announced the construction of a new sawmill in
 the area of  Atikokan, Ontario. This investment reflects Resolute's
 ongoing commitment to the solid wood business and will provide
 significant economic opportunities for First Nations in the region.



The  Atikokan  project will involve the construction of a single line
 random length (16 ft) sawmill with an annual capacity of 150 million
 board feet. Approximately 90 people will be directly employed by the
 operation, and additional indirect positions will be created for
 hauling finished lumber and residual chips. Final site selection in the
  Atikokan  area will be completed in the next few weeks, and construction
 is anticipated to begin in the spring, with completion targeted for
 early 2014. The capital cost of the project is estimated at  C$50
 million.



"We believe in our solid wood business and we're taking action to grow
 and improve it. The new random length sawmill will complement our
 existing lumber product mix in  Ontario  and will allow Resolute to
 improve its product offering to customers in central  Canada  and key
 markets in  the United States," stated  Richard Garneau, President and
 Chief Executive Officer. "We are particularly excited about the active
 involvement of First Nations in the project and the opportunity for
 shared economic benefit that this represents."



When the  Atikokan  project is complete and the Company's upgraded Ignace
 facility re-opens, Resolute will have three modern sawmills in
  Northwestern Ontario, with a combined production capacity approaching
 approximately 600 million board feet. In addition to producing lumber,
 the sawmills will also contribute to the long-term competitiveness of
 the Company's pulp and paper operations in  Thunder Bay  through the
 supply of residual chips, as well as support efforts to reposition the
 currently indefinitely idled pulp mill in  Fort Frances.



Today's announcement was welcomed by Ontario Natural Resources Minister
  Michael Gravelle. "This is extremely good news for the economy in
  Northwestern Ontario, and specifically the  Atikokan  area. I am
 particularly pleased to see Resolute's proactive effort to involve
 First Nations in a manner that creates opportunities and shared
 benefit. Our Ministry has worked hard with First Nations and
 municipalities to increase opportunities for direct involvement in the
 rebounding forestry sector, and today's announcement is a real
 indicator of the progress we have made," said Minister Gravelle. "We
 welcome the additional investment by Resolute in  Ontario. Over the past
 18 months, the Company has announced over  C$175 million  of investments
 in the province, and I am certainly encouraged that a new sawmill in
  Atikokan  could potentially make a positive contribution as Resolute
 continues to look at viable options for its  Fort Frances  pulp mill."



In commenting on today's announcement,  Gary Allen, Chief of
 Nigigoonsiminikaaning First Nation, stated: "We are encouraged by
 Resolute's investment plans in our traditional area and look forward to
 working with the company to achieve our economic goals and establish
 business opportunities associated with this project."



Seine  River First Nation  Chief Earl Klyne agreed, stating: "We are
 pleased to see this announcement being made today by Resolute. It was
 most positive that the Company involved First Nation communities in the
 early stages of this project to identify areas of economic opportunity
 that we can pursue together."


Bill Mauro, MPP of  Thunder Bay-Atikokan, also joined other public
 officials in welcoming this announcement: "As the MPP for  Thunder
 Bay-Atikokan, I want to thank Resolute for this positive announcement.
 This capital investment will create a good number of construction jobs
 and significant long-term employment in the  Atikokan  area. This
 investment is also another important signal that the forestry sector
 continues to improve, and that Resolute will be a major employer in our
 region for years to come."



Thunder Bay-Rainy River MP  John Rafferty  expressed his gratitude towards
 this investment: "This is certainly good news for forestry workers and
 communities in the Northwest, particularly  Atikokan. We should all be
 pleased with Resolute's commitment to sustainable forestry practices
 and their belief in strong communities and family-sustaining jobs."



"This is great news for our community and the surrounding area. These
 jobs will be critically important in providing economic stability for
 our region," added  Atikokan  Mayor  Dennis Brown.


About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products
 industry with a diverse range of products, including newsprint,
 commercial printing papers, market pulp and wood products. The Company
 owns or operates 21 pulp and paper mills and 21 wood products
 facilities in  the United States,  Canada  and  South Korea. Marketing its
 products in close to 80 countries, Resolute has third-party certified
 100% of its managed woodlands to sustainable forest management
 standards. The shares of Resolute Forest Products trade under the stock
 symbol RFP on both the New York Stock Exchange and the Toronto Stock
 Exchange.



Resolute and other member companies of the Forest Products Association
 of  Canada, as well as a number of environmental organizations, are
 partners in the Canadian Boreal Forest Agreement. The group works to
 identify solutions to conservation issues that meet the goal of
 balancing equally the three pillars of sustainability linked to human
 activities: environmental, social and economic. Resolute is also a
 member of the World Wildlife Fund's Climate Savers program, in which
 businesses establish ambitious targets to voluntarily reduce greenhouse
 gas emissions and work aggressively toward achieving them.


SOURCE  Resolute Forest Products Inc.

Contacts

Investors

RĂ©mi G. Lalonde

Vice President, Investor Relations

514 394-2345

ir@resolutefp.com

Media and Others

Pierre Choquette

Director, Canadian Public Affairs

514 394-2178

pierre.choquette@resolutefp.com

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