Chemtrade and Canfor Extend Their Long-Term Agreement for Production and<br>Supply of Sodium Chlorate

TORONTO, April 6 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN) announced today that it has renewed its agreement with Canfor Pulp Limited Partnership ("Canfor") under which Chemtrade produces and exclusively supplies sodium chlorate to Canfor's pulp and paper mills in Prince George, British Columbia. The contract extension is effective immediately and extends to August 2018.

Mark Davis, President & Chief Executive Officer of Chemtrade, said, "We are delighted to have extended our long term relationship with Canfor and solidified our earnings base for the future. The extension of the Canfor contract several years ahead of schedule is indicative of the strength of our partnership with Canfor and reflects the alignment of both companies' long term business goals."

Mr. Davis said the structure of the contract remains the same. "Canfor will continue to purchase approximately 60-70% of the production of our Prince George plant, and prices will be adjusted for changes in raw material costs. Chemtrade will invest in capital improvements that will make the Prince George plant among the lowest cost producers in North America. Under our cost sharing arrangement, Canfor will benefit significantly on the volume it purchases while Chemtrade will also benefit from reduced costs on the product it sells to third parties."

Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America's largest suppliers of sulphuric acid, sulphur, liquid sulphur dioxide and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is also a leading regional supplier of, sodium chlorate, phosphorous pentasulphide, and zinc oxide.

This news release contains certain statements which may constitute "forward-looking" statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario). The use of any of the words "anticipate", "continue", "estimate", "expect", "expected", "intend", "may", "will", "project", "plan", "should", "believe" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this news release describe the expectations of Chemtrade as of the date of this news release. Our actual results could be materially different from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, we cannot guarantee that any forward-looking statement will materialize. Forward-looking statements do not take into account the effect that transactions or non-recurring items announced or occurring after the statements are made may have on our business. We disclaim any intention or obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

This news release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and businesses of the Fund, including, but not limited to:

    
    -   the ability of Chemtrade to complete its capital improvement
        projects, to achieve North American low cost producer status and to
        realize cost savings for itself and Canfor.
    

Further information can be found in the disclosure documents filed by Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.

%SEDAR: 00016317E

For further information: Mark Davis, President and CEO, Tel: [phone]; Rohit Bhardwaj, Vice-President, Finance and CFO, Tel: [phone]