Market improvement supports Crofton pulp mill restart

    RICHMOND, BC, Aug. 24 /CNW/ - Catalyst Paper (TSX:CTL) today announced
that it will restart one line of pulp production at its Crofton NBSK kraft
mill on Vancouver Island, given improved market conditions. The kraft pulp
mill was indefinitely curtailed in February of this year - removing
approximately 400,000 tonnes of annual capacity.
    "Pulp markets have improved in recent weeks with stronger demand and
pricing," said Richard Garneau, president and chief executive officer. "Better
markets enable the restart on one of the two lines of our kraft mill. But chip
supply is limited and fibre availability is expected to remain challenging
through the balance of this year."
    The restart is scheduled for early October and will result in 104
employees being recalled from layoff. Restart on the one line will add 210,000
tonnes of pulp capacity on an annualized basis. Production will continue as
long as markets, mill costs, and fibre availability support it.

    Catalyst Paper manufactures diverse specialty printing papers, newsprint
and pulp. Its customers include retailers, publishers and commercial printers
in North America, Latin America, the Pacific Rim and Europe. With six mills
strategically located in British Columbia and Arizona, Catalyst has a combined
annual production capacity of 2.5 million tonnes. The company is headquartered
in Richmond, British Columbia, Canada and its common shares trade on the
Toronto Stock Exchange under the symbol CTL. Catalyst is listed on the Jantzi
Social Index(R) and is ranked by Corporate Knights as one of the 50 Best
Corporate Citizens in Canada.

    Forward-Looking Statements

    Certain matters described in this release are forward-looking, including
statements with respect to market demand, fibre availability and production
intentions. These forward-looking statements reflect management's current
views and are based on certain assumptions as to economic conditions and other
factors management believes are appropriate. These forward-looking statements
are not guarantees of future performance and are subject to risks and
uncertainties that may cause actual results to differ materially from those
contained in these statements.

For further information:

For further information: Lyn Brown, Vice-President, Corporate Relations,
(604) 247-4713

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Catalyst Paper Corporation

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