Sawmill production curtailment prompts 9-day pulp shut at Elk Falls

    VANCOUVER, Jan. 22 /CNW/ - Catalyst Paper's Elk Falls mill at Campbell
River continues to feel the effects of coastal fibre constraints as sawmills
reduce production levels due to weakening US lumber markets.
    The shortage of sawdust furnish will require Elk Falls kraft and
containerboard operations to take nine days of curtailment in early March.
This will remove about 6,000 tonnes of pulp and 3,500 tonnes of containerboard
    The No. 1 paper machine, temporarily curtailed on September 1, 2007 due
to the coastal fibre strike, will remain down to at least the end of March,
resulting in about 38,000 tonnes of reduced newsprint production in the first
quarter. Fibre limitations and related market factors will determine whether
the indefinite closure of Elk Falls PM1 must be extended further.
    The company is actively managing its fibre supply and inventories to
minimize customer order book disruption and all other Catalyst mills will
continue normal operation. Elk Falls PM2 and PM5 production of newsprint and
specialty uncoated grades will also continue without interruption.

    Catalyst is a leading producer of mechanical printing papers in North
America, headquartered in Richmond, British Columbia. The company also
produces market kraft pulp and owns Western Canada's largest paper recycling
facility. With five mills at sites within a 160-kilometre radius on the south
coast of BC, Catalyst has a combined annual capacity of 2.3 million tonnes of
product. Catalyst's common shares trade on the Toronto Stock Exchange under
the symbol CTL.

    Forward-Looking Statements

    Certain matters described in this release are forward-looking, including
statements with respect to production and availability of raw materials. 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.

    %SEDAR: 00000638E

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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