Prince George, B.C. – Conifex Timber is reporting net income of $1.1 million for the fourth quarter of 2013 compared to a net loss of $0.1 million for the previous quarter and a net loss of $3.6 million for the fourth quarter of 2012.

The net income for the year ended December 31, 2013 was $9.5 million compared to a net loss of $16.2 million for the year ended December 31, 2012.  The lumber segment recorded operating income of $3.3 million during the fourth quarter of 2013, which represented an improvement of $1.5 million over the previous quarter and $4.5 million over the fourth quarter of 2012.  During the fourth quarter of 2013, total production volumes declined by 5% compared to the previous quarter despite a 3% increase in average hourly production.

The Company resumed construction of its power generation project in Mackenzie in September 2013 upon the commitment of project financing. The project is currently on budget and proceeding as scheduled with an expected commercial operation date in the third quarter of 2014. The Company expects the successful completion of the project will contribute to cash flow by providing a consistent source of revenue from the fixed price Electricity Purchase Agreement with BC Hydro and will enhance the long-term competitiveness of the Mackenzie sawmilling site.

Management anticipates further growth in lumber segment cash flow based upon the expected continuation of solid demand in each of the Company's markets in North America, China and Japan, incremental improvements in productivity and unit cash conversion costs which are expected to offset higher log and labour costs, and contributions from its recently expanded lumber marketing and distribution business.

In addition to continued focus on operational improvements, management intends to complete detailed plans to further upgrade its Fort St. James mill and to optimize the potential of its two manufacturing locations at Mackenzie.