Mackenzie, B.C.- The work continues to repair equipment at the Conifex Mackenzie Power Generation Project.

The company expects reinstallation, testing and commissioning work will start in January.

Conifex says it has confirmation that its insurance will cover the physical damage and the delay in the start up , however, Conifex will have to cover the insurance deductable and the waiting period before receiving the delay in start up (DSU) payment, so that will add about $3 million dollars to the $100 million dollar construction budget. The company says it expects to be fully reimbursed for the DSU losses.

The company says it remains committed to the Power Project, which it believes will help improve the cost competitiveness and margins at the Conifex forestry, sawmilling and bioenergy site in Mackenzie. Conifex has also announced it has appointed Fred Stock as Vice President, Power Generation Operations of Conifex Power LP. He has a First Class Interprovincial Power Engineer Certificate and has extensive experience managing power plants and cogeneration facilities at a number of locations in western Canada. He was most recently the General Manager and Chief Power Engineer of an 18 MwH power plant in Westlock, Alberta which maintained a strong safety record and plant reliability during his tenure. He will start his new position on January 5^th.