Conifex Purchase of Mackenzie Mills Now Official

By 250 News

Prince George, B.C.- Earlier today, Conifex President and CEO Ken Shields indicated he expected the deal  to buy the Abitibi Bowater assets in Mackenzie  would be finalized"soon."    News has just been released of the finalization of the deal.

Conifex has completed the acquisition of the assets that  used to be owned by Abitibi Bowater. The purchase includes, two sawmills, including planer mills, with a combined annual production capacity of 445 million board feet of lumber on a two-shift basis, a forest licence with an annual allowable cut of approximately 932,500 cubic metres, a steam/power plant and associated turbine and boiler, and a paper mill (excluding the headbox).

Conifex intends to dispose of the paper mill assets but will retain the power generation assets. certain sawmill and related assets as well as a related equity financing and an arrangement with DTR Wood Acquisitionco Ltd.  The common shares of Conifex are expected to commence trading on the TSX Venture Exchange (the "TSXV") at the open of the market on June 8, 2010 under the new trading symbol "CFF".

Conifex CEO Ken Shields states "We are pleased to have secured a fibre and manufacturing base in Mackenzie with such exciting future potential. Now that Sinar Mas has purchased and plans to restart the idled NBSK pulp mill in Mackenzie, we look forward to working with the pulp mill and other stakeholders on a priority basis to develop an operating plan which will enable us to resume harvesting and manufacturing operations on a timely basis."

In connection with the acquisition of the Mackenzie Assets, DTR completed a private placement for gross proceeds of approximately $89 million. The private placement consisted of the sale of subscription receipts that were subsequently exchanged for shares from treasury. In addition to the purchase of the Mackenzie assets, Conifex intends to use the funds from the financing to support a capital expenditure program, working capital and for general corporate purposes.

With the completion of the acquisition of the Mackenzie assets, Conifex, on a combined basis, now own sawmills having an annual lumber production capacity in excess of 600 million board feet on a two-shift basis, all supported by renewable forestry licences with an allowable annual cut of approximately 1.6 million cubic metres.

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