Mr. Don Kayne reports

CANFOR ANNOUNCES CAPITAL INVESTMENTS IN KOOTENAY SAWMILL OPERATIONS

Canfor Corp. will be proceeding with capital improvement projects totalling approximately $40-million in its sawmill facilities in the Kootenay region of British Columbia (B.C.). These investments represent the first major component of a multiyear capital investment program, aimed at enhancing productivity and cost performance in Canfor's B.C. southern Interior mill facilities.

The investments announced today are concentrated on the Radium sawmill, located in the community of Radium Hot Springs, B.C. Approximately $38.5-million will be invested in a new planer facility, the installation of a biomass energy system and modifications to the existing sawmill. The balance will be invested at the company's Canal Flats sawmill to improve drying capacity.

"These investments are critical to support the restart of our Radium division, which was indefinitely closed in May, 2009," said Don Kayne, Canfor president and chief executive officer. "The fibre in the Kootenay region is amongst the best in the world, and these investments will secure our ability to make top-quality products here to supply global markets."

The capital project at the Radium mill will commence in May, 2012, with start-up anticipated in the fourth quarter.

We seek Safe Harbor.