Mr. Terry Hodgins reports

CANFOR PULP PRODUCTS INC. ANNOUNCES FIRST QUARTER 2012 RESULTS AND QUARTERLY DIVIDEND

Canfor Pulp Products Inc. has issued its first quarter 2012 results.

On March 2, 2012, Canfor exchanged 35,776,483 Class B exchangeable limited partnership units, representing a 50.2-per-cent interest in Canfor Pulp Ltd. Partnership, for an equivalent number of CPPI shares. As a result of the exchange, CPPI increased its interest in the partnership from 49.8 per cent to 100 per cent and Canfor acquired a 50.2-per-cent interest in CPPI. Unless otherwise noted, the discussion of the results for the comparative periods prior to the quarter ended March 31, 2012, refers to the results of the partnership. For the quarter ended March 31, 2012, the results of CPPI include the results of the partnership.

For the quarter, the company reported net income of $10.3-million or 13 cents per share and EBITDA (earnings before interest, taxes, depreciation and amortization) of $28.8-million on sales of $220.0-million. Results were impacted by lower market pulp prices and a strengthening Canadian dollar. The decline in pulp prices was partially offset by lower unit manufacturing costs and strong shipments of the company's pulp and paper products.

The Northwood pulp mill production exceeded expectations setting an average daily production record for the quarter. There were no maintenance outages in the first quarter of 2012. Maintenance outages are planned for the second quarter of 2012 at the Intercontinental pulp mill and Prince George pulp and paper mills.

Global softwood pulp markets have strengthened as the company approaches the spring maintenance period. Global producer inventory levels decreased to 31 days of supply during the quarter as compared with 36 days of supply at the end of December, 2011. NBSK pulp list prices increased $25 (U.S.) in Europe to $850 (U.S.) and increased $20 (U.S.) in China to $710 (U.S.) during the quarter. However, North American prices settled at $870 (U.S.) for the quarter after declining $20 (U.S.) in January.

The global softwood pulp market is projected to improve modestly through the second quarter. For the month of April, the company has announced NBSK pulp list price increases of $30 (U.S.) in North America to $900 (U.S.), $20 (U.S.) in Europe to $870 (U.S.) and $30 (U.S.) in China to $740 (U.S.).

As part of Canfor's exchange of its partnership interest for shares of CPPI on March 2, 2012, Canfor waived its right to receive dividends paid from cash accumulated from partnership distributions and not distributed to CPPI shareholders prior to that exchange. The board of directors today declared a quarterly dividend payable on May 11, 2012, to the non-Canfor shareholders of record on May 4, 2012, of 22 cents per share, being the amount of such accumulated cash in CPPI at the date of the exchange.

A conference call to discuss the first quarter 2012 financial and operating results will be held on Wednesday, April 25, 2012, at 8 a.m. Pacific Time.

To participate in the call, please dial 416-340-8018 or toll-free 1-866-223-7781. For instant replay access, please dial 905-694-9451 or toll-free 1-800-408-3053 and enter participant passcode 1616072. The conference call will be webcast live and will be available at on the company's website.

        CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                (millions, except per share amounts)
                                                         Three months ended 
                                                      March 31,    March 31, 
                                                          2012         2011

Revenue                                            $     220.0  $     252.3 
Costs and expenses                                                          
Manufacturing and product costs                          153.1        148.2 
Freight and other distribution costs                      32.1         30.7 
Amortization                                              17.2         16.5 
Selling and administration costs                           6.1          6.2 
                                                         208.5        201.6
Operating income                                          11.5         50.7  
Interest expense                                          (2.8)        (2.9)
Foreign exchange gain on long-term debt                    2.0          2.5 
Gain on derivative financial instruments                   1.3          1.6 
Foreign exchange (loss) on working capital                (0.8)        (1.1)
Net income before income taxes                            11.2         50.8 
Income taxes                                              (0.9)        (0.1)
Net income                                                10.3         50.7 
Other comprehensive income                                                  
Defined benefit plan actuarial losses, net of tax         (2.3)        (0.2)
Other (loss)                                              (0.1)           -
Total comprehensive income                         $       7.9  $      50.5 
Net income per share, basic and diluted            $      0.13  $      0.71 
Net income attributable to                                                 
Controlling shareholder of the company             $       6.0  $      25.5 
Non-controlling shareholders' interest                     4.3         25.2
Total net income                                   $      10.3  $      50.7 
Total comprehensive income attributable to
Controlling shareholder of the company             $       3.6  $      25.4 
Non-controlling shareholders' interest                     4.3         25.1 
Total comprehensive income                         $       7.9  $      50.5 

We seek Safe Harbor.