Mr. Yves Laflamme reports

RESOLUTE COMPLETES SALE OF CATAWBA, SC, PAPER AND PULP MILL

On Dec. 31, 2018, Resolute Forest Products Inc. completed the previously disclosed sale of the Catawba, S.C., paper and pulp mill to New-Indy Containerboard LLC, pursuant to the terms of the asset purchase agreement dated Oct. 2, 2018. The total purchase price of about $300-million consists of $260-million in cash, before customary closing adjustments, and the assumption of approximately $40-million of balance sheet liabilities, largely net pension benefit obligations.

"We are pleased to have completed the sale of the Catawba mill to New-Indy and wish the new team every success with its investment in the diversification of the mill's operations," stated Yves Laflamme, president and chief executive officer of Resolute. "We want to thank our employees for their hard work and dedication toward this successful outcome, and are pleased that the community will continue to benefit from the mill's economic and social impact."

As previously disclosed, Resolute has agreed to use the majority of the proceeds from the asset sale to repurchase $225-million of its 5.875 per cent senior notes due in 2023, thereby improving financial flexibility.

TM Capital Corp. acted as Resolute's financial adviser on the transaction, while Akerman LLP and Troutman Sanders LLP acted as Resolute's legal counsels.

About Resolute Forest Products Inc.

Resolute Forest Products is a global leader in the forest product industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. Resolute Forest Products owns or operates about 40 manufacturing facilities, as well as power generation assets, in the United States and Canada. Resolute Forest Products has third party certified 100 per cent of its managed woodlands to internationally recognized sustainable forest management standards.

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