Mr. Don Demens reports

WESTERN FOREST PRODUCTS INC. ANNOUNCES SALE OF OWNERSHIP INTEREST IN PORT ALBERNI FOREST OPERATION TO HUU-AY-AHT FIRST NATIONS

Huu-ay-aht First Nations and Western Forest Products Inc. have reached an agreement whereby Huu-ay-aht will acquire a 7-per-cent interest from Western in a newly formed limited partnership for $7.2-million, subject to closing adjustments.

The assets of the limited partnership will consist of certain Western assets in its Port Alberni forest operation, including TFL 44 and other associated assets and liabilities. The completion of the transaction is subject to satisfaction of customary closing conditions, approval by the B.C. provincial government and Huu-ay-aht People's Assembly, and is expected to close in the first quarter of 2019. As part of the agreement announced today, Western may sell Huu-ay-aht an incremental interest in the limited partnership subject to further negotiation.

This announcement is consistent with the goals of the parties' March, 2018, reconciliation protocol agreement. Western will continue to source fibre from the limited partnership assets to support its British Columbia manufacturing facilities.

"Today's announcement is a positive step towards increasing first nations participation in the forest sector, which will benefit the nation, local communities, Western and our employees," said Don Demens, Western's president and chief executive officer.

"We are excited with today's announcement and look forward to continuing to explore opportunities with Western, including aligning our interests in manufacturing and potentially involving other first nations in a shared vision for forestry over the next several years," said Huu-ay-aht Chief Councillor Robert J. Dennis Sr.

The shared vision of Huu-ay-aht and Western includes a framework for reconciliation and revitalization of the Alberni Valley forest sector. The framework includes opportunities for increased participation of area first nations through tenure ownership, employment and business opportunities, sustained domestic manufacturing, increased training, effective marketing and value-added product innovation, and strong environmental stewardship.

About Western Forest Products Inc.

Western is an integrated Canadian forest products company and the largest coastal British Columbia timberlands operator and lumber producer. The company has an annual available harvest of approximately six million cubic metres of timber, of which 5.8 million cubic metres are from Crown lands. Western has a lumber capacity of approximately 1.1 billion board feet from seven sawmills. Principal activities of the company include timber harvesting, sawmilling logs into specialty lumber and value-added remanufacturing.

We seek Safe Harbor.