Mr. Larry Hughes reports

WEST FRASER ("WFT") ANNOUNCES FOURTH QUARTER RESULTS

West Fraser Timber Co. Ltd. had earnings of $43-million, or 51 cents per share, on sales of $964-million in the fourth quarter of 2014 and earnings of $259-million, or $3.06 per share, on sales of $3,856-million for 2014. Earnings per share figures for prior periods have been adjusted to reflect a stock dividend paid on Jan. 13, 2014. The stock dividend had the same effect as a two-for-one share subdivision.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted earnings, and adjusted basic earnings per share (EPS) as described in this news release reflect the adjustments described in the tables referred to in the section titled "Non-IFRS Measures" of the company's 2014 management discussion and analysis.

These results compare with previous periods as shown in the attached table.

                            FINANCIAL SUMMARY
          (in millions of dollars, except earnings per share)  
      
                                    2014     2014     2014     2013     2013 
                                      Q4       Q3      YTD       Q4      YTD

Sales                             $  964   $1,030   $3,856   $  833   $3,474
Adjusted EBITDA(1)                   157      167      621      112      583
Operating earnings                    83      111      406       30      345
Earnings                              43       70      259      118      349
Basic EPS ($)                       0.51     0.83     3.06     1.37     4.07
Adjusted earnings(1)                  84       94      327       50      328
Adjusted basic EPS ($)(1)           1.00     1.12     3.86     0.58     3.82

Operational results

In the quarter, the company's lumber operations generated operating earnings of $90-million (third quarter: $101-million) and adjusted EBITDA of $121-million (third quarter: $131-million). The benefit provided by a weaker Canadian dollar was offset by the effect of reduced shipments. Lumber markets remained relatively positive in the quarter despite declines in the U.S.-dollar prices for some lumber grades and dimensions. Shipments were adversely affected by some continuing capital projects and fewer operating days.

The panel segment, which includes plywood, laminated veneer lumber (LVL) and medium-density fibreboard (MDF), generated operating earnings in the quarter of $22-million (third quarter: $25-million) and adjusted EBITDA of $25-million (third quarter: $29-million), mostly reflecting reduced plywood prices in the quarter due to a seasonal slowdown in the Canadian building industry.

Pulp and paper operations generated operating earnings in the quarter of $3-million (third quarter: a loss of $2-million) and adjusted EBITDA of $12-million (third quarter: $9-million). Although Canadian-dollar-equivalent northern bleached softwood kraft (NBSK) prices improved, the company's NBSK production continued to be adversely affected by operational difficulties at its Hinton pulp mill following an extended maintenance shutdown in the previous quarter. Production at the mill improved by the end of the quarter.

Outlook

"We are guardedly optimistic about 2015 as we see continued recovery of the U.S. housing market, and we are seeing the results of some of our capital investment program. Although we have completed a majority of our capital investments, with over $400-million invested in 2014, we still have more to go," said Ted Seraphim, president and chief executive officer. "Also in 2014, we acquired three sawmills, which, in combination with some major capital investments, has increased our lumber capacity by 400 million board feet this year."

Annual financial statements and management discussion and analysis

The company's consolidated financial statements for the year ended Dec. 31, 2014, and related management discussion and analysis is available on the company's website and on SEDAR under the company's profile.

Dividend declared

The board of directors of the company has declared a dividend of seven cents per share on the common shares and the Class B common shares in the capital of the company, payable on April 2, 2015, to shareholders of record on March 20, 2015.

Conference call

Investors are invited to listen to the quarterly conference call on Friday, Feb. 20, 2015, at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time) by dialling 1-800-769-8320 (toll-free North America). The call may also be accessed through West Fraser's website.

                                                
                   CONDENSED CONSOLIDATED STATEMENTS OF 
                    EARNINGS AND COMPREHENSIVE EARNINGS                                                      
              (in millions of dollars, except where indicated)       
                                                                            
                                Oct. 1 to Dec. 31,         Jan. 1 to Dec. 31, 
                                2014         2013         2014          2013 
 
Sales                    $       964  $       833  $     3,856  $      3,474
Costs and expenses
Cost of products sold            631          560        2,538         2,260
Freight and other
distribution costs               137          122          548           491
Export taxes                       -            3            -             9
Amortization                      43           43          170           160
Selling, general and
administration                    39           36          149           131
Equity-based
compensation                      31           15           45            54
Restructuring charges              -           24            -            24
                                 881          803        3,450         3,129
Operating earnings                83           30          406           345
Finance (expense)                 (6)          (8)         (26)          (29)
Exchange (loss) on 
long-term debt                   (12)         (10)         (29)          (21)
Other income                       5           18           24            22
Earnings before tax               70           30          375           317
Tax recovery
(provision)                      (27)          88         (116)           32
Earnings                 $        43  $       118  $       259  $        349
Earnings per share
(dollars)
Basic and diluted        $      0.51  $      1.37  $      3.06  $       4.07
Comprehensive earnings
Earnings                 $        43  $       118  $       259  $        349
Other comprehensive
earnings
Translation gain on
foreign operations                19           10           45            19
Actuarial gain (loss)
on postretirement
benefits (1)                     (38)          57          (87)          113
Comprehensive earnings   $        24  $       185  $       217  $        481

(1) This is net of tax recovery of $14-million for the three months 
    ended Dec. 31, 2014 (three months ended Dec. 31, 2013: $16-million 
    provision) and $31-million tax recovery for the year ended Dec. 31, 
    2014 (year ended Dec. 31, 2013: $34-million provision).     

We seek Safe Harbor.