Mr. Mike Jenks reports

JEMI FIBRE CORP. ANNOUNCES ITS FIRST QUARTER RESULTS

Jemi Fibre Corp. has released its first quarter results for the three-month period ended July 31, 2014.

On June 5, 2014, the company completed the acquisition of the WoodEx sawmill in Edgewater, B.C., a post peeling and treatment plant operation in Cranbrook, B.C., and a contract logging company operating in the Kootenay region of British Columbia. The company began fully operating the newly acquired post operation and contract logging business in June, 2014, and commenced full operations of the sawmill in late September, 2014. In addition, the company purchased approximately 49,500 hectares of private timberland in two phases, which completed in late June, 2014, and mid-September, 2014. Operations on the timberlands commenced in mid-July, 2014. As a result, the company's first quarter of operations is not indicative of the company's continuing operations. The company anticipates providing more information on each of its divisions with the release of its second quarter results.

Overview of financial results

During the first quarter ended July 31, 2014, the company recorded revenue of $7,039,750, a 104-per-cent increase over the $3,440,480 in revenue recorded for the preceding quarter ended April 30, 2014. Positive EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter was $180,193, compared with a negative EBITDA of $459,834 for the preceding quarter. The net loss and comprehensive loss for the quarter amounted to $12,963,163 or 72 cents per common share ($702,666, or four cents per common share, for the preceding quarter). Of the net loss for the first quarter $11,770,934 was a result of non-cash charges related to the June 5, 2014, acquisitions. The company anticipates reversing most of these losses prior to the company's April 30, 2015, year-end, and reallocating them to the company's balance sheet as the acquired assets are appraised and valued. In the first quarter, the company's existing and newly acquired logging operations represented a significant portion of the company's output. For the three months ended July 31, 2014, this division of the company harvested approximately 230,260 cubic metres of timber, compared with 57,493 cubic metres of timber harvested in the preceding quarter ended April 30, 2014.

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