Mr. Trevor Pruden reports

CONIFEX RECEIVES LARGE ENTERPRISE TARIFF LOAN

Conifex Timber Inc. has secured a government of Canada loan under the large enterprise tariff loan program. The loan provides Conifex with enhanced financial flexibility and liquidity to support operations while it positions itself for a recovery in the lumber market. Through the LETL facility, Conifex will receive up to $30-million repayable loan as it navigates the current market conditions and other global impacts. Key terms of the facility include:

• Additional liquidity of up to $30-million to support operations, bearing a market-based interest rate;
• A seven-year term secured by substantially all of Conifex's property, with portions of the facility ranking either pari passu with, or junior to, Conifex's existing secured lenders;
• Sustaining jobs in the Mackenzie region.

"On behalf of Conifex, we appreciate the financial support provided by the government of Canada during a period of significant disruption and challenging market conditions for the Canadian forest products sector. As we previously indicated to our stakeholders, this financing, together with the continued support of our existing lenders, provides Conifex with critical financial liquidity as we work to strengthen our operations and position the company for a recovery," commented Ken Shields, Conifex chief executive officer and chair.

Mr. Shields continued: "Importantly, the financing provides us with an opportunity to focus on the initiatives necessary to re-establish normalized two-shift operations at our Mackenzie sawmill. We remain focused on our employees, our operations in Mackenzie, and the communities and supply chains that depend on them. We believe this loan is an important step that positions Conifex to do that."

Andrew McLellan, Conifex president and chief operating officer, added: "Mackenzie has been an important natural resource hub for decades, and this financing gives us the confidence to plan a restart and bring people back to work, producing renewable electricity for B.C. and sustainable lumber for domestic and international markets through an extraordinary period in our industry. We deeply value the commitment shown by our employees, contractors, the District of Mackenzie and the first nations whose territories we operate within. We look forward to continuing to work with the province as we see this restart as the foundation for a stronger and more sustainable future together."

In addition, Conifex's existing lumber lender has agreed to reimburse Conifex up to $11.0-million for capital expenditures that are designed to improve operating performance and earnings before interest, taxes, depreciation and amortization at the Mackenzie mill.

In connection with the LETL facility, Conifex has agreed to issue common share purchase warrants to CEEFC. The number of warrants, exercise price, term and other material terms will be set out in the definitive warrant documentation to be entered into. Conifex has also agreed to issue PenderFund up to an additional 1,584,000 common share purchase warrants, with each warrant being exercisable into one common share on payment of 50 cents per warrant having an expiry of Jan. 17, 2031. Concurrently, Conifex has agreed to extend the expiry of PenderFund's existing 4.32 million warrants by one year to Jan. 17, 2031. All of the foregoing remains subject to Toronto Stock Exchange approval.

About Conifex Timber Inc.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value-added lumber finishing and distribution. Conifex's lumber products are sold in the U.S., Canadian and Japanese markets. Conifex also produces bioenergy at its power generation facility at Mackenzie, B.C.

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