Mr. Joel Fournier reports

GREENFIRST ANNOUNCES SIGNIFICANT REDUCTION IN SG&A AND OVERHEAD EXPENSES

Greenfirst Forest Products Inc. has made significant initiatives to reduce its selling, general and administrative, and overhead expenses to improve the company's cost competitiveness for the long term. Compared with 2023, on an annualized basis, the initiatives are projected to significantly decrease SG&A and overhead costs resulting in total savings of approximately $8-million, net of costs and expenses incurred to realize the savings. This represents an approximate 15-per-cent reduction in overhead personnel and 30 per cent in savings related to SG&A costs, and will start to materialize through 2024, with the targeted run rate to be achieved by the second half of this year. The company will target SG&A costs of $40 per thousand board feet or lower for the third quarter of 2024, and will track this measure for its shareholders in subsequent quarters.

The cost-saving initiatives reflect Greenfirst's commitment to enhancing shareholder value. Recently, as part of these measures, the company announced plans to reduce its board of directors from nine to five members, thereby aligning with the smaller scale of its Ontario-only operations. Greenfirst remains dedicated to continually prioritizing efficiency and sustainability with aligned incentives at the mill level while relentlessly seeking opportunities for cost savings without compromising product quality or operational safety.

"We are deliberately and continuously improving our business in order to provide increased value to our stakeholders," stated Joel Fournier, Greenfirst's chief executive officer. "Our cost structures were too high, and this initiative will improve our competitiveness. Reducing SG&A is just one of the steps we are taking to increase profitability. These decisions are tough but essential for the long-term success of Greenfirst Forest Products."

Greenfirst is a forest-first business, focused on sustainable forest management and lumber production. The company owns four sawmills located in rich wood baskets, proudly operating over 6.1 million hectares of Forest Stewardship Council-certified public Ontario forestlands. The company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provide Greenfirst with significant cyclical and secular advantages in building products.