Thunder Bay Paper Mill to be Sold

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Resolute Thunder Bay
Resolute Thunder Bay

THUNDER BAY – BUSINESS – Thunder Bay’s Resolute Paper Mill in on the sales block.

The Paper Excellence Group and Resolute Forest Products Inc. (“Resolute”) (NYSE: RFP) (TSX: RFP) today announced their intention to sell Resolute’s Thunder Baypulp and paper mill to further facilitate the regulatory review process.

On July 6, the Paper Excellence Group through its wholly-owned subsidiary Domtar Corporation (“Domtar”), a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, entered into an agreement with Resolute, a global forest products company, to acquire all of the outstanding common shares of Resolute stock.

“Today’s announcement is a clear demonstration of our commitment to timely complete the acquisition of Resolute,” said Patrick Loulou, vice chair and chief strategy officer of the Paper Excellence Group.

“This is a very hard thing to do, but we believe it is necessary in order to accelerate our strategic combination with the Paper Excellence Group,” stated Remi G. Lalonde, Resolute’s president and chief executive officer. “The mill is an exceptional asset. I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future with any company fortunate enough to have them as part of their organization.”

Any sale of the Thunder Bay pulp and paper mill will be contingent upon closing of the announced acquisition of Resolute by Domtar, and to applicable regulatory approvals. The acquisition of Resolute by Domtar continues to be expected in the first half of 2023, following stockholder and regulatory approvals, and satisfaction of other customary closing conditions, the receipt of which remain outstanding.

There can be no assurance that the required regulatory approvals will result from this process.  Resolute and Domtar each reaffirm their general policy not to comment upon or respond to market rumor or speculation regarding the regulatory process or the transaction. Resolute and Domtar will not comment further on this matter unless and until definitive resolutions of the regulatory process are achieved.

Additional Information and Where to Find It

In connection with the proposed transaction, Resolute filed with the SEC a definitive proxy statement on Schedule 14A on September 20, 2022. Beginning on September 20, 2022, Resolute mailed the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the transaction. The definitive proxy statement and other relevant materials in connection with the proposed transaction filed by Resolute with the SEC may be obtained free of charge on Resolute’s website at www.resolutefp.com or the SEC’s website at www.sec.gov. Investors and security holders will also be able to obtain copies of the definitive proxy statement and other documents filed with Canadian securities regulatory authorities by Resolute at no charge through the website maintained by the Canadian Securities Administrators at www.sedar.com. Investors and stockholders of Resolute are urged to read the definitive proxy statement and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction because they contain important information about Resolute and the proposed transaction.

Participants in the Merger Solicitation

Resolute and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of Resolute stockholders in connection with the proposed transaction under SEC rules. Investors and stockholders may obtain more detailed information regarding the names, affiliations and interests of Resolute’s executive officers and directors in the solicitation by reading Resolute’s proxy statement for its 2022 annual meeting of stockholders, the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and the definitive proxy statement and other relevant materials that have been or will be filed with the SEC in connection with the proposed transaction when they become available. Information concerning the interests of Resolute’s participants in the solicitation, which may, in some cases, be different than those of Resolute’s stockholders generally, are set forth in the definitive proxy statement relating to the proposed transaction.

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