Canfor Corporation has completed the acquisition of Canfor Pulp through a court-approved plan of arrangement.

Canfor Corporation (TSX: CFP) ("Canfor Corp") and Canfor Pulp Products Inc. (TSX: CFX) ("Canfor Pulp") are pleased to announce the successful closing of the previously announced transaction pursuant to which Canfor Corp acquired all of Canfor Pulp's issued and outstanding common shares (each, a "Canfor Pulp Share") not already owned by Canfor Corp and its affiliates pursuant to a court-approved plan of arrangement under the Business Corporations Act (British Columbia) (the "Arrangement").

Under the terms of the Arrangement, each former holder of Canfor Pulp Shares (each, a "Former Shareholder") had the option to receive for all Canfor Pulp Shares held by such Former Shareholder immediately prior to the effective time of the Arrangement (i) 0.0425 of a common share in the capital of the Canfor Corp ("Canfor Corp Shares") per Canfor Pulp Share (the "Share Consideration") or, (ii) $0.50 in cash per Canfor Pulp Share (the "Cash Consideration" and together with the Share Consideration, the "Consideration").

In connection with the closing of the Arrangement, the Canfor Pulp Shares are expected to be delisted from the Toronto Stock Exchange as of the close of market on March 18, 2026, and Canfor Corp intends to cause Canfor Pulp to apply for an order to cease to be a reporting issuer under applicable Canadian securities laws.

Early Warning Disclosure Relating to Canfor Corp

The purpose of the Arrangement was for Canfor Corp and its affiliates to beneficially own all of the issued and outstanding Canfor Pulp Shares that Canfor Corp and its affiliates did not already own. Immediately prior to the closing of the Arrangement, Canfor Corp and its affiliates had beneficial ownership of, or control or direction over, 35,776,483 Canfor Pulp Shares representing approximately 54.8% of the outstanding Canfor Pulp Shares. Pursuant to the Arrangement, Canfor Corp acquired 29,457,076 Canfor Pulp Shares, representing approximately 45.2% of the issued and outstanding Canfor Pulp Shares, and, as a result, Canfor Corp and its affiliates now beneficially own, or exercise control or direction over, 65,233,559 Canfor Pulp Shares in the aggregate, representing 100% of the issued and outstanding Canfor Pulp Shares.

In connection with the closing of the Arrangement, Canfor Corp paid aggregate Consideration to Former Shareholders consisting of $3,996,572 in cash and 912,217 Canfor Corp Shares.

Both Canfor Corp and Canfor Pulp's head office is located at 101 – 161 East 4th Avenue, Vancouver, British Columbia.

An early warning report will be filed by Canfor Corp with applicable Canadian securities regulatory authorities. To obtain a copy of the early warning report, please contact Pat Elliott, CFO and Corporate Secretary of Canfor Corp.

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