<B>Canfor Completes Co-Gen Project</B>

Canfor Corp. completed a $7 million co-generation project at its Intercontinental Pulp Mill. The project offers an alternative to burning residual wood and fines from the lumber manufacturing process that would typically be incinerated in beehive burners.

``This project is another example of Canfor investing in strategic high return capital projects at our mills,'' said David Emerson, president and CEO of Canfor. ``With the addition of co-generation, Canfor's Intercontinental Pulp Mill will be able to increase the amount of residual wood utilized by 25,000 Bone Dry Metric Tons to 80,000 BDMTs and harness the energy produced from the process. Aside from its positive impact on the production efficiencies at the mill, this project will help Canfor meet its obligations under the new closure timetable for Tier 1 beehive burners.''