Catalyst Paper Clarifies Media Reports on Nature of Recapitalization Process

RICHMOND, BC—Jan. 18, 2012—Catalyst Paper announced it has applied for and received an initial court order under the Canada Business Corporations Act (CBCA) to commence the consensual restructuring process with its noteholders announced on Jan. 14, 2012. Contrary to certain media reports, this is not a bankruptcy proceeding. The company is also seeking recognition of these proceedings with the U.S. Court in order for the Canadian order under the CBCA to be recognized in the United States.