Catalyst Paper Clarifies Media Reports on Nature of Recapitalization Process

• In total, additional common shares will be issued such that 99.5 percent of the common shares are held by the current holders of the existing Senior Secured Notes and Senior Notes as described above. The remaining 0.5 percent of the company’s common shares (subject to dilution from common shares issued to holders of warrants) will be held by holders of the existing common shares, provided that the recapitalization is implemented under the CBCA.