Catalyst Paper Clarifies Media Reports on Nature of Recapitalization Process

• Upon the implementation of the recapitalization, a new Board of Directors will be appointed as part of the transaction.

The New Notes will have substantially the same terms and conditions as the company’s existing Senior Secured Notes with certain exceptions including:

• the maturity date of the New Notes will be the earlier of (i) six months after the end date of the new labour agreements and (ii) December 16, 2017, provided that the maturity date will never be earlier than December 16, 2016.