Catalyst Paper Clarifies Media Reports on Nature of Recapitalization Process

* 15 percent of the company’s common shares (subject to dilution from common shares issued to holders of warrants);

* warrants which will be exercisable to acquire up to 15 percent of the fully diluted common shares of the company as of the effective date of the recapitalization at an exercise price aggregate equity value of $111.7 million, for up to four years from the effective date of the recapitalization; and