Catalyst Paper Reaches Agreement on Financing Facilities

RICHMOND, BC—August 3, 2012—Catalyst Paper has entered into a commitment letter with a Canadian chartered bank for a $175 million syndicated asset-based loan facility (ABL Facility) maturing on the earlier of five years from date of closing and 90 days prior to maturity of any significant debt.

The ABL Facility is a pre-condition for Catalyst to exit from creditor protection and would provide for the refinancing of existing credit facilities to fund the operations of the company on exit from creditor protection and for general corporate purposes thereafter. The collateral would primarily consist of all present and future working capital assets of the company.