Catalyst Paper Restructuring Plan not Approved, Sale Now Pending

RICHMOND, BC—May 23, 2012—Catalyst Paper announced that it did not receive the necessary creditor approval for its amended plan of arrangement under the Companies' Creditors Arrangement Act. Approval of not less than 66-2/3 percent of the principal amount of each creditor class voting on the plan is required. Although 99.5 percent of the principal amount of the secured creditor class voted in favor of the plan, only 64 percent of the principal amount of the unsecured creditor class voted in favor of the plan at meetings held today in Richmond, BC.