Filed under: FORTRESS GLOBAL CELLULOSE

ACQUISITION OF LEBEL-SUR-QUEVILLON PULP MILL(LSQ MILL) ASSETS ANNOUNCED TODAY BY FORTRESS PAPER

by on Feb 15th, 2012

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January 31, 2012 conference call replay – playback on demand dial in number:

1-855-201-2300 Conference Reference Number: 764917 # Conference Pass code: 98030 #  (The Phone number on news release is incorrect)

Today, Fortress Paper Ltd.  announced that it has, through its wholly owned subsidiary, Fortress Global Cellulose Ltd. (“Fortress Global”), signed an asset purchase agreement (the “APA”)with 9109-3294 Quebec Inc., a wholly owned subsidiary of the Quebec Ministere du Developpement economique, de l’Innovation et de l’Exportation (“9109″), and Domtar Inc., whereby Fortress Global will acquire the buildings, equipment and other ancillary propertyrelating to the non‑operating pulp mill located at Lebel-sur-Quevillon, Quebec (the “LSQ Mill”) and 9109 will acquire the lands relating thereto.

Fortress Global intends to convertthe LSQ Mill into a low cost dissolving pulp operation. Simultaneously, Fortress Global will acquire a 30 megawatt non-operating cogenerationfacility at the LSQ Mill which it intends to restart which will result in material net energy savings (income).An additional cogeneration project will provide up to 50 megawatts of total powerfor which the company isseeking a long-term power supply agreement with Hydro Quebec.

The LSQ Mill is planned to have an annual production capacity of approximately 236,000 air dried metric tonnes (ADMT) and is expected to be completed in late 2013. The LSQ Mill would significantly increase Fortress Paper Ltd.  annual dissolving pulp production capacity to over 437,000 ADMT, initially targeting viscose fibre (rayon) products.

In connection with the LSQ Mill acquisition, Fortress Paper Ltd.  will be hosting a teleconference to this afternoon at 1:30pm PST to discuss the acquisition.

Teleconference Date: Tuesday, January 31, 2012
Time: 1:30pm (PST) / 4:30pm (EST)
Dial In Numbers: 604-681-8564 Vancouver
403-532-5601 Calgary or International
780-429-5820 Edmonton
416-623-0333 Toronto
613-212-0171 Ottawa
514-687-4017 Montreal
Toll Free Dial In Number: 1-855-353-9183 from Canada and USA

Participant Pass Code:  98030

Confirmation Number:      764917

Fortress Paper Ltd.  has been operatinga dissolving pulp business at the Fortress Fortress Specialty Cellulose Mill located in Thurso, Quebec, Canada which is also in the renewable energy generation sector with the recent construction of a cogeneration facility.

For more details regarding Fortress Paper Ltd.  recent news on the LSQ Mill acquisition. Press Release: FORTRESS PAPER ANNOUNCES ACQUISITION OF LEBEL-SUR-QUEVILLON PULP MILL ASSETS.

SOURCES:  Fortress Paper Ltd., and Marketwire.

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