Canfor Corp. Proceeds with Capital Improvement Projects

Vancouver, British Columbia, Canada 18 January 2013 -- Canfor Corporation (TSX:CFP) announced today that the Company will be proceeding with capital improvement projects totalling approximately $40 million to increase productivity and recovery at its sawmill in Mackenzie, British Columbia (B.C.).

The investment will include modifications and upgrades to the sawmill, kilns and planer.

“Our fibre supply in the Mackenzie region is strong and this announcement reflects confidence in our ability to operate an internationally-competitive mill in this community,” said Don Kayne, President and CEO of Canfor Corporation.

The capital project will commence in January 2013, with anticipated completion in November 2013.

This announcement brings the total dollar value of the Company's capital investments to ensure competitive operation of its British Columbia solid wood, pulp and paper facilities to $600 million over the last three years. The reopening of our Vavenby and Radium mills after significant capital investments resulted in the creation of 305 direct jobs, combined with significant downstream benefits to local economies.