Please be advised, effective with shipments July 1, 2018 the US transaction price for 45 gsm Marathon Newsprint from Catalyst Paper will be increasing by $22.00/Metric Tonne for new and existing orders. 43 gsm and 40 gsm Marathon Lite newsprint will be increasing according to past practice. Please be advised, effective with shipments July 1, 2018, the US transaction price for 20.9# (34gsm) directory business with Catalyst Paper will be increasing by $30.00 / short ton for new and existing orders. Other basis weights will be increased according to past practice.

Swedish forest industry group Södra has selected international technology group ANDRITZ to supply a complete solution for kraft lignin production to its Mönsterås pulp mill in Sweden. This major investment marks Södra’s entry into the lignin market as part of its strategy to make the most of the wood used in pulp production. This will be the first commercial kraft lignin plant in Sweden and the largest in the world. Kraft lignin is a by-product of pulp production for paper. Today it is used in pulp mills to generate energy. However, it can also be used as a renewable resource to replace fossil-based materials in the chemical industry or form the basis for new biofuels.

Key highlights *Weak volumes in North America and negative price and mix impact in both regions *Sequentially lower input costs, mainly related to pulpwood in Europe *Another strong delivery of our efficiency enhancement program *Excellent cash delivery through working capital focus *Negative profit impact from revaluation of biological assets in the associated company BSÖ. Quarterly data Q4 *Net sales decreased by 20% to SEK 9,566 million (11,971) *Operating loss SEK 191 million (profit: 1,353) including items affecting comparability of SEK -244 million (-52) *Net loss SEK 330 million (profit: 940)