Interfor Posts Improved Results in Q4'15

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 11, 2016) - INTERFOR CORPORATION ("Interfor" or the "Company") ( IFP.TO ) recorded Adjusted EBITDA of $35.8 million in Q4'15 versus $11.5 million in Q3'15 and $37.4 million in Q4'14. The Company's results in Q4'15 reflect the benefits of higher prices and progress on a number of key business initiatives. Highlights for the quarter include:

• Higher Lumber Prices
  
  

  • Key product benchmark prices strengthened throughout Q4'15 as the market adjusted to production curtailments in a number of regions, greater stability in Chinese demand and an extended fall buying period in North America due to favourable weather.
    
    

• Weaker Canadian Dollar
  
  

  • The Canadian Dollar weakened against the U.S. Dollar, averaging $0.749 in Q4'15 versus $0.764 in Q3'15, resulting in favourable currency translations of U.S. Dollar revenues.
    
    

• Castlegar Mill Re-Start
  
  

  • The Castlegar sawmill modernization project commenced start-up procedures on October 5 ^th . Productivity and product quality were ahead of expectations throughout the quarter, resulting in a positive earnings contribution in Q4'15 versus a negative contribution in Q3'15.
    
    

• Tacoma Sawmill Monetization
  
  

  • Monetization of the former Tacoma sawmill assets progressed well in Q4'15, with: (i) the sale of the remaining log and lumber inventories; (ii) a successful auction of machinery, equipment and parts; and (iii) the signing of an agreement to sell the mill property. Cash proceeds from the monetization of assets are expected to exceed the total of the operating losses, exit costs and remaining asset value associated with the facility, with the property sale expected to close in mid-2016 subject to customary closing conditions.
    
    

• Free Cash Flow Generation and Debt Reduction with Increased Liquidity
  
  

  • Interfor generated $46.1 million in cash from operations after considering working capital changes. During Q4'15, the Company's net debt position expressed in U.S. Dollars dropped from US$344.5 million to US$326.8 million.
    
    

  • On February 9, 2016, Interfor extended the maturity dates of its Canadian Operating Line and Revolving Term Line to May 19, 2019, which improved liquidity and enhanced financial flexibility. At December 31, 2015, the Company's net debt to invested capital ratio was 38.4% and available liquidity would have been $147.0 million after considering the revised credit terms, versus $103.3 million at September 30, 2015.
    
    

In Q4'15, Interfor recorded sales of $411.4 million and a net loss of $3.5 million, or $0.05 per share, compared with net losses of $6.1 million and $5.2 million in Q3'15 and Q4'14, respectively. Adjusted net earnings in the fourth quarter were $5.5 million, or $0.08 per share, compared with an adjusted net loss of $15.4 million and adjusted net earnings of $10.2 million in Q3'15 and Q4'14, respectively.

Markets and Pricing

Each of the key benchmark prices for SYP East 2x4, Western SPF 2x4, and HF Stud 9' 2x4 rebounded from 2015 low points in September to post successive monthly gains through the end of 2015.

Market related production curtailments and severe weather events in the U.S. South impacted supply to the benefit of Southern Yellow Pine prices during the fourth quarter. The SYP East 2x4 benchmark rebounded from US$317 per mfbm in September, increasing significantly throughout Q4'15 to US$413 per mfbm in December. The average benchmark price for Q4'15 was US$400 per mfbm, or $69 per mfbm higher than Q3'15.

The HF Stud 9' 2x4 benchmark increased from US$274 per mfbm in September and gained throughout the fourth quarter to end the year at US$302 per mfbm in December. The average benchmark price for Q4'15 was US$294 per mfbm, or US$9 per mfbm lower than Q3'15.

The Western SPF 2x4 benchmark rebounded from US$245 per mfbm in September to US$269 per mfbm in December, with modest monthly gains throughout the fourth quarter. The average benchmark price for Q4'15 was US$263 per mfbm, or US$6 per mfbm lower than Q3'15.

Production

Lumber production of 568 million board feet in Q4'15 was 50 million board feet lower than the preceding quarter and 10 million board feet lower than Q4'14.

Production from the Company's nine U.S. South sawmills totaled 243 million board feet in Q4'15, down 44 million board feet compared to Q3'15. The lower production level in Q4'15 reflects temporary market-related adjustments to operating schedules across the U.S. South platform and severe weather events which impacted the Georgetown sawmill most significantly.

Canadian production totaled 186 million board feet in Q4'15, up 5 million board feet as compared to Q3'15. The increase in Canadian production primarily reflects the start-up of the Castlegar sawmill in the quarter partially offset by reduced operating hours at the other Interfor mills in the region. In Q4'15, Interfor shipped approximately 90 million board feet of lumber to U.S. markets from its B.C. sawmills, which represents approximately 15% of Interfor's total current quarterly production. Export duties applied pursuant to the Softwood Lumber Agreement ("SLA") expired on October 12, 2015. The SLA includes a standstill provision which precludes the U.S. from bringing trade action against Canadian softwood lumber producers for a 12 month period following expiry of the agreement. Export taxes on lumber shipments from Canada into the U.S. were negligible in Q4'15.

Production from the Company's U.S. Northwest operations totaled 139 million board feet in Q4'15, representing a decline of 11 million board feet from the prior quarter. This decline was due to fewer operating hours at each of the Company's four mills in the region.

Outlook

Interfor expects demand for lumber to continue to grow over the mid-term as the U.S. housing market recovers and market promotion efforts in North America and offshore take full effect. In addition, the Company is focused on a series of targeted initiatives related to margin improvement opportunities across its operations in both the U.S. and Canada that should contribute to Interfor's financial results.

Interfor's strategy of maintaining a diversified portfolio of lumber operations allows the Company to both reduce risk and maximize returns on invested capital over the business cycle. Interfor will continue its disciplined approach to production, cost control, inventory management and capital spending. At the same time, Interfor will remain alert to growth opportunities to position the Company for long term success.

Other

At its meeting today, the Interfor Board appointed Thomas V. Milroy of Toronto, Ontario as a director of the Company.

Mr. Milroy, who is 60, retired from the BMO Financial Group ("BMO") in January 2015. Over 21 years with BMO, Mr. Milroy held progressively senior positions with that firm's investment banking group, serving from March 2008 to December 2014 as CEO of BMO Capital Markets where he was responsible for all of BMO's business involving corporate, institutional and government clients globally.

Mr. Milroy's appointment brings the number of directors from nine to ten and was made in line with the Company's Board Succession Plan.

Mr. Milroy will stand for election as a director at the Company's Annual General Meeting in April.

Summary of Quarterly Results (1)
				2015								2014
			Unit	Q4		Q3		Q2		Q1		Q4		Q3	Q2	Q1
Financial Performance (Unaudited)
Total sales			$MM	411.4		430.8		429.7		415.4		389.0		373.1	390.2	294.8
	Lumber		$MM	325.0		343.3		352.2		340.7		318.6		303.0	325.2	230.4
	Logs, residual products and other		$MM	86.4		87.5		77.5		74.7		70.4		70.1	65.0	64.4
Operating earnings (loss)			$MM	(6.3	)	(11.6	)	(25.8	)	7.8		(1.1	)	20.1	3.8	13.3
Net earnings (loss)			$MM	(3.5	)	(6.1	)	(20.6	)	(0.2	)	(5.2	)	11.0	7.4	27.5
Net earnings (loss) per share, basic and diluted			$/share	(0.05	)	(0.09	)	(0.29	)	(0.00	)	(0.08	)	0.16	0.11	0.43
Adjusted net earnings (loss)(2)			$MM	5.5		(15.4	)	(14.7	)	4.5		10.2		16.1	21.0	15.0
Adjusted net earnings (loss) per share, basic and diluted (2)			$/share	0.08		(0.22	)	(0.21	)	0.07		0.15		0.24	0.31	0.24
Adjusted EBITDA(2)			$MM	35.8		11.5		12.7		31.8		37.4		45.4	47.3	39.2
Shares outstanding - end of period			million	70.0		70.0		70.0		70.0		66.7		66.7	66.7	66.7
Shares outstanding - weighted average			million	70.0		70.0		70.0		67.8		66.7		66.7	66.7	63.8
Operating Performance
Lumber production			million fbm	568		618		672		639		578		567	582	495
Total lumber sales			million fbm	615		686		719		632		620		595	628	439
	Lumber sales - Interfor produced		million fbm	586		663		688		607		605		581	607	424
	Lumber sales - wholesale and commission		million fbm	29		23		31		25		15		14	21	15
Lumber - average selling price (3)			$/thousand fbm	529		500		490		539		514		509	518	525
Average USD/CAD exchange rate (4)			1 USD in CAD	1.3354		1.3089		1.2297		1.2412		1.1350		1.0890	1.0905	1.1033
Closing USD/CAD exchange rate (4)			1 USD in CAD	1.3840		1.3394		1.2474		1.2683		1.1601		1.1208	1.0676	1.1053

Notes:
(1)	Figures in this table may not add due to rounding.
(2)	Refer to the Non-GAAP Measures section of this release for definitions and reconciliations of this measure to figures reported in the Company's consolidated financial statements.
(3)	Gross sales before export taxes.
(4)	Based on Bank of Canada foreign exchange rates.

Balance Sheet

Net debt at December 31, 2015 was $452.3 million, or 38.4% of invested capital, representing an increase of $249.8 million over the level of debt at December 31, 2014. Revaluation of U.S. Dollar denominated debt into Canadian Dollars resulted in an increase of $65.4 million in 2015 over 2014 due to a 19.3% decline in the Canadian Dollar against the U.S. Dollar. In Q4'15, the 3.3% decline in the Canadian Dollar against the U.S. Dollar resulted in an increase of $14.6 million in net debt, despite a decline of US$7.3 million in U.S. Dollar denominated borrowings.

	For the 3 months ended December 31,							For the year ended December 31,
Thousands of dollars		2015			2014			2015			2014
Net debt
Net debt, period opening, CAD	$	461,474		$	203,570		$	202,553		$	140,762
Net drawing (repayment) on credit facilities, CAD		(19,207	)		(16,945	)		182,949			59,428
Impact on USD denominated debt from weakening CAD		14,592			7,600			65,391			15,512
(Increase) decrease in cash and equivalents, CAD		(4,556	)		8,328			1,410			(13,149	)
Net debt, period ending, CAD	$	452,303		$	202,553		$	452,303		$	202,553
Net debt components by currency
US Dollar debt, period opening, USD	$	345,957		$	205,000		$	190,000		$	135,900
Net drawing (repayment) on credit facilities, USD		(7,258	)		(15,000	)		148,699			54,100
US Dollar debt, period ending, USD	$	338,699		$	190,000			338,699			190,000
Spot rate, period end								1.3840			1.1601
US Dollar debt expressed in CAD								468,759			220,419
Cash and cash equivalents, CAD								(16,456	)		(17,866	)
Net debt, period ending, CAD							$	452,303		$	202,553

As at December 31, 2015, the Company had net working capital of $168.9 million and available liquidity of $112.1 million, including cash and borrowing capacity on operating and term facilities.

On February 9, 2016, the Company extended the maturity of its Operating Line and Revolving Term Line from February 27, 2017 to May 19, 2019. Certain other terms were also changed, resulting in an increase in the maximum borrowing available under the financing agreement. Based on the revised terms, available liquidity would have been $147.0 million as at December 31, 2015.

These resources, in addition to cash generated from operations, will be used to support working capital requirements, debt servicing commitments and capital expenditures. We believe that Interfor will have sufficient liquidity to fund operating and capital requirements for the foreseeable future.

Capital Resources

The following table summarizes Interfor's credit facilities and availability as of December 31, 2015:

Thousands of Canadian dollars		Operating  Line				Revolving Term Line			Senior Secured Notes			U.S. Operating  Line			Total
Available line of credit		$	65,000		$	200,000		$	276,800		$	69,200		$	611,000
Maximum borrowing available		$	62,820		$	183,723		$	276,800		$	69,200		$	592,543
Less:
	Drawings		-			179,920			276,800			12,039			468,759
	Outstanding letters of credit included in line utilization		9,396			-			-			2,290			11,686
Unused portion of facility		$	53,424		$	3,803		$	-		$	54,871		$	112,098

As at December 31, 2015, maximum borrowings available under the Company's Operating Line and Revolving Term Line were restricted by a financial covenant in the underlying credit agreement. In the table above, this limitation has been applied to the Operating Line and Revolving Term Line limits.

As stated above, based on the revised terms, available liquidity would have been $147.0 million as at December 31, 2015.

As of December 31, 2015, the Company had commitments for capital expenditures totaling $7.8 million, related to both maintenance and discretionary capital projects.

Non-GAAP Measures

This release makes reference to the following non-GAAP measures: Adjusted net earnings (loss), Adjusted net earnings (loss) per share, EBITDA, Adjusted EBITDA, Pre-tax return on total assets and Net debt to invested capital, which are used by the Company and certain investors to evaluate operating performance and financial position. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. The following table provides a reconciliation of these non-GAAP measures to figures as reported in the Company's audited consolidated financial statements (unaudited for interim periods) prepared in accordance with IFRS:

		For the 3 months ended December 31,				For the year ended December 31,
Thousands of Canadian dollars		2015		2014		2015		2014		2013
Adjusted Net Earnings
Net earnings (loss)		(3,507	)	(5,187	)	(30,386	)	40,690		42,239
Add:
	Restructuring costs, capital asset and timber write-downs	2,866		857		12,829		24,129		371
	Other foreign exchange loss (gain)	(473	)	1,646		1,651		2,651		1,250
	Long term incentive compensation expense (recovery)	9,335		13,864		(5,431	)	23,933		18,841
	Other (income) expense	(863	)	(3	)	(757	)	37		(602	)
	Beaver sawmill post-closure wind-down costs	6		367		365		1,083		-
	Tacoma sawmill post-acquisition losses	698		-		11,009		-		-
	Income tax effect of above adjustments	(2,564	)	(1,301	)	(9,311	)	(10,951	)	(1,432	)
	Recognition of previously unrecognized deferred tax assets	-		-		-		(19,253	)	-
Adjusted net earnings (loss) (1)		5,498		10,243		(20,031	)	62,319		60,667
Weighted average number of shares - basic and diluted ('000)		70,030		66,730		69,488		66,005		57,694
Adjusted net earnings (loss) per share (1)		0.08		0.15		(0.29	)	0.94		1.05
Adjusted EBITDA
Net earnings (loss)		(3,507	)	(5,187	)	(30,386	)	40,690		42,239
Add:
	Depreciation of plant and equipment	18,482		14,707		71,492		55,167		39,206
	Depletion and amortization of timber, roads and other	10,734		8,699		37,478		28,912		23,061
	Restructuring costs, capital asset and timber write-downs	2,866		857		12,829		24,129		371
	Finance costs	5,459		2,268		17,569		8,915		9,069
	Other foreign exchange loss (gain)	(473	)	1,646		1,651		2,651		1,250
	Income tax expense (recovery)	(6,943	)	160		(24,017	)	(16,230	)	555
EBITDA		26,618		23,150		86,616		144,234		115,751
Add:
	Long term incentive compensation expense (recovery)	9,335		13,864		(5,431	)	23,933		18,841
	Other (income) expense	(863	)	(3	)	(757	)	37		(602	)
	Beaver sawmill post-closure wind-down costs	6		363		363		1,075		-
	Tacoma sawmill post-acquisition losses	698		-		10,928		-		-
Adjusted EBITDA (1)		35,794		37,374		91,719		169,279		133,990
Pre-tax return on total assets
Operating earnings (loss) before restructuring costs		(3,461	)	(259	)	(23,111	)	60,192		52,882
Total assets (2)		1,383,751		1,058,346		1,229,160		946,325		728,083
Pre-tax return on total assets (3)		(1.0	%)	(0.1	%)	(1.9	%)	6.4	%	7.3	%
Net debt to invested capital
Net debt
	Total debt	468,759		220,419		468,759		220,419		145,479
	Cash and cash equivalents	(16,456	)	(17,866	)	(16,456	)	(17,866	)	(4,717	)
Total net debt		452,303		202,553		452,303		202,553		140,762
Invested capital
Net debt		452,303		202,553		452,303		202,553		140,762
Shareholders' equity		725,254		636,480		725,254		636,480		515,137
Total invested capital		1,177,557		839,033		1,177,557		839,033		655,899
Net debt to invested capital (4)		38.4	%	24.1	%	38.4	%	24.1	%	21.5	%

Notes:
(1)	2015 adjusted net earnings, adjusted net earnings per share and adjusted EBITDA have been revised for inclusion of Tacoma sawmill post-acquisition losses arising in Q1'15.
(2)	Total assets at period beginning for three month periods; average of opening and closing total assets for twelve month periods.
(3)	Annualized rate.
(4)	Net debt to invested capital as of the period end.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
For the three months and years ended December 31, 2015 and 2014 (unaudited)
(thousands of Canadian dollars except earnings per share)			3 Months Dec. 31, 2015			3 Months Dec. 31, 2014			Year Dec. 31, 2015			Year Dec. 31, 2014
Sales		$	411,411		$	388,974			$ 1,687,375			$ 1,447,157
Costs and expenses:
	Production		366,083			343,073			1,554,975			1,243,464
	Selling and administration		10,236			8,890			46,756			35,489
	Long term incentive compensation (recovery) expense		9,335			13,864			(5,431	)		23,933
	Export taxes		2			-			5,216			-
	Depreciation of plant and equipment		18,482			14,707			71,492			55,167
	Depletion and amortization of timber, roads and other		10,734			8,699			37,478			28,912
			414,872			389,233

1,710,486 1,386,965 Operating earnings (loss) before restructuring costs (3,461 ) (259 ) (23,111 ) 60,192 Restructuring costs (2,866 ) (857 ) (12,829 ) (24,129 ) Operating earnings (loss) (6,327 ) (1,116 ) (35,940 ) 36,063 Finance costs (5,459 ) (2,268 ) (17,569 ) (8,915 ) Other foreign exchange gain (loss) 473 (1,646 ) (1,651 ) (2,651 ) Other expense 863 3 757 (37 ) (4,123 ) (3,911 ) (18,463 ) (11,603 ) Earnings (loss) before income taxes (10,450 ) (5,027 ) (54,403 ) 24,460 Income tax expense (recovery) Current 304 134 614 1,342 Deferred (7,247 ) 26 (24,631 ) (17,572 ) (6,943 ) 160 (24,017 ) (16,230 ) Net earnings (loss) $ (3,507 ) $ (5,187 ) $ (30,386 ) $ 40,690 Net earnings (loss) per share, basic and diluted $ (0.05 ) $ (0.08 ) $ (0.44 ) $ 0.62 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three months and years ended December 31, 2015 and 2014 (unaudited) (thousands of Canadian dollars) 3 Months
Dec. 31, 2015 3 Months
Dec. 31, 2014 Year
Dec. 31, 2015 Year
Dec. 31, 2014 Net earnings (loss) $ (3,507 ) $ (5,187 ) $ (30,386 ) $ 40,690 Other comprehensive income: Items that will not be recycled to Net earnings (loss): Defined benefit plan actuarial gain (loss) (611 ) 1,190 (1,005 ) (1,342 ) Income tax recovery - - 376 - Total items that will not be recycled to Net earnings (loss) (611 ) 1,190 (629 ) (1,342 ) Items that are or may be recycled to Net earnings (loss): Foreign currency translation differences - foreign operations 10,451 10,748 56,475 20,389 Gain (loss) in fair value of interest rate swaps 347 (145 ) (71 ) (34 ) Total items that are or may be recycled to Net earnings (loss) 10,798 10,603 56,404 20,355 Total other comprehensive income, net of tax 10,187 11,793 55,775 19,013 Total comprehensive income $ 6,680 $ 6,606 $ 25,389 $ 59,703

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months and years ended December 31, 2015 and 2014 (unaudited)
(thousands of Canadian dollars)				3 Months Dec. 31, 2015			3 Months Dec. 31, 2014			Year Dec. 31, 2015			Year Dec. 31, 2014
Cash provided by (used in):
Operating activities:
	Net earnings (loss)		$	(3,507	)	$	(5,187	)	$	(30,386	)	$	40,690
	Items not involving cash:
		Depreciation of plant and equipment		18,482			14,707			71,492			55,167
		Depletion and amortization of timber, roads and other		10,734			8,699			37,478			28,912
		Income tax expense (recovery)		(6,943	)		160			(24,017	)		(16,230	)
		Finance costs		5,459			2,268			17,569			8,915
		Other assets		112			409			639			986
		Reforestation liability		1,472			1,890			1,612			1,910
		Provisions and other liabilities		4,388			181			(8,252	)		(63	)
		Stock options		34			-			189			-
		Reversal of write-down of plant and equipment		-			-			(1,195	)		-
		Write-down of plant and equipment		2,672			-			2,812			20,468
		Unrealized foreign exchange loss (gain)		4			1,860			(337	)		2,191
		Other		(863	)		(4	)		(758	)		46
				32,044			24,983			66,846			142,992
	Cash generated from (used in) operating working capital:
		Trade accounts receivable and other		3,574			(7,827	)		8,748			(8,628	)
		Inventories		3,969			3,838			48,717			15,083
		Prepayments		1,027			4,539			3,017			1,236
		Trade accounts payable and provisions		5,865			9,676			(24,986	)		14,185
		Income taxes paid		(330	)		(132	)		(965	)		(3,077	)
				46,149			35,077			101,377			161,791
Investing activities:
	Additions to property, plant and equipment			(20,114	)		(17,452	)		(93,832	)		(48,922	)
	Additions to logging roads			(5,215	)		(6,875	)		(26,133	)		(26,656	)
	Additions to timber and other intangible assets			(123	)		(378	)		(1,500	)		(2,818	)
	Proceeds on disposal of property, plant and equipment			7,867			286			12,509			1,926
	Acquisitions			-			-			(223,263	)		(124,421	)
	Investments and other assets			(1,345	)		(111	)		(1,033	)		(13	)
				(18,930	)		(24,530	)		(333,252	)		(200,904	)
Financing activities:
	Issuance of capital stock, net of share issue expenses			-			-			63,196			-
	Interest payments			(4,871	)		(1,988	)		(16,186	)		(7,122	)
	Financing transaction costs			(14	)		(21	)		(292	)		(757	)
	Change in operating line components of long-term debt			(19,208	)		-			10,057			(1,789	)
	Additions to long term debt			-			53,515			362,582			223,221
	Repayments of long term debt			-			(70,460	)		(189,691	)		(162,004	)
				(24,093	)		(18,954	)		229,666			51,549
Foreign exchange gain on cash and cash equivalents
held in a foreign currency				1,430			79			799			713
Increase (decrease) in cash				4,556			(8,328	)		(1,410	)		13,149
Cash and cash equivalents, beginning of period				11,900			26,194			17,866			4,717
Cash and cash equivalents, end of period			$	16,456		$	17,866		$	16,456		$	17,866

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31, 2015 and 2014 (unaudited)
(thousands of Canadian dollars)			Dec. 31 2015		Dec. 31, 2014
Assets
Current assets:
	Cash and cash equivalents	$	16,456	$	17,866
	Trade accounts receivable and other		95,218		80,283
	Income taxes receivable		459		-
	Inventories		155,740		148,668
	Prepayments		15,512		12,175
	Assets held for sale		27,836		-
			311,221		258,992
Employee future benefits			1,570		2,520
Other investments and assets			3,191		2,972
Property, plant and equipment			777,590		541,378
Logging roads and bridges			20,611		22,244
Timber licences			72,429		79,024
Other intangible assets			23,601		24,397
Goodwill			160,914		136,996
Deferred income taxes			18,669		-
		$	1,389,796	$	1,068,523
Liabilities and Shareholders' Equity
Current liabilities:
	Trade accounts payable and provisions	$	130,840	$	139,153
	Reforestation liability		11,052		9,797
	Income taxes payable		398		365
			142,290		149,315
Reforestation liability			25,074		23,099
Long term debt			468,759		220,419
Employee future benefits			8,391		7,361
Provisions and other liabilities			20,028		25,190
Deferred income taxes			-		6,659
Equity:
	Share capital		553,559		490,363
	Contributed surplus		7,665		7,476
	Translation reserve		77,425		20,950
	Hedge reserve		62		133
	Retained earnings		86,543		117,558
			725,254		636,480
		$	1,389,796	$	1,068,523

Approved on behalf of the Board:
"L. Sauder"	"D.W.G. Whitehead"
Director	Director

FORWARD-LOOKING STATEMENTS

This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will", "should", "expected", "annualized" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward- looking statements. Such risks and uncertainties include, among others: price volatility, competition, availability and cost of log supply, natural or man-made disasters, currency exchange sensitivity, regulatory changes, allowable annual cut reductions, Aboriginal title and rights claims, potential countervailing and anti-dumping duties, stumpage fee variables and changes, environmental impact and performance, labour disruptions, and other factors referenced herein and in Interfor's Annual Report available on www.sedar.com and www.interfor.com. The forward-looking information and statements contained in this release are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.

ABOUT INTERFOR

Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of approximately 3 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.

The Company's 2015 audited consolidated financial statements and Management's Discussion & Analysis are available at www.sedar.com and www.interfor.com.

There will be a conference call on Friday, February 12, 2016 at 8:00 a.m. (Pacific Time) hosted by INTERFOR CORPORATION for the purpose of reviewing the Company's release of its fourth quarter and fiscal 2015 financial results.

The dial-in number is 1-866-233-4795. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until February 26, 2016. The number to call is 1-866-245-6755, Passcode 434627.