Update on Northern Pulp's Environmental Assessment Work and Cost-Saving Measures

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Since hibernating the mill and voluntarily entering creditor protection in 2020, Northern Pulp has been working in a financially prudent manner.

On August 30, 2023, the Court extended our CCAA stay period until November 30, 2023.

Since June 2020, significant work has been done on the Environmental Assessment, including the Pictou Harbour Characterization, Air Quality, Terrestrial Biology, and Outfall Location studies.

During the last stay period, pulp engineering and design firm KSH Solutions advanced its research into emissions and equipment for the transformed mill. Makai Ocean Engineering completed a preliminary feasibility assessment for constructing a new outfall location. Our team also spent time identifying the relevant studies conducted since 2018 that we believe can meet the requirements of the current environmental assessment terms of reference, saving both cost and time.

During this stay period, we remain focused on mediation and determining if we can reach a settlement with the Province of Nova Scotia. We can’t provide details of the confidential mediation, but the discussions and outcomes of this stay period will inform our ongoing environmental assessment and the likelihood of operating a transformed Northern Pulp mill.

While we focus on mediation, we are taking steps to reduce costs, including transitioning all employees to work remotely and reducing power consumption at the mill. These measures will ensure we are financially well-positioned to continue advancing our plans to operate a transformed mill in Nova Scotia if we have a clear path forward from mediation.

Effective Tuesday, September 5, 2023, Northern Pulp’s eighteen employees have transitioned from working at the mill to working remotely. This decision will enable us to temporarily reduce heating and power usage and hibernate all aspects of the mill's facilities, including offices. The transition to a remote work setup has been successful, and we have worked with each employee to ensure their home office is of equal or greater quality than their previous workspace at the mill.

Security will continue monitoring the Northern Pulp site at all times.

Paper Excellence Canada is committed to operating a modern pulp mill in Nova Scotia. These cost-saving measures will ensure we are financially well-positioned to continue advancing our plans if we have a clear path forward from mediation.

Source: Tomorrow's Mill