Archive for the ‘Fortress Paper Press Releases’ Category

Fortress Paper Appoints Key Dissolving Pulp Managers for the Conversion of its Thurso Mill

Posted: Thursday, June 3rd, 2010

VANCOUVER, BRITISH COLUMBIA–(Marketwire – June 3, 2010) – Fortress Paper Ltd. (TSX:FTP) (“Fortress Paper” or the “Corporation”) announces the following appointments at its wholly-owned subsidiary, Fortress Specialty Cellulose Inc. (“Fortress Specialty”): Peter Vinall as President and Chief Executive Officer, Vincent Byrne as Vice President, Technical Development and Donald Deer as Projects Leader. In addition, Fortress Specialty has added Pierre Monahan to its Board of Directors.

In announcing the appointments, Chad Wasilenkoff, CEO of Fortress Paper commented: “We are very pleased to have someone of Peter Vinall’s extensive experience and track record joining our team. His appointment brings a wealth of experience in running some of the largest dissolving pulp mills in the world and he has a talent for building strong teams and leading business transformations. With Vince Byrne, Donald Deer, Marco Veilleux and Pierre Monahan, we will have an experienced team in place to implement our business plan at the Fortress Specialty Cellulose Mill.”

Peter Vinall commented: “Having recently relocated back to Canada, I am excited to now join the Fortress team and lead the conversion of the Fortress Specialty Cellulose Mill into a high quality specialty cellulose mill. The Mill has good access to fibre supply and a reputation for high quality NBHK production which will continue with the restart which is underway. Our aim is to leverage these strengths and transform the asset base with extensive technological upgrades and a state of the art cogeneration facility with the goal of becoming a low cost producer and industry leader in the specialty cellulose sector.”

Mr. Vinall has approximately 30 years of experience in the pulp and paper industry and was the former President of Sateri International Pulp Group, a global leader in the specialty cellulose business. Prior to joining Fortress Specialty, Mr. Vinall held the position of President and Chief Executive Officer of AV Group where he led the conversion of an NBHK pulp mill to produce dissolving pulp. Mr. Vinall obtained an MBA from Tulane University, New Orleans, and a B.E in Mechanical and Electrical Engineering from Monash University, Melbourne, Australia.

Vincent Byrne has over 30 years of engineering, operations and process optimization experience focused on commodity and specialty pulping processes. Most recently he acted as VP Technical and Engineering at AV Group where he led the development of the conversion of one of their New Brunswick mills into a dissolving pulp operation. Mr. Byrne obtained a B.Sc. in Chemistry from Massey University, New Zealand.

Donald Deer has approximately 40 years of engineering and construction experience in Canada and has managed in excess of $1 billion in capital spending for several major corporations including Tembec Inc. Most recently, Mr. Deer was responsible for construction and completion of the conversion of one of AV Group’s NBHK mills into a dissolving pulp operation. Mr. Deer also has recent experience designing cogeneration and energy optimization projects. Donald Deer has a B.E in Electrical Engineering from Queens University, Ontario and is a member of Professional Engineers Ontario.

Pierre Monahan is a highly experienced senior board member and executive director. Mr. Monahan was formerly the CEO of Alliance Forest Products Inc. and Executive Vice President of Bowater Canada Inc. during which time he oversaw its integration with Alliance Forest Products Inc., an acquisition valued at approximately $1 billion.

In addition Fortress announces that the former Operations Director of Fraser Paper’s Thurso Mill, Marco Veilleux, has been appointed Chief Operating Officer of Fortress Specialty Cellulose. Mr. Veilleux has led the Thurso operation since 2007 having developed his career in a series of operational and technical leadership roles in the pulp and paper sector in Eastern Canada. He was instrumental in initiating the cogeneration project and ensuring the Thurso assets are well positioned for the transformation. Mr. Veilleux has a B.Sc. in Chemistry from the University of Sherbrooke.

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress Paper operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper’s pulp business will include NBHK with the re-start of the Fortress Specialty Cellulose Mill with plans to convert this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fortress Paper with respect to its performance, business and future events, including statements relating to its plans to re-start, convert and build a biomass based cogeneration plant at the Fortress Specialty Cellulose Mill. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Corporation operates, including assumptions relating to the Corporation’s ability to successfully implement its business plan in respect of the Fortress Specialty Cellulose Mill; that the Corporation will be able to receive all required approvals and complete construction of the cogeneration facility; and the expected effects of the cogeneration facility on the business of the Corporation. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, that the Corporation will be unable to implement its business plan in respect of the Fortress Specialty Cellulose Mill as planned or at all; that the Corporation will be unable to receive all necessary approvals to begin construction of the cogeneration facility; and those risks relating to changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of raw materials, foreign exchange fluctuations, labour relations, regulatory requirements, reputation, competition, dependence on major customers, and other risk factors listed from time to time in the Corporation’s public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. Fortress Paper does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

SOURCE:
Fortress Paper Ltd.

NBHK Pulp Production Begins at Fortress Paper’s Thurso Mill

Posted: Tuesday, June 1st, 2010

VANCOUVER, BRITISH COLUMBIA–(Marketwire – June 1, 2010) – Fortress Paper Ltd. (“Fortress Paper” or the “Corporation”) (TSX:FTP) announces that its wholly-owned subsidiary, Fortress Specialty Cellulose Inc. (“Fortress Specialty”), commenced production and sale of NBHK pulp on May 28th. The mill reopened May 1st after being shut down by the former owner in early 2009.
Chad Wasilenkoff, CEO of Fortress Paper Ltd. commented: “The commencement of production at the Fortress Specialty Cellulose Mill marks the achievement of an important milestone at Thurso. We are pleased that production has commenced ahead of schedule and this will enable us to take advantage of the current strong NBHK pulp prices.”

Fortress Specialty’s Thurso Mill is expected to produce approximately 250,000 air dried metric tonnes per annum of high grade northern bleached hardwood kraft pulp. Fortress Specialty intends to produce NBHK pulp while undergoing transformation to become a dissolving pulp producer in mid 2011.

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress Paper operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Fortress Specialty Cellulose Mill located in Quebec, Canada. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper’s pulp business will include NBHK with the re-start of the Fortress Specialty Cellulose Mill with plans to convert this capacity into dissolving pulp production along with the construction of a biomass based cogeneration plant.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fortress Paper with respect to its performance, business and future events, including statements relating to its plans to re-start, convert and build a biomass based cogeneration plant at the Fortress Specialty Cellulose Mill. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Corporation operates, including assumptions relating to the Corporation’s ability to successfully implement its business plan in respect of the Fortress Specialty Cellulose Mill; that the Corporation will be able to receive all required approvals and complete construction of the cogeneration facility; and the expected effects of the cogeneration facility on the business of the Corporation. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, that the Corporation will be unable to implement its business plan in respect of the Fortress Specialty Cellulose Mill as planned or at all; that the Corporation will be unable to receive all necessary approvals to begin construction of the cogeneration facility; and those risks relating to changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of raw materials, foreign exchange fluctuations, labour relations, regulatory requirements, reputation, competition, dependence on major customers, and other risk factors listed from time to time in the Corporation’s public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. Fortress Paper does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

SOURCE:
Fortress Paper Ltd.

Fortress Paper Announces First Quarter 2010 Results

Posted: Tuesday, May 11th, 2010

VANCOUVER, British Columbia, May 11 2010 – Fortress Paper Ltd. (“Fortress Paper” or the “Company”) (TSX:FTP) reported adjusted net income of $3.0 million for the first quarter of 2010 on sales of $50.3 million or adjusted earnings per share of $0.30. In the first quarter of 2009 the Company reported adjusted net income of $2.5 million on sales of $46.6 million or adjusted earnings per share of $0.25. For the fourth quarter of 2009 the Company reported adjusted net income of $4.8 million on sales of $51.0 million or adjusted earnings per share of $0.47.

Analysis of Specific Items Affecting Comparability of Net Income

(thousands of dollars, except per share figures, unaudited) Q1 2010 Q4 2009 Q1 2009
Net income as reported 179 3,720 3,584
Foreign exchange loss (gain) 2,380 1,073 (1,055)
Deferred expenses written off 476 - -
Adjusted net income 3,035 4,793 2,529
Net income per share (EPS), as reported 0.02 0.35 0.35
Impact of above item per share 0.28 0.12 (0.10)
Adjusted net income per share 0.30 0.47 0.25

EBITDA was $5.8 million or 11.5% of sales for the three months ended March 31, 2010. For the three months ended March 31, 2009 EBITDA was $5.0 million or 10.8% of sales. EBITDA was $7.9 million or 15.4% of sales for the three months ended December 31, 2009.

In the first quarter of 2010 the Dresden mill continued to experience strong sales and earnings throughout the quarter. The Landqart mill results reflected the product mix during the quarter. The banknote paper machine remains full and the conversion of paper machine one from a specialty paper machine to a banknote paper machine is on track. The increase in EBITDA relative to the prior year comparative period was partially due to the global financial and economic crisis which impacted sales early in 2009.

EBITDA is defined as net income before interest, income taxes, depreciation, amortization, non-operating income and expenses and stock based compensation which the Company considers to be a key performance indicator. EBITDA is not a generally accepted earnings measure and should not be considered as an alternative to earnings or cash flows as determined in accordance with Canadian generally accepted accounting principles. As there is no standardized method of calculating EBITDA, the Company’s use for the term may not be comparable with similarly titled measures used by other companies.

Chadwick Wasilenkoff, chief executive officer of Fortress Paper, states: “This is an exciting time for the Company. The recently announced acquisition of the Thurso mill will diversify our specialty product mix and we believe will provide a significant financial contribution to Fortress’s growth aspirations. We plan to ramp up operations at the Thurso mill while we immediately begin the conversion into a dissolving pulp operation. The Dresden mill continues to perform extremely well, while the Landqart mill is experiencing results which are reflective of the current product mix of banknotes which offer lower margins.”

Selected Financial Information

The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, our audited consolidated financial statements as at and for the year ended December 31, 2009 and the related notes thereon and our Management’s Discussion and Analysis filed on SEDAR.

Three Months Ended March 31, 2010
Selected Financial Information and Statistics

(thousands of dollars, except per unit amounts and shipments, unaudited) Q1 2010 Q4 2009 Q1 2009
Sales 50,304 51,049 46,623
EBITDA 5,808 7,885 5,032
Operating income 4,202 6,292 3,765
Net income 179 3,720 3,584
Basic EPS $0.02 $0.36 $0.35
Weighted average shares outstanding basic (thousands) 10,234 10,234 10,234
Diluted EPS $0.02 $0.35 $0.35
Weighted average shares outstanding diluted (thousands) 10,713 10,487 10,234
Shipments (tonnes
Landqart mill 4,287 3,673 3,721
Dresden mill 12,099 11,618 9,002
Total 16,386 15,291 12,723

Operational Results

Landqart produces various security and specialty papers. Security paper production includes banknote paper which results in varying degrees of EBITDA margin depending on the complexity of the features included. During 2008 Landqart also started producing non-woven wallpaper base. Included in Landqart’s sales number for the quarter ended March 31, 2010 is approximately 1,581 tonnes of non-woven wallpaper base. At the Landqart mill the order log for security papers remains stable.

At the Dresden mill, the wallpaper base market experienced continued strength throughout the quarter. Sales tonnage has increased relative to the prior year comparative periods and profitability remains solid.

Subsequent Events

On April 30, 2010 the Company completed the purchase of a northern bleached hardwood kraft pulp mill located in Thurso, Quebec from Fraser Papers Inc. through a wholly-owned subsidiary, Fortress Specialty Cellulose Inc. (“Fortress Specialty Cellulose”), for the net proceeds of approximately $1.2 million. The Company has announced the intention of converting this mill into a specialty cellulose (dissolving pulp) operation and to build a biomass-based cogeneration plant. The valuation of this acquisition for accounting purposes and the effect on the financial statements of the Company are still being determined.

Concurrent with this acquisition the Company finalized $102.4 million in project financing with a term of 10 years secured by the assets of Fortress Specialty Cellulose. Interest will be calculated at a fixed rate of 5.0% per annum for the first five years, followed by a rate of up to 5.5% for the remaining 5 years.

Also concurrent with this acquisition Fortress Paper issued a $15 million convertible debenture to a financial institution. The convertible debt matures in five years with an interest rate of 7% per annum. The debenture is convertible, in whole or in part, at the option of the holder into common shares of Fortress Paper at any time at a conversion price equal to $20.00 per share. Fortress Paper can redeem the debenture, in whole or in part, at any point after two years at a conversion price of not less than $25.00 per share.

The Company

Fortress Paper is a leading international producer of security and other specialty papers. The Company operates two paper mills, the Landqart mill located in Switzerland and the Dresden mill located in Germany. The Company’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. As an extension of its security papers business, the Landqart mill has been actively developing and marketing innovative paper-based security products.

Conference Call

A conference call to discuss the financial results for the first quarter 2010 will be held on May 12, 2010 at 8:00 a.m. (PST). To attend the conference call, please dial one of the following numbers:

North America: 1-877-353-9586

International: 1-403-532-8075

Participant pass code: 90198#

A replay of the conference call will be available for 7 days. To access the replay, listeners may dial 1-877-245-4531 from North America or 403-205-4531 International. The pass code to access the replay is 347381#.

For more information, please contact

Fortress Paper Ltd.
Mr. Chadwick Wasilenkoff
Chief Executive Officer
604-904-2328

Fortress Paper Announces Pulp Purchase And Sale Agreement For Fortress Specialty Cellulose

Posted: Monday, May 10th, 2010

VANCOUVER, British Columbia, May 10 2010 – Fortress Paper Ltd. www.fortresspaper.com (“Fortress Paper” or the “Corporation”) (TSX:FTP) announces that its wholly-owned subsidiary, Fortress Specialty Cellulose Inc. (“Fortress Specialty”) has entered into a pulp purchase and sale agreement (the “Agreement”) with International Forest Products Corp. (“IFP”) of Foxboro, Massachusetts.

Pursuant to the terms of the Agreement, IFP will be the exclusive distributor for the sale of northern bleached hardwood kraft (“NBHK”) pulp produced at the Thurso Mill for the duration of such production.

The Thurso Mill is expected to commence commercial production in June of this year and is anticipated to produce approximately 250,000 air dry metric tonnes of high quality NBHK pulp per year. The re-start plans are on track and the mill expects to promptly deliver the high quality that it was well known for in the market place.

“Everyone at International Forest Products Corporation (IFP) is extremely pleased to be working with Fortress Paper on this exciting venture,” said Daniel Kraft, President and CEO of IFP. “This relationship will align IFP with one of the world’s premier specialty paper producers.”


Fortress Paper Announces Energy Supply Agreement With Hyrdo Quebec For The Sale Of Green Power From Its Thurso Mill

Posted: Thursday, May 6th, 2010

VANCOUVER, British Columbia, May 6, 2010 – Fortress Paper Ltd. (“Fortress Paper” or the “Corporation”) announced today that it has signed, through its wholly‑owned subsidiary, Fortress Specialty Cellulose Inc. (“FSC”), an Energy Supply Agreement (the “Agreement”) with Hydro Québec for the sale of green electricity to be produced at the Thurso Mill upon completion of a biomass-based cogeneration facility.

Under the Agreement, the Company will construct a cogeneration facility to provide net 18.8 megawatts of green power to Hydro Québec over a 15 year term, with deliveries estimated to commence in the fourth quarter of 2012.

Chadwick Wasilenkoff, CEO of Fortress Paper, states, “The signing of the Agreement represents an important step in achieving our business plan at the Thurso Mill, which includes the building of a cogeneration plant that produces green electricity that in turn will ultimately benefit Québec residents. We believe that the results of this partnership with Hydro Québec will be beneficial to the environment and the economy of Québec, as well as providing net energy savings (income) to Fortress Paper.”

The Agreement is subject to final approval by the Régie de l’énergie in Québec which is expected to be received in the third quarter of 2010.

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers. Fortress Paper operates three mills, the Landqart Mill located in Switzerland, the Dresden Mill located in Germany and the Thurso Mill located in Canada. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. Fortress Paper’s pulp business currently includes NBHK with plans to convert this capacity into dissolving pulp production. Fortress Paper plans to build a biomass based cogeneration plant at the Thurso Mill.

Fortress Paper Closes Acquisition To Enter The Specialty Cellulose and Bio Energy Sectors And The Associated Financing

Posted: Sunday, May 2nd, 2010

VANCOUVER, British Columbia, April 30, 2010 – Fortress Paper Ltd. (“Fortress Paper” or the “Corporation”), a leading producer of security and specialty papers, is pleased to announce the successful completion of its acquisition of the assets of a northern bleached hardwood kraft (“NBHK”) manufacturing facility located in Thurso, Quebec (the “Thurso Mill”) from Fraser Papers Inc. (“Fraser”) for net proceeds of approximately $1.2 million. With this successful acquisition, Fortress Paper will commence the conversion of the Thurso Mill into a world class, low cost, specialty cellulose (dissolving pulp) operation. Concurrently, Fortress Paper intends to build a biomass-based cogeneration plant at the Thurso Mill which will produce green electricity resulting in material net energy savings (income).

Chad Wasilenkoff, CEO of Fortress Paper, states, “We are pleased to announce the transaction has closed. We intend to move aggressively to ramp up operations at the Thurso Mill and anticipate production of NBHK to commence in mid June of this year during the interim period while we immediately begin the conversion of the Thurso Mill into a dissolving pulp operation. We are finalizing the terms of employment with several key individuals with extensive experience in dissolving pulp conversions and should be able to provide more details on this matter in the coming weeks. This acquisition will diversify our specialty product mix and we believe will provide a significant financial contribution to Fortress’ growth aspirations.”

The acquisition of the Thurso Mill has been completed through its wholly-owned subsidiary Fortress Specialty Cellulose Inc. (“Fortress Specialty”). The Corporation intends to incur capital expenditures of approximately $153 million to convert the non‑operating NBHK mill into a high quality specialty cellulose mill and to construct a new cogeneration facility.

Concurrent with the completion of the acquisition the Company has finalized $102.4 million project financing with Investissement Québec (“IQ”) and a $15 million convertible debenture (the “Debenture”) with Solidarity Fund QFL. Additionally, included in the assets being purchased is approximately $9.9 million in credits (black liquor credits) granted under the Canadian government’s Pulp and Paper Green Transformation Program. Fortress Paper also intends to apply for approximately $15.2 million in federal credits under the Green Infrastructure Fund program of the Minister of Transport, Infrastructure & Communities relating to the planned cogeneration project.

New collective agreements have been negotiated with all three unions which will be in effect until 2016. The defined benefit pension plan which existed under the previous collective agreements has been replaced with a defined contribution pension plan, eliminating the risk of future unfunded pension liabilities. Under these new agreements, Fortress will not be assuming any of the previous pension liabilities. Management is confident that these agreements will ensure a positive partnership with the union and a stable, efficient cost structure through the transition into dissolving pulp.

Further Details:

Fortress Paper has completed a loan agreement whereby Investissement Québec has agreed to provide up to $102.4 million to Fortress Specialty to support the proposed business plan in respect of the Thurso Mill. The loan is secured by the capital assets of Fortress Specialty and has a term of 10 years. Interest will be calculated at a fixed rate of 5.0% per annum for the first five years, followed by a rate based on the cost of IQ’s funds plus 2.0% for the remaining five years, up to a maximum of 5.5% per annum.

Fortress Paper has also issued a $15 million convertible debenture (the “Debenture”) to Solidarity Fund QFL. The convertible debt matures in five years with an interest rate of 7% per annum. The Debenture is convertible, in whole or in part, at the option of Solidarity Fund QFL into common shares of Fortress Paper at any time after closing of the debenture at a conversion price equal to $20.00.

The Solidarity Fund QFL is a development capital company that channels the savings of Québec residents into investments in all sectors of the economy to help create and maintain jobs and to further Québec’s economic growth. The Fund is a partner, either directly or through its network members, in approximately 2,000 companies.

The specialty cellulose mill is planned to have an annual production capacity of more than 200,000 air dried metric tonnes and is expected to be completed in mid-2011. In entering into the specialty cellulose sector, Fortress Specialty will focus on producing dissolving grade cellulose for the textile industry, primarily targeting viscose fibre (rayon) products which have shown strong growth of approximately 10% in China and 7% worldwide over the past five years. Rayon is a technically evolved and versatile fibre with many advantages, particularly in the warmer and higher growth regions of the world.

Fortress Paper also plans to construct an approximately 25 megawatt cogeneration facility to service a net 18.8 megawatt power supply agreement over a 15 year term. The location of the cogeneration facility provides it with access to on‑site generation of biomass and an extensive local network of chip and other biomass suppliers. The cogeneration facility is expected to be supplying electricity in the fourth quarter of 2012.

Fortress Paper To Release First Quarter 2010 Earnings

Posted: Wednesday, April 28th, 2010
Vancouver, British Columbia, April 27th, 2010 – Fortress Paper Ltd. (“Fortress Paper” or the “Corporation”) announced today that it intends to release its first quarter financial results for the period ended March 31, 2010 after the close of the market on Tuesday, May 11th, 2010. In connection with the release of its results, Fortress Paper will host a conference call Wednesday, May 12th, 2010 at 8:00 a.m.
(PST) to discuss the financial results and the Corporation’s operations. Mr. Chadwick Wasilenkoff, Chief Executive Officer, Alfonso Ciotola, President, Erich Sulser, Chief Operating Officer, and Kurt Loewen, Chief Financial Officer will host the call.
To participate in the conference call, please dial one of the following numbers:
Dial In Numbers: 604-681-0262 Vancouver
403-532-8075 Calgary or International
780-429-7423 Edmonton
647-837-0597 Toronto
613-683-0932 Ottawa
514-788-7663 Montreal
Toll Free Dial In Number: 1-877-353-9586 from Canada and USA
Participant Pass Code: 90198#
A replay of the conference call will be available for 7 days. To access the replay, listeners may dial 1-877-245-4531 from Canada & the USA or dial 403-205-4531 from local Calgary or International. The pass code to access the replay is 347381 #.
About Fortress Paper Ltd.
Fortress Paper is a leading international producer of security and other specialty papers. Fortress Paper
operates two paper mills, the Landqart Mill located in Switzerland and the Dresden Mill located in
Germany. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty
papers include non-woven wallpaper base products, and graphic and technical papers. As an extension of
its security papers business, the Landqart Mill has been actively developing and marketing innovative
paper-based security products.
For further information, please contact:
Chadwick Wasilenkoff
Fortress Paper Ltd.
604-904-2328
info@fortresspaper.com
www.fortresspaper.com
Not for distribution to United States newswire services or for dissemination in the United States.

FORTRESS PAPER TO RELEASE FIRST QUARTER 2010 EARNINGSVancouver, British Columbia, April 27th, 2010 – Fortress Paper Ltd. (“Fortress Paper” or the”Corporation”) announced today that it intends to release its first quarter financial results for the periodended March 31, 2010 after the close of the market on Tuesday, May 11th, 2010. In connection with therelease of its results, Fortress Paper will host a conference call Wednesday, May 12th, 2010 at 8:00 a.m.(PST) to discuss the financial results and the Corporation’s operations. Mr. Chadwick Wasilenkoff, ChiefExecutive Officer, Alfonso Ciotola, President, Erich Sulser, Chief Operating Officer, and Kurt Loewen,Chief Financial Officer will host the call.To participate in the conference call, please dial one of the following numbers:Dial In Numbers: 604-681-0262 Vancouver403-532-8075 Calgary or International780-429-7423 Edmonton647-837-0597 Toronto613-683-0932 Ottawa514-788-7663 MontrealToll Free Dial In Number: 1-877-353-9586 from Canada and USAParticipant Pass Code: 90198#A replay of the conference call will be available for 7 days. To access the replay, listeners may dial1-877-245-4531 from Canada & the USA or dial 403-205-4531 from local Calgary or International. Thepass code to access the replay is 347381 #.About Fortress Paper Ltd.Fortress Paper is a leading international producer of security and other specialty papers. Fortress Paperoperates two paper mills, the Landqart Mill located in Switzerland and the Dresden Mill located inGermany. Fortress Paper’s security papers include banknote, passport and visa papers and its specialtypapers include non-woven wallpaper base products, and graphic and technical papers. As an extension ofits security papers business, the Landqart Mill has been actively developing and marketing innovativepaper-based security products.For further information, please contact:Chadwick WasilenkoffFortress Paper Ltd.604-904-2328info@fortresspaper.comwww.fortresspaper.comNot for distribution to United States newswire services or for dissemination in the United States.

Fortress Paper Announces Convertible Debenture Financing

Posted: Friday, April 16th, 2010
Fortress Paper Ltd. (“Fortress Paper” or the “Corporation”) today announces, further to its news release of March 18, 2010, the signing of a subscription agreement (the “Subscription Agreement”) with Solidarity Fund QFL (the “Fund”) providing for the subscription of an unsecured convertible debenture of Fortress Paper (the “Debenture”) in the principal amount of $15 million maturing five years following the date of its issuance and bearing interest at a rate of 7% per annum. The Debenture will be convertible, in whole or in part, at the option of the Fund into common shares of Fortress Paper at any time after the date of its issuance at a conversion price equal to $20.00.
The Debenture will be redeemable, in whole or in part, at the option of Fortress Paper from the second anniversary
date of its issuance, provided that the volume weighted average trading price of Fortress’ common shares on the
Toronto Stock Exchange (the “TSX”) is not less than $25.00.
The Debenture financing is part of the financing package being arranged by Fortress Paper in connection with its
plans to acquire and convert the Thurso Mill in Québec into a high quality specialty cellulose mill and to construct
a new cogeneration facility as announced on March 18, 2010.
The closing of the Subscription Agreement is subject to various conditions, including (i) the concurrent completion
of a senior debt financing providing for credit facilities in the amount of up to $100 million to be used in connection
with the Thurso Mill; (ii) the closing of the acquisition of the Thurso Mill; and (iii) receipt of TSX approval for the
issuance by Fortress Paper of the Debenture.
The Ontario Superior Court of Justice (Commercial List) has approved the sale of the Thurso Mill. The closing of
the acquisition of the Thurso Mill and Subscription Agreement is expected to occur on or about April 30, 2010.

Fortress Paper Announces an Acquisition to Enter the Specialty Cellulose and Bio-Energy Sectors

Posted: Thursday, March 18th, 2010

Fortress Paper Ltd. (“Fortress Paper” or the “Corporation”) (TSX:FTP), a leading producer of security and specialty papers, in a major strategic move today announces the signing of an asset purchase agreement (“APA”) to acquire the assets of a northern bleached hardwood kraft (“NBHK”) manufacturing facility located in Thurso, Quebec (the “Thurso Mill”) from Fraser Papers Inc. (“Fraser”) with the intention to convert this operation into a world class, low cost, specialty cellulose (dissolving pulp) operation. Concurrently, Fortress Paper intends to build a biomass-based cogeneration plant at the Thurso Mill which will produce green electricity resulting in material net energy savings (income).
Upon closing of the acquisition of the Thurso Mill, which will be completed through its wholly-owned subsidiary Fortress Specialty Cellulose Inc. (“Fortress Specialty”), the Corporation intends to incur capital expenditures of approximately $153 million to convert the non-operating NBHK mill into a high quality specialty cellulose mill and to construct a new cogeneration facility. In connection with the proposed capital expenditures, Fortress Paper is pleased to announce that it has pre-arranged specific financing initiatives to fund the conversion and cogeneration projects.

The specialty cellulose mill is planned to have an annual production capacity of more than 200,000 air dried metric tonnes and is expected to be completed in mid-2011. In entering into the specialty cellulose sector, Fortress Specialty will focus on producing dissolving grade cellulose for the textile industry, primarily targeting viscose fibre (rayon) products which have shown strong growth of approximately 10% in China and 7% worldwide over the past five years. Rayon is a technically evolved and versatile fibre with many advantages, particularly in the warmer and higher growth regions of the world.

Fortress Paper also plans to construct a 25 megawatt cogeneration facility to service a net 18.8 megawatt power supply agreement over a 15 year term. The location of the cogeneration facility provides it with access to on-site generation of biomass and an extensive local network of chip and other biomass suppliers. The cogeneration facility is expected to be supplying electricity in the fourth quarter of 2012.

Chad Wasilenkoff, CEO of Fortress Paper, states, “We are very pleased to announce this new acquisition which we believe will add significant shareholder value in the years to come. Both the Board of Directors and management of Fortress Paper feel that this new opportunity warrants the diversification of the Corporation into other specialty sectors as it has the potential to materially enhance shareholder value. Once the conversion and cogeneration projects are complete, we will be entering a new product segment which offers long-term growth prospects and attractive margins. During the interim period, we will capitalize on the current strength of the NBHK pulp market. We feel it is important to emphasize that this is not an acquisition to enter into the pulp industry, but rather the opportunity to acquire assets that are ideally suited to be converted into a bio-refinery and produce high value-added products. We intend to strategically enter this sector at a time when demand exceeds current capacity. We believe this trend will continue over the next several years given the limited announced new capacity.”

Pursuant to the terms of the APA, Fortress Paper will pay Fraser $3 million in cash at closing, subject to certain adjustments. The closing of the APA is subject to various conditions, including (i) as a result of Fraser and its subsidiaries having filed for creditor protection under theCompanies’ Creditors Arrangement Act (the “CCAA”) in Canada, the approval of the transaction by the Ontario Superior Court of Justice (Commercial List) in connection therewith, (ii) Fortress Specialty entering into renewed collective agreements with all unionized employees of the Thurso Mill, and (iii) the Corporation and Fortress Specialty securing financing as necessary to implement their proposed business plan at the Thurso Mill. Fortress is optimistic that it will be able to finalize mutually satisfactory renewed collective agreements with the three unions imminently and looks forward to building a mutually beneficial relationship with the community of Thurso. The closing of the acquisition is anticipated to occur on or about April 30, 2010.

Investissement Quebec (“IQ”) has committed, by way of an agreement in principle, to grant Fortress Specialty a loan in the amount of up to $102.4 million to support Fortress Paper’s proposed business plan in respect of the Thurso Mill. The loan will be secured by the capital assets of Fortress Specialty and will have a term of 10 years. Interest will be calculated at a fixed rate of 5.0% per annum for the first five years, followed by a rate based on the cost of IQ’s funds plus 2.0% for the remaining five years, up to a maximum of 5.5% per annum. The loan is subject to receiving the requisite approval of the Government of Quebec and is subject to completion of definitive documentation.

Fortress Paper has also signed a conditional commitment letter with a Quebec financial institution providing for the subscription of an unsecured convertible debenture of Fortress Paper (the “Debenture”) in the principal amount of $15 million maturing in five years with an interest rate of 7% per annum. The Debenture will be convertible, in whole or in part, at the option of the Quebec financial institution into common shares of Fortress Paper at any time after closing of the debenture at a conversion price equal to the lesser of 145% of the trading price of the common shares on the Toronto Stock Exchange (the “TSX”) and $20.00.

The Debenture will be redeemable, in whole or in part, at the option of Fortress Paper, from the second anniversary date of its issuance at par plus all accrued and unpaid interest, provided that the volume weighted average trading price of the common shares of Fortress Paper on the TSX is not less than 125% of the conversion price. The Debenture financing is subject to various conditions, including approval by the decision-making authorities of the Quebec financial institution, satisfactory due diligence, the concurrent completion of the IQ financing, the closing of the APA, receipt of TSX approval for the issuance by Fortress Paper of the Debenture and the completion of definitive documentation.

Included in the assets being purchased from Fraser is approximately $9.9 million in credits (black liquor credits) granted under the Canadian government’s Pulp and Paper Green Transformation Program (the “GTP”). The GTP aims to improve the environmental performance of Canada’s pulp and paper industry by funding approved capital projects with environmental benefits. Fortress Paper also intends to apply for approximately $15.2 million in federal credits under the Green Infrastructure Fund program of the Minister of Transport, Infrastructure & Communities relating to the planned cogeneration project.

As no definitive agreements have been entered into with respect to the financing initiatives described above, there can be no assurance at this time that the financing in connection with the Thurso Mill will be completed on terms acceptable to Fortress Paper or at all.

For more information on the Fortress Specialty Cellulose project you can access the Fortress Specialty Cellulose PowerPoint Presentation by going directly to the link atwww.fortress.presenternet.com

A prerecorded voice presentation is available to accompany the PowerPoint and can be accessed at:

Prerecorded Presentation dial-in number 1-877-353-9587 or from overseas 403-699-1055 and follow the prompts. When prompted, enter the 6 digit conference reference number 274464 followed by the number sign (#). The recording will be available for 7 days.

Future replays of the PowerPoint Presentation can be accessed by a link on the front page of our website at www.fortresspaper.com and alternatively at www.fortress.presenternet.com.

About Fortress Paper

Fortress Paper is a leading international producer of security and other specialty papers. Fortress Paper operates two paper mills, the Landqart Mill located in Switzerland and the Dresden Mill located in Germany. Fortress Paper’s security papers include banknote, passport and visa papers and its specialty papers include non-woven wallpaper base products, and graphic and technical papers. As an extension of its security papers business, the Landqart Mill has been actively developing and marketing innovative paper-based security products.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fortress Paper with respect to its performance, business and future events, including statements relating to the Corporation’s completion of the APA and the outcome of its financing initiatives; its intention to convert the Thurso Mill into a specialty cellulose (dissolving pulp) operation; its plans to build a biomass based cogeneration plant and the financial results and production capacity expected therefrom; its ability to complete the necessary financing to make planned capital expenditures; the expected effects of the acquisition of the Thurso Mill on the business of the Corporation; the state of the market in the specialty cellulose and green bio-energy sectors; and its intended application for federal tax credits. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Corporation operates, including assumptions relating to the Corporation’s ability to complete the APA; its ability to complete the necessary financing to successfully implement its business plan in respect of the Thurso Mill; the success and profitability of the specialty cellulose operation and cogeneration plant; the expected effects of the acquisition of the Thurso Mill on the business of the Corporation; the state of the market in the specialty cellulose and green bio-energy sectors; and the Corporation’s ability to obtain certain federal tax credits. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, that the Corporation will not complete the APA; will not obtain the necessary financing to complete its business plan in respect of the Thurso Mill; will be unable to implement its business plan in respect of the Thurso Mill as planned or at all; that the specialty cellulose operation and cogeneration plant will not be successful or profitable and will not meet anticipated production capacities; that the Corporation will not obtain the federal tax credits; and those risks relating to changes in the market, potential downturns in economic conditions, fluctuations in the price and supply of raw materials, foreign exchange fluctuations, labour relations, regulatory requirements, reputation, competition, dependence on major customers, and other risk factors listed from time to time in the Corporation’s public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information, which are qualified in their entirety by this cautionary statement. Fortress Paper does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

Fortress Paper Announces Signing of EUR 18.5 Million Loan for PM1 Rebuild

Posted: Saturday, February 20th, 2010

Fortress Paper Ltd. (TSX:FTP) www.fortresspaper.com (“Fortress Paper” or the “Corporation”) announces the signing by its wholly-owned subsidiary Dresden Papier GmbH (“Dresden”) of a loan agreement for EUR 18.5 million (CDN $26.5M) with GE Capital Bank AG in connection with the rebuild of Landqart AG’s (“Landqart”) papermachine no. 1 (“PM1″) to produce banknote papers. The loan agreement is for a 7 year term, fixed for the first 3 years at 7.09% per annum beginning after final drawdown which is anticipated to be early 2011. During the drawdown period, interest only payments will be required at 6.20% per annum.

The Dresden loan in conjunction with the previously announced Dresden factoring agreement for up to EUR 12 million, the Landqart factoring agreement to be finalized together with cash on hand will provide the necessary financing and cashflow for the rebuild of the PM1 machine. The rebuild increases Fortress’ banknote production capacity from the current 2,500 tonnes per annum to approximately 10,000 tonnes per annum.

PM1 is currently utilized for lower margin specialty papers and low to medium security papers. The rebuild is expected to be completed by the end of 2010, with banknote papers production from this rebuilt machine scheduled to begin in the first quarter of 2011.

SOURCE:
MarketWire: Fortress Paper Announces Signing of EUR 18.5 Million Loan for PM1 Rebuild