Appendix 1: About Conifex Timber Inc.

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Bioenergy Segment Update • Conifex plans to develop a bioenergy cogeneration project adjacent to its Mackenzie Site I sawmill complex. The project involves: ‣ Upgrading the existing power island infrastructure ‣ Replacing the existing 13.8 MW turbine with a new 36 MW turbine, and ‣ Supplying renewable green electricity to over 20,000 British Columbia residences. • Key project attributes ‣ The power produced will meet Conifex’s electricity needs at Mackenzie and be sold to BC Hydro under a 20-year EPA ‣ Commercial operation date is expected to be Q3 2013 ‣ Use of existing infrastructure provides for low capital cost and attractive return 6
Bioenergy Segment Update • Financing alternative under consideration to provide $75 million in project funding ‣ We are in well advanced negotiations with a significant financial institution to secure project financing*. One alternative under consideration may provide ‣ $60 million in long-term senior secured project debt and ‣ $15 million through a sale of a minority equity interest in the Mackenzie Bioenergy Project ‣ Benefits of financing approach ‣ Provides a more conservative debt to equity ratio compared to straight debt financing ‣ Alignment with a financial partner that will position us to accelerate timing on follow on bioenergy initiatives to further optimize surplus fibre and substantial infrastructure at Mackenzie *There can be no assurance that the Company will obtain the necessary funding for the project on the foregoing terms, other terms reasonably satisfactory to it or at all. • Our Mackenzie power project makes good business sense for Conifex because it allows us to: ‣ Capture a stable and diversified source of cash flow ‣ Unlock the underlying energy value in our sawdust, shavings and hog fuel co-products ‣ Realize value from the low-cost infrastructure in place at Mackenzie 7
Page 1 and 2: Conifex Timber Inc. October 2012 Up
Page 3 and 4: Outline of Presentation • Introdu
Page 5: Results in Brief 2011 2012 Q1 Q2 Q3
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Appendix 1: About Conifex Timber Inc.

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