Pension Plan for the Salaried Employees of Grant Forest Products Inc. - Timmins Plant

Registration #1053008

Status Update as of June 2012

We are currently preparing the Wind-Up Report for the Plan to determine the amount of pension benefits payable to members. The Wind-Up Report will be filed with the Pension Regulator by the end of June for review and approval.

The Pension Benefits Guarantee Fund has been declared to apply to the plan but we have not received interim funding from the Pension Benefits Guarantee Fund.

The pension options forms setting out benefit entitlements will be sent to members in the summer of 2012. All pension options forms are asked to be completed and returned to our office within 45 days of receipt and no later than 90 days after the mailing date shown on the pension options form.

We are currently working with Ernst & Young, the Monitor of Grant Forest Products Inc., and our legal counsel to determine the viability of a claim for the Plan deficit.

We will proceed with the distribution of benefits from the Plan after the Wind-Up Report is filed with and approved by the Pension Regulator, the interim funding has been received from the Pension Benefits Guarantee Fund, and the Plan deficit recovery matter is resolved. We anticipate that the distribution of benefits may take place at the end of 2012.

Required Forms:

	Designation of Beneficiary
	Privacy Consent
	Spousal Declaration

Marriage Breakdown Forms:

Declaration of Status