GreenFirst Welcomes More Than $7.5 Million in Ontario Support for Chapleau Modernization and Biomass Innovation

CHAPLEAU, Ontario — GreenFirst Forest Products Inc. (TSX: GFP) (“ GreenFirst ” or the “ Company ”) welcomes the Government of Ontario’s support for two initiatives at its Chapleau facility aimed at enhancing competitiveness and exploring new markets for forest biomass.

The Government of Ontario is providing GreenFirst with more than $5.9 million through the Forest Sector Investment and Innovation Program (FSIIP) to support a new sawline and the installation of a high-speed planer. The funding is provided through a performance-based loan, of which up to 50 per cent is forgivable. The project is expected to increase productivity while improving lumber recovery and value. Both the sawline and planer have been installed and are in the process of ramping up.

Ontario is also providing more than $1.6 million through the Forest Biomass Program to advance engineering and feasibility work for a potential torrefied pellet facility in Chapleau. The initiative will explore new markets and applications for forest biomass; if the facility is developed, it would have the long-term potential to create 30 direct and 70 indirect jobs.

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“We thank the Government of Ontario for investing in Chapleau — and in the skilled team that runs it every day. The new sawline and high-speed planer put modern tools in the hands of our people, as we work to capture more recovery and value from every log. The torrefied pellet project could create new markets for our residual biomass and new jobs for the region, building on Northern Ontario’s abundant wood fibre resources. Together, these initiatives support the long-term future of our operations and the community of Chapleau,” said Joel Fournier, CEO of GreenFirst.

GreenFirst is advancing the torrefied pellet initiative in partnership with First Nations and business partners as it evaluates the technical, commercial and financial requirements of the potential project.

Since beginning operations in 2021, GreenFirst has invested more than $70 million across its facilities, all located in Ontario. These investments reflect the Company’s continued commitment to modernizing its facilities and maintaining competitive and sustainable operations in Northern Ontario.

GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over 6 million hectares of FSC® certified public Ontario forestlands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provides GreenFirst with significant cyclical and secular advantages in building products.