TOLKO NEWS

Tolko and Pinnacle Renewable Energy to proceed with pellet plant construction at Lavington

VERNON, British Columbia – Construction of a proposed pellet plant at Tolko’s Lavington mill will begin later this month, Tolko Industries Ltd. and Pinnacle Renewable Energy announced today.

The decision follows a significant consultation and review process, and permit approval from the Ministry of Environment (MoE) and the District of Coldstream.

The plant will employ technology which significantly advances the manner in which pellets are produced in Canada. Well known in Europe, the drying technology has a low operating temperature which translates into both a lower emission concentration and minimized fire risk. This in combination with the election to proceed with the implementation of bag house filtration on both the pellet plant and Tolko fibre delivery systems will improve the overall air quality in the Lavington area.

Tolko’s CEO Brad Thorlakson said: “We want to acknowledge everyone for their work throughout this process. Thanks to the combined efforts of the MoE, the community and our planning team, we’re moving forward with an exciting project that will be good for the community and the environment.”

Leroy Reitsma, President and COO of Pinnacle Renewable Energy, said: “We’re looking forward to becoming a valued member of the local community. As we begin the next phase of this project, we look forward to hiring local service providers and keeping the local community informed about the construction progress.”

At Tolko’s existing Lavington mill, Troy Connolly, General Manager, B.C. Lumber, is getting ready for construction and is positive about the impact the pellet plant will have on the Lavington operation.

“Co-locating the plant here at Lavington will bring a number of benefits. It will allow us to deal with the excess of sawdust and shavings that has been collecting, on site and at other locations in the Valley, since Domtar Kamloops reduced its operations in 2013. It will also help us to create more efficient rail and trucking logistics and improve the level of both emissions and fugitive dust control. This is a good project for the community and the mill, and one that supports the long-term viability of the Lavington sawmill.”

The pellet plant is expected to be operational by September of this year and will bring 30 permanent jobs to the area.

During the next phase, keeping the community informed about progress on the plant and potential impacts during construction will be a priority. Updates will be available through PlaceSpeak, a location-based community consultation platform, accessible through www.pinnaclepellet.com and www.tolko.com, effective January 20, 2015.

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About Tolko Industries Ltd.

Tolko Industries Ltd. is a private, Canadian-owned forest products company based in Vernon, British Columbia. With more than 3300 employees, Tolko is a major producer and marketer of lumber, veneer, plywood, oriented strand board and Kraft papers, with manufacturing operations across western Canada. The company’s woodlands operations have been recognized by third-party certification of its sustainable forest management systems. Tolko is a member of the Forest Products Association of Canada and a signatory to the Canadian Boreal Forest Agreement. For more information, visit www.tolko.com.

About Pinnacle Renewable Energy Group

Pinnacle Renewable Energy Group a privately owned company, with a reputation of being the longest, established pellet producer in Western Canada over the last twenty years. The company operates six pellet plants across BC with a production capacity of over 1 million tons. Over 90% of the fibre used in Pinnacle’s wood pellet production is sourced from sustainable forest; as certified by Canadian Standards Association (CSA) and Sustainable Forest Initiative (SFI). For additional information, visit www.pinnaclepellet.com.

For further information please contact:

Don Hanson, Communications Manager
Tolko Industries Ltd.
T 250 549 5346
don.hanson@tolko.com

Janice Lockyer, Communications Advisor
Tolko Industries Ltd.
T 250 550 2598
janice.lockyer@tolko.com