Investment funds managed by Oaktree Capital Management, L.P. (“Oaktree”), which beneficially own 19.9% of the common stock of Tembec Inc. (“Tembec”) and have been a significant long-term shareholder and bondholder, today confirmed that shareholders representing a total of approximately 51% of Tembec’s outstanding shares have already stated their intention to vote against the proposed acquisition of Tembec by Rayonier Advanced Materials Inc. (“Rayonier”). This amount represents approximately 61% of the Company’s shares excluding the “empty votes” held by Fairfax Financial Holdings Limited (“Fairfax”), underscoring the importance that Tembec’s Board act in a fair manner and not count Fairfax’s votes to attempt to push through an undervalued transaction.

Patrick McCaney, portfolio manager for Oaktree’s Value Equity strategy, said: “We have voiced our concerns regarding the proposed transaction for Tembec shareholders and are encouraged that Glass Lewis, Restructuring Capital Associates, and numerous other shareholders agree with our analysis that this transaction does not represent fair value.”

Oaktree continues to urge all Tembec shareholders to follow the recommendation of Glass Lewis, a leading independent proxy firm, and vote against Rayonier’s acquisition of Tembec unless Rayonier’s offer price is increased.

About Oaktree Capital Management, L.P.

Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of March 31, 2017. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide.

Forward-Looking Information

Certain statements in the press release are forward-looking statements and are prospective in nature, including statements with respect to the Oaktree’s future intentions regarding their investment in Tembec. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Such forward-looking statements should therefore be construed in light of such factors, and Oaktree is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Information in Support of Public Broadcast Solicitation

Oaktree is relying on the exemption under section 9.2(4) of National Instrument 52-102 – Continuous Disclosure Obligations to make this public broadcast solicitation. The following information is provided in accordance with corporate and securities laws applicable to public broadcast solicitations.

This solicitation is being made by Oaktree and investment funds managed by Oaktree (excluding Oaktree, the “Oaktree Funds”), and not by or on behalf of the management of Tembec.

The address of Tembec is 100-4 Place Ville-Marie, Montréal, Québec, H3B 2E7.

Proxies for the Tembec shareholders meeting may be solicited by mail, telephone, facsimile, email or other electronic means as well as by newspaper or other media advertising and in person by managers, directors, officers and employees of Oaktree who will not be specifically remunerated therefor. In addition, Oaktree may solicit proxies in reliance upon the public broadcast exemption to the solicitation requirements under applicable Canadian corporate and securities laws, conveyed by way of public broadcast, including press release, speech or publication, and by any other manner permitted under applicable Canadian laws. Oaktree may engage the services of one or more agents and authorize other persons to assist it in soliciting proxies on behalf of Oaktree and the Oaktree Funds.

Oaktree has entered into an agreement with Kingsdale Advisors (“Kingsdale”) pursuant to which Kingsdale has agreed that it will act as Oaktree’s strategic shareholder, communications and proxy agent. Pursuant to this agreement Kingsdale will receive a fee of up to approximately $220,000 plus disbursements.

All costs incurred for the solicitation will be borne by the Oaktree Funds.

In addition to revocation in any other manner permitted by law, any Tembec shareholder executing a proxy form may revoke it at any time, as long as it has not been exercised, by an instrument in writing executed by such shareholder or his attorney authorized in writing and deposited either at the head office of Tembec at 100-4 Place Ville-Marie, Montréal, Québec, H3B 2E7 at any time up to and including the last business day preceding the date of the Tembec shareholders meeting on July 27, 2017, or any adjournment or postponement thereof, or with the chair of the Tembec shareholders meeting on the day of such meeting or any adjournment or postponement thereof. For any Tembec shareholder holding shares through an intermediary, the methods to revoke a proxy may be different, and such shareholder should carefully follow the instructions provided by such intermediary.

Neither Oaktree, the Oaktree Funds, nor any of their managing members, directors or officers, or any associates or affiliates of the foregoing, has: (i) any material interest, direct or indirect, in any transaction since the beginning of Tembec’s most recently completed financial year or in any proposed transaction that has materially affected or would materially affect Tembec or any of its subsidiaries; or (ii) any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter currently known to be acted on at the upcoming meeting of Tembec shareholders, other than the proposed transaction between Tembec and Rayonier Advanced Materials Inc.