Canfor : 2025 Annual Supply Chains Act Report - dated May 12, 2026

101-161 East 4th Avenue, Vancouver, BC V5T 1G4

‌2025 Report on Steps to Reduce the Risk of Forced Labour and Child Labour

This report (this "Report") is prepared in accordance with Bill S-211, An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff (Canada) (the "Act") for the financial year ended December 31, 2025. It is a joint report of Canfor Corporation (the "Corporation"), Canadian Forest Products Ltd. ("CFP"), Canfor Pulp Products Inc. ("CPPI") and Canfor Pulp Ltd. ("CPL"). The Corporation, CFP, CPL and CPPI are referred to collectively herein as "Canfor", unless otherwise specified. Subsequent to year-end, the Corporation owns 100% of the issued and outstanding CPPI shares. CPPI has been delisted from the Toronto Stock Exchange.

‌Introduction

Canfor is one of the world's largest manufacturers of forest products, including lumber, pulp, paper, wood pellets and renewable energy. Canfor seeks to emphasize the highest standards of business conduct in all its operations and business relationships, including through:

• respecting internationally recognized human rights, including workers' rights and with respect to its supply chains and the risk of forced and child labour;

• prioritizing sustainability throughout its business, including in respect of environmental, social and governance ("ESG") issues;

• seeking to ensure its business practices meet or exceed all laws and regulatory requirements applicable to its businesses; and

• supporting and respecting the communities in which Canfor operates and which host its offices and production facilities.

  This Report outlines the steps Canfor has taken and will continue to take to understand, prevent and reduce the risk of forced or child labour in its business or operations and supply chains.

  ‌Organizational structure and activities

  Each of the Corporation and its subsidiaries are companies incorporated or amalgamated under the laws of British Columbia, Canada and Canfor Corporation is publicly listed in the Toronto Stock Exchange. Other companies in the Canfor group are incorporated under the federal laws of Canada, the laws of South Carolina and the laws of Sweden.

  With its head office in Vancouver, British Columbia, at 101 - 161 East 4thAve, Vancouver, BC V7J 1X1, Canfor is involved primarily in the lumber business with production facilities in Canada (British Columbia and Alberta) through its wholly owned subsidiary, CFP, the United States (Alabama, Arkansas, Georgia, Mississippi, Louisiana, North Carolina and South Carolina) through Canfor Southern Pine, Inc. Additionally, the Corporation has a 77% interest in Vida AB ("Vida") in Sweden (Småland, Skåne, Västra Götaland, Dalarna, Södermanland, and Uppland).

  The Corporation holds a 100% interest in the pulp and paper business, which through its wholly owned subsidiary, CPPI, has northern softwood market kraft pulp and bleached and unbleached kraft paper production facilities located in British Columbia, Canada.

  Canfor's products also include remanufactured and finger-jointed lumber, engineered wood products, wood chips, wood pellets, logs, and custom specialty products, including strength-rated trusses, beams, and tongue- and-groove timber produced alongside various of its solid wood production facilities.

  Canfor procures most of the goods and services for use in its business and operations from the local markets in countries where its operations are located, being Canada, the United States and Sweden. Canfor's main supply chain activities include obtaining fibre supply from Canfor's Crown forest tenures in Canada, and relies on open market purchase and supply contracts in the USA and Sweden. Canfor-managed forests are certified to the Forest Stewardship Council® (FSC®) or Sustainable Forestry Initiative® (SFI®) Forest Management Standards and Vida's forestry operations have PEFC Forest Management certification.1 Canfor's products are primarily shipped globally by truck, rail, or container ship and breakbulk. Canfor's supply chain is made up of a broad range of around 20,000 suppliers, vendors and contractors that range from large organizations to small local companies with one or two employees. Canfor purchases a variety of goods and services that support our operations and corporate functions, with the main areas of procurement activities being fibre, transportation, and services.

  As at December 31, 2025, Canfor employed 1,134 persons in its lumber operations in British Columbia (including head office), 640 persons in Alberta, 2,116 persons in the United States, 1,711 persons in Europe (predominantly in Sweden), and 4 persons in Japan. Of these employees, approximately 25% are unionized (covered by collective agreements with the USW and Unifor in British Columbia and GS in Sweden). None of Canfor's operations in the United States are unionized. For its pulp operations, CPL employed 763 people throughout the organization. Approximately 70% of these employees are hourly employees covered by collective agreements with Unifor and PPWC. All Canadian employees are employed either by CFP or CPL.

  For more information about Canfor, products, employees, ESG initiatives relevant to this Report, and where Canfor operates, please see Canfor's Sustainability Report (the "Sustainability Report"), at https://www.canfor.com/stewardship/sustainability on the Canfor website.

  ‌Human rights

  Canfor seeks to ensure that its business practices address and incorporate internationally recognized human rights frameworks in its relationships with employees, contractors, suppliers, partners, and the communities in which it operates. These include the International Bill of Human Rights, which includes:

• The Universal Declaration of Human Rights

• The International Covenant on Civil and Political Rights

• The International Covenant on Economic, Social and Cultural Rights

‌1Sustainable Forestry Initiative® (SFI®) marks are registered marks owned by the Sustainable Forestry Initiative Inc. To learn more, visit forests.org. Canadian Forest Products Ltd. Kootenay operations' Forest Stewardship Council® (FSC®) licence code is FSC-C152544. Programme for the Endorsement of Forest Certification (PEFC) Trademark Usage Licence is PEFC/05-23-353 and PEFC/05-23-325 (Vida Skog AB - Borgstena) for Vida forestry operations, PEFC/05-22-146 (Vida Wood) for Vida solid wood manufacturing operations.

Canfor also acknowledges the importance and relevance to its business of other human rights frameworks, such as the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), and the Convention on the Rights of the Child. Within these frameworks, Canfor seeks to further its understanding of the application of human rights considerations in its business, including steps to be considered to address the risks of forced and child labour as contemplated by this Report.

‌Steps to address forced and child labour risk

Canfor has taken the following key steps to seek to address the risks of forced and child labour in its supply chains for the financial year ended December 31, 2025.

Risk Assessment: Canfor has completed a high-level human rights risk assessment of their North American operations. The objective of this risk assessment was to identify potential human rights impacts in the business and to further the understanding of the impacts the business may have on certain groups and individuals. Through this assessment process, Canfor better understands the potential steps to help prevent and mitigate human rights risks, including forced and child labour. Canfor has identified the main potential for risk is in regard to procurement activities within the supply chain. Canfor will continue to evaluate and seek to identify any potential risk in these supply chains and any other supply chains for its business in the countries in which it operates.

Human Rights Maturity: Canfor furthered this work by dedicating internal resources to build an organizational approach to human rights, including with respect to Canfor's supply chains and managing the risk of forced and child labour. This work involved the creation of a supply chain working group to examine these impacts and plan future actions related to procurement and supply chain activities. In addition, Canfor will continue its review of existing company policies to seek to understand where the organization may improve and update its policies to address more specific human rights matters, including with respect to forced and child labour issues.

In 2025, Canfor continued building an organizational approach to human rights and implemented the following:

• Published a Supplier Code of Conduct, which strengthens the commitment to responsible sourcing and procurement. It provides clarity and consistency in organizational values and expectations are communicated to suppliers.

• Continued to promote the Whistleblower Hotline and Respectful Workplace Hotline, which provide employees and members of the public with confidential channels to report serious concerns, including violations of Canfor's values and policies.

  Respect Works Here: In 2024, Canfor executed a large-scale, North American-wide "Respect Works Here" campaign that included training for all North American employees centered on creating respectful working environments with specific content focused on bystander training and raising awareness of available grievance mechanisms and processes. By the end of 2025, 97% of Canfor's North American salaried employees had attended Respectful Workplace training, which are focused on fostering a workplace free from discrimination, bullying and harassment. In 2025, this training was integrated into the onboarding process for new North American salaried employees.

  Areas of Risk: Given the nature of its supply chains, primarily in the sourcing of fibre from either its directly held and managed Crown forest tenures in Canada and contracts with other timber companies in each of Canada, the United States and Sweden, these areas of Canfor's business have, on its review to date, appeared to present a lower potential for forced or child labour risks. However, as Canfor continues to develop its policies, diligence practices and contractual

  arrangements with suppliers in this regard, it will also continue to evaluate and seek to identify any potential risk in these supply chains and any other supply chains for its business in the countries in which it operates.

  Canfor follows standard employment practices in North America to manage for the risk of forced and child labour within its own operations, which includes conducting identity checks and criminal record checks at or prior to hire. Vida's operations follow similar processes. In addition to these specific actions, Canfor has long-standing policies and practices that make up its collective culture and approach to protecting human rights such as:

• Ongoing health and safety programs

• Indigenous partnerships and engagement

• Forest management and chain of custody certifications

• Human resources business partners and subject matter expertise to support labour and employee relations

• Talent acquisition teams to manage recruitment processes

• Supervisor resource center for tools and resources for those who manage people or who are involved in hiring

Collectively, these tools and approach help and support Canfor's practices that indirectly or directly address human rights, including supply chain forced and child labour concerns.

‌Policies and due diligence processes

In North America, Canfor has a number of policies that are directly or indirectly relevant to its approach to human rights in general, which can have application to the potential for forced or child labour risks, including:

• Respectful Workplace Policy

• Code of Conduct

• Human Rights Policy

• Whistleblowing Policy

• Supplier Code of Conduct

The Human Rights Policy embeds responsibility for human rights throughout all business functions; the policy recognizes the importance and relevance of the International Bill of Rights and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work.

Canfor updated the Respectful Workplace Policy, which incorporates our Bullying and Harassment Policy, and focuses on a commitment to fostering a workplace free of discrimination, bullying and harassment. The Code of Conduct was also updated to provide clearer guidance in all areas, address modern workplace challenges and reinforce the commitment to integrity across all operations. Canfor requires the Code of Conduct, which includes references to the Human Rights Policy, to be signed annually by all salaried employees.

A separate Code of Conduct reflecting comparable core values relating to business ethics, human rights, the workplace and the environment is applicable in Sweden through Vida.

In 2025, Canfor published a Supplier Code of Conduct, which offers an overview of how the organization conducts business in alignment with core values and sets out the expectations of suppliers to align with Canfor values and

practices. As noted above, as part of its expanding human rights initiatives, Canfor will continue to assess these and other policies which may assist in addressing the risks of any forced or child labour in its supply chain.

‌Operational and supply chain risks and remediation measures

Canfor's assessment of the risk of forced labour and child labour in activities and supply chains is ongoing, but Canfor has not to date identified specific forced or child labour risks in its operations. As a result, Canfor has also not taken any measures to remediate any forced labour or child labour issues or to remediate the loss of income for any families resulting from such measures. Through dedicated internal resources and related working group, Canfor plans to continue to undertake work that will help to better understand its supply chains specifically.

‌Employee training

Canfor provides broad human rights-related training to employees, and in particular, employees in management roles; it includes promoting awareness of the Human Rights Policy. The training does not directly address child labour or forced labour matters but is part of its commitment to addressing human rights issues in its business and operations. However, the training supports generally increasing awareness of these risks by addressing other human rights-related issues, including training specific to discrimination, effective hiring and recruitment practices, and promoting diversity, inclusion, cultural awareness and respect.

‌Grievance mechanisms

To support the maintenance of its business practices standards and commitment to human rights issues in its business, Canfor carefully monitors its reporting and grievance mechanisms, in the form of the Whistleblower Hotline and the Respectful Workplace Hotline, which would include reports relating to any circumstances involving forced or child labour. The two hotlines provide employees and third parties with the ability to confidentially or anonymously report issues relating to human rights and other workplace complaints. Canfor maintains and communicates a clear internal reporting process for employee concerns which includes an outline of the methodology for undertaking investigations, and which identifies employee and manager responsibilities. In 2025, of all reports received through the grievance channels, none related to forced or child labour issues.

‌Canfor's assessment of protective measures

Canfor is working to further efforts towards assessing issues of forced or child labour in its supply chain, which has to date been assessed by tracking of performance indicators such as number of cases reported through grievance mechanisms, in addition to the existing practices and policies described in this Report. Canfor's Sustainability Team and Legal Team facilitates management and Board discussions on related matters.

Beyond the steps and assessments undertaken through its reporting and grievance mechanisms referred to above, Canfor has not yet taken further targeted actions to assess its effectiveness in preventing or reducing forced or child labour in its supply chains. Canfor intends to continue to review the measures and actions it may implement in this regard as part of its overall commitment to its human rights related objectives and assessing the potential risks associated with forced and child labour.

‌Approval and attestation in accordance with the act

As a joint report, this Report has been approved by the board of directors of the Corporation (which controls CFP, CPPI, CPL included in this Report) as well as the governing bodies of the entities covered by this Report.

In accordance with the requirements of the Act, and in particular section 11 thereof, I attest that I have reviewed the information contained in the report for the entity or entities listed above. Based on my knowledge, and having exercised reasonable diligence, I attest that the information in the report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above.

Canfor Corporation I have the authority to bind Canfor Corporation Full name: Susan Yurkovich Title: Director Date: May 12, 2026 Signature:	Canfor Pulp Products Inc. I have the authority to bind CPPI Full name: Susan Yurkovich Title: Director Date: May 12, 2026 Signature:
Canadian Forest Products Ltd. I have the authority to bind CFP Full name: Susan Yurkovich Title: Director Date: May 12, 2026 Signature:	Canfor Pulp Ltd. I have the authority to bind CPL Full name: Stephen Mackie Title: Director Date: May 12, 2026 Signature: