INTERFOR CORPORATION ('Interfor' or the 'Company') (TSX: IFP) recorded Net earnings in Q2'21 of $419.2 million, or $6.45 per share, compared to $264.5 million, or $4.01 per share in Q1'21 and $3.2 million, or $0.05 per share in Q2'20.

Adjusted net earnings in Q2'21 were $433.5 million compared to $270.6 million in Q1'21 and $10.6 million in Q2'20.

Robust lumber prices in North America and strong operating performance during the second quarter of 2021 led to Interfor realizing record financial results, including records for Net earnings, Adjusted EBITDA and cash flow from operations. Adjusted EBITDA was $611.3 million on sales of $1.1 billion in Q2'21 versus $392.1 million on sales of $849.3 million in Q1'21. $484.5 million of cash flow was generated from operations before changes in working capital, or $7.46 per share.

These record financial results bolstered Interfor's balance sheet and enabled the deployment of a significant amount of capital in the quarter. Interfor's balanced approach to capital allocation included growth through a four-sawmill acquisition and strategic capital expenditures, and rewarding shareholders with returns of capital through share repurchases and a special cash dividend.

Even with a significant amount of capital deployed in the quarter, Interfor's balance sheet remains very well positioned to support further strategic investment. Net debt ended the quarter at $(490.7) million, or (46.1)% of invested capital, resulting in available liquidity of $1.2 billion.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking information about the Company's business outlook, objectives, plans, strategic priorities and other information that is not historical fact. A statement contains forward-looking information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information may include words such as: will, could, should, believe, expect, anticipate, intend, forecast, projection, target, outlook, opportunity, risk or strategy. Readers are cautioned that actual results may vary from the forwardlooking information in this release, and undue reliance should not be placed on such forward-looking information. Risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor's second quarter and annual Management's Discussion and Analysis under the heading 'Risks and Uncertainties', which are available on www.interfor.com and under Interfor's profile on www.sedar.com. Material factors and assumptions used to develop the forward-looking information in this release include volatility in the selling prices for lumber, logs and wood chips; the Company's ability to compete on a global basis; the availability and cost of log supply; natural or man-made disasters; currency exchange rates; changes in government regulations; the availability of the Company's allowable annual cut ('AAC'); claims by and treaty settlements with Indigenous peoples; the Company's ability to export its products; the softwood lumber trade dispute between Canada and the U.S.; stumpage fees payable to the Province of British Columbia ('B.C.'); environmental impacts of the Company's operations; labour disruptions; information systems security and the existence of a public health crisis (such as the current COVID-19 pandemic). Unless otherwise indicated, the forward-looking statements in this release are based on the Company's expectations at the date of this release. Interfor undertakes no obligation to update such forward-looking information, except as required by law.

ABOUT INTERFOR

Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual production capacity of approximately 3.9 billion board feet and offers a diverse line of lumber products to customers around the world. The Company's unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis for Q2'21 are available at www.sedar.com and www.interfor.com.

Contact:

Richard Pozzebon

Tel: (604) 422-3400

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