Tembec to extend its asset-based secured revolving credit facility by one year to March 4, 2017

Kendall Sinclair

MONTREAL , March 25, 2013 (press release) – Tembec (the "Company") announced today that it has agreed to amend and extend its asset-based secured revolving credit facility. The maturity date of the facility was extended by one year and is now set to expire on March 4, 2017.

As a result of this amendment, access to the credit facility in accordance with its terms is fully restored. The recent decision by the Supreme Court of Canada regarding the "Indalex" case has led to a satisfactory resolution of potential security issues regarding the Company's Ontario collateral. In its December 2012 quarterly disclosure documents, the Company noted that its total liquidity of $91 million included $22 million of unused revolving credit availability. Under the terms of the amended agreement, the $22 million of availability is confirmed, subject to normal monthly fluctuations in trade receivable and inventory levels.

The Company also negotiated a reduction of the aggregate revolving loan commitments from $200 million to $175 million and related adjustments to certain thresholds due to a reduction in the number of mills it operates.

Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 3,700 employees and annual sales of approximately $2 billion. Tembec is listed on the TSX (TMB).

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