VANCOUVER, BC-- Conifex Timber Inc.reported a net loss of $3.6 million and negative EBITDA of $0.8 million on sales of $26.9 million for the second quarter ended June 30, 2011.

EBITDA improved by $0.5 million compared to the previous quarter and $0.1 million compared to the same quarter last year.

Conifex Timber said it added a second shift at its Fort St. James and Site II Mackenzie operations at the end of March 2011. Overall operating rates based on current total estimated production capacity improved to approximately 55% during the current quarter compared to 34% in the previous quarter and 22% for the same quarter last year.

Conifex added that it shipped a record 83% of total second quarter shipments to export markets compared to 44% in the previous quarter and 41% in the same quarter last year. The company's primary export markets are China and Japan. Shipments to export markets during the first six months of 2011 represented 66% of total shipments compared to 36% for the first six months of 2010.

Lumber production during the second quarter of 2011 totaled 102.4 million board feet, an increase of approximately 61% over the previous quarter and 148% over the second quarter of 2010. Unit conversion costs declined by approximately 23% compared to the previous quarter and 8% compared to the same quarter last year. The improvement was largely attributable to increased operating rates during the current quarter.

In its bioenergy segment,Confiex is undertaking activities to progress the development of its planned bioenergy facility at its Mackenzie sawmill site. The company previously announced the completion of an Electricity Purchase Agreement and Load Displacement Agreement with BC Hydro in June 2011.