MONTREAL - Domtar Corporation (NYSE: UFS) (TSX: UFS) announced today an investment by Schlumberger in CelluForce, a joint venture between Domtar and FPInnovations that manufactures wood-derived nanocrystalline cellulose (NCCTM). The investment is a collaboration to explore the use of NCC to enhance the productivity of oil and gas wells. Schlumberger is the world's leading supplier of technology, integrated project management and information solutions to the oil and gas industry.

NCC is manufactured using a patented process in the world's first facility of its kind, located at Domtar's pulp mill in Windsor, Quebec. NCC (also referred to as Cellulose Nanocrystals, or CNC) is the primary component that provides structural strength to trees. NCC is a renewable, biodegradable, nontoxic material.

Details of Schlumberger's investment in CelluForce remain confidential.

This investment follows a CDN$4 million grant announced by CelluForce in February 2015 from the government of Canada's sustainable development technology program (Sustainable Development Technology Canada, or SDTC) for similar research and development work.

"Innovation is one of our core values at Domtar, so we are pleased to have the opportunity to collaborate with Schlumberger, a recognized technology innovator in hydrocarbon recovery and production," said Patrick Loulou, Domtar's Senior Vice President for Corporate Development and a member of CelluForce's board of directors.

"The Schlumberger investment, coupled with the recent grant from SDTC, creates positive momentum in realizing the benefits of using NCC to improve the efficiency of oil and gas production," said Richard Berry, Chief Technology Officer at CelluForce.

CelluForce Inc. is the world leader in the commercial development of Cellulose Nanocrystals (CNC), also referred to as NanoCrystalline Cellulose (CelluForce NCC™). The company is a joint venture of Domtar Inc. and FPInnovations. The company's head office is in Montreal. For more information, visit: www.celluforce.com.

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