NEWS RELEASE

WEST FRASER TIMBER CO. LTD. (“WFT”) Monday, October 25, 2010


Vancouver, B.C. – West Fraser Timber Co. Ltd. today reported earnings after discontinued


operations of $45 million or $1.04 per share on sales of $707 million in the third quarter of 2010


and earnings after discontinued operations of $128 million or $2.95 per share, on sales of $2.2


billion for the first nine months of 2010.


“Although we are experiencing a slow recovery in some of our key markets, we are generally


very pleased with our results. Our improved cash flows allow us the opportunity to reinvest in


our operations which will better position us to take advantage of the eventual economic


recovery.” said Hank Ketcham, the Company’s Chairman, President and CEO.

Operational Results

In the quarter the lumber segment generated operating earnings of $22 million and EBITDA of


$49 million. After a period of higher lumber prices in the second quarter of 2010, prices


weakened in the third quarter reflecting a continuing weak U.S. housing market. SYP lumber


prices were particularly hard hit. Shipments to China continued to increase in the quarter,


supporting lumber prices.


The panel segment, which includes plywood, LVL and MDF, generated operating earnings in the


quarter of $14 million and EBITDA of $20 million. Plywood prices came under pressure in the


quarter with the average benchmark price declining 13% from the previous quarter as


U.S.-produced plywood was sold into the Canadian market. The impact of this decline on panel


segment results was largely offset by stronger MDF prices.


Pulp and paper operations generated operating earnings of $41 million and EBITDA of $55


million. Pulp prices increased in the quarter with the average NBSK benchmark price for the


quarter increasing to US$1,000 per tonne compared to US$993 in the previous quarter. Record


pulp production of over 300,000 tonnes for the quarter contributed to the strong segment results.

Outlook

The economic uncertainty in the U.S. continues to delay a recovery in U.S. new home


construction, which is a key market for the Company’s lumber, MDF and LVL. The Company


expects pulp prices to be reasonable over the near term as a result of the improving global


economy.


Mr. Ketcham concluded “Despite the uncertain recovery, we are confident that our well


capitalized mills, our strong balance sheet and our low cost culture will allow us to maintain our


leadership position in our industry.”

The Company

West Fraser is an integrated wood products company producing lumber, wood chips, LVL,


MDF, plywood, pulp and newsprint. The Company has operations in western Canada and the


southern United States.

Forward-Looking Statements

This news release contains historical information, descriptions of current circumstances and


statements about potential future developments. The latter, which are forward-looking


statements are included under the heading “Outlook”, and are presented to provide reasonable


guidance to the reader but their accuracy depends on a number of assumptions and is subject to


various risks and uncertainties which are also described under this heading. Actual outcomes


and results will depend on a number of factors. Accordingly, readers should exercise caution in


relying upon forward-looking statements and the Company undertakes no obligation to publicly


revise them to reflect subsequent events or circumstances, except as required by applicable


securities laws.


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