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.


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


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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