Presented by:

Kevin J. Clarke,

President & CEO

Brian Baarda,

VP Finance & CFO

May 7, 2013

March 6, 2013

Q3 2016

EARNINGS

PRESENTATION

Presented by:

Joe Nemeth, President & CEO

Gerrie Kotze, VP, Finance

November 9, 2016

1

The presentation and answers to questions today contain forward-looking statements. Forward-looking statements are statements

that address or discuss activities, events or developments that we expect or anticipate may occur in the future and can be

identified by the use of words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “predicts”, “estimates”, “forecasts”,

and similar words or phrases or the negative of such words or phrases. These forward-looking statements reflect our current

beliefs, intentions or expectations based on certain assumptions and estimates, which could prove to be significantly incorrect,

including our ability to develop, manufacture and sell new products and services that meet the needs of our customers and gain

commercial acceptance, our ability to continue to sell our products and services in the expected quantities at the expected prices

and expected times, our ability to successfully obtain cost savings from our cost reduction initiatives, our ability to implement

business strategies and pursue opportunities, expected cost of goods sold, expected component supply costs and constraints and

expected foreign exchange and tax rates.

While considered reasonable by management, these forward-looking statements are inherently subject to known and unknown

risks and uncertainties and other factors that could cause actual results or events to differ from historical or anticipated results or

events. These risks, uncertainties and other factors include the impact of general economic conditions in the countries in which we

do business, conditions in the capital markets and our ability to obtain financing and refinance existing debt, market conditions and

demand for our products (including declines in advertising and circulation), product selling prices, the implementation of trade

restrictions in jurisdictions where our products are marketed, fluctuations in foreign exchange or interest rates, raw material prices

(including wood fibre, chemicals and energy), our ability to successfully obtain cost savings from our cost reduction initiatives, the

effect of, or change in, environmental and other governmental regulations, labour relations, the availability of qualified personnel,

legal proceedings, the effects of competition from domestic and foreign producers, our ability to implement business strategies and

pursue opportunities, the risk of natural disaster and other factors beyond our control.

As a result, no assurance can be given that any of the events or results anticipated by such forward-looking statements will occur

or, if they do occur, what benefit they will have on our operations or financial condition. Readers are cautioned not to place undue

reliance on these forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise, except as required by law.

FORWARD-LOOKING STATEMENTS

2

Except where otherwise indicated, the financial information in this presentation is determined on

the basis of US GAAP.

“Adjusted EBITDA” is a non-GAAP measure, calculated as operating earnings (loss) plus

depreciation and amortization and impairment. We focus on adjusted EBITDA as we believe this

measure enables comparison of our results between periods without regard to debt service,

income taxes, capital expenditure requirements, and impairment.

“Adjusted EBITDA before specific items”, “net earnings (loss) before specific items”, and “net

earnings (loss) per share before specific items” are non-GAAP measures. We use measures

excluding specific items in evaluating our results between periods without regard to specific

items that adversely or positively affect our adjusted EBITDA and net earnings (loss).

“Free cash flow” is a non-GAAP measure, calculated as adjusted EBITDA after capital

expenditures, interest and taxes paid, and adjustments to reflect employee future benefit

payments. The closest GAAP measure is cash provided by operating activities less cash used

by investing activities. We report free cash flow as we believe it is useful for investors and other

users to be aware of this measure so they can better assess our operating performance.

NON-GAAP MEASURES

3

Q3 2016 OVERVIEW

4

• Catalyst reported significantly improved earnings in the third

quarter:

− Despite non-cash impairment write-down of $186.4 million at

our Canadian paper mills.

− Net earnings before non-cash impairment write-down and

other significant items was $7.6 million

• Positive third quarter operating results:

− Adjusted EBITDA of $31.9 million (vs negative $5.3 million Q2)

− Free cash flow of $9.8 million (vs negative $30.0 million Q2)

− Liquidity of $77.5 million

Q3 2016 OVERVIEW:

Operations

5

Safety:

• Medical Incident Rate (MIR): 3.06 (Q3), 2.41 (YTD)

• Lost Time Incident Rate (LTI): 1.29 (Q3), 0.92 (YTD)

Operations:

• $63.1 million OFI savings year-to-date

- Cost Reduction (Mill Revitalization Program)

- Top Line Growth (product mix optimization, supply chain

initiatives and new specialty paper sales growth)

• Discontinuance of lawsuits filed against Catalyst by the Halalt

First Nation, Sunvault Energy Inc., and Aboriginal Power

Corp.

Q3 2016 OVERVIEW:

Sales & Markets

6

Top-Line Improvement Initiatives:

• Strong sales of Coated One Side

- Sales increased by more than 50% over same period of

2015

• Commercialized Glide Graphics

- New specialty grade for large-size graphic applications

- Ongoing product development and innovation

• NBSK pulp demand was steady in the quarter; prices traded

in a narrow range

CVD Update:

• Preliminary Results of the Expedited Review delayed;

decision public Nov. 17, 2016

Q3 2016 OVERVIEW:

Sales & Markets

7

Sustainability Achievement:

• Earned the prestigious EarthCare Award presented by

Sierra Club U.S.

- Recognizes Catalyst’s role in establishing the Great

Bear Rainforest, one of the world’s largest remaining

relatively intact temperate rainforest areas

Q3 2016 OVERVIEW:

KGI & Alternate Recap Plan Update

8

KGI & Alternate Recapitalization Plan

• May 23: Principal Securityholders and KGI enter into letter of

intent

• June 30: Principal Securityholders and KGI enter into Support

Agreement

• Aug 16: Principal Securityholders and KGI amend Support

Agreement

• Oct 26: Catalyst announces receipt of an alternative recapitalization

plan

• Oct. 31: Catalyst enters into a Support Agreement with its Principal

Securityholders related to the proposed alternate

recapitalization plan

Both Plans Would Benefit Catalyst

• Strengthen the company’s financial position

• Provide certainty for the future

• Enable the company to pursue transformational

initiatives

9 9

FINANCIAL RESULTS

($millions, except per share amounts) Q1 Q2 Q3 Q4 Q1 Q2 Q3

Sales $ 479.3 $ 458.4 $ 542.6 $ 510.8 $ 510.4 $ 460.8 $ 502.7

Adjusted EBITDA 14.0 (19.2) 38.8 15.1 17.1 (5.3) 31.9

Adjusted EBITDA before specific items 16.0 9.7 41.2 19.8 17.7 (1.1) 35.3

Adjusted EBITDA margin before specific items 3.3% 2.1% 7.6% 3.9% 3.5% -0.2% 7.0%

Net earnings (loss) $ 22.2 $ (32.4) $ (12.9) $ (26.3) $ 16.9 $ (26.6) $ (185.0)

Net earnings (loss) before specific items (12.6) (13.8) 8.4 (10.0) (5.1) (27.3) 7.6

EPS 1.53 (2.23) (0.89) (1.82) 1.17 (1.84) (12.76)

EPS before specific items (0.87) (0.95) 0.58 (0.69) (0.35) (1.88) 0.52

Average F/X spot rate (USD/CAD) 0.806 0.813 0.768 0.749 0.728 0.776 0.766

Average effective F/X rate (USD/CAD) 0.805 0.813 0.763 0.749 0.728 0.776 0.766

2015 2016

10 10

ADJUSTED EBITDA RECONCILIATION

1 Refer to section 6, Non-GAAP measures.

FREE CASH FLOW

11

($millions) Q1 Q2 Q3

Adjusted EBITDA 14.0 (19.2) 38.8 15.1 17.1 (5.3) 31.9

Interest expense, excluding amortization (11.4) (10.2) (12.4) (11.1) (11.0) (10.9) (11.7)

Capital expenditures (10.4) (11.1) (2.9) (10.1) (5.1) (10.3) (3.1)

Income taxes paid - - - - - (0.1) -

Employee future benefits, net of funding (0.3) (1.0) (0.1) (5.3) (2.7) (3.4) (7.3)

Free cash flow $ (8.1) $ (41.5) $ 23.4 $ (11.4) $ (1.7) $ (30.0) $ 9.8

2016

Q1

2015

Q4Q2 Q3

LIQUIDITY

12

($millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3

Borrowing base 1 $ 225.0 $ 212.7 $ 225.0 $ 225.0 $ 225.0 $ 226.2 $ 244.5

Letters of credit (22.0) (21.8) (22.1) (22.4) (24.4) (24.1) (23.2)

Net amount drawn (111.3) (114.0) (121.7) (117.1) (125.0) (135.9) (150.3)

Availablily 91.7 76.9 81.2 85.5 75.6 66.2 71.0

Cash on hand 9.9 8.7 5.0 8.3 8.4 8.3 6.5

Total liquidity $ 101.6 $ 85.6 $ 86.2 $ 93.8 $ 84.0 $ 74.5 $ 77.5

2016

1 The borrowing base at September 30, 2016, is reduced by reserves for a landlord waiver reserve in respect of rent of

approximately $2.7 million, a pension reserve not exceeding the sum of normal cost pension contributions, special and

catch-up payments and any other payments in respect of a Canadian pension plan that are past due of approximately

$1.4 million, a reserve for credit insurance deductibles of $3.2 million, a reserve for vacation pay of $3.1 million, a reserve

of $1.5 million for employee source deductions, and a reserve of $0.3 million for workers’ compensation costs.

2015

PLANNED MAJOR MAINTENANCE:

2016 Shutdowns

13

2016

Q1 Q2 Q3 Q4 Total

Mill Location Tonnage

Impact

Mtce Cost

($mm) Tonnage

Impact

Mtce Cost

($mm) Tonnage

Impact

Mtce Cost

($mm) Tonnage

Impact

Mtce Cost

($mm) Tonnage

Impact

Mtce Cost

($mm)

Alberni

Other

– 0.7 – – – 0.1 – 0.7 – 1.5

Boilers – – – – – 0.3 – 1.8 – 2.1

Crofton

TMO – – 7,200 3.0 – – – – 7,200 3.0

Capital – – 7,900 – – – – – 7,900 –

Pulp – – 12,200 4.6 – – – – 12,200 4.6

Boilers – 3.8 – – – – – – – 3.8

Powell

Boilers – 0.2 – 2.8 – – – – – 3.0

Biron

Boilers – – – – – – – – – –

Rumford

Capital – – – – – – 1,500 – 1,500 –

Pulp – – – – – – 4,800 9.6 4,800 9.6

Boilers – – – – – 4.2 – 2.9 – 7.1

Other – – – – – – – 1.0 – 1.0

Total – 4.7 27,300 10.4 – 4.6 6,300 16.0 33,600 35.7

Q3 2016 OVERVIEW:

Outlook

14

Markets:

• Continued pressure on North American paper markets

• Price increases announced Nov. 1 for supercalendered paper

(US $50 per short ton) and coated groundwood paper (US $40

per short ton)

• Stable pricing for newsprint

• Pulp pricing declines

Operations:

• Seasonally stronger sales demand

• Continued OFI savings

• Major maintenance spending

Q&A

Appendix

15

ADJUSTED EBITDA SENSITIVITIES

($millions) Adjusted EBITDA

Product prices (1), (2)

Impact of US$10/t change in price of:

Uncoated Paper $ 6

Coated Paper 13 Newsprint 4 Pulp 5

$ 28

Foreign exchange (3)

Impact of $0.01 change in US dollar relative to the Canadian dollar 10

Energy cost sensitivity (1), (4)

Impact of 5% change in price of:

Natural gas and oil – direct purchases 1 Electricity – direct purchases 9 Coal – direct purchases 1

Freight cost sensitivity Impact of US$5/bbl change in price of West Texas Int. (WTI) Oil 1

Fibre sensitivity (1), (4)

Impact of US$5/unit change in the price of wood chips (Bdt) 17

(1) Based on a foreign exchange rate of US$0.77. (2) Based on annualized sales of Q3 2016.

(3) Based on Q3 2016 annualized net cash flows and a foreign exchange movement to US$0.78 from US$0.77 and excluding our hedging program and the impact of the translation of US dollar denominated debt.

(4) Based on annualized Q3 2016 consumption levels.

16

SUMMARY OF SEGMENTED

FINANCIAL INFORMATION

Numbers for all periods exclude the results of our Snowflake mill which have been classified as discontinued operations.

17

($millions, except where

otherwise stated)Q1 Q2 Q3 Q4 FY Q1 Q2 Q3

Sales (000 MT)

Coated 225.9 216.9 253.6 240.7 937.1 237.9 241.7 258.4

Uncoated 103.0 108.4 104.9 109.6 425.9 98.9 107.3 106.4

Newsprint 81.6 89.8 92.6 82.0 346.0 80.5 73.3 78.8

Pulp 84.9 86.0 85.1 89.3 345.3 89.8 69.4 94.9

Other 15.1 10.0 34.6 20.3 80.0 35.7 20.7 18.2

510.5 511.1 570.8 541.9 2,134.3 542.8 512.4 556.7

Sales

Coated $ 244.2 $ 228.5 $ 287.9 $ 273.2 $ 1,033.8 $ 269.7 $ 255.0 $ 273.8

Uncoated 94.3 95.5 95.2 97.5 382.5 87.9 90.6 88.9

Newsprint 58.0 58.9 63.0 55.6 235.5 56.3 49.9 55.5

Pulp 70.5 67.7 70.7 69.9 278.8 70.4 51.7 72.1

Other 12.3 7.8 25.8 14.6 60.5 26.1 13.6 12.4

$ 479.3 $ 458.4 $ 542.6 $ 510.8 $ 1,991.1 $ 510.4 $ 460.8 $ 502.7

Adjusted EBITDA

Coated $ (5.2) $ (19.6) $ 15.1 $ 8.6 $ (1.1) $ 11.3 $ 9.9 $ 13.6

Uncoated 10.6 (6.1) 6.3 3.5 14.3 2.2 (3.9) 3.4

Newsprint 2.9 (5.5) (0.4) (0.1) (3.1) (2.3) (5.4) 4.0

Pulp 8.0 11.8 18.6 4.2 42.6 11.4 (4.6) 12.8

Other (2.3) 0.2 (0.8) (1.1) (4.0) (5.5) (1.3) (1.9)

$ 14.0 $ (19.2) $ 38.8 $ 15.1 $ 48.7 $ 17.1 $ (5.3) $ 31.9

Operating earnings (loss)

Coated $ (10.7) $ (25.4) $ 9.1 $ 1.9 $ (25.1) $ 6.1 $ 5.3 $ (46.3)

Uncoated 4.2 (12.2) - (3.2) (11.2) (4.1) (9.6) (83.8)

Newsprint 1.4 (7.4) (2.3) (2.1) (10.4) (4.0) (7.3) (48.0)

Pulp 7.3 11.1 17.9 2.7 39.0 10.8 (5.3) 12.1

Other (2.5) (0.1) (0.9) (1.5) (5.0) (6.1) (1.7) (2.2)

$ (0.3) $ (34.0) $ 23.8 $ (2.2) $ (12.7) $ 2.7 $ (18.6) $ (168.2)

2015 2016

IMPACT OF SPECIFIC ITEMS ON NET EARNINGS (LOSS)

18

($millions, except where otherwise stated) Q1 Q2 Q3 Q4 Q1 Q2 Q3 LTM

Net earnings (loss) $ 22.2

$ (32.4)

$ (12.9) $ (26.3)

$ 16.9 $ (26.6) $ (185.0) $ (221.0)

Specific items, after taxes: -

Foreign exchange loss (gain) on long-term debt 27.6 (5.5) 24.0 11.6 (22.6) 0.6 2.8 (7.6)

Bargain purchase price (39.3) (2.9) (1.7) - - - - -

Market curtailment - 11.7 - - - - - -

Crofton oxygen plant outage (insurance recovery) - 4.4 - - (2.7) - - (2.7)

Rumford recovery boiler upgrade - 11.0 - - - - - -

Professional fees & duties on countervailing action - 1.1 2.1 4.5 3.3 2.2 3.1 13.1

Crofton waterline breach, net of insurance recovery - - - - - 2.0 0.3 2.3

Net settlement gain - - - - - (5.5) - (5.5)

Reduction of deferred tax asset valuation allowance (25.1) (1.9) (3.4) - - - - -

Acquisition costs related to US paper mills 1.4 - - - - - - -

Restructuring costs 0.6 0.7 0.3 0.2 - - - 0.2

Impairment - - - - - - 186.4 186.4

Net earnings (loss) before specific items $ (12.6)

$ (13.8)

$ 8.4 $ (10.0)

$ (5.1) $ (27.3) $ 7.6 $ (34.8)

Net earnings (loss) per share before specific items $ (0.87)

$ (0.95)

$ 0.58 $ (0.69)

$ (0.35) $ (1.88) $ 0.52 $ (2.40)

Weighted average common shares (millions) 14.5 14.5 14.5 14.5 14.5 14.5 14.5 14.5

2015 2016

CAPITALIZATION

December 31,

2015

September 30,

2016

Term loan, due July 31, 2017 $ 16.0 $ 14.8 Senior secured notes, 11.0% due October 30, 2017 (US$260.5

million; December 31, 2015 – US$260.5 million) 355.6

338.6

371.6 353.4 Revolving asset based loan facility of up to $250.0 million

(December 31, 2015 - $225.0 million) due July 31, 2017 115.1

149.1

Capital lease obligations 7.5 6.6

Total debt 494.2 509.1

Less: currenty portion (3.2) (165.1)

Total long-term debt $ 491.0 $ 344.0

19

($millions)

20