111 Duke Street, Suite 5000 Montral, Qubec, H3C 2M1 Canada T 514-875-2160 resolutefp.com Richard.Garneau@resolutefp.com

July 13, 2015 Mr. Todd Paglia ForestEthics 1329 N. State Street, Suite 302 Bellingham, Washington 98225 U.S.A. Dear Mr. Paglia: I have given considerable thought to how best to respond to your July 10, 2015, letter regarding your perception of Resolute Forest Products continued participation in the Canadian Boreal Forest Agreement (CBFA), of which we are a founding member. I considered responding with a point-by-point rebuttal to your suggestion that Resolute stands apart as having made no progress in five years despite arriving at a significant agreement in Northeastern Ontario, which I believe represented the first major success of the CBFA process, and despite having been intimately involved with Goal One, playing an active role on the Executive and Steering committees, and having been involved with other facets of the CBFA. As you should well know, Resolute has committed significant financial resources to the CBFA. Millions of dollars of support have come directly from the Forest Products Association of Canada (FPAC), in which Resolute is the largest member, and a special assessment has now been levied by FPAC on participating member companies. Resolute has also dedicated many thousands of hours of work to this landmark conservation agreement. And even where we have not been able to reach agreement because the demands made by your organization and others would have resulted in the loss of thousands of jobs in Northwestern Ontario and Quebec, we incorporated our proposed negotiating position, including placing more than 200,000 hectares of candidate protected areas under voluntary protection, and began implementing what we believed was the right thing to do for the boreal forest. I considered providing a detailed explanation of our lawsuit against Greenpeace for defamation and interference with economic relations, a case that continues to move through the legal process and where court after court continue to reject Greenpeaces attempts to extinguish our legal rights, holding Greenpeace to account for their conduct. Mr. Paglia, you can obtain all that compelling information by taking the time to access the public court record. I considered explaining the rationale behind Resolute pursuing an injunction on a draft Rainforest Alliance Corrective Action Verification Audit in conjunction with two of the companys Forest Stewardship Council (FSC) certificates in Ontario; an injunction that was quickly granted by the courts and ultimately led to an agreement with Rainforest Alliance, and one which requires a new audit with a new, independent audit team. Perhaps you are not aware that the previous draft audit was not completed and, therefore, not appropriate for public release. To be clear, the injunction was settled on an amicable basis with Rainforest Alliance and both parties jointly agreed under the terms of settlement to limit public discussion.

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I considered offering a stirring defense of Resolutes environmental and sustainability record, of which I am exceedingly proud. We have made great strides as an environmental steward, practicing sustainable forestry, enhancing our sustainable approach and embracing the ideal of clean capitalism. I could explain to you that sustainability is front and center within our corporate culture and that it is embedded in our vision and values, guiding our approach to the way we conduct business every day. I could point out that our sustainability accomplishments are garnering recognition in North America and globally, and we have received numerous awards and accolades for our actions in this regard. I considered reminding you that Resolute is one of the largest holders of FSC sustainable forest management certificates in all of North America. In fact, Resolute recently renewed or maintained FSC certificates in several areas, including the Mauricie, Abitibi and North Shore regions of Quebec. The surface area in which Resolute currently holds FSC certificates, inclusive of those held as co-applicants, is 7.3 million hectares, equivalent to 73,000 square kilometers. This is only part of our certification story as 100% of the forests we manage are independently certified to one or more of the three internationally-recognized sustainable forest management standards in use in Canada FSC, Sustainable Forestry Initiative (SFI) and Canadian Standards Association (CSA). Additionally, 100% of Resolutes North American manufacturing facilities have a chain of custody tracking system that meets one or more of the following standards: FSC, SFI and Programme for the Endorsement of Forest Certification (PEFC), thereby ensuring supply chain management and traceability for all of our paper, lumber and pulp products. This reflects our deep commitment to sustainability and our longstanding belief that it is possible to carefully harvest trees while maintaining biodiversity and protecting the forest values that are so important for all of us. I even considered highlighting that Resolute has made some of the most aggressive and significant commitments on climate change and greenhouse gas (GHG) emission reduction in the entire industry globally. Moreover, we not only made commitments as part of the World Wildlife Fund Climate Savers program, we surpassed those GHG reduction goals ahead of schedule, reducing our scope 1 and 2 emissions by a staggering 70% below year 2000 levels. We have also replaced the remaining coal used at our operations in order to become entirely scope 1 coal-free. But of course, you know all of this, Mr. Paglia. And rather than partner with Resolute, rather than stand with us or applaud us for these achievements, you chose to single Resolute out and attack us. Your suggestion that you and your organization, ForestEthics, have made the unilateral decision to throw Resolute out of the CBFA is simply outrageous. You and I both know that you have no such authority and absolutely no basis for even suggesting such action.

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Mr. Paglia, it should go without saying, but let me be clear: You do not make decisions on behalf of Resolute. The issues the CBFA addresses have significant environmental, social and economic consequences. Resolutes ongoing participation in the CBFA is based on our desire to achieve truly sustainable outcomes. Even more preposterous is your suggestion that Resolute is no longer going to receive the protections offered by the CBFA. The idea behind the CBFA was that all parties would come together in the spirit of honest and open collaboration in order to resolve longstanding differences regarding sustainable forest management in the boreal forest. Companies agreed to make concessions as Resolute did in Northeastern Ontario and ENGOs agreed to suspend market campaigns against the companies. Of course, the reality has been quite different. The fact is, Mr. Paglia, we both know that ForestEthics has been campaigning against Resolute for years even while you have pretended to be an abiding member of the CBFA. Your most recent letter, which follows your letter of December 5, 2014, with its inaccurate allegations and threats and intimidation, is not new; it is merely a continuation of the bully tactics you have used with us from the start. More than two years ago, you threatened to launch the mother of all market campaigns against Resolute that would destroy the company if we did not do exactly what you demanded. This attempt at extortion is unacceptable. But, the reality is that this is just your business model: find the largest company in an industry and threaten, malign, isolate and attack them until they back down. Then use that success to drive others in the industry to do the same. The fact is, Mr. Paglia, you are not upset with Resolutes sustainability record or forest management practices; you are upset because we refused to follow your script and cave-in to your demands. When we refused to capitulate, you wrote letters to customers, organized conference calls to urge them not to buy product from Resolute, conducted media interviews where you attacked Resolute, and targeted large buyers directly and indirectly. Your organization, along with Greenpeace and other like-minded activists, has been involved in an active misinformation campaign against Resolute for more than two years, resulting in loss of sales and loss of jobs for hundreds of workers in Northern Ontario and Quebec. I am struggling to understand precisely what kind of protection you believe the CBFA has granted us under these circumstances. ForestEthics has been in violation of both the spirit and letter of the CBFA for years. Perhaps I should have called you out sooner and addressed these contraventions head on. I suppose I was holding out against hope that you were a sincere participant in this process and cared about the boreal forest and those whose livelihoods depend on it. But that is clearly not the case and your letter is merely the most recent demonstration of that fact.

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The one allegation in your letter that I will address directly is your suggestion that Resolute stands alone. That is just not true. In fact, despite your efforts to isolate us, Resolute has received overwhelming support from local communities, mayors, unions and First Nations partners, as well as provincial and federal governments. Over the past several months alone, First Nations and unions have challenged the misinformation campaign against us. The provincial governments of Quebec and Ontario have been traveling the world meeting with customers to set the record straight. Several weeks ago, a large contingency of mayors from northern communities in Ontario and Quebec held a press conference in Ottawa, expressing outrage at the continued misrepresentations of the on-the-ground reality by activist groups like ForestEthics and Greenpeace. Also, over the past few months, well over 500 municipalities in Quebec and Ontario have either passed their own resolutions or signed on to municipal association resolutions condemning the misinformed attacks. This overwhelming reaction is more than a show of support for Resolute; it is an overwhelming rejection of the notion that groups like ForestEthics and Greenpeace can speak for the local communities, workers, First Nations and governments in the boreal forest. These are the real people most affected by your threats, intimidation and misinformation campaign and they deserve a voice in the process. For the past several years, Resolute has been arguing strongly that a broad range of stakeholders must be part of any workable solutions going forward in the boreal. Since the breakdown of CBFA discussions in Ontario and Quebec, Resolute has remained steadfast in our support and willingness to re-engage in conversations, but have insisted that we fully involve the key regional stakeholders the very people who work and live in the region. Mr. Paglia, you clearly discount the critical importance and standing of local stakeholders and government. Equity and fairness require their participation, and success will elude us without it. The people of the boreal have a voice; they are not second-class parties in determining their own future. It is obvious now that you never had any real intention to suspend your campaigning against Resolute as part of your participation in the CBFA. How could you? Your business model depends on attacking companies and raising donations and contributions from those campaigns. Clearly, you and Greenpeace have been working together one outside the CBFA process and the other inside, but both with the same goals and objectives, sharing the same unscrupulous and coercive tactics. While I am deeply disappointed that this is the case, I cannot say that I am entirely surprised. You have not engaged in a constructive conversation with the stakeholders who are most impacted by the decisions you want to make for them. And you have not presented options or solutions that could practically be implemented without causing harm to thousands of peoples lives. Perhaps that is easy to do when you reside in Washington State. You do not live or work anywhere near the boreal and seem not to care about the opinion and

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active engagement of regional stakeholders and other interested parties. Long-term, durable solutions can only come from including everyone in these conversations as full, active participants in the process. Resolute is committed to making this happen, with or without ForestEthics participation. Sincerely,

Richard Garneau President and Chief Executive Officer cc: Industry Caucus of CBFA, ENGO Caucus of CBFA, CBFA Secretariat, BBF of CBFA, David Lindsay, Mark Hubert, Roxanne Comeau, Minister Greg Rickford, Minister Laurent Lessard, Minister Michael Gravelle, Minister Bill Mauro, Bradley Martin, Richard Tremblay, Andr Pich, Yves Laflamme, Jacques Vachon, Jo-Ann Longworth, John Lafave, Pierre Laberge, Seth Kursman, Franois Dumoulin