Press Release

AV Terrace Bay Announces New Supply Agreement With Mkwa Timber LP

TERRACE BAY, February 5, 2016 – AV Terrace Bay Inc. (AVTB) today announced a contractual
agreement with Mkwa Timber LP which initiates a long term partnership where Mkwa Timber
LP becomes a significant fibre supplier to AVTB.

AVTB and Mkwa Timber have been working diligently towards this agreement for the last year
as Mkwa Timber developed their harvest capacity / investment strategy. The wood fibre being
harvested by Mkwa Timber is part of AV Terrace Bay’s committed Crown fibre supply from the Pic
River Forest, being sustainably managed by the Nawiinginokiima Forest Management Corporation.

We are very supportive of their business development initiatives and their objectives of skills
training, capacity building and creating direct employment for community members, all within their
traditional territory.

Giovanni Iadeluca, CEO, AV Terrace Bay Inc.

Iadeluca adds, “It is great to see new investment and new harvest capacity in the forests we rely on.
We are looking forward to building a long-term relationship with Mkwa Timber.”

About AV Terrace Bay

AV Terrace Bay became the third Canadian company to join the Aditya Birla Group’s pulp and fiber business (Grasim Industries Ltd.) in July 2012. On October 10th 2012, the Terrace Bay Mill successfully restarted production as a paper grade pulp mill. The mill has been in full operation since 2012.

Visit avterracebay.com for more information. Connect with AVTB on Twitter (@avterracebay) and Facebook. (facebook.com/avterracebay)

Mr. Iadeluca joined AVTB in 2012 as CEO. As CEO, he led the company’s corporate development and strategic planning functions.

For more information, contact:
Todd Kutil – Vice President Sales and Marketing,
1-516-783-1142
todd.kutil@adityabirla.com

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