Press Release

AV Terrace Bay Receives First Delivery of Wood Fibre From Mkwa Timber LP

TERRACE BAY, MARCH 24, 2016 – Tuesday, AV Terrace Bay Inc. (AVTB) received its first
delivery of wood fibre from Mkwa Timber LP. This shipment comes following the February
announcement of the agreement between Mkwa Timber LP and AVTB.

This inaugural delivery of wood fibre is the first shipment since Biigtigong Nishnaabeg (formerly
Pic River First Nation) took possession of its new Ponsee harvesting equipment in January. Both
parties are excited about the potential harvest capacity and the growing relationship between
Mkwa Timber and AVTB. Mkwa Timber has become a significant fibre supplier and its wood
fibre is part of AV Terrace Bays’ committed Crown fibre supply from the Pic River Forest, which is
being sustainably managed by the Nawiinginokiima Forest Management Corporation.

“To witness the first delivery of wood fibre from our partner, Mkwa Timber, at AVTB on Tuesday
was a proud moment for both parties. It was a testament to the hard work that Mkwa Timber
has had to undergo to become a supplier of sustainable fibre and to meet the stringent quality
standards AVTB expects.”

– Giovanni Iadeluca, CEO, AV Terrace Bay Inc.

About MKWA Timber

Biigtigong Nishnaabeg took possession of its new Ponsee harvesting equipment in January, enabling
its forestry company, Mkwa Timber, to start harvesting off its traditional land this winter. As part of
their continued growth, Biigtigong Nishnaabeg is looking forward to an ongoing relationship with
AVTB to create new opportunities for employment, increased interest in ongoing forestry initiatives
and added supply stability.

The goal is to establish Mkwa Timber as a consistent supplier of sustainable fibre to Northern Ontario
mills and continue to grow their local economy and workforce.

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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