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West Fraser ("WFT") Announces Fourth Quarter Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/13/14 -- West Fraser Timber Co. Ltd. (TSX: WFT) today reported earnings of $118 million or $1.37 per share on sales of $833 million in the fourth quarter of 2013 and earnings of $349 million or $4.07 per share, on sales of $3,474 million for 2013. Earnings per share figures for the current and prior periods have been adjusted to reflect a stock dividend paid January 13, 2014. The stock dividend had the same effect as a two-for-one share split.

Fourth quarter earnings include the recognition of a $101 million benefit related to our remaining tax loss carryforwards not previously recognized. Adjusted earnings and adjusted basic EPS as described in the table below remove the effect of this benefit and reflect other adjustments described in the tables referred to in footnote 2 below.

These results compare with previous periods as follows:

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($ millions except
 earnings per                          2013                     2012
share ("EPS"))                    Q4        Q3       YTD       YTD        Q4
----------------------------------------------------------------------------
Sales                            833       878     3,474     3,000       773
EBITDA(1)                         97       113       529       275        75
Operating earnings                30        73       345       123        36
Earnings                         118        55       349        77        20
Basic EPS ($)                   1.37      0.64      4.07      0.90      0.23
Adjusted Earnings(2)              50        68       328       128        51
Adjusted basic EPS ($)(2)       0.58      0.79      3.82      1.50      0.60
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1. In this News Release, reference is made to EBITDA (defined as operating
earnings plus amortization and restructuring charges). Our management
believes that, in addition to earnings, EBITDA is a useful performance
indicator and is a useful measure of cash available prior to debt service,
capital expenditures and income taxes. Reference is also made to Adjusted
earnings (calculated as set out in the tables described in footnote 2 and
Adjusted EPS (collectively, with EBITDA, "these measures")). None of these
measures is a generally accepted earnings measure under International
Financial Reporting Standards ("IFRS") and none has a standardized meaning
prescribed by IFRS. Investors are cautioned that none of these measures
should be considered as an alternative to earnings, earnings per share or
cash flow, as determined in accordance with IFRS. As there is no
standardized method of calculating any of these measures, our method of
calculating each of them may differ from the methods used by other entities
and, accordingly, our use of any of these measures may not be directly
comparable to similarly titled measures used by other entities.
2. Refer to the tables titled "Annual Earnings Adjustments for Certain Non-
Operational Items" and "Quarterly Earnings Adjustments for Certain Non-
Operational Items" in Management's Discussion and Analysis of our 2013
results for details of adjustments.

Operational Results

In the quarter our lumber operations generated operating earnings of $32 million (Q3 - $57 million) and EBITDA of $83 million (Q3 - $83 million). Restructuring charges of $24 million are included in our operating earnings in the quarter, representing costs associated with the planned closure of our Houston, B.C. sawmill. The benefit provided by higher lumber prices and a weaker Canadian dollar was offset by the effect of reduced shipments. Lumber markets weakened late in the quarter as severe weather reduced demand and also affected transportation. Despite prices strengthening for certain lumber grades and dimensions, prices for wide-width SYP lumber declined during the quarter which adversely affected our U.S. lumber results.

The panel segment, which includes plywood, LVL and MDF, generated operating earnings in the quarter of $2 million (Q3 - $6 million) and EBITDA of $6 million (Q3 - $9 million), mostly reflecting reduced plywood shipments due to a seasonal slowdown in the Canadian building industry and weather-related reduced railcar deliveries.

Pulp and paper operations generated operating earnings in the quarter of $13 million (Q3 - $29 million) and EBITDA of $24 million (Q3 - $40 million). Improved NBSK pricing and a weaker Canadian dollar were offset by operational difficulties at our NBSK mills.

Outlook

"We consider that 2013 represents a year of remarkable recovery," said Ted Seraphim, President and CEO. "We achieved our highest earnings since 2006 reflecting a continuing improvement in the U.S. housing market after a prolonged downturn. We are early in the recovery and as such, we expect some volatility, but the overall trend remains positive. We are also experiencing some of the benefits from our ongoing major capital investment program."

Annual Financial Statements and Management's Discussion & Analysis ("MD&A")

The Company's consolidated financial statements for the year ended December 31, 2013 and related MD&A is available on the Company's website: www.westfraser.com and on the System for Electronic Document Analysis and Retrieval at www.sedar.com under the Company's profile.

Dividend Declared

The Board of Directors of the Company has declared a dividend of $0.07 per share on the Common shares and the Class B Common shares in the capital of the Company, payable on April 4, 2014 to shareholders of record on March 21, 2014.

Advance Notice Policy

Our Board has also adopted an Advance Notice Policy (the "Policy"), which includes a provision that requires advance notice to the Company in circumstances where nominations of persons for election to the board of directors are made by shareholders of the Company other than pursuant to: (i) a proposal made in accordance with the Business Corporations Act (British Columbia) (the "Act"); or (ii) a requisition of the shareholders made in accordance with the Act. This type of policy has become quite common for U.S. companies, is becoming more common for Canadian companies and is consistent with the Company's goals of: (i) facilitating orderly and efficient shareholder meetings; (ii) ensuring that all shareholders receive adequate notice of director nominations and sufficient information with respect to all nominees; and (iii) allowing shareholders to register an informed vote.

Among other things, the Policy fixes a deadline by which shareholders of the Company must submit director nominations to our corporate secretary prior to any annual or special meeting of shareholders and sets forth the specific information that a shareholder must include in such notice for an effective nomination to occur. No person will be eligible for election as a director of the Company unless nominated in accordance with the provisions of the Policy.

In the case of an annual meeting of shareholders, notice to the Company must be made not less than 30 nor more than 65 days prior to the date of the annual meeting; provided, however, that in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made by the Company, notice may be made not later than the close of business on the 10th day following such public announcement. In the case of a special meeting of shareholders (which is not also an annual meeting), notice to the Company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made. The Policy is effective and in full force and effect as of the date it was approved.

At our annual and special meeting of shareholders scheduled for April 29, 2014 our shareholders will be asked to approve an amendment to our Articles which will effectively adopt the Policy. If the amendment is not approved at the meeting, the Policy will terminate and be of no further force and effect.

A copy of the Policy will be available under the Company's profile on SEDAR at www.sedar.com.

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 and are included under the heading "Outlook", 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. Actual outcomes and results will depend on a number of factors that could affect the ability of the Company to execute its business plans, including those matters described in the 2013 annual Management's Discussion & Analysis under "Risks and Uncertainties", and may differ materially from those anticipated or projected. 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.

Conference Call

Investors are invited to listen to the quarterly conference call on Friday, February 14, 2014 at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time) by dialing 1-800-766-6630 (toll- free North America). The call may also be accessed through West Fraser's website at www.westfraser.com.

West Fraser Timber Co. Ltd.
Condensed Consolidated Balance Sheets
(in millions of Canadian dollars, except where indicated - unaudited)

                                                   December 31   December 31
                                                          2013          2012
----------------------------------------------------------------------------
Assets
Current assets
Cash and short-term investments                    $       162  $       102
Receivables                                                279          251
Inventories                                                519          459
Prepaid expenses                                            11           11
----------------------------------------------------------------------------
                                                           971          823
Property, plant and equipment                            1,144          959
Timber licences                                            489          496
Goodwill and other intangibles                             321          330
Other assets                                                83           24
Deferred income tax assets                                  96            -
----------------------------------------------------------------------------
                                                   $     3,104  $     2,632
----------------------------------------------------------------------------

Liabilities
Current liabilities
Payables and accrued liabilities                   $       385  $       322
Income taxes payable                                        30           20
Reforestation and decommissioning obligations               39           43
Current portion of long-term debt                          319            -
----------------------------------------------------------------------------
                                                           773          385
Long-term debt                                               9          300
Other liabilities                                          197          327
Deferred income tax liabilities                            178          128
----------------------------------------------------------------------------
                                                         1,157        1,140
----------------------------------------------------------------------------

Shareholders' Equity
Share capital (note 4)                                     602          602
Accumulated other comprehensive earnings                    10           (9)
Retained earnings                                        1,335          899
----------------------------------------------------------------------------
                                                         1,947        1,492
----------------------------------------------------------------------------
                                                   $     3,104  $     2,632
----------------------------------------------------------------------------

Number of Common shares and Class B Common shares outstanding at February
 13, 2014 was 85,672,068.

West Fraser Timber Co. Ltd.
Condensed Consolidated Statements of Changes in Shareholders' Equity
(in millions of Canadian dollars, except where indicated - unaudited)

                          October 1 to December 31  January 1 to December 31
                                 2013         2012         2013         2012
----------------------------------------------------------------------------

Share capital
Balance - beginning of
 period                  $       602  $       602  $       602  $       601
Issuance of Common
 shares                            -            -            1            1
Common share repurchases           -            -           (1)           -
----------------------------------------------------------------------------
Balance - end of period  $       602  $       602  $       602  $       602
----------------------------------------------------------------------------

Accumulated other
 comprehensive earnings
Balance - beginning of
 period                  $         -  $       (12) $        (9) $        (6)
Translation gain (loss)
 on foreign operations            10            3           19           (3)
----------------------------------------------------------------------------
Balance - end of period  $        10  $        (9) $        10  $        (9)
----------------------------------------------------------------------------

Retained earnings
Balance - beginning of
 period                  $     1,166  $       836  $       899  $       888
Actuarial gain (loss) on
 post-retirement
 benefits                         57           49          113          (42)
Common share repurchases           -            -           (2)           -
Earnings for the period          118           20          349           77
Dividends                         (6)          (6)         (24)         (24)
----------------------------------------------------------------------------
Balance - end of period  $     1,335  $       899  $     1,335  $       899
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Shareholders' Equity     $     1,947  $     1,492  $     1,947  $     1,492
----------------------------------------------------------------------------

West Fraser Timber Co. Ltd.
Condensed Consolidated Statements of Earnings and Comprehensive Earnings
(in millions of Canadian dollars, except where indicated - unaudited)

                          October 1 to December 31  January 1 to December 31
                                 2013         2012         2013         2012
----------------------------------------------------------------------------

Sales                    $       833  $       773  $     3,474  $     3,000
----------------------------------------------------------------------------

Costs and expenses
Cost of products sold            560          506        2,260        2,024
Freight and other
 distribution costs              122          118          491          477
Export taxes                       3           11            9           48
Amortization                      43           39          160          152
Selling, general and
 administration                   36           33          131          115
Equity-based
 compensation                     15           30           54           61
Restructuring charges
 (note 5)                         24            -           24            -
----------------------------------------------------------------------------
                                 803          737        3,129        2,877
----------------------------------------------------------------------------
Operating earnings                30           36          345          123
Finance expense                   (8)          (7)         (29)         (28)
Exchange gain (loss) on
 long-term debt                  (10)          (3)         (21)           7
Other income                      18            2           22            -
----------------------------------------------------------------------------
Earnings before tax               30           28          317          102
Tax recovery (provision)
 (note 6)                         88           (8)          32          (25)
----------------------------------------------------------------------------
Earnings                 $       118  $        20  $       349  $        77
----------------------------------------------------------------------------

Earnings per share
 (dollars) (note 7)
Basic and diluted        $      1.37  $      0.23  $      4.07  $      0.90
----------------------------------------------------------------------------

Comprehensive earnings
Earnings                 $       118  $        20  $       349  $        77
Other comprehensive
 earnings
Translation gain (loss)
 on foreign operations            10            3           19           (3)
Actuarial gain (loss) on
 post-retirement
 benefits                         57           49          113          (42)
----------------------------------------------------------------------------
Comprehensive earnings   $       185  $        72  $       481  $        32
----------------------------------------------------------------------------

West Fraser Timber Co. Ltd.
Condensed Consolidated Statements of Cash Flows
(in millions of Canadian dollars, except where indicated - unaudited)

                          October 1 to December 31  January 1 to December 31
                                 2013         2012         2013         2012
----------------------------------------------------------------------------
Operating activities
Earnings                 $       118  $        20  $       349  $        77
Adjustments
 Amortization                     43           39          160          152
 Finance expense                   8            7           29           28
 Exchange loss (gain) on
  long-term debt                  10            3           21           (7)
 Tax provision
  (recovery)                     (88)           8          (32)          25
 Income taxes received
  (paid)                         (10)          (1)         (36)           2
 Post-retirement expense          11           13           54           51
 Contributions to post-
  retirement benefit
  plans                          (38)         (41)        (106)         (72)
 Other                             7           (4)          (7)         (11)
Changes in non-cash
 working capital
 Receivables                      14            2          (15)         (22)
 Inventories                     (49)         (36)         (55)         (58)
 Prepaid expenses                  5            2            -           (2)
 Payables and accrued
  liabilities                      2            8           57           41
----------------------------------------------------------------------------
Cash flows from
 operating activities             33           20          419          204
----------------------------------------------------------------------------

Financing activities
Proceeds from long-term
 debt                              -            -            8            -
Finance expense paid              (8)          (8)         (18)         (18)
Dividends                         (6)          (6)         (24)         (24)
Common share repurchases           -            -           (3)           -
Other                             (1)          (1)          (2)           -
----------------------------------------------------------------------------
Cash flows from
 financing activities            (15)         (15)         (39)         (42)
----------------------------------------------------------------------------

Investing activities
Acquisition                        -          (30)           -          (30)
Additions to capital
 assets                         (119)         (43)        (338)        (159)
Government assistance             10            6           11           51
Proceeds from disposal
 of capital assets                 -            -            2            9
Other                             (2)           -           (1)           1
----------------------------------------------------------------------------
Cash flows from
 investing activities           (111)         (67)        (326)        (128)
----------------------------------------------------------------------------

Change in cash                   (93)         (62)          54           34
Foreign exchange effect
 on cash                           3            -            6            -
Cash - beginning of
 period                          252          164          102           68
----------------------------------------------------------------------------
Cash - end of period     $       162  $       102  $       162  $       102
----------------------------------------------------------------------------

West Fraser Timber Co. Ltd.

Notes to Condensed Consolidated Interim Financial Statements

(figures are in millions of dollars, except where indicated - unaudited)

1. Nature of operations

West Fraser Timber Co. Ltd. ("West Fraser", "we", "us" or "our") is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp and newsprint with facilities in western Canada and the southern United States. Our executive office is located at 858 Beatty Street, Suite 501, Vancouver, British Columbia. West Fraser was formed by articles of amalgamation under the Business Corporations Act (British Columbia) and is registered in British Columbia, Canada. Our Common shares are listed for trading on the Toronto Stock Exchange under the symbol WFT.

2. Basis of presentation and statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and using the same accounting policies and methods of their application as the December 31, 2013 annual financial statements. These condensed consolidated interim financial statements should be read in conjunction with our 2013 annual financial statements.

3. Changes in accounting policies

We have adopted the new and revised IASB standards that were effective January 1, 2013. For a description of the new and revised standards refer to note 4 of our 2013 annual financial statements. The application of the amendment to IAS 19 resulted in a revision of our financial statements.

IAS 19 - Amendment, Employee Benefits

The effect of adopting the amended standard on January 1, 2013 is as follows:

----------------------------------------------------------------------------
                                          Previous                   Amended
                                          standard       Change     standard
----------------------------------------------------------------------------
October 1 to December 31, 2013
Post-retirement and other long-term
 employee benefits expense            $         9  $         1  $        10
Finance expense                                 -            2            2
Tax recovery                                   (3)           -           (3)
----------------------------------------------------------------------------
                                      $         6  $         3  $         9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Actuarial gain on post-retirement
 benefits - net of tax                $       (54) $        (3) $       (57)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted earnings per
 share(1)                             $      1.40  $     (0.03) $      1.37
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Per share amounts have been retroactively adjusted to take into account
 the Stock Dividend described in note 4.
----------------------------------------------------------------------------

                                         Previous                   Amended
                                         standard       Change     standard
----------------------------------------------------------------------------
October 1 to December 31, 2012
Post-retirement and other long-term
 employee benefits expense            $        10  $         1  $        11
Finance expense                                 -            2            2
Tax recovery                                   (3)          (1)          (4)
----------------------------------------------------------------------------
                                      $         7  $         2  $         9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Actuarial gain on post-retirement
 benefits - net of tax                $       (47) $        (2) $       (49)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted earnings per
 share(1)                             $      0.25  $     (0.02) $      0.23
----------------------------------------------------------------------------
----------------------------------------------------------------------------
January 1 to December 31, 2013
Post-retirement and other long-term
 employee benefits expense            $        35  $         9  $        44
Finance expense                                 -           10           10
Tax recovery                                   (9)          (4)         (13)
----------------------------------------------------------------------------
                                      $        26  $        15  $        41
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Actuarial gain on post-retirement
 benefits - net of tax                $       (98) $       (15) $      (113)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted earnings per
 share(1)                             $      4.24  $     (0.17) $      4.07
----------------------------------------------------------------------------
----------------------------------------------------------------------------
January 1 to December 31, 2012
Post-retirement and other long-term
 employee benefits expense            $        39  $         4  $        43
Finance expense                                 -            9            9
Tax recovery                                  (10)          (3)         (13)
----------------------------------------------------------------------------
                                      $        29  $        10  $        39
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Actuarial loss on post-retirement
 benefits - net of tax                $        52  $       (10) $        42
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted earnings per
 share(1)                             $      1.01  $     (0.11) $      0.90
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Per share amounts have been retroactively adjusted to take into account
 the Stock Dividend described in note 4.

There is no impact on balance sheet amounts resulting from the amended standard.

4. Share capital

Authorized

200,000,000 Common shares, without par value

20,000,000 Class B Common shares, without par value

10,000,000 Preferred shares, issuable in series, without par value

Issued

----------------------------------------------------------------------------
                                        2013                   2012
                                    Number     Amount      Number     Amount
----------------------------------------------------------------------------
Common                          40,554,274  $     602  40,281,242  $     602
Class B Common                   2,281,478          -   2,581,478          -
----------------------------------------------------------------------------
Total Common                    42,835,752  $     602  42,862,720  $     602
----------------------------------------------------------------------------
----------------------------------------------------------------------------

During 2013 300,000 (2012 - 200,000) Class B Common shares were exchanged for Common shares.

On September 12, 2013 our Board of Directors authorized the initiation of a normal course issuer bid to repurchase for cancellation up to 1,000,000 Common shares or approximately 2.5% of our issued and outstanding Common shares. The normal course issuer bid expires September 16, 2014.

In September 2013 we repurchased 32,277 Common shares at a cost of approximately $3 million.

Stock dividend

On December 10, 2013 the Board of Directors declared a stock dividend (the "Stock Dividend") of one Common share for each issued and outstanding Common share and Class B Common share in the capital of the Company, which has the same effect as a two-for-one stock split. The Stock Dividend was paid on January 13, 2014 to shareholders of record on December 31, 2013. For comparative purposes the Stock Dividend has been applied retroactively to earlier periods so that the number of shares used to calculate earnings per share is doubled resulting in earnings per share for 2013 and prior years being half of the amount that would otherwise have been reported.

On January 13, 2014 we issued 42,835,752 Common shares pursuant to the Stock Dividend. Also on January 13, 2014 the number of options and units outstanding under our share option, phantom share, and directors' deferred share unit plans were doubled and the exercise price of outstanding share options was halved to reflect the Stock Dividend.

5. Restructuring charges

On October 24, 2013 we announced our intention to permanently close our Houston, B.C. sawmill. The closure is expected to be complete in the second quarter of 2014 and the resulting restructuring charges are as follows:

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                                                                        2013
----------------------------------------------------------------------------
Asset impairment                                                 $        13
Severance                                                                 10
Decommissioning obligations                                                1
----------------------------------------------------------------------------
                                                                 $        24
----------------------------------------------------------------------------
----------------------------------------------------------------------------

6. Tax provision

The tax recovery (provision) differs from the amount that would have resulted from applying the Canadian statutory income tax rates to earnings before tax as follows:

----------------------------------------------------------------------------
                          October 1 to December 31  January 1 to December 31
                                 2013         2012         2013         2012
----------------------------------------------------------------------------
Income tax expense at
 statutory rate of
 25.75% (2012 - 25%)     $        (8) $        (7) $       (82) $       (26)
Non-taxable amounts               (4)          (5)         (12)          (9)
Rate differentials
 between jurisdictions
 and on specified
 activities                        -            -          (10)          (1)
Recognized tax assets            101            3          140           11
Increase in statutory
 tax rate                          -            -           (2)           -
Other                             (1)           1           (2)           -
----------------------------------------------------------------------------
Tax recovery (provision) $        88  $        (8) $        32  $       (25)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

7. Earnings per share

Basic earnings per share is calculated based on earnings available to Common shareholders, as set out below, using the weighted average number of Common shares and Class B Common shares outstanding after adjusting for the Stock Dividend (note 4).

Diluted earnings per share is calculated based on earnings available to Common shareholders adjusted to remove the actual share option expense charged to earnings and after deducting a notional charge for share option expense assuming the use of the equity settled method, as set out below. The diluted weighted average number of shares is calculated using the treasury stock method. When earnings available to Common shareholders for diluted earnings per share are greater than earnings available to Common shareholders for basic earnings per share, the calculation is anti-dilutive and diluted earnings per share are deemed to be the same as basic earnings per share.

----------------------------------------------------------------------------
                          October 1 to December 31  January 1 to December 31
                                 2013         2012         2013         2012
----------------------------------------------------------------------------
Earnings
Basic                    $       118  $        20  $       349  $        77
Share option expense              13           23           44           45
Equity settled share
 option adjustment                (1)          (1)          (3)          (3)
----------------------------------------------------------------------------
Diluted                  $       130  $        42  $       390  $       119
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Weighted average number
 of shares (thousands)
Basic                         85,670       85,723       85,712       85,714
Share options                  1,382        1,351        1,628        1,111
----------------------------------------------------------------------------
Diluted                       87,052       87,074       87,340       86,825
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Earnings per share
 (dollars)
Basic and diluted        $      1.37  $      0.23  $      4.07  $      0.90
----------------------------------------------------------------------------
----------------------------------------------------------------------------

8. Segmented information


                                              Pulp &  Corporate
                        Lumber     Panels      paper    & other Consolidated
----------------------------------------------------------------------------
October 1, 2013 to
 December 31, 2013

Sales at market
 prices
 To external
  customers         $     522  $     108  $     203  $       -  $       833
                                                               -------------
                                                               -------------
 To other segments         19          2          -          -
----------------------------- ---------------------------------
                    $     541  $     110  $     203  $       -
---------------------------------------------------------------
---------------------------------------------------------------

EBITDA(1)           $      83  $       6  $      24  $     (16) $        97
Amortization              (27)        (4)       (11)        (1)         (43)
Restructuring
 charges                  (24)         -          -          -          (24)
----------------------------------------------------------------------------
Operating earnings         32          2         13        (17)          30
Finance expense            (4)        (2)        (2)         -           (8)
Exchange loss on
 long-term debt             -          -          -        (10)         (10)
Other income               12          1          4          1           18
----------------------------------------------------------------------------
Earnings before tax $      40  $       1  $      15  $     (26) $        30
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Non-IFRS measure:
EBITDA is defined as operating earnings plus amortization and restructuring
charges.


                                              Pulp &  Corporate
                        Lumber     Panels      paper    & other Consolidated
----------------------------------------------------------------------------
October 1, 2012 to
 December 31, 2012

Sales at market
 prices
 To external
  customers         $     478  $     109  $     186  $       -  $       773
                                                               -------------
                                                               -------------
 To other segments         18          1          -          -
---------------------------------------------------------------
                    $     496  $     110  $     186  $       -
---------------------------------------------------------------
---------------------------------------------------------------

EBITDA(1)           $      74  $      11  $      24  $     (34) $        75
Amortization              (23)        (5)       (11)         -          (39)
----------------------------------------------------------------------------
Operating earnings         51          6         13        (34)          36
Finance expense            (3)        (1)        (2)        (1)          (7)
Exchange loss on
 long-term debt             -          -          -         (3)          (3)
Other income
 (expense)                 (1)         -          4         (1)           2
----------------------------------------------------------------------------
Earnings before tax $      47  $       5  $      15  $     (39) $        28
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Non-IFRS measure:
EBITDA is defined as operating earnings plus amortization and restructuring
 charges.


                                              Pulp &  Corporate
                        Lumber     Panels      paper    & other Consolidated
----------------------------------------------------------------------------
January 1, 2013 to
 December 31, 2013

Sales at market
 prices
 To external
  customers         $   2,234  $     460  $     780  $       -  $     3,474
                                                               -------------
                                                               -------------
 To other segments         81          7          -          -
---------------------------------------------------------------
                    $   2,315  $     467  $     780  $       -
---------------------------------------------------------------
---------------------------------------------------------------

EBITDA(1)           $     437  $      43  $     103  $     (54) $       529
Amortization              (99)       (15)       (45)        (1)        (160)
Restructuring
 charges                  (24)         -          -          -          (24)
----------------------------------------------------------------------------
Operating earnings        314         28         58        (55)         345
Finance expense           (15)        (5)        (9)         -          (29)
Exchange loss on
 long-term debt             -          -          -        (21)         (21)
Other income
 (expense)                 16          1          8         (3)          22
----------------------------------------------------------------------------

Earnings before tax $     315  $      24  $      57  $     (79) $       317
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Non-IFRS measure:
EBITDA is defined as operating earnings plus amortization and restructuring
charges.

                                           Pulp &   Corporate
                     Lumber     Panels      paper     & other   Consolidated
----------------------------------------------------------------------------
January 1, 2012
 to December 31,
 2012

Sales at market
 prices
 To external
  customers      $   1,783  $     442  $     775  $        -  $       3,000
                                                             --------------
                                                             --------------
 To other
  segments              72          6          -           -
------------------------------------------------------------
                 $   1,855  $     448  $     775  $        -

EBITDA(1)        $     176  $      54  $     109  $      (64) $         275
Amortization           (86)       (16)       (47)         (3)          (152)
---------------------------------------------------------------------------
Operating
 earnings               90         38         62         (67)           123
Finance expense        (13)        (4)        (9)         (2)           (28)
Exchange gain on
 long-term debt          -          -          -           7              7
Other income
 (expense)              (4)         -          1           3              -
---------------------------------------------------------------------------

Earnings before
 tax             $      73  $      34  $      54  $      (59) $         102
---------------------------------------------------------------------------
---------------------------------------------------------------------------
1. Non-IFRS measure:
EBITDA is defined as operating earnings plus amortization and restructuring
 charges.

The geographic distribution of external sales is as follows (1):

----------------------------------------------------------------------------
                          October 1 to December 31  January 1 to December 31
                                  2013        2012          2013        2012
----------------------------------------------------------------------------
United States              $       436 $       368   $     1,761 $     1,435
Canada                             184         194           821         747
China                              131         139           537         513
Other Asia                          59          47           263         201
Other                               23          25            92         104
----------------------------------------------------------------------------
                           $       833 $       773   $     3,474 $     3,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Sales distribution is based on the location of product delivery.

Contacts:
West Fraser Timber Co. Ltd.
(604) 895-2700
(604) 681-6061 (FAX)
www.westfraser.com

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