Shareholders Announce Selling DMI to Mercer International Inc.

October 4, 2018

For Immediate Release

Shareholders Announce Selling DMI to Mercer International Inc.

VANCOUVER, BC – October 04, 2018 – The shareholders of Daishowa-Marubeni International Ltd. (“DMI”), Nippon Paper Industries Co., Ltd. and Marubeni Corporation, today announced that they have entered into a share purchase agreement to sell all DMI shares to Mercer International Inc. (“Mercer”). DMI’s assets include the Peace River Pulp Mill in Peace River, Alberta, a 50% ownership of Cariboo Pulp and Paper Mill in Quesnel, British Columbia, and a 50% interest in the Peace River Logging Corporation and associated Limited Partnership, a joint venture with the Woodland Cree First Nation.

Mr. Tomoyuki (Steve) Iida, DMI President, stated: “I believe all of DMI’s assets have bright futures. The mills have reliable access to fibre and are well-situated to serve multiple markets. Most importantly, our workforce operating these mills, logging operations, and providing corporate administrative services are well experienced and highly skilled.”

The transaction is expected to close in the fourth quarter of 2018, subject to customary closing conditions. Operations will continue as scheduled under DMI’s management until the transaction is closed.

About

Daishowa-Marubeni International Ltd. is a forest products company first established in Western Canada in 1969 and co-owns and operates two modern kraft pulp mills in British Columbia and Alberta with a total annual production capacity of approximately 648,500 ADMT of premium grade NBSK and NBHK market pulp.

Media Inquiries:

Elizabeth Wells

NATIONAL Public Relations

Telephone: 604.638.7450

Email: Ewells@national.ca

Note: Please be advised that DMI has no further information to share at this time. Any queries about future operations will be directed to Mercer International Inc.