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Creditors Approve Fraser Papers' Restructuring Plan


February 8, 2011 - TORONTO, ONTARIO

(All financial references are in U.S. dollars unless otherwise noted)

Fraser Papers Inc. and its subsidiaries ("Fraser Papers" or the "Company") announced today that creditors of the Company approved an amended consolidated plan of compromise and arrangement (the "Amended Plan") at a meeting of creditors (the "Meeting") held in Toronto. The Amended Plan was filed with the Ontario Court overseeing Fraser Papers' restructuring proceedings under the Companies' Creditors Arrangement Act ("CCAA") on January 28, 2011 and was supported by PricewaterhouseCoopers, the court-appointed Monitor and other significant stakeholders.

The Amended Plan was supported by 94.7% of the votes (in number) represented at the Meeting and 75.3% of the value of claims who voted. Under criteria set out in the CCAA, the Amended Plan required approval of the majority of creditors in number and 66 2/3% of the dollar value of claims voting at the Meeting.

The Amended Plan contemplates the distribution of all proceeds of the sale of the Company's assets to unsecured creditors, once all secured claims are paid in full.

As a result of the approval of the Amended Plan, the Company intends to appear before the Ontario Court on February 10, 2011 and the U.S. Court on February 11, 2010 to seek the necessary court approvals to implement the Amended Plan.

All materials related to the Company's restructuring, including the Amended Plan and other related documents, are available on the Monitor's website at www.pwc.com/car-fraserpapers.

For more information about the Company, visit www.fraserpapers.com.

Note: This press release contains forward-looking information and forward-looking statements within the meaning of Canadian provincial securities laws. These forward-looking statements include, among others, statements with respect to: the distribution of assets under the Amended Plan, the occurrence of court proceedings and the approval of the Amended Plan by the Canadian Court and the US Court. The words "contemplate", "intend", "seek", variations of those words and other words and expressions which may be predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company and its restructuring to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause distributions under the Amended Plan, the court proceedings and filing of materials, the court approval of the Amended Plan, and continuing restructuring efforts to differ materially from those set forth in the forward-looking statements include: unforeseen administrative, legal, transactional, technological, operational or production issues; inability to meet certain conditions and/or to reach agreement with creditors in general, unforeseen economic occurrences, actions of creditors, demand for the Company's products; cost of fibre, energy and chemicals; sales and marketing performance; and, other risks detailed from time to time in the documents filed by the Company with the securities regulators in Canada. In addition, the Company and its subsidiaries are currently operating under creditor protection laws in Canada and the United States. Many of the Company's plans are subject to the review of commercial courts in Canada and the United States. The Company cannot anticipate when such plans will be the subject of consideration by the commercial courts or, if they are, what impact that consideration will have on the plans or intentions of the Company. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts:
Fraser Papers Inc.
Glen McMillan
Chief Restructuring Officer
(416) 359-8635
gmcmillan@toronto.fraserpapers.com
www.fraserpapers.com

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