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Tembec reaches settlement with the Government of Quebec

Press Release from Tembec - Wednesday, November 09, 2005

Temiscaming (Quebec), November 9, 2005 — Tembec confirmed today that it has reached a settlement with the Government of Quebec regarding a total of 36 charges related to exceedences of allowable limits for effluent from its industrial site located in Temiscaming, Quebec. The infractions occurred between January 2001 and February 2003. The settlement was recommended to and ratified by the Court in a hearing held on Monday.

Employing close to 1,000 people, the Tembec Temiscaming site is one of the most complex industrial sites in Canada. It is unique in the pulp and paper industry, with two separate pulp mills, a paperboard mill and two chemical plants all operating at one site and with their combined effluent streams being treated by a common system. In addition, the effluent treatment system treats wastewater from the town of Temiscaming, resulting in a variable and complex effluent that requires carefully controlled treatment.

“Tembec’s commitment to the environment has been and remains a corporate priority, one for which the Company has been widely recognized,
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