RE:RE:Drive the average selling price down prior to the takeover? In a normal operating year, there is seasonality to Western’s operations and logging activity may also vary depending
on weather conditions. Due to the drier than normal weather conditions that have been affecting British Columbia,
the Company has had to curtail logging operations, due to fire restrictions, longer than expected. This has resulted in
lower production levels for the third quarter of 2014 and increased blocking pressure on log exports. In addition,
Asian markets for the Company’s log and lumber products have weakened from the second quarter of 2014. Based
on the above, the Company is expecting lower EBITDA margins for the third quarter of 2014 than the previous year,
but consistent with historical third quarter results for the Company. Management still believes that the fundamental
market drivers for its business remain intact, and should lead to stronger results in the future. The Company will
continue to focus on achieving higher product margins and optimal efficiencies throughout its operations consistent
with its ongoing corporate strategy and business objectives, including the evaluation and potential implementation of
new market programs, new operating configurations, rationalizations and/or consolidations, and capital projects.