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Conifex Announces Closing of Bought Deal Offering

T.CFF

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 8, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Conifex Timber Inc. ("Conifex") (TSX:CFF) is pleased to announce that it has completed its previously announced bought deal offering (the "Offering"), including the exercise in full by the underwriters of their over-allotment option, resulting in aggregate gross proceeds of $10,522,500. The Offering was conducted by way of a short form prospectus dated March 1, 2017 by a syndicate of investment dealers led by Raymond James Ltd. and including CIBC World Markets Inc., who purchased a total of 3,450,000 common shares of Conifex at a price of $3.05 per share. 

Conifex intends to use the net proceeds of the Offering to partially repay outstanding indebtedness under its existing credit facility with Wells Fargo Capital Finance Corporation Canada, which may be re-drawn, to partially pay costs of its El Dorado sawmill project and for working capital.

About Conifex Timber Inc.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Conifex has expanded its operations to include bioenergy production following the commencement of commercial operations of its power generation facility at Mackenzie, British Columbia.

Forward-Looking Statements

Certain statements in this news release may constitute "forward-looking statements". Forward-looking statements are statements that address or discuss activities, events or developments that Conifex expects or anticipates may occur in the future, including without limitation the use of the proceeds of the Offering. Forward-looking statements reflect the current expectations and beliefs of the Conifex's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of Conifex or industry may be materially different from those implied by such forward-looking statements. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including without limitation those relating to: potential disruptions to production and delivery, including as a result of equipment failures, labour issues, the complex integration of processes and equipment and other factors; labour relations; failure to meet regulatory requirements; changes in the market; potential downturns in economic conditions; fluctuations in the price and supply of required materials, including log costs; fluctuations in the market price for products sold; foreign exchange fluctuations; trade restrictions or import duties imposed by foreign governments; availability of financing (as necessary); shipping or logging disruptions; and other risk factors described in Conifex's 2015 annual information form, annual management's discussion and analysis for the year ended December 31, 2016, the short form prospectus and other public filings available on SEDAR at www.sedar.com. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and Conifex undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

Yuri Lewis
Chief Financial Officer
(778) 331-8687



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