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0

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INVESTOR PRESENTATIONFebruary 2018

Forward Looking Statements and Non-GAAP Financial Measures

All financial references are expressed in C$ unless otherwise noted.

This presentation contains statements and estimates that may constitute forward-looking statements under theapplicable securities laws. Readers are cautioned against placing undue reliance on forward-looking statements. Allstatements herein, other than statements of historical fact, may be forward-looking statements and can be identifiedby the use of words such as “projected”, “plan”, “should”, “expect”, “will”, “target”, “expected”, “poised”, “likely” andsimilar references to future periods.

Forward-looking statements in this presentation include, but are not limited to, statements relating to future supplyand demand; future growth plans and strategy; our marketing plans and strategy; our competitive position andexpectations regarding future competition; regulatory developments; or anticipated trade challenges.

Although such statements reflect management’s current reasonable beliefs, expectations and assumptions, there canbe no assurance that forward-looking statements are accurate, and actual results and performance may materiallyvary. Many factors could cause our actual results or performance to be materially different including: generaleconomic conditions; changes in annual allowable cut; competition and selling prices; foreign trade disputes; changesin foreign currency exchange rates; labour disruptions; natural disasters; relations with First Nations groups; changesin laws, regulations or public policy; and the factors discussed in the company’s annual information form, which isavailable on our website at www.westernforest.com. The foregoing list is not exhaustive, as other factors couldadversely affect our actual results and performance. Forward-looking statements are based only on informationcurrently available to us and refer only as of the date hereof. Except as required by law, we undertake no obligation toupdate forward-looking statements.

During the course of this presentation, certain non-GAAP financial information will be presented. Definitions andreconciliation of terms can be found in the Company’s annual and quarterly MD&A for Western Forest Products Inc.(the “Company”)

1

Western Forest Products: Company Overview

5th largest Canadian lumber producer.

Operating on the coast of British Columbia and Washington State, serving global markets.

— Largest Crown timber tenure holder in Coastal B.C.

— Leading cedar lumber manufacturer in North America.

— Timber resource unaffected by mountain pine beetle.

Lumber capacity of 1.1 billion board feet.

Sales exceed $1 billion over past three years.

TSX listed [TSX:WEF] with strong share liquidity.

Attractive industry dividend yield.

Balance sheet well positioned.

2

A Compelling Pure-Play, Solid Wood Products Investment

3

Western is well-positioned to capitalize on improving market fundamentals.

-Margin-focused business strategy.

-Superior timber asset base and secure fibre supply.

-High-value, diverse products serving global markets.

-Strong financial position and cash flow profile.

-Business of scale with a liquid share capital.

-Committed to enhancing shareholder value.

Western Forest Products: Margin-Focused, Log and Specialty Lumber Company

4

LTM1 revenue of $1.1 billion and EBITDA of $153 million.

Targeted products of scale to selected customers.

(1) Last twelve months total external revenue ended December 31, 2017.

Revenue by Product1 Revenue by Market Area1 Revenue by Currency1

Revenue from 2010 – 2017

Specialty Lumber

58%Commodity Lumber

17%

Logs19%

By-products6%

$USD52%

$CAD43%

¥JPY5%

$668

$854 $925 $978 $1,037 $1,082

$1,187 $1,143

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2010 2011 2012 2013 2014 2015 2016 2017

Rev

enu

e ($

M)

Canada38%

Japan12%

China16%

United States26%

Europe3%

Other5%

Western Forest Products: A Margin-Focused Business

Annual Allowable Cut (AAC) for Logs

~ 6.0 million m3

Internal Log Consumption

ExternalLog Sales

Domestic LogMarkets

Export LogMarkets

ManufacturingFacilities

Diverse and Unique Species Mix

Hemlock / BalsamYellow Cedar

Diverse and Unique Species Mix

Hemlock / Balsam SpruceYellowCedar

Douglas Fir

Western Red Cedar

~68%Logs processed at

WFP manufacturingfacilities

~32%Logs sold

Log Purchases1

~ 1.3 million m3

Pulp Log Markets

Timber resource is directed to highest margin opportunity.

5(1) Based on the twelve months ended December 31, 2017.

Log Strategy: Directing Volume to Highest Margin Opportunity

6(1) Based on total external log sales and internal log consumption for the twelve months ended December 31, 2017, including purchased logs. Internal transfer values based on Vancouver Log Market prices.

Log End Market

Domestic

Export

Pulplogs

Description

Includes sawlogs, peelers and shingle logs sold through contractual commitments and open market transactions.

Represents log sorts produced in excess of internal mill requirements.

Typically command premium prices due to strong demand.

Volumes committed under long-term fibre supply agreements.

Commitments met through internal log supply, supply contracts and open market pulplog purchases.

Primary Target Geographies

Canada

China Korea Japan U.S.

Canada

% Value1 % Volume1

External Log Sales

WFP Sawmills

All five species of Western’s sawlogs consumed by internal manufacturing operations.

Internal log supply supplemented by open market purchases to maximize margin.

Canada

3%7%

10%9%

19%16%

68% 68%

Western’s Scale Creates Unique Marketing Opportunity

7

11 - 18”

5 – 11”

16 - 22”

20 - 30”

24”+

NarrowDimension

WideDimension

Squares Timbers Grade &Appearance

Log Cutting Patterns

Commodity Commodity /WRC

Japan Niche /WRC

Niche /WRC

WFP ProductGroup

WFP MarketingGroup

Log diameter determines the products manufactured.

Log Supply Marketing Strategy Manufacturing Strategy Sales Strategy

23%

47%

10%

8%

20%

18%

47%

27%

Diversified Lumber Product Offering Allows Western to Profitably Serve Multiple Markets Throughout the Cycle

8

Lumber Segment

Western Red Cedar

Japan Specialty

Niche

Commodity

Description

Consumer-orientated products.

Naturally durable. Ideal for outside uses.

Products for traditional post and beam construction.

Requires unique and rigorous quality standards.

Specialty products and markets.

Focused on appearance grades, value-add products.

Traditional dimension lumber and developing grades.

Currently focused on China.

Primary Target Geographies

U.S. Canada

Japan

U.S. Canada Asia Europe Australia

China U.S.

% Value1 % Volume1

Specialty Segments

Example Products

(1) Based on lumber sales for the twelve months ended December 31, 2017.

77%

53%

Arlington Lumber Distribution and Processing Facility

9

Facility and Location Provides Numerous Operating and Logistic Advantages

18 acre site with a distribution and processing facility and related equipment.

Centralized warehousing and distribution closer to our U.S. customers.

Rail spur on site serviced by BNSF.

Allows Western to increase production of targeted specialty products.

Expected to be accretive by mid-2018.

Provides Western with protection from damaging effects of US lumber duties.

California Texas

US

Northeast

Specialty Products Reduce EBITDA Volatility

10

77% of Western’s lumber revenue is generated from non-commodity products.

Specialty lumber sells at a significant premium to commodity lumber.

Specialty products provide more stable margins.

Product/market diversity and global exposure provide additional opportunities to seek best margin.

Cedar, niche and commodity grades will benefit from U.S. housing recovery.

(1) Comparison of selling prices for the reported period over the last 5 years. Quarterly selling price (reported in CAD) compared to to KD W S-P-F #2&Btr 2x4 random(reported in USD and CAD).

(2) Top 3 competitors: West Fraser, Canfor (average of Q4 analyst estimates) and Interfor.(3) Up to December 31, 2017.

EBITDA Margins2,3

WFP Lumber Sales/mfbm vs. Lumber Price1,3

Focus on specialty products delivered 32 consecutive quarters of positive EBITDA3.

$200

$400

$600

$800

$1,000

$1,200

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

$ /

MFB

M

WFP Lumber Sales / MFBM - $CADKD W S-P-F #2&Btr 2x4 random - $USDKD W S-P-F #2&Btr 2x4 random - $CAD

Seasonality Can Impact EBITDA Margins

Weather (snow pack, heat) and daylight can impact harvest volumes and costs.

Inventory levels can fluctuate through the year, impacting working capital.

Seasonal market demand can impact lumber production.

11

Seasonal influences can impact operations.

Harvest Production and Log Inventory Volume (1)

Average Lumber Production Volume (1)

(1) Based on last four years’ average.

750

1,000

1,250

1,000

1,250

1,500

Q1 Q2 Q3 Q4

Log

Inve

nto

ry 0

00

's m

3

Har

vest

Vo

lum

e 0

00

's m

3

Total Harvest Volume Average Closing Log Inventory By Quarter

200

225

250

Q1 Q2 Q3 Q4

Volu

me

MM

FBM

Competitive Strengths

1. A sustainable, diverse timber base providing a unique range of products.

2. Customer of choice for other coastal log producers due to competitive advantages of scale, financial strength and proximity.

3. Flexible manufacturing platform that can target a variety of global markets.

4. High margin specialty products for the U.S. market – cedar, timbers, moulding & millwork, industrial applications.

5. Low cost access to ocean shipping (break bulk, container & barge) providing competitive transportation to global markets and avoiding rail congestion.

6. Uniquely positioned to capitalize on growth in U.S. market. Western’s market share in Japan / China likely to benefit from repatriation of U.S. production.

7. Washington State based warehousing and distribution facility close to I-5 corridor servicing U.S. customers.

12

Capital to Contribute Significantly to EBITDA

13

$125 million of strategic capital projects are focused on:

– Reducing costs– Increasing efficiency– Improving product

flexibility– Growing production

Capital projects expected to generate a return in excess of 20%.

Investments ($millions)

2012 - 2014

2015 - 2016

2017-2018

Total

Implemented $58.9 $38.8 $10.0 $107.7

Future - - $17.3 $17.3

Total $58.9 $38.8 $27.3 $125.0

Demonstrating Sustainability and Environmental Stewardship

14

Western is committed to ensuring the sustainability of the natural resources in our care

All of Western’s timber tenures are certified according to globally recognized standards, including:

Sustainable Forestry Initiative

Canadian Standards Association

Chain of Custody (PEFC and FSC)

Third party independent audits are conducted annually of Western’s Environmental Management Systems

Western participates in energy conservation programs, such as the Sustainable Energy Management Program with BC Hydro

Western operates a tree seed orchard and a seedling nursery that produces 6.5 million seeds per year and has produced over 100 million seedlings to date

15

15

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APPENDIX

Western’s Business to Benefit from Global Supply/Demand Factors

16

Highly Attractive UnderlyingSupply/Demand Dynamics

U.S. Economicand Housing

Market Recovery

Housing market and repair and remodel activity recovering from trough levels.

Transition from supply driven to demand driven market expected to result in improved pricing for wood products.

Continued Growth in China

Economic growth and urbanization.

Consumption of wood will increase.

Limited domestic fibre supply; increasing need for imports.

U.S. Supply Exit from Japan Market

Repatriation of U.S. lumber exports back to U.S. market creates opportunity for Western.

Government policy designed to increase domestic consumption.

Canadian FibreSupply Reduction

Mountain pine beetle expected to negatively impact interior fibre supply and lumber production.

Eastern Canada AAC reductions.

Strong Underlying

Demand Drivers for

Wood Products

Reduced Supplyof Fibre

1

2

3

4

Demand Drivers: U.S. Economic and Housing Market Recovery

17

U.S. Housing Starts

U.S. Repair & Remodel Expenditures

1

Source: Forest Economic Advisors (February 2018)

Poised to increase shipments to the U.S. as demand and pricing recover.

1.85 1.95 2.071.81

1.340.90

0.55 0.59 0.61 0.78 0.93 1.00 1.11 1.18 1.19 1.28 1.36 1.49 1.61 1.48

0.0

0.5

1.0

1.5

2.0

2.5

2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E

Ho

usi

ng

Star

ts (

mill

ion

s)

50-Year Average: 1.4MM

116.6 125.8146.2 134.9 127.8 123.8 113.7 115.6 120.1 113.8 114.1 120.1 127.8 135.8

152.5 152.6 155.7 162.5 169.8 171.7

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E

Exp

end

itu

res

(US$

bill

ion

s)

Demand Drivers: New Supply/Demand Dynamics Will Positively Impact Lumber Pricing

Reduced supply from traditional sources combined with increased demand from U.S. and Asian markets is expected to benefit lumber prices.

18Source: Forest Economic Advisors (February 2018); Western Forest Products

Housing Starts (North American and Lumber Export Equivalent) vs. Western SPF Lumber Pricing

1

50

100

150

200

250

300

350

400

450

500

550

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E

US$

pe

r Mfb

m

Ho

usi

ng

Star

ts (

MM

)

U.S. Housing Starts Canada Housing Starts NA Lumber Exports (Housing Starts Equivalent)

KD SPF 2x4 2+Btr (US$) (Actual) KD SPF 2x4 2+Btr (US$) (FEA Projections)

Demand Drivers: China Growth Has Changed Global Wood Products Demand Dynamics

A deficit of domestic fibre will require China to rely on imports.

Rising wealth/urbanization trends expected to increase demand for structural and higher grade lumber:

– 300 million Chinese people (roughly equivalent to the U.S. population) expected to move from rural to urban areas between 2010 and 2025.

19

Chinese Log Imports Chinese Lumber Imports

Source: China Customs; International Wood Markets (February 2018)

2

0

5

10

15

20

25

30

35

40

'04A '05A '06A '07A '08A '09A '10A '11A '12A '13A '14A '15A '16A '17A

mill

ion

m³

Russia New Zealand North America

0

2

4

6

8

10

12

14

16

18

20

'04A '05A '06A '07A '08A '09A '10A '11A '12A '13A '14A '15A '16A '17A

mill

ion

m³

Russia New Zealand North America

Demand Drivers: U.S. Supply Exit From Japan Will Create Market Opportunity

Japan continues to be a major source of demand for wood products and lumber from North America:

– In recent years, suppliers in the U.S. West have increased export activities to Japan due to a lack of domestic demand in the U.S.

– As North American housing markets recover, much of this U.S. supply will be diverted back to local U.S. markets, potentially creating a significant supply gap in Japan for imported lumber.

20Source: Japan Ministry of Land, Infrastructure and Transport; The Trade Statistics, Japan Ministry of Finance; Japan Lumber Importers’ Association (February 2018)

3

Japanese Imports of Canadian and U.S. Lumber and Japanese Housing Starts

Japanese Lumber Imports of Canadian and U.S. Douglas Fir and Hemlock

~100 million board feet opportunity to replace non-SPF

U.S. exports to Japan

0

200

400

600

800

1,000

1,200

1,400

2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A

Lum

ber

Imp

ort

s (m

illio

n m

3)

U.S. Hem U.S. Dfir CDN Hem CDN Dfir

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2,750

3,000

3,250

2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A

Ho

usin

g Starts (millio

ns)

Lum

ber

Imp

ort

s (m

illio

n m

3)

Softwood Lumber Imports from Canada Softwood Lumber Imports from U.S.

Japan Housing Starts

Supply Drivers: Canadian Fibre Supply Reduction

21Source: Forest Economic Advisors (February 2018)

B.C. Interior AAC

Quebec AAC

Mountain Pine Beetle epidemic and lower AAC in B.C. and Eastern Canada areexpected to have significant negative impact on North American lumber capacity.

4

55.462.2 64.1 65.7 68.0 67.0 66.9 66.4

61.5 60.8 61.3 60.7 62.156.5

50.3 50.3 50.3 49.3 49.3 48.8

10

20

30

40

50

60

70

2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E

AA

C (

mill

ion

m3)

30.5 30.5

24.3 24.3 24.3 24.3 23.3 23.3 23.3 23.320.0 20.0 21.2 21.2 21.2 22.4 22.4 22.4 22.4 22.4

10

15

20

25

30

35

2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E

AA

C (

mill

ion

m3)

Our Locations

22

23

These materials have been prepared by Management of the Company. No regulatory authority has approved or disapproved of the contents of these materials. These materials do not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company and shall not constitute an offer, solicitation or sale of the Company’s securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Securities of the Company may not be offered or sold in the United States absent their prior registration or qualification or an applicable exemption from the applicable registration or qualification requirements.

Investor Relations Contacts

Stephen Williams Dallyn Willis

Executive Vice President & Chief Financial Officer Senior Director, Finance & Administration

604-648-4572 604-648-4595

swilliams@westernforest.com dwillis@westernforest.com