This presentation contains certain forward-looking information that reflects the Company’s current views and/or expectations with respect to: expectations relating to the markets the Company operates in; expected financial performance of the Landqart Mill and demand for its products, including but not limited to Durasafe® and the impact of currency exchange rates and other market factors on the results of the Company’s mills; and expectations relating to capital expenditure spending. Persons reading this presentation are cautioned that statements comprising forward-looking information are only predictions, and that the Company's actual future results or performance are subject to certain risks and uncertainties 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; fluctuations in the market price for products sold; trade restrictions or import duties imposed by foreign governments; 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; foreign exchange fluctuations; availability of financing (as necessary); and other risk factors detailed in our Annual Information Form dated March 31, 2015 available on SEDAR at www.sedar.com and other filings with the Canadian securities regulatory authorities. In particular, financial forecasts and expectations are not indicators of future financial performance and there is no assurance that the Company’s assumptions' in support of such forecasts or expectations are correct, accurate or complete. These risks, as well as others, could cause actual results and events to vary significantly. The Company does not undertake any obligation to update any forward-looking information, except as required by applicable securities law. Unless otherwise noted, are references in this presentation to “$” are to Canadian dollars. The selected financial information presented herein is qualified in its entirety by, and should be read in conjunction with, the Company’s unaudited condensed consolidated financial statements as at and for the period ended September 30, 2015 and the related notes thereto and Management’s Discussion & Analysis, which are available on SEDAR. Where we disclose production costs, such costs are calculated based on a variety of factors and inputs which may result in such costs not being comparable to similar types of costs disclosed by other issuers. This presentation contains reference to “Operating EBITDA”, “adjusted net loss” and “adjusted net loss per share”, which are non-GAAP financial measures. For disclosure of the manner in which these measures are calculated and a reconciliation to net loss, please refer to the MD&A for the period ended September 30, 2015, available on SEDAR. The financial information contained herein has been prepared in accordance with International Financial Reporting Standards. 2

• Operating EBITDA was $5.5 million compared to operating EBITDA of $4.1 million in the second quarter of 2015.

• The Security Paper Products Segment generated

operating EBITDA of $2.2 million. The Dissolving Pulp Segment generated operating EBITDA of $5.4 million. Corporate costs contributed operating EBITDA loss of $2.1 million to operating EBITDA.

• Adjusted net loss of $8.4 million, or diluted adjusted

net loss per share of $0.57. • Manufacturing and distribution costs were $67.7

million or 79.5% of sales compared to $ 59.3 million or 80.1% of sales in the second quarter of 2015.

3

(15)

(10)

(5)

-

5

10

Mill

ions

$

Quarterly EBITDA

EBITDA

(6) (4) (2) - 2 4 6 8

10

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Mill

ions

$

Quarterly EBITDA by Segment

Corporate

Security Paper Products Segment

Dissolving Pulp Segment

Total EBITDA

• Operating EBITDA for the Dissolving Pulp Segment for the quarter was $5.4 million compared to $2.1 million operating EBITDA in the second quarter of 2015. Results in the third quarter were positively impacted by improved dissolving pulp sales price, increased power generation and exchange rates on sales.

• Production costs averaged $818 per ADMT of dissolving

pulp in the third quarter. Production costs increased slightly over Q2 cost mainly due to increased repairs and maintenance cost compared to prior quarter.

• Sales totaled $48.5 million for the quarter compared to

$39.9 million for the second quarter of 2015. • The cogeneration facility generated $5.9 million in sales

revenue from the generation of power in the third quarter compared to $5.5 million in the second quarter of 2015.

4

-

10

20

30

40

50

60

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Mill

ions

$

Sales by Quarter Dissolving Pulp Segment

(20)

(15)

(10)

(5)

-

5

10

Mill

ions

$

Quarterly EBITDA Dissolving Pulp Segment

EBITDA

-

20

40

60

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Thou

sand

s

Quarterly Shipments Dissolving Pulp Segment

Dissolving Pulp NBHK

5

• The Company sold 45,377 air dried metric tonnes

(“ADMT”) of dissolving pulp in the third quarter. • The FSC mill produced 39,367 ADMT of dissolving

pulp during the third quarter.

• The FSC mill held 1,621 ADMT of dissolving pulp inventory at September 30, 2015 compared to 7,628 ADMT of Dissolving Pulp inventory at June 30, 2015. The low Inventory levels are a reflection of mill order back log and the timing of sales. Management expects to see these normalise over the short term.

ADMT

0

10

20

30

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Tonn

es

Ending Inventory Dissolving Pulp Segment

Dissolving Pulp NBHK

• The viscose staple fibre and rayon filament markets (key drivers in dissolving pulp demand) experienced an improved supply and demand dynamic since the beginning of 2015.

• Price of VSF and rayon filament increased by approximately 26% and 7%, respectively since January 2015. • Production costs, including amortization of some of the shutdown costs and the positive impact of the

cogeneration facility, averaged $818 per ADMT of dissolving pulp produced during the third quarter of 2015.

• Focus continues to be on ongoing cost reduction initiatives, production improvement, power generation and product development to improve margins at the mill.

6

-

500

1,000

1,500

2,000

2,500

3,000

10

20

30

40

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Mill

ions

$

Sales by Quarter Security Paper Products Segment

Sales Shipments

• Operating EBITDA for the Security Paper Products Segment for the quarter was $2.2 million compared to $3.4 million in the second quarter of 2015.

• Sales were $36.6 million for the quarter compared to

$34.1 million for the second quarter of 2015.

• The Landqart mill sold 2,456 tonnes of security paper in the third quarter, compared to 2,745 tonnes in the second quarter.

7

t

(3) (2) (1) - 1 2 3 4

Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15

Mill

ions

$

Quarterly Operating EBITDA Security Paper Products Segment

EBITDA

8

• The Landqart mill continues to build on a strong order book for 2015 comprised of a mix of new and repeat orders.

• Production of Durasafe® for the substrate of the ninth series of the Swiss franc for the Swiss National

Bank (“SNB”) began in 2014 and is expected to continue in 2015 and beyond. • Recent unexpected monetary policy changes in Switzerland resulted in a material appreciation of the

Swiss franc against the euro in January of 2015. The Landqart mill is exposed to foreign currency exchange fluctuations, as a significant amount of its sales are denominated in euros and some major costs are denominated in Swiss francs.

• The Landqart mill has implemented a foreign exchange counter measure program which has

identified areas to materially mitigate the negative financial impact in both the short and mid-term.

9

• Total sales were $85.2 million for the third quarter compared to $ 74.0 million for the second quarter of 2015.

• Cash on hand excluding restricted cash at September

30, 2015 was $49.3 million compared to $30.9 million at June 30, 2015.

• The Company had $20.2 million in restricted cash at

September 30, 2015 compared to $ 25.3 million at June 30, 2015.

• During the third quarter of 2015, the Company paid

$0.6 million in financing costs and spent approximately $2.3 million on capital expenditures

(including maintenance and projects).

-

20

40

60

80

100

Mill

ions

$

Sales by Quarter

Sales

-

10

20

30

40

50

60

70

80

Q3-14 Q4-14 Q1-15 Q2-15 Q3-15

Mill

ions

$

Quarterly Cash Balance

Cash and cash equivalents Restricted cash

10

• SG&A expenses were $14.3 million for the third quarter of 2015 compared to $10.7 million for the second quarter of 2015.

• The Q3 increase of $3.5M includes a one time

$2.0 million expense relating to the transition of the Company’s former CEO and other one time costs.

- 2 4 6 8

10 12 14 16

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Mill

ions

$

Consolidated SG&A by Segment

Security Pulp Corporate

- 2 4 6 8

10 12 14 16

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Mill

ions

$

Consolidated SG&A by Nature

General and administrative Commission, sales & marketing

$ (Millions) Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Cash 51.4 44.9 32.8 30.9 49.3

Restricted Cash 20.3 14.0 22.0 25.3 20.2

Working Capital* 88.0 86.6 80.1 79.6 81.8

Convertible Debentures 119.8 120.6 113.7 122.3 123.2

Debt 114.5 111.8 121.5 115.1 116.4

Total Debt** 234.3 232.3 235.2 237.4 239.5

• The company has performance bonds in the amount of €18.2 million secured by cash. • The Company ensures it remains in compliance with all of its existing debt covenants in

order to facilitate future access to capital.

• Business maintenance capital expenditures are expected to be $5.0 million at Fortress Specialty Cellulose Mill and $3.0 million at Landqart Mill annually.

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*Total current assets less total current liabilities **Total debt is net of unamortized borrowing costs (Q3 2015: $7.1 million)

Q3 2015 $ millions

Year Convertible Debt

Other Debt

2015 - 414

2016 40,250 2,548

2017 25,000 11,399

2018 - 12,112

2019 69,000 10,980

2020 - 11,027

Thereafter - 63,881

Total 134,250 112,361

On December 3, 2014, the Fortress Specialty Cellulose Mill entered into an amendment agreement with Investissement Quebec in respect of its $102.4 million project financing loan. Under the new agreement:

• No principal repayments will be made or interest accrued or paid on the balance of the loan until December 31, 2016.

• Maturity date of the loan was extended from April 30, 2020 to December 31, 2026 with equal quarterly payments beginning in 2017.

• The Company cancelled 715,000 outstanding warrants and issued 1,000,000 replacement warrants to the lender.

• The Company recorded a debt extinguishment gain of $2.6 million at December 31, 2014.

12

Repayments of principal for debt outstanding as at September 30, 2015 are required as follows: