Domtar Corp. reported from Montreal in November that it was informed that the Government of the Province of Saskatchewan was not prepared to participate in the financing of the redevelopment of the Prince Albert pulp mill as set forth in a Memorandum of Understanding signed in September 2007.

Domtar said that although it recognized that the Saskatchewan Government remains committed to ensuring the future of northern Saskatchewan's forest resource, the decision to withdraw its support narrowed down Domtar's options regarding the mill.

Domtar terminated all work being done on the project. www.domtar.com. PI

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