Jemi Fibre Corp. Reports Results for the Third Quarter Ended January 31, 2016

Vancouver, British Columbia--(Newsfile Corp. - March 30, 2016) - Jemi Fibre Corp. (TSXV: JFI) ("Jemi Fibre" or the "Company") is pleased to announce its third quarter results for the three and nine month period ended January 31, 2016.

Adjusted EBITDA for the three month period ended January 31, 2016 was $4.6 million on revenue of $25.4 million, compared to $4.5 million of adjusted EBITDA on revenue of $18.5 million for the second quarter of FY2016 and $5.1 million of adjusted EBITDA on revenue of $19.2 million for the three month period ended January 31, 2015. Adjusted EBITDA for the nine month period ended January 31, 2016 was $13.2 million on revenue of $64.4 million, compared to $7.8 million adjusted EBITDA on revenue of $40.4 million for the nine month period ended January 31, 2015.

"With year-to-date adjusted EBITDA up 63% over the prior year, we continue to be pleased with Jemi Fibre's progress of integrating the assets it has compiled over the past two years," stated Chairman and CEO Mike Jenks. "With the recent announcement of the Company's acquisition by CanWel Building Materials Group Ltd., we are looking forward to the next exciting phase for the Company and contributing to CanWel's future growth, utilizing Jemi Fibre's solid asset base and stronger cash flows from a restructured balance sheet."

Third Quarter Highlights

• Entered into a definitive agreement with CanWel Building Materials Group Ltd. (“CanWel”) (TSX:CWX) whereby CanWel will acquire all of the issued and outstanding common shares of Jemi Fibre (the "Transaction") and will refinance approximately $50 million of Jemi Fibre’s high yield, senior loans.
• Secured a non-renewable, forestry license from the Government of Saskatchewan located in the vicinity of Beauval and the Northern Communities, Saskatchewan. The license has an annual allowable cut of 100,000 cubic metres of saw logs and post wood and will be utilized by the Company to increase production of its logging operations in Saskatchewan and to further supply its Aallcann wood treatment operations.
• Completed the purchase of 50% of Fernie Wilderness Adventures Inc., a full service outdoor adventure resort specializing in backcountry snow cat skiing, guided fishing and wildlife tours which operates on Jemi Fibre’s private timberlands near Fernie, B.C. The acquisition is part of the Company’s ongoing commitment to extract value, through forestry and other uses, from its timberlands.

Financial Summary

Total assets increased from FY2015 (April 30, 2015) to January 31, 2016 by $10.2 million. Approximately $4.0 million of this increase is attributable to capital expenditures, including equipment and rolling stock related to the acquisitions of Bond Ventures Ltd. ("Bond"), Aallcann Wood Suppliers Inc. ("Aallcann") and the Company's expansion of its logging and trucking operations into Saskatchewan. In addition, $3.1 million of this increase is attributable to purchases in connection with sustaining expenditures of which $2.8 million is rolling stock. The balance is attributable to accounts receivable and inventory in connection with an increase in working capital.

During this same period, total liabilities increased by $10.8 million. Approximately $3.0 million of this increase is attributable to capital expenditures, including equipment and rolling stock related to the acquisitions of Bond, Aallcann and the Company's expansion of its logging and trucking operations into Saskatchewan. In addition, $2.1 million of this increase is related to the financing of rolling stock purchases in connection with sustaining expenditures. The balance is attributable to liabilities in connection with an increase in working capital.

Summary by Division

Timber

In the second quarter of FY2016, the Company generated $5.8 million of adjusted EBITDA on revenue of $15.95 million, compared to $4.24 million of adjusted EBITDA on revenue of $11.35 million for the three months ended October 31, 2015. Harvest volumes in the third quarter were approximately 215,511 m³ from the Company's private timberlands and 3,775 m³ from its Crown licenses, which, compared to the second quarter, increased 74%% on the private timberlands and decreased 87% on the Crown licenses. Volumes and adjusted EBITDA margins (37%) for the third quarter were in line with the Company's expectations for this period.

Wood Treatment

Adjusted EBITDA from the Company's wood treatment division was $0.68 million for the three months ended January 31, 2016 on revenue of $5.19 million which compares to adjusted EBITDA of $1.06 million on revenue of $6.48 million for the previous quarter. The drop revenue and adjusted EBITDA margin in the most recent quarter is mostly due to seasonal demand. For the nine month period ended January 31, 2016, this division has produced adjusted EBITDA of $4.4 million with an adjusted EBITDA margin of 26%. The year-to-date adjusted EBITDA margins are consistent with the Company's expectations and the year-to-date revenue and adjusted EBITDA are ahead of the Company's plans which is due to (i) continued strong demand in the agricultural treated post market, including a strong order profile through the balance of FY2016; (ii) the Company's successful operation of its Aallcann wood treatment facility in Prince Albert; and (iii) the continued strength of the U.S. dollar from which a majority of Jemi Fibre's treated wood product revenue is derived.

Logging and Trucking

For the three months ended January 31, 2016, the Company generated $0.23 million of adjusted EBITDA from its logging and trucking division on revenue of $8.71 million, compared to $0.32 million of adjusted EBITDA on revenue of $8.55 million for the second quarter of FY2016, down 30% and up 2% respectively. Adjusted EBITDA margins in the third quarter were 2.6% compared to 3.8% for the second quarter, a decrease largely attributable to higher costs related to repairs and maintenance and fuel. The Company continues to target over 12% adjusted EBITDA margins for this division on an annual basis and continues to implement operational initiatives to improve efficiencies. .

Specialty Lumber Manufacturing

Effective December 14, 2015, the Company commenced a temporary shut-down of its specialty lumber mill in Edgewater, B.C. due to weakness in lumber prices generally, and slow market demand for the Japanese export product sold from this division. For the three months ended January 31, 2016, this lost $(1.45) million of adjusted EBITDA on revenue of $0.23 million, compared to a loss of $(0.68) million of adjusted EBITDA revenue of $2.69 million in the second quarter of FY2016. The Company anticipates assessing its plans for this mill at the start of FY2017.

Outlook

Through 2015, U.S. housing starts maintained an upward trend and are anticipated to reach over 1.3 million units in 2016. However, continued weak demand in China and oversupply in North America caused key benchmark lumber prices to fall in 2015 and are not expected to recover until the second half of 2016. During the second half of 2016, the Company also anticipates improving demand for its specialty wood products sold to the Japanese market. Steady economic growth in both Canada and the U.S., even if not at high levels, is contributing to continued demand for the agricultural products produced by the Company's wood treatment division. The demand for the Company's products is also assisted by restricted supply due to limited manufacturing capacity, particularly in Western Canada.

The Company anticipates a continued upward trend in sawlog prices from its operating areas which for the Company's next fiscal year is attributable largely to ongoing log supply constraints, particularly in British Columbia.

The Company continues to benefit from U.S. dollar foreign exchange gains in its wood treatment division and its timber division, and anticipates maintaining this U.S. dollar sales exposure.

The CanWel transaction is expected to close in May 2016.

Jemi Fibre is also continuing its efforts to complete the previously announced L&M acquisition.

Financial Information

For complete details of financial results, please refer to the unaudited condensed consolidated interim financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the nine months ended January 31, 2016. These financial statements and MD&A, and the comparative financial statements for the nine months ended January 31, 2016 are all available on SEDAR at www.sedar.com and on the Company's website at www.jemifibre.com.

For further information, please contact:

Brent Lokash, President
Tel: 1-604-428-1075 ext: 200
Email: brent.lokash@jemifibre.com

About Jemi Fibre

Jemi Fibre is a Western Canadian based forest products company which trades on the TSX Venture Exchange under the symbol JFI. Jemi Fibre's operations consist of timber ownership and management of private timberlands and Crown forest licenses, full service logging and trucking operations, post-peeling and wood treatment operations for the agricultural market and specialty lumber manufacturing. The Company's head office and principal place of business is located at 1110-1111 West Georgia Street, Vancouver, British Columbia, Canada.

Forward Looking Statements

Certain statements included herein constitute forward-looking statements. The words "expect", "intend", "anticipate", "propose" and "may" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, such risks, uncertainties and other factors set forth under "Risk Factors" in the Company's current MD&A filed with the British Columbia Securities Commission. Forward-looking statements are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management teams of Jemi Fibre, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks and accordingly may not occur as described herein or at all. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.

The financial information included in this release also contains certain data that are not measures of performance under IFRS. For example, "EBITDA" and "adjusted EBITDA" are measures used by management to assess the operating and financial performance of the Company. The Company defines EBITDA as earnings before income, interest, taxes and depreciation. Adjusted EBITDA excludes non-cash items such as restructuring income or expenses, impairment adjustments and changes in fair value of biological assets. The Company believes that EBITDA and adjusted EBITDA are measures often used by investors to assess a company's operating performance and is meaningful for the Company to measure the performance of its divisions on a cash basis. EBITDA and adjusted EBITDA have limitations and should not be considered in isolation, or as a substitute for an analysis of the Company's results as reported under IFRS. Because of these limitations, EBITDA and adjusted EBITDA should not be used as a substitute for net loss or cash flows from operating activities as determined in accordance with IFRS, nor is it necessarily indicative of whether or not cash flow will be sufficient to fund our cash requirements. In addition, the Company's definitions of EBITDA and adjusted EBITDA may differ from those of other companies.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.