Canfor Corporation Closes Mackenzie Sawmill

Vancouver, British Columbia, Canada, 10 June 2008 –- Canfor Corporation (TSX:CFP) announced today the indefinite closure of its Mackenzie sawmill in an effort to minimize operating losses during this period of prolonged poor lumber markets and ongoing production curtailments. Canfor will adjust production schedules at its other operations in British Columbia and Alberta to recover the lost SPF lumber production.

The sawmill operations will cease on 12 June. The planer will operate for an additional two weeks to process existing rough inventory.

Approximately 200 employees will be affected by the decision; most will be indefinitely laid off. The mill produces 176 million board feet of lumber on an annualized basis at current operating rates.

Canfor is a leading integrated forest products company based in Vancouver, British Columbia, with interests in manufacturing facilities in British Columbia, Alberta, and Quebec in Canada, and Washington,North Carolina, and South Carolinain the United States. The company is the largest producer of softwood lumber in Canada. It also produces oriented strand board (OSB), plywood, remanufactured lumber products, and specialized wood products. Canfor also owns a 50.2% interest in Canfor Pulp Limited Partnership, which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange (TSX: CFP).