Catalyst Paper has announced that it is seeking approval of a further amended Plan of Arrangement (the Amended Plan) under the Companies’ Creditors Arrangement Act and will file tomorrow for approval from the Court to set meetings of its secured and unsecured creditors to consider the Amended Plan (the Meetings). Subject to Court approval, the Meetings are tentatively scheduled for June 25, 2012.

“We have received consent from a requisite number of our secured noteholders to move forward to a vote on the Amended Plan,” said Kevin J. Clarke, President and Chief Executive Officer. “This reflects the dedication of all parties to work toward a consensual deal that incorporates the many interests involved and that puts our company on better financial footing for the future.”

Catalyst Paper’s Board of Directors is unanimously recommending that all holders of First Lien Notes, Unsecured Notes and General Unsecured Claims vote in favour of the Amended Plan at the Meetings.

For more information please refer to Catalyst Paper’s management proxy circular dated March 23, 2012 (the Circular) available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and Catalyst Paper’s web page (www.catalystpaper.com). Terms used in this news release that are defined in the Circular have corresponding meanings.

The Amendments to the Plan of Arrangement

As described in Catalyst’s press release dated June 11, 2012, the principal change to the plan of arrangement is the compromise of certain extended health benefits plans for former salaried employees of Catalyst that were not to be compromised under the prior plan of arrangement. Other changes to the plan of arrangement are changes necessary to reflect the new timing for creditor approval of the Amended Plan.

Pursuant to the Amended Plan, all claims in connection with the elimination of the extended health benefits will be General Unsecured Claims and will receive the same treatment (other than that they will not be considered Convenience Creditors and are not entitled to file a Cash Election) as and will be entitled to vote with all other General Unsecured Claims under the Amended Plan. Catalyst has been advised that there is substantial support for the Amended Plan by the holders of the extended health benefits claims that will be compromised under the Amended Plan. In addition, certain holders of Unsecured Notes who previously voted against the plan of arrangement or did not vote on the plan of arrangement have indicated that they will support the Amended Plan.

Also as described in Catalyst’s June 11, 2012 press release, Catalyst has proposed modifications to its salaried pension plan to provide for a special portability election option and solvency funding relief which require provincial government approval. The Minister of Finance has confirmed that he is prepared to submit the proposal to Cabinet for its consideration with a recommendation in favour. The implementation of the Amended Plan is conditional on obtaining regulatory approval to the above modification. The company estimates that it would save approximately $7 million annually if these modifications were implemented following a successful plan of arrangement.

A copy of the Amended Plan is available on the Monitor’s website at http://www.pwc.com/ca/en/car/catalyst-paper-corporation/index.jhtml.