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Press release from Marketwire

Conifex Announces Senior Secured Financing

Friday, September 06, 2013

Conifex Announces Senior Secured Financing

09:00 EDT Friday, September 06, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 6, 2013) - Conifex Timber Inc. ("Conifex" or the "Company") (TSX VENTURE:CFF) announced today that it has entered into a note purchase agreement (the "Financing") with Vertex One Asset Management Inc. ("Vertex") under the terms of which, subject to certain conditions and regulatory approvals, the Company will issue to Vertex senior secured notes (the "Notes") in the aggregate principal amount of $30 million. The Notes have a term of four years and bear interest at a rate of 8% per annum. The Company may redeem the Notes, in whole or in part, at any time on or after four months from the issue date of the Notes upon 15 days' notice and payment of interest accrued on the amount redeemed to the date of redemption, but otherwise at par.

As additional consideration for the Financing, the Company will issue to Vertex at the time of funding common share purchase warrants (the "Warrants") to purchase up to an aggregate of 1,060,000 common shares of the unissued capital stock of the Company at a price of $8.25 per share for a period of four years following issuance. Any common shares issuable upon exercise of the Warrants will be subject to a hold period expiring four months and one day following the closing.

The Company intends to use the net proceeds from the Notes for general corporate purposes, including primarily for strategic capital projects to enhance and improve the efficiencies and production of the Company's two sawmills.

Ken Shields, Chief Executive Officer of Conifex, commented: "This financing, combined with the ABL financing secured earlier this year, provides our lumber segment with appropriate credit facilities. We now have the balance sheet and liquidity to pursue the modernization and upgrading of our mills at Fort St. James and Mackenzie."

About Conifex Timber Inc.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Upon completion of its bioenergy facility at Mackenzie, British Columbia, Conifex's business sectors will be expanded to include bioenergy.

Forward-Looking Statements

Certain statements in this news release may constitute "forward-looking statements", including statements with respect to the Financing described herein and project financing for the bioenergy facility. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the current expectations and beliefs of the Company's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of the Company or industry may be materially different from those implied by such forward-looking statements. Forward-looking statements involve significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including the ability to obtain all necessary regulatory approvals, the ability to negotiate definitive documentation with respect to the Financing and the timing of, sufficiency of, financing for and realization of enhanced efficiency and production, if any, from projects to upgrade the Company's sawmills, as well as those matters described in the Company's 2012 annual information form for the fiscal year ended December 31, 2012, available on SEDAR at www.sedar.com. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

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 release.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Conifex Timber Inc.
Yuri Lewis
Chief Financial Officer
(778) 331-8687
www.conifex.com

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