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NorSask Forest Products Inc.

In 1971 the New York firm of Parsons & Whittemore (also the owners of Prince Albert Pulp at the time) built the Meadow Lake Sawmill. In 1981 the Province of Saskatchewan acquired all of the wood product mill assets of Parsons & Whittemore. In 1984, the Prince Albert pulp mill was sold to Weyerhaeuser. Ownership of the Meadow Lake Sawmill was retained by the Province of Saskatchewan. In 1987, the employees of Meadow Lake Sawmill and the Meadow Lake Tribal Council formed a consortium and bought the sawmill. The consortium negotiated a Forest Management License Agreement (FMLA) with the province and commenced operation under the name NorSask Forest Products Inc. In early 1998, the Meadow Lake Tribal Council became sole owner of NorSask, becoming the largest First Nations owned forest products company in Canada. Currently, the mill has doubled its 1988 production with premium lumber shipped across North America. NorSask utilizes ~ 500,000 m³ of softwood timber to produce ~ 110,000,000 fbm of lumber annually. Today, the mill's production facilities are in excellent shape, plans are being made for secondary industries, cooperative management agreements with northern communities are ongoing and new business relationships are being developed with other wood processing facilities and lumber retailers.

Meadow Lake Mechanical Pulp Inc.

In 1988, when NorSask Forest Products Inc. negotiated the FMLA with the provincial government, a condition of the agreement was that a user be found for the deciduous component of the boreal mixedwood forest from which NorSask harvested the coniferous (spruce, pine) component. In 1989, Millar Western Pulp (Meadow Lake) Ltd., a company that makes pulp from aspen, agreed to build a pulp mill in the vicinity of Meadow Lake. The two-line, state-of-the-art BCTMP (bleached-chemi-thermal-mechanical pulp) mill began operating in 1992 as the world’s first successful zero-liquid effluent market pulp mill. The mill produces up to 380,000 ADMT (air-dry-metric-tonnes) of hardwood pulp annually, well above its initial design capacity of 240,000 ADMT, and uses ~ 950,000 m³ of aspen timber per year. In 2007, the mill was sold to the Sinarmas Group (an Indonesian-based conglomerate) and continues to manufacture high-quality BCTMP hardwood pulp under the name of Meadow Lake Mechanical Pulp Inc.

Mistik's Wood Procurement and Chain of Custody Policy

Mistik Management Ltd. is committed to ensuring the delivery of responsibly-managed wood to its two shareholders Meadow Lake Mechanical Pulp Inc. and NorSask Forest Products Inc. Through its purchase wood procurement processes, Mistik will avoid sourcing wood from the following categories:

• Illegally harvested wood
• Wood harvested in violation of traditional and civil rights
• Wood harvested in forests where high conservation values are threatened by management activities
• Wood harvested in forests being converted to plantations or non-forest use
• Wood from forests in which genetically modified trees are planted

All wood that is sourced from areas that do not meet all of the above conditions will be designated as uncontrolled wood. Mistik is committed to ensuring that chain of custody procedures are implemented to ensure that all uncontrolled wood is segregated and does not enter the certified or controlled wood supply chain.

Mistik will provide the tools and training to promote employee and contractor understanding and achievement of our wood procurement and chain of custody policy.

A copy of Mistik's chain of custody dispute resolution procedures can be found in a downloadable format below.