Resolute Completes Sale of Catawba, SC, Paper and Pulp Mill

US $

MONTREAL, Jan. 1, 2019 /PRNewswire/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today announced that, on December 31, 2018, it completed the previously disclosed sale of the Catawba, South Carolina, paper and pulp mill to New-Indy Containerboard, LLC ("New-Indy"), pursuant  to the terms of the asset purchase agreement dated October 2, 2018. The total purchase price of about $300 million consists of $260 million in cash, before customary closing adjustments, and the assumption of approximately $40 million of balance sheet liabilities, largely net pension benefit obligations.

"We are pleased to have completed the sale of the Catawba mill to New-Indy and wish the new team every success with its investment in the diversification of the mill's operations," stated Yves Laflamme, president and chief executive officer of Resolute. "We want to thank our employees for their hard work and dedication toward this successful outcome, and are pleased that the community will continue to benefit from the mill's economic and social impact."

As previously disclosed, Resolute has agreed to use the majority of the proceeds from the asset sale to repurchase $225 million of its 5.875% Senior Notes due in 2023, thereby improving financial flexibility.

TM Capital Corp. acted as Resolute's financial advisor on the transaction, while Akerman LLP and Troutman Sanders LLP acted as Resolute's legal counsels.

Cautionary Statements Regarding Forward-Looking Information

Statements in this press release that are not reported financial results or other historical information of Resolute Forest Products Inc., its subsidiaries and affiliates are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements regarding the use of the sale proceeds of the Catawba, South Carolina paper and pulp mill and the impact on Resolute's financial flexibility. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "believes," "estimates," "projects," "anticipates," "forecast," "intend," "project," "potential," "target," "should," "would," "could," "will," "may," "expect" and other terms with similar meaning indicating possible future events or potential impact on our business or our shareholders.

The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on Resolute's management's current assumptions, beliefs, and expectations, all of which involve a number of business risks and uncertainties that could cause actual performance or outcomes to differ materially from those expressed or implied in this press release. The potential risks and uncertainties that could cause Resolute's actual future financial condition, results of operations and performance to differ materially from those expressed or implied in this press release include, but are not limited to, the risk that disruption resulting from the sale of the Business may adversely affect Resolute's businesses and business relationships, including with employees, suppliers or customers; and the potential risks and uncertainties described under the heading "Risk Factors" in Part I, Item 1A of Resolute's annual report on Form 10-K for the year ended December 31, 2017.

All forward-looking statements in this press release are expressly qualified by the cautionary statements set out or referred to above and in Resolute's filings with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. Resolute disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

About Resolute Forest Products

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. The company owns or operates some 40 manufacturing facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.

Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.

SOURCE Resolute Forest Products Inc.

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