Catalyst Paper Corporation (TSX:CYT) have just announced that it has been informed that three of its major shareholders, Mudrick Capital Management, L.P., Cyrus Capital Partners, L.P. and OCM Luxembourg VOF Sarl, a fund indirectly managed by Oaktree Capital (the "Reporting Persons"), have on an individual basis completed Schedule 13D filings with the United States Securities and Exchange Commission disclosing that they are currently engaged in discussions with a third party concerning a potential material strategic transaction involving Catalyst Paper. The Reporting Persons have also reported that there can be no assurance that such discussions will result in the consummation of any such transaction.

Neither the Board of Directors nor management have been contacted by or received a proposal from such third party regarding a potential transaction. Catalyst will only further comment if and when required by applicable securities laws.

About Catalyst Paper

Catalyst Paper manufactures diverse printing papers such as coated freesheet, C1S, coated and uncoated groundwood, newsprint, directory, as well as market pulp. Customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With five mills across North America, Catalyst has annual production capacity of 2.3 million tonnes. Catalyst is headquartered in Richmond, British Columbia, Canada, and is ranked by Corporate Knights magazine as one of the 50 Best Corporate Citizens in Canada.