RESOLUTE FOREST PRODUCTS   ANNUAL REPORT

WHAT GETS MEASURED GETS DONE  ANNUAL REPORT

resolutefp.com page Table 0f Contents 2 Resolute at a Glance 4 Consolidated Earnings 8 Sustainability Highlights 10 Letter from the Chairman and the resident P and Chief Executive Officer 14 Our Vision and Values 15 What Defines Resolute 16 Our Operations

21 Business Segments 22 Newsprint 26 Specialty apers P 28 Market Pulp 31 Wood Products

32 Business and Sustainability Strategy

34 Sustainability Performance 36 About this Section 38 Sustainability Oversight and Commitments 42 Fiber and Forestry 48 Energy and Climate Change 53 Mill Environmental Performance 56 Product Stewardship 58 Human Resources 60 Health and Safety 61 Community Involvement

66 Board of Directors 66 Corporate Officers 67 Shareholder Information

The inside pages of this report are printed on ResoluteMax 84 Gloss Resolute completed a life cycle assessment (LCA) of the Align paper 60 lb (89 g/m2) paper, part of Resolute’s Align™ portfolio of grades comparing Align with competitive papers across four categories environmentally-conscious papers. This paper was manufactured at our of environmental impact: climate change, human health, energy and Catawba (South Carolina) mill. With its smaller environmental footprint, ecosystem quality. The results of the LCA indicated that our Align grades had ResoluteMax 84 Gloss is the perfect alternative to more costly coated significantly less environmental impact than competitive freesheet papers. freesheet paper. Visit alignpaper.com for more information.

Among its environmental benefits,ResoluteMax 84 Gloss: • uses 12% less wood fiber than the average coated freesheet in North America; • uses 25% less energy to produce than the average coated freesheet in North America; • has a carbon footprint that is 35% smaller over its life cycle than the average coated freesheet in North America; and • is available with SFI® and/or PEFC chain of custody certifications. WHAT GETS MEASURED GETS DONE

When we’re focused on progress and finding solutions, it’s essential to have a clear vision and well-defined goals. Achieving major objectives requires establishing numerous milestones and tracking performance along the way.

At Resolute, we’re taking measure of every mile we have traveled.

Every milestone we pass tells us where we have been and where we are going.

We use each measure we take to map our progress and adjust our course.

It’s an approach that creates shared value for investors, employees and communities alike. And it’s a course that ensures a sustainable future for the environment and our customers, as well as other stakeholders and business partners. As a leading and diversified producer of pulp, paper and wood products, Resolute’s commitment to sustainability and profitability is further reflected in our discipline to measure our progress in a constantly evolving market. Our focus on measuring what we do has transformed our words into action. Resolute Forest Products — 2013 annual report 2

Resolute at a Glance

Adjusted EBITDA1 of $377 million

Net pension and OPEB liability decreased by $672 million2 45% of adjusted EBITDA from market pulp and wood products businesses

100% of the forests we manage are certified

71% of energy is sourced from renewable sources

1. Adjusted EBITDA, a non-GAAP financial measure, is defined and reconciled below. For more information on the calculation and the reasons we include this measure, see note 9 on page 4. 2. OPEB means “other postretirement benefits.” For more information on pension and OPEB liabilities, see note 14, “Pension and Other Postretirement Benefit Plans” in our annual report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the “SEC”) and the Canadian securities regulatory authorities. Resolute Forest Products — 2013 annual report 3

Distribution of 2013 Sales by % of Revenue Newsprint Specialty Papers3 Market Pulp Wood Products

33% 31% 23% 13%

Total sales $4,461 M

Distribution of 2013 Sales by Region Newsprint Specialty Papers Market Pulp Wood Products

United States 46% 88% 61% 55% Latin America 24% 4% 6%

Asia 15% 2% 8%

Canada 9% 5% 9% 45%

Europe 5% 14%

Other Countries 1% 1% 2%

2014 Total Capacity4 Newsprint Specialty Papers Market Pulp Wood Products 2.9 million 2.0 million 1.7 million 2.7 billion metric tons metric tons metric tons board feet5

3. As of the fourth quarter of 2013, the results from our coated papers operations have been integrated with the specialty papers segment. This better reflects management’s internal analysis, given the increasingly high degree of substitution with supercalender grades, and the diminishing percentage coated papers represents in our product portfolio. 4. Represents capacity for pulp and paper manufacturing facilities and sawmills we owned or operated as of December 31, 2013 (excluding facilities and paper machines that had been permanently closed as of December 31, 2013). For more information, please see Part 1, Item 1, “Business” in the company’s Annual Report on Form 10-K. 5. Our current supply of fiber, particularly in light of Quebec’s new forest tenure system, limits our operating capacity to about 2 billion board feet per year. In 2013, we shipped 1.5 billion board feet of wood products. Resolute Forest Products — 2013 annual report 4 Consolidated Earnings Selected Annual Financial Information

Years Ended December 31, 6 6 (in millions, except per share amounts, adjusted EBITDA margin and ROE) 2013 2012 2011

Sales7 $ 4,461 $ 4,503 $ 4,756 Operating income (loss) per segment Newsprint 40 97 89 Specialty papers 35 85 122 Market pulp7 42 (43) 91 Wood products 41 26 (25) Corporate / other (160) (193) (70) Total (2) (28) 207 Net (loss) income7 (639)8 1 47 Net (loss) income per common share Basic $ (6.75) $ 0.01 $ 0.48 Diluted (6.75) 0.01 0.48 Cash and cash equivalents $ 322 $ 263 $ 369 Total assets 5,385 6,333 6,304 Adjusted EBITDA9 $ 377 $ 393 $ 490 Adjusted EBITDA margin9 8.5% 8.7% 10.3% ROE, adjusted for special items10 2.8% 2.6% 4.8%

6. In 2013, we changed our accounting policy for repair and maintenance costs associated with planned major maintenance activities. Previously, all repair and maintenance costs, including those associated with planned major maintenance, were expensed as incurred. We elected to change our accounting policy for planned major maintenance costs to the deferral method, whereby the costs of each planned major maintenance activity are amortized on a straight-line basis over the estimated period until the next planned major maintenance activity. All other routine repair and maintenance costs continue to be expensed as incurred. We believe that the deferral method is preferable as the economic benefit associated with planned major maintenance activities is more appropriately recognized over the period of future benefit, which is not limited to the period the expense is incurred. In addition, the deferral method enhances the comparability of our financial results with our peer companies. In accordance with the guidance in FASB ASC 250, “Accounting Changes and Error Corrections,” we have applied the change in accounting policy retroactively by adjusting our comparative consolidated financial statements for the effect of this change. 7. We have included Fibrek Inc.’s results of operations in our consolidated financial statements, in the market pulp segment, as of May 2, 2012, the date we acquired a controlling interest. Fibrek’s sales, operating income and net income in our results for 2013 were $456 million, $40 million and $40 million, respectively. Its sales, operating loss and net loss in our 2012 results were $268 million, $9 million and $9 million, respectively. 8. Includes a $604 million non-recurring, non-cash income tax charge, taken largely in the third quarter, to reduce the value of deferred income tax assets on our balance sheet. For more information, see our annual report on Form 10-K. 9. Earnings before interest expense, income taxes and depreciation, or “EBITDA,” adjusted EBITDA and adjusted EBITDA margin are not financial measures recognized under generally accepted accounting principles, or “GAAP.” EBITDA is calculated as net income (loss) including noncontrolling interests from the consolidated statements of operations, adjusted for interest expense, income taxes and depreciation and amortization. Adjusted EBITDA means EBITDA, excluding special items such as foreign exchange translation gains and losses, severance costs, closure costs, impairment and other related charges, inventory write-downs related to closures, start-up costs of idled mills, gains and losses on dispositions of assets, net loss on extinguishment of debt, transaction costs and other charges or credits that are excluded from our segments’ performance from GAAP operating income (loss). Adjusted EBITDA margin is adjusted EBITDA expressed as a percentage of sales. We believe that using measures such as EBITDA, adjusted EBITDA and adjusted EBITDA margin are useful because they are consistent with the indicators management uses internally to measure the company’s performance and they allow the reader to more easily compare our ongoing operations and financial performance from period to period. 10. Return on equity, or “ROE,” is a non-GAAP financial measure, calculated by dividing net income (loss), excluding the special items identified on pages 6 and 7, by adjusted shareholders’ equity. ROE is a measure of profitability that shows how much profit the company generated as a percentage of shareholder money invested. Resolute Forest Products — 2013 annual report 5

Years Ended December 31, (in millions) 2013 2012 2011

Net (loss) income including noncontrolling interests $ (639) $ (33) $ 45 Interest expense 51 66 95 Income tax provision (benefit) 524 (39) 19 Depreciation and amortization 243 233 220 EBITDA $ 179 $ 227 $ 379 Foreign exchange translation loss (gain) 24 (17) 21 Severance costs — 5 12 Closure costs, impairment and other related charges 89 185 46 Inventory write-downs related to closures 11 12 3 Start-up costs of idled mills 32 13 — Net gain on disposition of assets (2) (35) (3) Net loss on extinguishment of debt 59 — — Transaction costs 6 8 5 Other (income) expense, net (21) (5) 27 Adjusted EBITDA $ 377 $ 393 $ 490 Resolute Forest Products — 2013 annual report 6

Consolidated Earnings (cont’d)

December 31, 2013 Net (loss) Shareholder’s (in millions, except ROE) income equity ROE (%)

GAAP as reported $ (639) $ 2,827 (22.6)% Adjustments for special items: Foreign exchange translation loss 26 26 Severance costs — — Closure costs, impairment and other related charges 59 59 Inventory write-downs related to closures 7 7 Start-up costs of idled mills 23 23 Net gain on disposition of assets (2) (2) Net loss on extinguishment of debt 38 38 Transaction costs 5 5 Other income, net (14) (14) U.S. deferred income tax asset valuation allowance 604 604 Cumulative past-year adjustments for special items — 210 GAAP as adjusted for special items $ 107 $ 3,783 2.8 % Resolute Forest Products — 2013 annual report 7

December 31, 2012 Shareholder’s (in millions, except ROE) Net income equity ROE (%)

GAAP as reported $ 1 $ 3,102 —% Adjustments for special items: Foreign exchange translation gain $ (23) $ (23) Severance costs 4 4 Closure costs, impairment and other related charges 116 116 Inventory write-downs related to closures 7 7 Start-up costs of idled mills 10 10 Net gain on disposition of assets (22) (22) Transaction costs 8 8 Other income, net (2) (2) Reorganization-related and other tax adjustments (13) (13) Cumulative past-year adjustments for special items — 125 GAAP as adjusted for special items $ 86 $ 3,312 2.6%

December 31, 2011 Shareholder’s (in millions, except ROE) Net income equity ROE (%)

GAAP as reported $ 47 $ 3,423 1.4% Adjustments for special items: Foreign exchange translation loss $ 23 $ 23 Severance costs 8 8 Closure costs, impairment and other related charges 32 32 Inventory write-downs related to closures 2 2 Net gain on disposition of assets (2) (2) Transaction costs 4 4 Other xpense,e net 20 20 Reorganization-related and other tax adjustments 38 38 GAAP as adjusted for special items $ 172 $ 3,548 4.8% Resolute Forest Products — 2013 annual report 8 Sustainability Highlights

Environmental Highlights11 201312 201213 2011

Class 1 environmental incidents14 3 2 3 Fuel energy used, TJ 101,118 15 81,376 94,665 Electricity used: Total purchased, GWh 12,032 11,613 12,636 Net purchased16, GWh 11,231 11,451 12,628 Self-generated or owned, GWh 2,667 2,152 2,394 Renewable energy, % of total energy (including purchased electricity) 71 68 70 17 18 Greenhouse gas (GHG) emissions , thousands of mt CO2e (scope 1 and 2) 4,200 4,036 4,645 Water used19, thousands of m3 387, 394 354,233 385,162

Biochemical oxygen demand (BOD5), thousands of mt 7,132 6,698 7,87 1 Total suspended solids (TSS), thousands of mt 9,457 8,646 11,967 Fiber loss, thousands of mt 295,202 256,700 267, 383 Sustainable forest management certification20, % 100 100 100 Mills with chain of custody certification21, % 100 100 100

Social Highlights 2013 2012 2011

Employees22 8,400 8,800 10,400 Occupational Safety and Health Administration (OSHA) incidents, rate per 100 employees 1.02 1.13 1.43 Severity rate, % 25.9 34.01 36.5 Lost time incident cases 24 38 55 Recordable injuries23 90 107 145 Employee turnover, % 11.7 12.5 9.94 Employee wages and benefits, $ millions 734 775 901 Donations, $ millions 0.9 1.2 0.5

Economic Highlights 2013 2012 2011

Actual external sales of electricity produced from cogeneration facilities, GWh/year 801 152 8 Sales of AlignTM papers, % of total specialty paper sales 4 5 4 Resolute Forest Products — 2013 annual report 9

11. Environmental data is for pulp and paper mills only, except for environmental incidents, which also include sawmills. 12. The information is preliminary and subject to change; values will be confirmed with our comprehensive sustainability report later this year. 13. With the exception of environmental incidents, data does not include performance in respect of the former Fibrek mills, which we acquired part way through the year. 14. Class 1 incidents include events that present a risk of significant adverse environmental impact, contamination, liability and/or damage to the company’s reputation, such as regulatory charges, fines and the initiation of legal action against the company. 15. The increase in fuel energy consumption between 2012 and 2013 is mostly attributable to the addition of the former Fibrek mills acquired in 2012, the restart of operations at our Dolbeau (Quebec) mill in October 2012 and that of our Gatineau (Quebec) mill in May 2013, and the launch of our Thunder Bay (Ontario) cogeneration facility in March 2013. 16. Represents purchased electricity minus actual external sales of electricity produced from cogeneration facilities. 17. GHG emission figures have been adjusted to include landfill and process emissions. 18. Scope 1 GHG emissions are greenhouse gas emissions that come from sources owned or controlled by the company, such as the combustion of fuel at mills to generate heat to dry paper or generate electricity. Scope 2 GHG emissions are greenhouse gas emissions that are the result of company activities occurring at sources owned or controlled by third parties, associated with the production of purchased electricity or steam. Scope 2 emissions physically occur at the facility where electricity or steam is generated. 19. Resolute returns more than 95% of the water it withdraws. The balance remains within products or evaporates during the manufacturing process. 20. All of the forests we manage are certified to at least one of three internationally recognized sustainable forest management (SFM) certification standards: Forest Stewardship Council® (FSC®), Sustainable Forestry Initiative® (SFI®) or Canadian Standards Association (CSA). 21. Resolute instituted fiber-tracking systems at all of our facilities, and all tracking systems are third-party certified according to one or more of three internationally recognized chain of custody (CoC) standards: FSC®, SFI® or Programme for the Endorsement of Forest Certification (PEFC). 22. Excludes unconsolidated entities in which we have noncontrolling interests. 23. Recordable injuries do not include minor, first-aid level incidents. Resolute Forest Products — 2013 annual report 10 Letter from the Chairman and the President and Chief Executive Officer

Bradley P. Martin Richard Garneau Chairman President and Chief Executive Officer

Throughout 2013, we continued to strengthen Resolute, solidifying our financial position, improving the efficiency of our operations and reinforcing our commitment 2013 to safety and sustainability. We set goals, measured results and delivered. Resolute Forest Products — 2013 annual report 11

Despite competitive and challenging market Taking advantage of favorable interest rates During the year, Resolute completed the conditions, the company generated adjusted last year, we refinanced, on a very timely ramp-up of four power generation assets, EBITDA of $377 million in 2013, down only basis, all of our outstanding secured debt including the $65 million cogeneration slightly from $393 million in 2012. Excluding with $600 million of unsecured notes, facility in Thunder Bay. This strategic special items of $746 million24, our net at 5.875% interest, reducing our annual investment will reduce operating costs, as income increased by 24%, compared to interest costs by $16 million, adding five well as optimize our woodlands, sawmill and 2012, to $107 million for the year. more years to maturity and improving our pulp and paper operations by fully utilizing financial flexibility. site-generated and forest-based biomass to produce green electricity. External Stronger sales of power produced by the four power Competitive, generation assets reduced our costs Financial overall by about $45 million in 2013. Position Synergistic and Diversified Given evolving market trends in the forest During 2013, we further improved our products sector, we made the necessary balance sheet. The rising interest rate Operations decisions to produce only what we can sell to environment, strong asset returns, our 2013 our customers and to optimize our operating funding, favorable currency fluctuations, In addition to disciplined capital platform. Since 2012, we adjusted our and amendments to other post-employment management, we continued to work newsprint capacity by idling two machines benefit (OPEB) plans all contributed to diligently throughout 2013 to maximize and restarting the Gatineau (Quebec) mill, a $672 million reduction in net pension the profitability and competitiveness for a net annual reduction of approximately and OPEB liabilities compared to 2012. of our operations by investing in our 285,000 metric tons. In specialty papers, The company also reached an agreement- most competitive mills, diversifying we idled three machines and restarted the in-principle with pension regulators and our product offering, and idling or Dolbeau (Quebec) mill, for a net annual other parties in Quebec and Ontario. We will restructuring higher-cost facilities. reduction of about 220,000 metric tons. replace the corrective measures mechanism under our funding relief regulations with Resolute made key investments at pulp We restructured manning at two more sites more stable, predictable and balanced and paper operations in Augusta (Georgia), in 2013 without reducing operating capacity. pension funding requirements for our Baie-Comeau and Saint-Félicien (Quebec), This effort alone represents an annual Canadian plans, which represented about Coosa Pines (Alabama) and Grenada savings of about $17 million. Together, our 75% of our unfunded pension obligations (Mississippi). In addition, three investment asset optimization and mill restructuring at year-end 2013. projects for our wood products business efforts reduced Resolute’s operational in Northwestern Ontario continued to costs by $42 million compared to 2012. With cash and cash equivalents of progress: the construction of a new sawmill $322 million and availability of $561 million at Atikokan; work related to the upgrade Consistent with our diversification strategy, under the company’s asset-based lending and restart of our idled Ignace sawmill; and through our 2012 purchase of Fibrek Inc., credit facility, we believe we have sufficient the building of a wood pellet plant at our we grew our pulp capacity by 70%. In 2013, resources to finance our business plan. Thunder Bay sawmill. We expect this growth Resolute restructured and significantly We are committed to pursuing growth in our wood products business will create improved the performance of the three opportunities that make sense financially, approximately 600 direct and indirect jobs, pulp mills we acquired. In fact, 45% of our reduce costs, produce synergies or support as well as important economic opportunities adjusted EBITDA came from our market diversification into growth markets. for First Nations in the region. pulp and wood products businesses last year. Furthermore, by the time our Atikokan and Ignace sawmills are operational in 2015, and along with other capacity initiatives, our annual sawmill capacity will have grown by about 30%.

24. This reflects a $604 million non-recurring, non-cash income tax charge, taken largely in the third quarter, to reduce the value of deferred income tax assets on our balance sheet. This reduction in no way affects our underlying tax attributes, including $1.8 billion of U.S. net operating loss (NOL) carryforwards, and it does not hinder our ability to use these NOLs to shield future earnings. Resolute Forest Products — 2013 annual report 12

Letter to shareholders (cont’d)

such as hydroelectricity and carbon-neutral During 2013, Resolute was an active and Health biomass. Our 65% goal is an industry-leading committed participant in the Canadian GHG reduction target and represents Boreal Forest Agreement (CBFA), which and Safety the equivalent of taking 1.57 million cars brings together environmental groups off the road. and forest products companies to identify For Resolute, safety is an absolute priority solutions for sustainable development and one where no compromise is acceptable. In 2014, we have set a goal to reduce the in Canada’s boreal forest. Despite a We strive for zero incidents at all our number of mill environmental incidents disruption in negotiations among parties operations and are pleased to report that by 10% compared to 2013. Our inclusive in May 2013 on joint plans to further 2013 was the company’s best safety year on approach to fiber certification also support conservation efforts and forest record. Resolute recorded an Occupational remains an important focus, with 100% economies in north-central Quebec and Safety and Health Administration (OSHA) of the woodlands we manage certified to northwestern Ontario, Resolute remains incident rate of 1.02, which is generally internationally recognized sustainable forest a strong supporter of a collaborative considered world class. Through continued management (SFM) standards. It’s important approach. We believe that to achieve focus at all levels, we will improve our risk to note that Canadian producers are global successful outcomes, the CBFA must do a assessment and safety follow-up efforts leaders in manufacturing forest products better job of directly engaging First Nations and have set a 2014 OSHA incident rate under very strict environmental rules. groups, the communities whose livelihoods target of 0.99. In fact, a Yale University study and are most impacted by the discussions and a comparative study by Helsinki-based provincial governments. Bn alanci g Indufor Oy have cited Canada’s forestry regulatory environment as one of the most Resolute is a strong advocate for partnering E nvironmental, stringent in the world.25 with First Nations. In fact, in 2013, our Opitciwan (Quebec) joint-venture sawmill S ocial and Notwithstanding the strength of the current was awarded the Aboriginal Forest Products forest management regime in Canada, Business Leadership Award by the Forest Economic we recognize that the road ahead is not Products Association of Canada and the Needs without hurdles, and we will work hard to Canadian Council for Aboriginal Business. meet regulatory and market expectations We also celebrated the 10th anniversary Placing increasing importance on sustainable for our SFM practices. During 2013, a of our Thunder Bay sawmill, a unique practices and disclosure on sustainability certification for the Abitibi River Forest partnership between Resolute and the performance is in line with our values and in Ontario brought Resolute’s total Forest Fort William First Nation. The facility is the market expectations. Resolute will continue Stewardship Council® (FSC®) certification first to operate under regulations in the raising the bar on its sustainability efforts of managed forests to 76%, as compared First Nations Commercial and Industrial and transparency, ensuring a balanced to the company’s commitment to achieve Development Act, which facilitates industrial approach to environmental, social and 80% FSC certification by 2015. However, development with First Nations on their land. economic considerations, as thoroughly late in the year, the company received detailed in this annual report. notice of temporary suspensions on Another ongoing priority for the company certain FSC certificates in place. None is workforce recruitment and retention. We’re closing in, ahead of schedule, on of the issues raised in relation to these Resolute’s long-term competitiveness the goal we set as a member of the World certificates involves our on-the-ground depends on the ability to attract, retain Wildlife Fund Climate Savers program to practices or our compliance with any and develop the right employees with the reduce our greenhouse gas (GHG) emissions laws or regulations. Resolute is working right skills to replace our retiring workers. by 65% by 2015, compared to 2000 levels. diligently to reinstate these certificates Last year alone, we hired over 900 new The progress we have made reflects a where possible and remains committed employees, which was made possible by new company-wide focus on improved energy to our FSC certification goal. recruitment and human resource practices as efficiency and has led to switching from fossil well as integrated communications efforts. fuels to cleaner renewable energy sources,

25. Indufor Oy, Comparison of Selected Forest Certification Standards, Helsinki, Finland, July 3, 2009. See also Cashore, Benjamin, Global Environmental Forest Policies: Canada as a Constant Case Comparison of Select Forest Practice Regulations, Yale University, 2004. Resolute Forest Products — 2013 annual report 13

This year is filled with both opportunities and Tahe Ye r challenges for Resolute. We will continue to focus on enhancing our competitiveness Ahead by optimizing our manufacturing assets to maximize capacity utilization and margins. We believe that with diligence and hard We will also position the company to take work, we will navigate market conditions, advantage of long-term market trends, generate value for investors and enhance including expected growth in the pulp and our competitive edge. wood products segments.

We have made measurable progress and Our five key business priorities are proud of everything our employees have for 2014 remain in line with accomplished, giving their all to get things those we identified last year: done. We are confident that our greatest 1. Increase efficiencies, set achievements are still to come, as we work as manufacturing cost targets one team with one vision where profitability and benchmark performance and sustainability drive our future. at all operations; Sincerely, 2. Manage production and inventory levels; 3. Pursue sales strategy to produce only what our customers order; 4. Identify and support disciplined capital investments at our most competitive facilities; and Bradley P. Martin 5. Pursue opportunistic growth to complement our product mix Chairman or improve the competitiveness of existing assets.

2014 is an important year for labor negotiations. We are working in close partnership with union representatives to Richard Garneau renew many of our collective agreements President and Chief Executive Officer with the goal of remaining both a competitive manufacturer and employer. In February 2014, we announced a five-year renewal of the master collective agreement covering four unionized pulp and paper mills in the United States. These operations, together with the company’s other U.S. pulp and paper operations — none of which has an expiring collective agreement — represent almost half of our pulp and paper production capacity. Resolute Forest Products — 2013 annual report 14

Our Vision

At Resolute Forest Products, we are one team with one vision where profitability and sustainability drive our future.

and Values

Work safely B e accountable Ensure sustainability Succeed together We always put the safety of We are accountable for our We make decisions with We win together. Teamwork our people first. Creating performance. The future of tomorrow in mind. We know starts with a winning attitude an injury-free workplace is our company is in our hands. that our long-term profitability and a true desire to support everyone’s business. By empowering people, acting depends on preserving the each other. We welcome ideas, We maintain world-class with integrity, setting goals and natural resources in our care communicate frequently and standards and continuously measuring progress, we deliver and being a responsible partner share best practices. measure and improve our first-class products and services in the communities where we safety efforts and results. to customers and create value live and work. for shareholders.

Our vision and values capture our business approach and our shared sense of purpose. They guide our decisions, actions and behaviors, and drive our culture of performance, growth and sustainability. Resolute Forest Products — 2013 annual report 15

What We are guided by our vision and values, focusing on safety, profitability, accountability, Defines sustainability and teamwork. These are the elements that Resolute we believe best define us:

Competitive Sgyner istic and diversified Financial cost structure asset base strength As a result of aggressive cost reductions Our harvesting rights and extensive We make disciplined capital management a and mill rationalizations, today we compete network of Canadian sawmills not only priority; we believe in maintaining a flexible as a leading, lower-cost North American make us a significant lumber producer in and conservative capital structure. producer. Maintaining this competitive eastern North America, but also give us the advantage is our key focus. By challenging fiber management advantage of integration ourselves to optimize assets — maximizing from the harvested log through the finished the utilization of our most cost-effective pulp or paper product at more than half of mills and streamlining production to our facilities. In the U.S., we source primarily adapt to changing market dynamics — from the lower-cost southeastern fiber we seek to remain an industry cost leader basket. The diversified and complementary and to maximize shareholder value and nature of our asset base also provides earnings power. earnings from multiple products. Resolute Forest Products — 2013 annual report 16 Our Operations

CANADA Mistassini Dolbeau Produits Forestiers Petit-Paris Saint-Thomas Baie-Comeau Girardville Alma Pul p and Paper Thunder Bay, ON Kénogami Outardes Comtois Normandin CANADA Amos Saint-Fulgence La Doré QUEBEC Hydro-Saguenay Ponderay, WA Iroquois Falls, ON Alma / Amos / Baie-Comeau / Clermont / Dolbeau / Senneterre Clermont Gatineau / Kénogami / Laurentide / Saint-Félicien Fort Frances, ON Opitciwan Saint-Prime Larouche Saint-Hilarion ONTARIO Saint-Félicien Fort Frances / Iroquois Falls / Thorold / Thunder Bay Roberval Château-Richer UNITED STATES Maniwaki Augusta, Georgia / Calhoun, Tennessee / Catawba, Produits Forestiers Mauricie South Carolina / Coosa Pines, Alabama / Fairmont, Laurentide West Virginia / Grenada, Mississippi / Menominee, Montréal, QC Michigan / Ponderay, Washington Menominee, MI Gatineau SOUTH KOREA Mokpo

Wood Products Thorold, ON QUEBEC Abitibi LP (Larouche and Saint-Prime) / UNITED UNITED Buffalo, NY Château-Richer / Comtois / Girardville — Normandin / La Doré (2 facilities) / Maniwaki / Mistassini / Detroit, MI Boston, MA Opitciwan / Outardes / Produits Forestiers Mauricie / Produits Forestiers Petit-Paris / Roberval / Chicago, IL Saint-Félicien / Saint-Fulgence / Saint-Hilarion / Saint-Thomas / Senneterre STATES Cleveland, OH Pittsburgh, PA ONTARIO Indianapolis, IN Thunder Bay Columbus, OH Philadelphia, PA

Cogeneration Facilities Cincinnati, OH (external sales) Kansas City, KS Fairmont, WV Baltimore, MD CANADA QUEBEC St. Louis, MO Dolbeau / Gatineau / Saint-Félicien ONTARIO Thunder Bay

Cogeneration Facilities Tulsa/Oklahoma City, OK (internal consumption) Calhoun, TN CANADA ONTARIO Thunder Bay Catawba, SC UNITED STATES Calhoun, Tennessee / Catawba, South Carolina / Grenada, MS Coosa Pines, Alabama Coosa Pines, AL Augusta, GA Dallas/Fort Worth, TX Hydroelectric Facilities CANADA QUEBEC Hydro-Saguenay (7 hydroelectric dams) San Antonio/Austin, TX

For the full list of our company locations, visit resolutefp.com. South Houston, TX Korea

Mokpo Resolute Forest Products — 2013 annual report 17

CANADA Mistassini Dolbeau Produits Forestiers Petit-Paris Saint-Thomas Baie-Comeau Girardville Alma Thunder Bay, ON Kénogami Outardes Comtois Normandin Amos Saint-Fulgence La Doré Hydro-Saguenay Ponderay, WA Iroquois Falls, ON Senneterre Clermont Fort Frances, ON Opitciwan Saint-Prime Larouche Saint-Hilarion Saint-Félicien Roberval Château-Richer

Maniwaki Produits Forestiers Mauricie Laurentide Montréal, QC Menominee, MI Gatineau

UNITED Thorold, ON UNITED Buffalo, NY Detroit, MI Boston, MA

Chicago, IL STATES Cleveland, OH Pittsburgh, PA Indianapolis, IN Columbus, OH Philadelphia, PA

Cincinnati, OH

Kansas City, KS Fairmont, WV Baltimore, MD St. Louis, MO

Tulsa/Oklahoma City, OK Calhoun, TN

Catawba, SC

Grenada, MS Coosa Pines, AL Augusta, GA Dallas/Fort Worth, TX

San Antonio/Austin, TX Paper/Pulp

Houston, TX Wood Products

Energy

Recycling

Corporate Office

Customer Service

Resolute Forest Products — 2013 annual report 19

Part of your everyday Our forest products are connected to every aspect of the way we live our daily lives. We make the lumber that frames houses and the pulp found in tissues, coffeemaker liners and diapers. We make the newsprint that shares news from every corner of the globe and the specialty papers on which books, magazines, and catalogs are printed. Our pulp and paper is also in: the cup that holds your 8:30 a.m. coffee, the 12:30 p.m. napkin in your lunchbox, the 3:00 p.m. presentation on your desk, and the 5:30 p.m. air filter in your car.

It’s easy to see how our forest products connect to every part of our daily living. It’s hard to think of another renewable resource with as much impact on how we live. Resolute Forest Products — 2013 annual report 20 Q&A With Carlos de Cordoba, Vice President, International Paper Sales

Pricing is essential to customers, but what other factors are important? What about the environmental attributes of our products? The need for environmentally sound practices is really ingrained in our operating approach. You have to have sustainable practices in place or people won’t do business with you. Customers want to know they are dealing with a company that is committed to sustainability.

International sales have been Tell us about your career in How do sales coordinate growing. What does this mean the forest products industry. with operations? for Resolute and your team? My father sold paper for Abitibi-Price, one We’re well integrated. We are constantly By starting up Gatineau (Quebec) and of our predecessor companies, for 20 years. connecting to ensure sales and operations making quality investments in Augusta I saw how much he loved the work and are aligned, that the work is balanced and (Georgia) and Baie Comeau (Quebec), enjoyed meeting all the many interesting that everyone is coordinated. Also, the Resolute has increased our ability to be cost people involved in the industry. That always fact that all our salespeople are working and quality competitive in markets across stayed with me. I studied law and practiced under one umbrella — whether domestic or the globe. We will continue to sell where it for three years, but when an opportunity to international — is a positive advantage. makes the most sense for us, but, clearly, our get into paper came up, I took it. I started ability to profitably export will help Resolute in customer service with Abitibi-Price’s This is the most confident I have felt adjust to evolving market conditions. purchasing office in White Plains, New York. about the viability and the quality of the That was 18 years ago. After the merger of product our mills are producing since I Is helping news organizations Abitibi-Price and Stone-Consolidated in first started with the organization. I think share views and information 1997, I was offered a sales position in Europe, the recent quality-improvement work and personally rewarding to you? where I worked for six years until I was given cost-competitiveness moves Resolute has Yes. That was part of the original allure of the opportunity to be vice president of sales made has also helped to make our sales the business. When I was a kid I remember and regional manager for Latin America. team better equipped to succeed, giving watching coverage of the Nicaraguan When Resolute was formed, I became us more to work with than ever before. revolution with my father. When the vice president of international sales. newscaster started talking about the What goes into ensuring assassination of a publisher there, my What are the challenges of customer satisfaction? father told me the person had been his selling paper internationally? Security and reliability of supply are key in friend. The company had done what it One of the fascinating and challenging satisfying our international customer base. could to keep the newspaper supplied aspects of international paper sales is Because many of these customers rely and relevant — and it was an important that you have to stay on top of global heavily on us for their most important raw thing. Our customers have important roles events. Political instability, major currency material, they have to be able to trust us, to play in the lives of the people in their fluctuations, natural disasters — all these and that trust has been built up over many communities, in the history of their countries. developments affect your customers and years of delivering quality product on time. the logistics of how you get paper to them. Going the extra mile for customers has a In fact, logistics are a big part of the overall way of cementing relationships and creating delivery cost on the international side. institutional memory and goodwill that We operate a very efficient network of mills. become long-term assets for the company. That helps to manage our logistics and makes us competitive. Resolute Forest Products — 2013 annual report 21

Business Segments Resolute Forest Products — 2013 annual report 22

nep ws rint

When it is not carrying the day’s headlines, Total North American demand for newsprint Resolute newsprint is used for a variety of fell by 10% in 2013, with a 10% reduction printing needs such as inserts, flyers and in demand from newspaper publishers and #1 other print products. 6% from other users. Globally, demand was We are the largest producer down by 5%; Western Europe was down by of newsprint in the world We produce newsprint at 11 facilities in 6% and Latin America by 7%, but demand by capacity. North America and one facility in South Korea. was up 7% in India. An 11% increase in With total capacity of approximately exports helped North American producers 2.9 million metric tons, or approximately ship only 4% less overall than in 2012, with 10% of total worldwide capacity, we are the a 31% increase in shipments to Asia and 2% largest producer of newsprint in the world. to Latin America. Accordingly, the shipment- We are also the largest North American to-capacity ratio in North America remained producer of newsprint, with total capacity at 92% for the year, compared to the global of approximately 2.7 million metric tons, or average of 90%. approximately 40% of total North American capacity. In 2013, approximately 44% of our total newsprint shipments were to markets outside of North America.

MARKET TRENDS

Total N. A. 2013 world newsprint change 2013 newsprint newsprint demand in demand by geographic market demand distribution (millions of metric tons) (% change over 2012) (millions of metric tons)

7.7 (1.5%)

5.8 5.4 5.0 4.9 4.5 (4.8%) ● (5.7%) (5.5%) Asia 12.8 46% ● Western Europe 6.5 23% (7.0%) ● North America 4.5 16% ● Latin America 1.6 6% ● Eastern Europe 1.3 5% (9.5%) ● Other 1.1 4% 2008 2009 2010 2011 2012 2013 World North Latin Western Eastern Asia Total world demand 27.8 100% America America Europe Europe Source: Pulp and Paper Products Council (PPPC) Our newsprint connects, informs and entertains the readers of some of the world’s most widely circulated papers.

Thunder Bay (Ontario) pulp and paper mill

Resolute Forest Products — 2013 annual report 25

From what you want to know to where you want to go, our specialty papers are used to make books, magazines, catalogs, flyers, inserts and even maps. Resolute Forest Products — 2013 annual report 26 S pecialty Papers

Major printers, publishers, catalogers and tradebooks. The last third includes papers retailers look to Resolute to support their for directories, paperback books and other diverse communication needs with paper commercial applications. #1 products that provide an excellent value We are the largest producer proposition. Working together with our With 580,000 metric tons of capacity, or of uncoated mechanical papers customers to design versatile products, we approximately 18% of total North American in North America, and the third produce papers for a multitude of end uses. capacity, we are North America’s third largest producer of coated mechanical papers. largest in the world. We produce specialty papers at eight facilities in North America. We have North American demand for uncoated 2.0 million metric tons of capacity in mechanical papers rose by 3% in 2013, with specialty papers, which include uncoated a 14% increase in demand for high-gloss #3 mechanical and coated mechanical grades. (supercalender) grades, as certain customers We are North America’s substituted down from coated mechanical With total capacity of approximately grades. Demand was down by 3% for third largest producer 1.4 million metric tons, or approximately 34% standard grades. The industry shipment-to- of coated mechanical papers. of total North American capacity, we are the capacity ratio was 92% for 2013, unchanged largest producer of uncoated mechanical from 2012. papers in North America, and the third largest in the world. Approximately one third Demand for coated mechanical grades of our production of uncoated mechanical was down 7% in the year. After being papers is high-gloss (or supercalender) higher through three quarters, imports fell paper, mainly used for magazines, coupons, significantly in the fourth quarter, finishing retail inserts and newspaper supplements. the year down 11% overall. The industry We produce another third of high-bright shipment-to-capacity ratio dropped 4% papers for general commercial printing, in 2013, to 89%. educational textbooks, digital printing and

MARKET TRENDS

Total N.A. uncoated 2013 total change in N.A. uncoated 2013 N.A. uncoated mechanical mechanical demand mechanical demand, by grade demand distribution, by grade (millions of short tons) (% change over 2012) (thousands of short tons)

20.8%

6.6

5.5 5.6 5.1 3.4% 2.0% 4.3 4.4

(2.6%) ● STD 1,906 43% ● SC-A/A+ 1,435 32% ● SC-B/SNC+ 697 16% (13.9%) ● LW 399 9% 2008 2009 2010 2011 2012 2013 Total LW STD SC-B/ SC-A/ SNC+ A+

Source: PPPC Resolute Forest Products — 2013 annual report 27

Kénogami (Quebec) paper mill

N.A. coated mechanical N.A. coated mechanical paper demand paper imports (millions of short tons) (thousands of short tons)

906

719 5.5

4.5 4.4 506 4.1 4.0 496 3.7 439 444

2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013

Source: PPPC Resolute Forest Products — 2013 annual report 28 market pulp

Resolute has grown its pulp capacity by over Our market pulp — the pulp we produce but Resolute has grown its 70% with the 2012 acquisition of Fibrek. do not consume internally — is used to make pulp capacity by over We produce market pulp at seven facilities a range of consumer products, from tissues, in North America, with total capacity of paper towels, diapers and other absorbent approximately 1.7 million metric tons, or products to packaging and specialty paper 70% approximately 10% of total North American products. Approximately 32% of our with the 2012 acquisition capacity, making us the third largest pulp 2013 market pulp shipments were exported producer in North America. Approximately outside of North America, including significant of Fibrek. 80% of our virgin pulp capacity is softwood- exports to Europe (14%), Asia (8%) and based: northern bleached softwood kraft Latin America (6%). pulp (NBSK), southern bleached softwood kraft pulp (SBSK) and fluff pulp. We are also The chemical pulp market grew by over #3 a competitive producer of northern bleached 1.5 million metric tons in 2013, up 3%. We are the third largest hardwood kraft pulp (NBHK) and southern Regionally, North American demand was bleached hardwood kraft pulp (SBHK), and up 5%, China, 9%, while Western Europe pulp producer a leading producer of recycled bleached was down 1%. Softwood mills operated at a in North America. kraft pulp (RBK). strong 94% ratio in 2013.

MARKET trends

2013 world chemical 2013 world chemical pulp 2013 world chemical pulp pulp demand demand distribution, by grade demand distribution, by region (% change over 2012) (millions of metric tons) (millions of metric tons)

9.3%

6.4% 5.7% 4.8%

3.2% 2.4% 1.8% ● Eucalyptus 19 34% ● Western Europe 16 29% ● NBSK 14 26% ● China 16 28% ● Other 10 17% ● Other Asia / Africa 8 15% ● SBSK 6 12% ● North America 8 14% (0.7%) ● ● (1.3%) NBHK 5 8% Latin America 3 6% ● SBHK 1 3% ● Eastern Europe 2 4% World Other Western Latin Japan North Eastern Oceania China Total world demand 55 100% ● Japan 2 4% Asia / Europe America America Europe ● Oceania – –% Africa Total world demand 55 100%

Source: PPPC From facial tissues and diapers to paper towels and fine stationery, our pulp products are renewable and biodegradable, and touch every part of daily living.

Thunder Bay (Ontario) pulp and paper mill Resolute Forest Products — 2013 annual report 30

Thunder Bay (Ontario) sawmill

From home construction and household remodeling to commercial I-joists and bed frame components, Resolute’s wood products help build the spaces we live in. Resolute Forest Products — 2013 annual report 31 Wood Products

We operate 16 sawmills in Canada that We are in the process of produce construction-grade lumber sold in building or refurbishing North America, mostly on the East Coast. 100% Resolute is the largest lumber producer of the woodlands we manage two sawmills in Northern Ontario, east of the Rockies. Our sawmills produce or on which we hold significant Canada. By the time they begin dimension spruce-pine-fir lumber and harvesting rights are production in early 2015, along are a major source of wood chips for our pulp and paper mills and wood residue third-party certified to one with other capacity initiatives for fuel in our power cogeneration assets or more internationally we’re working on, we expect our and other operations. In 2013, we shipped recognized sustainable forest annualized sawmill capacity to be 1.5 billion board feet of construction- grade lumber within North America. management standards. around 1.9 billion board feet, a We also operate two engineered wood products facilities in Canada that produce I-joists for the construction industry and 30% two remanufacturing wood products increase above 2013. facilities in Canada that produce bed frame components, finger joints and furring strips.

MARKET TRENDS

Np ew rivately owned housing units started (millions of units)

2.1 2.0 1.8 1.8 1.7 1.6 1.6 1.4

0.9 0.9 0.8 0.6 0.6 0.6

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: U.S. Census Bureau Actual U.S. housing starts in 2013 were 923,000, 18% higher than in 2012. Resolute Forest Products — 2013 annual report 32

S ustained profitability Business and Resolute’s business strategy includes, on the one hand, a gradual retreat from certain paper grades, and on the other, Sustainability using our strong financial position to act on opportunities to diversify and grow. This strategy is based on three core themes: Strategy operational excellence, disciplined use of capital and strategic initiatives.

Business Strategy

Gradual retreat from certain paper grades; using our strong financial position to act on opportunities to diversify and grow

Strategic Statement

Operational Disciplined Strategic excellence Use of Capital Initiatives

Areas of Primary Focus

• Leveraging our lower-cost position • Making capital management a priority • Taking an opportunistic approach • Maintaining a stringent focus on • Continuing our efforts to decrease to strategic initiatives reducing costs and optimizing our overhead • Pursuing initiatives that reduce our diversified asset base • Spending our capital in a cost position, improve our product • Maximizing the benefits of our access disciplined, strategic and focused diversification, provide synergies to virgin fiber and managing our manner, concentrated on our most or allow us to expand into future exposure to volatile recycled fiber successful sites growth markets • Managing production and inventory • Maintaining our strong financial levels and focusing production on our position and financial flexibility most profitable facilities and machines • Capitalizing on our economical access to international markets

Key Performance Areas Competitive Advantages Resolute Forest Products — 2013 annual report 33

Our sustainability strategy is aligned with our • Reinforce our environmental credentials, business strategy. The company’s sustainability taking appropriate steps to responsibly approach aims to balance environmental, manage our environmental footprint; social and economic performance in order • Position Resolute as a competitive employer, to maintain and enhance our competitive attracting and retaining employees based position. Resolute’s sustainability strategy on opportunities to quickly learn and grow has three areas of primary focus, supported within a dynamic organization; and by public commitments made in a number of key performance areas: • Build solid community relations, recognizing that economically viable and civically involved companies support long-term regional prosperity.

S ustainability Strategy

LEVERAGE ENVIRONMENTAL, SOCIAL AND ECONOMIC PERFORMANCE TO MAINTAIN AND ENHANCE our COMPETITIVE POSITION

Strategic Statement

POSITION REINFORCE BUILD SOLID RESOLUTE A A ENVIRONMENTAL COMMUNITY COMPETITIVE CREDENTIALS RELATIONS EMPLOYER

Areas of Primary Focus

• Sustainable fiber sourcing • Health and safety • Community involvement • Climate change • Employee engagement • Collaboration with First Nations • Water use in company culture • Participation in public policy • Product and process innovation • Professional development and career progression • Labor relations

Key Performance Areas Strategic commitments and initiatives ResuResoluteol te FoForrestest Productsoducts — 20132013 annualannual rreepporortt 34

Sustainability Performance ResuResoluteol te FoForrestest Productsoducts — 20132013 annualannual rreepporortt 35

BALANCING THE NEED FOR A SUSTAINABLE FUTURE

At Resolute, sustainability is reflected in our company’s vision, our corporate values and in the way we do business every day. By carefully balancing environmental, social and economic priorities, we believe that we will ultimately become a more efficient company, a better employer, a stronger partner for our customers and an active member of the communities in which we live and work.

This is Resolute’s second annual report combining both financial and sustainability performance reporting in one document, aligning with our belief that the two are linked together. Resolute Forest Products — 2013 annual report 36 ABOUT THIS SECTION

BOUNDARIES AND SCOPE Resolute defines “material” sustainability Stakeholder expectations are identified issues to be those that 1) are of high concern and prioritized through a series of We report sustainability performance to internal and external stakeholders, and confidential, one-on-one, in-depth interviews results for all operations we owned or 2) have the potential to impact our business with individuals representing the research operated as of December 31, 2013.26 financially. Identifying an issue as having a community, industry, government, First Our 2013 sustainability performance lower level of materiality does not mean it Nations, customers, ENGOs, organized data is preliminary and subject to change. is unimportant or that we will not monitor labor and investors. The interviews were The information will be confirmed in our company performance in that area. Rather, conducted by a third party to ensure comprehensive sustainability report later this a lower level of materiality simply indicates unbiased discussions, and only aggregate, year, along with all of our other sustainability the topic is of lower immediate concern to unattributed responses were shared with performance indicators, consistent with our operations or stakeholders compared Resolute. Stakeholder interview results were Global Reporting Initiative (GRI) reporting to other issues. As the materiality of issues combined with a detailed industry scan of disclosure guidelines. can change over time, our objective is to sustainability issues and a benchmarking monitor materiality on a continuous basis, of North American and international peer MATERIALITY ANALYSIS for example, through regular interactions company reports. Using these assessments AND RESULTS with stakeholders. as a foundation, Resolute’s Sustainability Report Working Group (SRWG) added We report sustainability performance on its own insight to create a list of issues of issues we considered material, based on a material importance to the company. detailed materiality analysis we completed in 2014 as part of our GRI disclosure. The results of our latest materiality assessment will guide our future priority-setting, in line with our sustainability strategy and our reporting on performance going forward.

Ma teriality Grid

Higher low impact/ medium impact/ high impact/ high concern high concern high concern

sltakeho der low impact/ medium impact/ high impact/ concern medium concern medium concern medium concern

low impact/ medium impact/ high impact/ low concern low concern low concern

Lower Potential Higher Impact impact

26. See “Our Operations” on page 16 for more information. Resolute Forest Products — 2013 annual report 37

Materiality Issues

Material Moderately Less Material or Issues Material Issues Immaterial Issues

High Impact/ High Impact/ Medium Impa Higct/h Impact/ Medium Impact/ Low Impact/ Medium Impact/ Low Impact/ Low Impact/ Medium Concern High Concern High Concern Low Concern Medium Concern High Concern Low Concern Low Concern Medium Concern

Ennviro mental Ennviro mental Social • Biodiversity • Environmental impacts of transportation • Customer privacy • Conservation/protected areas • Green, responsible procurement/ • Philanthropy • Environmental regulatory compliance investment policies • Product health and safety • Energy consumption • Lower-environmental-impact products • Environmental incidents • Non-GHG emissions, effluent and waste • GHG emissions • Renewable energy (biofuels) • Raw material supply chain (especially fiber) Social • Sustainable forest management • Community feedback mechanisms (to third-party certification standards) • Economic contribution through wages, • Water consumption and taxes, etc. protection of water resources • Employee benefits and programs • Non-discrimination and diversity Social • Social supply chain • Community and stakeholder engagement • Workforce training and education • Employee health and safety • First Nations relations and Economic and Governance economic partnerships • Economic risks associated • Impact of entering or exiting with climate change operating communities • Involvement in public policy • Labor relations • Policies on bribery and corruption • Pension obligations • Transparency and communication • Workforce turnover and recruitment needs

Economic and Governance • Corporate economic viability • Code of conduct and business ethics Resolute Forest Products — 2013 annual report 38 SUSTAINABILITY OVERSIGHT AND COMMITMENTS

SUSTAINABILITY OVERSIGHT SUSTAINABILITY COMMITTEE The committee’s mandate is to recommend strategies, set goals and measure results, As with its other committees, the board of The overall responsibility for our oversee reporting and communications, directors reviews the Environmental, Health sustainability performance resides with ensure continuous improvement, and assess and Safety (EH&S) Committee’s mandate our president and chief executive officer, stakeholder expectations and sustainability and provides oversight of the company’s but we rely on our sustainability committee, trends. The committee is also charged with overall performance. The EH&S Committee established in 2011, to ensure we deliver providing project oversight on the company’s meets a minimum of three times annually and on our key commitments and implement key sustainability commitments. conducts a thorough review of established our strategies in this area. The committee is key performance indicators (KPIs), incidents, a cross-functional group comprised of senior audits, liabilities, stakeholder relations, managers from sales and human resources public policy issues and other developments. to purchasing, engineering and environment, A monthly report summarizing KPIs is also among other departments. It is accountable provided to the executive team and senior to the executive team and chaired by the management. vice president, corporate communications, sustainability and government affairs.

SUSTAINABILITY structure

board of directors EH&S committee of the board

president and H&S Steering chief executive officer Committee

SUSTAINABILITY senior vice president, corporate affairs, vice president, environment COMMITTEE and chief legal officer and climate change

vice president, corporate communications, carbon sustainability and government affairs committee

sustainability report working group Resolute Forest Products — 2013 annual report 39

Sustainability Commitments

KEY TRENDS IMPACTING RESOLUTE Carbon/Environmental Footprint and Resource Management

commitments performance in 2013 2013 Rating

• Maintain 100% certification of • 100% of managed forests Resolute-managed woodlands to certified to either SFI®, FSC® sustainable forest management (SFM) and/or CSA = certification standards

• Maintain chain of custody certification, • Instituted fiber-tracking systems either to Sustainable Forestry Initiative® at all facilities, all of which are (SFI®), Programme for the Endorsement third-party certified according of Forest Certification (PEFC) or Forest Reinforce our to one or more of three Stewardship Council® (FSC®) at all = environmental internationally-recognized STRATEGIC North American pulp and paper mills credentials, taking CoC standards, namely SFI, area of and wood products facilities under appropriate steps PEFC and FSC primary company management to responsibly SUSTAINABILITY manage our focus • 76% of tenures FSC-certified; environmental • Increase FSC® forest certification however, late in the year, the footprint of managed forests from 18% in 2010 company received notice to 80% by 2015 of temporary suspensions on > certain FSC certificates in place

• Reduced total GHG emissions • Achieve a 65% absolute reduction by over 64% since 2000 and of scope 1 and 2 GHG emissions closing in on 65% reduction by 2015 over the 2000 base year > target ahead of schedule

• Implement standard scope 3 GHG • Progressing in our work to track accounting and begin full scope 327 scope 3 emissions; full reporting > reporting by 2015 planned to begin in 2015

• Provide disclosure on regulatory infractions in our woodlands operations • New commitment established • Sustainable forest and set a target for annual infractions, in 2014 > management with a long-term goal of zero infractions (to third-party certification standards) • Continue to improve our understanding • Fiber supply access of our water footprint; continue • Voluntarily reported to CDP • Biodiversity to voluntarily report to the Water Disclosure program MOST • Conservation and Carbon Disclosure Project’s (CDP) = MATERIAL protected areas Water Disclosure program ISSUES • GHG emissions • Energy consumption • Fell short of our reduction AFFECTING • Reduce environmental incidents by 10% • Water consumption target over 2012, recording BUSINESS in 2014 compared to the 2013 baseline, and protection 3 class 1 incidents and with a long-term goal of zero incidents – of water resources 61 class 2 incidents • Environmental regulatory compliance • 18 out of 22 pulp and paper • Environmental • Implement ISO 14001-certified mills, 9 out of 18 wood products 28 incidents environmental management facilities and 8 out of 9 system (EMS) at all our pulp and paper, woodlands operations have > sawmill and woodlands operations implemented an ISO 14001- certified EMS

27. Scope3 GHG emissions are all indirect greenhouse gas emissions not covered in scope 2, such as emissions from the production of purchased materials, or transportation activities in vehicles not owned or controlled by the company. 28. Total wood products facilities does not include Opitciwan (Quebec), Produits Forestiers Petit-Paris (Quebec), and Manseau (Quebec), which closed in 2013. Total ISO 14001-certified wood products facilities does not include our La Doré (Quebec) remanufacturing site.

Legend Continuing New Surpassed Achieved Maintained Ongoing Target Commitment Commitment ++ Target + Key Milestone = Achievement > Progress – Unattained Resolute Forest Products — 2013 annual report 40

Sustainability Commitments (cont’d)

KEY TRENDS IMPACTING RESOLUTE Public environmental and social consciousness

commitments performance in 2013 2013 Rating

• By end of 2015, enhance information- sharing community groups at all • Established information-sharing company operations; embed community community groups at the majority stakeholder outreach efforts across of company sites > Build solid community organization, sharing best practices and relations, recognizing monitoring activities that economically viable and civically • In addition to other partnerships, involved companies signed memorandum of support long-term agreement with six First Nations • Identify business opportunities with STRATEGIC regional prosperity groups in the Atikokan region of First Nations and identify means area of Ontario — agreement expected + primary to increase Aboriginal employment Reinforce our to generate significant mutually SUSTAINABILITY environmental beneficial economic focus credentials, taking opportunities appropriate steps • Make yearly charitable contributions with to responsibly • Made charitable contributions emphasis on environmental stewardship, manage our of approximately $1 million = environmental and health and education programs footprint • Maintained regular engagement with key stakeholder groups such as: employees/unions, investors, governments, NGOs, First • Ensure and sustain ongoing outreach Nations, local communities, with stakeholders and develop key suppliers/partners and customers strategic partnerships = • Maintained partnership with WWF Climate Savers and implemented Living Planet @ Work program, among others

• Explored options to add more grades under the AlignTM umbrella and continued to offer lower- • Develop innovative products that environmental-impact products • Community help our customers reduce their and stakeholder environmental footprint • Worked to have our recycled kraft > MOST engagement pulp meet U.S. Food and Drug MATERIAL • First Nations Administration criteria for the ISSUES and economic food packaging market AFFECTING partnerships BUSINESS • Sustainability committee • Transparency and continues to monitor communications • Maintain effective sustainability sustainability performance oversight and management practices and recommend areas for = improvement

• Maintain annual sustainability reporting • Issued third GRI-compliant practices and transparency annual sustainability report =

• Roll out communications on our Supplier • New commitment established Guidelines and measure dissemination in 2014 >

Legend Continuing New Surpassed Achieved Maintained Ongoing Target Commitment Commitment ++ Target + Key Milestone = Achievement > Progress – Unattained Resolute Forest Products — 2013 annual report 41

KEY TRENDS IMPACTING RESOLUTE Demographic Changes and Labor relations

commitments performance in 2013 2013 Rating

Position Resolute • Hired over 900 new employees as a competitive • Through 2015, implement new human and raised company profile employer, attracting resource practices to support workforce as a competitive employer and retaining renewal and retention, and engage through new recruitment employees based employees in company’s sustainability- practices > on opportunities focused vision and values • Launched new internship STRATEGIC to quickly learn and co-op programs area of and grow within a primary dynamic organization • Renew expired or expiring collective SUSTAINABILITY agreements at pulp, paper and • New commitment established focus Build solid community wood products operations, ensuring our in 2014 relations, recognizing competitiveness as an employer while > that economically supporting our long-term viability viable and civically involved companies • Train 100% of employees on our new support long-term Code of Business Conduct; provide • New commitment established regional prosperity additional training on anti-bribery, in 2014 > corruption and whistleblower programs

• Roll out communications on new diversity, • New commitment established equal employment, anti-discrimination in 2014 • Workforce turnover and harassment policies > and recruitment needs • Labor relations • Achieve an Occupational Safety and • Achieved an OSHA incident rate MOST • Pension obligations Health Administration (OSHA) incident of 1.02 MATERIAL • Code of conduct rate of 0.99 or below through 2014, with • Achieved a severity rate result ISSUES and business ethics a long-term goal of zero incidents, zero of 25.85 • Impact of entering + AFFECTING injuries; achieve a severity rate of 27 • Implemented a near-miss and exiting operating BUSINESS in 2014; increase disclosure around our reporting system to improve communities near-miss reporting how we track performance • Employee health and safety • Ensure employees submit 2 to 3 near-miss • New commitment established reports annually in 2014 >

Legend Continuing New Surpassed Achieved Maintained Ongoing Target Commitment Commitment ++ Target + Key Milestone = Achievement > Progress – Unattained Resolute Forest Products — 2013 annual report 42 FIBER AND FORESTRY

our commitment WN OOD A D VIRGIN FIBER SUPPLY Sustainable Forest Management Certification We are committed to protecting the Our sources of wood and virgin fiber As of December 31, 2013, Resolute held forest for future generations. We do so include the following: SFM certificates covering 22.1 million by responsibly managing the woodlands • Crown land on which we hold harvest hectares (54.5 million acres) of forest lands entrusted to our care by: rights, short-term volume allocations and in Canada and the U.S. All of our managed • Maintaining our current sustainable forest auction sales; forests are certified to one or more of management (SFM) certifications; three internationally-recognized SFM • Purchases from private forest landowners; certification standards. These standards are: • Increasing Forest Stewardship Council® • Wood chips from our own sawmills and the Sustainable Forestry Initiative® (SFI®); (FSC®) certification of our managed from external suppliers; and the Forest Stewardship Council® (FSC®); and forests; the Canadian Standards Association (CSA). • Property we own or lease. • Promoting and supporting certification Third-party SFM audits are conducted at efforts of the third-party suppliers and our operations on a yearly basis. Our harvest rights on Crown land are all in landowners from whom we source fiber; Canada. As of December 31, 2013, we had and In 2010, Resolute made a commitment to long-term harvest rights for approximately increase FSC certification of our managed • Tracking carefully the sources of 5.28 million cubic meters of supply from forests and the tenures on which we hold our fiber supply. Crown land in Ontario. In Quebec, as of significant harvest rights from 18% to April 1, 2013, timber supply and forest 80% by 2015. As of December 31, 2012, management agreements have been replaced WHAT WE ARE DOING 63% of our tenures were FSC-certified. by timber supply guarantees. As of that During 2013, a dual FSC and SFI certification Some of the highlights of our work in date, we were allocated 4.47 million cubic was awarded for the Abitibi River Forest in responsible forest management and wood meters of supply through these timber Ontario, Canada, a large tenure in which fiber sourcing include: supply guarantees. Resolute holds significant harvest rights. • 100% of the woodlands we manage This additional certification brought ENSURING THE SUSTAINABILITY are certified to SFM certification standards; Resolute’s total FSC certification to 76%. OF OUR WOOD AND almost all of these lands are in Canada; Late in the year, the company received notice VIRGIN FIBER SUPPLY of upcoming temporary suspensions on • 100% of our North American In Canada, we operate under very strict certain FSC certificates in place. None of the manufacturing facilities are third-party forest management and wood fiber sourcing issues raised in relation to these certificates certified to chain of custody (CoC) rules. In fact, a Yale University study released involves our on-the-ground practices or our tracking systems; in 2004 and a comparative study by Indufor compliance with any laws or regulations. • 91.4% of our wood for sawmills and 46% Oy released in 2009 have cited Canada’s Resolute is working diligently to reinstate of our virgin wood fiber inputs for pulp forestry regulatory environment as one of these certificates where possible and remains and paper mills are SFM-certified; the most stringent in the world.30 committed to our FSC certification goal. • 40% of our total internal and external fiber Our sustainable forest management inputs for pulp and paper mills are sourced certifications, which seek to balance from sawmill chips; and environmental, social and economic • 12.5% of our total fiber inputs for pulp considerations, along with our chain and paper mills are sourced from of custody certifications, serve as recovered paper.29 a confirmation of our sustainable forestry practices.

29. Includes recycled bleached kraft pulp (RBK). 30. Indufor OY, Comparison of Selected Forest Certification Standards, Helsinki, Finland, July 3, 2009. See also Cashore, Benjamin, Global Environmental Forest Policies: Canada as a Constant Case Comparison of Select Forest Practice Regulations,.Yale University, 2004. Learn more at fpac.ca/index.php/en/environmental-progress#sthash.Pb9DhKlm.dpuf. We are committed to protecting the forest for future generations. We do so by responsibly managing the woodlands entrusted to our care.

Saguenay — Lac-Saint-Jean (Quebec) region Resolute Forest Products — 2013 annual report 44

FIBER AND FORESTRY (cont’d)

virgin Wood fiber sourcing for pulp and paper mills

2013 Consumption and Sourcing of Virgin wood Fiber (Pulp and Paper Mills) Proportion of total fiber supply that is sourced Proportion of fiber Proportion of externally through FSC® controlled consumed with Total fiber sourced fiber with wood, PEFC due diligence or Total fiber consumed SFM certification, externally sourced SFM certification, SFI® sourcing requirements, (odmt) % (odmt) % %

Canada 3,533,755 74.7 % 1,427,864 52.9% 100% United States 3,371,489 15.9% 3,303,521 14.5% 100% Tol ta 6,905,244 46% 4,731,385 26.1% 100%

Woo d sourcing for sawmills

2013 Consumption and Sourcing of Wood (Sawmills) Proportion of total wood supply that is sourced Proportion of wood through FSC® controlled consumed with Proportion of wood that wood, PEFC due diligence or Total wood consumed SFM certification, is externally sourced, SFI® sourcing requirements, (m3) % % %

Canada 7,049,331 31 91.4% 31.5% 100%

Chain of Custody Certification responsible for wildlife policies and WE ARE A LEADING RECYCLER We have instituted fiber-tracking systems at wildlife management. But the protection 12.5% of our fiber supply comes all of our facilities, which are all third-party of biodiversity and forest habitat is also from recovered fiber, including ONP certified according to one or more of three an important component of our own (old newspapers), SOP (sorted office paper) internationally recognized CoC standards, SFM certifications. Our SFM standards and OMG (old magazines). In addition to namely FSC, SFI and Programme for the require third-party audits and are aimed other facilities that utilize recycled fiber, Endorsement of Forest Certification (PEFC). at safeguarding biodiversity, water quality, we operate two (Thorold, Ontario, and wildlife habitat, species at risk and forests Mokpo, South Korea) newsprint mills that For both our internal and external wood and with exceptional conservation value. use 100% recycled furnish. We are also the fiber sources, 100% is procured through the only producer of air-dried recycled bleached FSC® Controlled Wood standard, the PEFC We have adopted strategies to safeguard kraft pulp in North America (Fairmont, due diligence requirements or the SFI® fiber biodiversity, which include identification West Virginia, and Menominee, Michigan). sourcing requirements, and in some cases of protected areas, implementation of a combination of these standards. selected management practices (such as In 2013, we used 1.1 million metric tons partial or progressive cuts, retention of trees of recovered paper in our production for nesting, buffering around eagle nests, WE VALUE BIODIVERSITY processes, and the recycled fiber content in leaving riparian green belts, etc.), as well as the newsprint we produced averaged 18%. It is possible to harvest trees while natural and planted forest regeneration. maintaining biodiversity and protecting social and environmental forest values. In For more information on our biodiversity the Canadian provinces where Resolute initiatives, please refer to our 2012 GRI- has tenures, monitoring of biodiversity is compliant sustainability report at usually carried out by provincial agencies resolutefp.com/sustainability.

31. Does not include Opitciwan (Quebec) and Produits Forestiers Petit-Paris (Quebec) joint ventures. Does not include our remanufacturing wood products facilities at Château-Richer (Quebec) and La Doré (Quebec) as well as our engineered wood products facilities, Abitibi-LP Engineered Wood Inc. and Abitibi-LP Engineered Wood II Inc. (Quebec). Resolute Forest Products — 2013 annual report 45

OUR PERSPECTIVE approximately 75% of the area harvested On REFORESTATION through forestry grows back naturally. The rest is promptly reforested via seeding or Every year, approximately 0.2% of the boreal planting of seedlings. Responsibly managing forest in Canada is impacted by industrial timberlands, utilizing wood before natural activities.32 In comparison, about five times disturbances occur and salvaging wood that area is naturally disturbed every year after such natural disturbances occur can by insects, forest fires or disease.33 Nature safeguard the forest’s natural life cycle and itself is responsible for the renewal of ensure its sustainability. thousands of hectares of forest. In fact,

Comtois (Quebec) sawmill

fo rest life cycle

Legend 1994 Harvest 1996 Planting 2002 Spacing

1997 2005 2013

32. Natural Resources Canada (NRCan). The State of Canada’s Forests: Annual Report 2012. Canadian Forest Service, Ottawa, 2012, p. 7. Available at cfs.nrcan.gc.ca/publications. 33. Natural Resources Canada (NRCan). Boreal Forest, Natural Disturbances. Canadian Forest Service, 2012. Available at cfs.nrcan.gc.ca/pages/258.

ResoluResolutete FoForestest PPrroductsoducts — — 2013 2013 annual annual r reepoporrtt 47

Less than 0.2% of Canada’s forests are harvested annually

Fsore t classification in Millions of Hectares (millions of Acres)

Total forest and other wooded land 397 Ha (981 acres)a Commercial forest 235 Ha (580 acres)b Forests certified as being sustainably managed 148 Ha (365 acres)a

Less than 0.2% of Canada’s forests are harvested annually 0.2%a

a. The State of Canada’s Forests: Annual Report 2013. Natural Resources Canada, Canadian Forest Service. b. Human Activities in Ecosystems - Productive Forest Land Use, Natural Resources Canada, 2010.

Saguenay — Lac-Saint-Jean (Quebec) region Resolute Forest Products — 2013 annual report 48 ENERGY AND CLIMATE CHANGE

our commitment ENE RGY SouRCES We also use alternative energy sources such as methane from landfills, used oils, As part of our membership in the World Steam and electrical power constitute the tire-derived fuel and waste plastics, Wildlife Fund (WWF) Climate Savers primary forms of energy used in pulp and recovering their energy value to reduce program, we are committed to achieving paper production. We buy fuel, electricity and consumption of fossil fuels. a reduction in absolute greenhouse gas steam from external suppliers, but we also (GHG) emissions (scope 1 and 2)34 of 65% make electricity at our hydroelectric dams and USING AND PRODUCING below 2000 levels by 2015. This is an cogeneration facilities. The latter allows us ELECTRICITY industry-leading GHG reduction target, to extract more energy from our biomass, by and is the equivalent of taking 1.62 million producing both thermal and electrical energy. Overall, we produce 18% of our electricity cars off the road.35 This, in turn, reduces the amount of harmful needs internally (owned and self-generated). GHG released into the atmosphere. The remainder is purchased from third parties. In 2013, the combined amount of what we are doing All but two — Iroquois Falls and Thorold purchased and self-generated electricity (Ontario) — of our mills produce 100% of we used in our pulp and paper mills totaled We are implementing operational excellence their own steam requirements principally from approximately 14,000 GWh. initiatives aimed at enhancing the energy combustibles, including biomass and fossil efficiency of our operations as well as fuels. In 2013, our Alma (Quebec), Calhoun We produce electricity at seven cogeneration investing in clean energy projects that (Tennessee), Catawba (South Carolina), facilities and seven hydroelectric dams. contribute to controlling power costs and Coosa Pines (Alabama), Dolbeau (Quebec), The output is consumed internally, sold at reducing GHG emissions. Fort Frances (Ontario), Gatineau (Quebec), contracted fixed prices and/or sold on the Kénogami (Quebec), Saint-Félicien (Quebec) spot market. This allows us to reduce our costs Some key highlights of our 2013 work and Thunder Bay (Ontario) operations by generating energy internally at a lower cost include: collectively met approximately 44% of compared to open market purchases, and by • Reduction of total GHG emissions by their electrical requirements from internal producing revenue from external sales of some approximately 64.6% since 2000. sources, notably on-site cogeneration and of the power. We are closing in on our WWF reduction hydroelectric dams. target ahead of schedule.

• Sourcing 71% of our total energy Fuel Use for Steam electricity use needs from renewable sources.36 Pulp and Paper, 2013 pulp and paper, 2013 • Deriving 75% of our fuel energy usage from biomass.37

● Black liquor solids 41 ● Purchased – hydro 46 ● Bark and biosolids 33 ● Purchased – nuclear 14 ● Natural gas 18 ● Purchase – coal 10 ● Coal 3 ● Purchased natural gas 10 ● Bunker C oil 2 ● Purchased – other 2 ● Purchased steam 1 ● Self-generated cogeneration power 10 ● Landfill gas 1 ● Owned hydro power 8 ● Tire-derived fuel 0.5 ● Plastics 0.4 ● Light fuel oil 0.03

34. See note 18 for more information.

35. Based on an estimated reduction of 7,707,036 metric tons of CO2. Visit epa.gov/cleanenergy/energy-resources/calculator.html for more information. 36. Does not include wood products. Renewable sources include hydroelectricity (owned and purchased) and biomass used to produce steam and cogeneration electricity. 37. Does not include wood products. Includes bark and sludge, black liquor and landfill gas. Resolute Forest Products — 2013 annual report 49

This table provides a breakdown of the output capacity (based on installed capacity and operating expectations in 2014) available for internal consumption at our existing production facilities.

INTERNAL CONSUMPTION Energy Capacity Consumption Type (MW) (MWh/year)

Calhoun, Tennessee Cogeneration 64 373,000 Catawba, South Carolina Cogeneration 55 430,000 Coosa Pines, Alabama Cogeneration 30 105,000 Hydro-Saguenay, Quebec (7 dams) Hydroelectric 170 1,050,000 Thunder Bay, Ontario Cogeneration 51 220,000

This table shows the facilities where we currently produce electricity to sell externally as power produced from renewable sources at favorable rates, almost all of which we buy back for use in our operations:

EXTERNAL SALES Energy Capacity Annualized sales Type (MW) (MWh/year)

Dolbeau, Quebec Cogeneration 28 192,000 Gatineau, Quebec Cogeneration 15 110,000 Saint-Félicien, Quebec Cogeneration 43 300,000 Thunder Bay, Ontario Cogeneration 65 390,000

Together, all four of our cogeneration assets TRACKING AND REDUCING Resolute as an environmental supplier of from which we sell electricity externally GREENHOUSE GAS EMISSIONS choice and contributes to strengthening reduced our costs by approximately our overall competitiveness. At the end $45 million, not including other operational Reducing our carbon footprint by enhancing of 2013, our total GHG emissions were efficiencies realized with the operation of the the energy efficiency of our facilities is an reduced by 64.6% since 2000, and our cogeneration assets. important focus of our operational strategy. total yearly GHG emissions amounted to Having a positive environmental impact 4.2 million metric tons of carbon dioxide

A good example of our investments in through climate mitigation efforts and equivalents (CO2e). renewable energy projects is the construction energy-efficiency projects aligns well with of an industrial wood pellet plant adjacent company efforts to manage operating costs to our Thunder Bay sawmill. This new plant and GHG emission reductions. will convert sawdust and shavings into a reliable source of renewable energy. We have Our participation in the WWF Climate a 10-year agreement to supply Ontario Savers program has enhanced our Power Generation’s Atikokan station with GHG reduction commitment. Our industry- 45,000 metric tons of pellets annually. leading emission reduction target positions Resolute Forest Products — 2013 annual report 50

ENERGY AND CLIMATE CHANGE (cont’d)

We are also constantly evaluating and In addition to incremental improvements Other mill environmental performance improving our manufacturing processes around energy efficiency, having a detailed indicators were also affected by the closure in light of their energy efficiency by inventory of our scope 1 and 2 emissions is of four paper machines at four of our implementing effective projects in order to crucial to identifying where they stem from mills during the course of 2013. Closing reduce our manufacturing costs and carbon and to evaluating where there is potential for one machine in a multi-machine mill site footprint. Examples include: emission reductions. We are also progressing often results in incrementally higher water in our work to track scope 3 emissions38 and consumption and fiber loss for the remaining • A $12 million investment at our Coosa Pines full reporting is planned to start in 2015. machine(s) on a tons-produced basis (Alabama) mill replacing four coal-fired because of a loss of efficiencies of scale. boilers with two new natural gas-fired Total GHG emissions were slightly higher package boilers. in 2013 compared to 2012 as a result of • A $10 million investment at our the addition, as of 2013, of data from the Saint-Félicien (Quebec) mill to convert three mills we acquired with Fibrek, as from heavy fuel oil to natural gas. well as the restart of the Dolbeau and Gatineau (Quebec) mills in October 2012 • A $16 million investment at our Grenada and May 2013, respectively. (Mississippi) newsprint operation to convert the thermo-mechanical pulp (TMP) When measured on a per-ton basis, our to inter-stage screening long-fiber refining. total direct and indirect GHG emissions This technology will allow us to reduce decreased by 3% compared to 2012 levels. our electrical energy consumption used to manufacture mechanical pulp at this site. This, in turn, will directly contribute to reducing our scope 2 emissions.

Carbon footprint G reenhouse Gas Emissions pulp and paper Mills, 2013 Over 2000 Levels pulp and paper mills, 2000-2013

Millions mt CO2e kg CO2e/mt 12 1,000 900 10 800 700 8 600 6 500 400 4 300 200 2 ● Scope 1: 100 Direct emissions 0 0 from production 40% 2000 2011 2012 2013 ● Scope 2: ■  Indirect emissions related Total absolute (direct) to purchased electricity ■ Total absolute (indirect) and steam 60% ■ Total intensity (direct + indirect)

38. Scope 3 GHG emissions are all indirect greenhouse gas emissions not covered in scope 2, such as emissions from the production of purchased materials, or transportation activities in vehicles not owned or controlled by the company. “Being a member of WWF’s global Climate Savers program requires a substantial and meaningful commitment, as well as sectoral leadership. Resolute’s target to reduce GHG emissions by 65% below 2000 levels demonstrates just that. In making tangible progress toward that target, Resolute is not only increasing their own efficiencies, and cutting costs as a result, but also raising the bar for other companies in their industry.”

— World Wildlife Fund (WWF) Canada

Kénogami paper mill and Hydro-Saguenay hydroelectric operations (Quebec) Resolute Forest Products — 2013 annual report 52

Kénogami (Quebec) paper mill Resolute Forest Products — 2013 annual report 53 MILL ENVIRONMENTAL PERFORMANCE

our commitment ENVIN RO MENTAL Two of the Fibrek mills acquired in 2012 as MANAGEMENT SYSTEMS well as our Dolbeau (Quebec) and Gatineau Our operations have an environmental (Quebec) paper mills, which resumed impact through the consumption of Environmental performance is managed operations in 2012 and 2013, respectively, and resources and the generation of waste, as at the local level with oversight from 8 wood products facilities are in the process well as through air emissions. We seek to the highest levels of the organization. of implementing an ISO 14001-certified EMS. minimize these impacts and to go beyond Guided by our environmental policy, mill minimum requirements by focusing on environment coordinators are responsible Air Emissions and Waste Generation continuous improvement and by establishing for ensuring compliance with local laws The pulp and paper manufacturing process environmental management systems (ESM) and regulations, as well as facilitating produces emissions such as carbon dioxide

at all our operating sites. continuous improvement. The coordinators (CO2), sulfur dioxide (SO2), nitrogen work closely with corporate environment oxides (NOx) and total particulate matter managers to identify and manage the (TPM). We manage these emissions what we are doing issues most relevant to a specific operation. primarily through generally accepted In addition to our EMS structure, we Each facility identifies key performance pollution control technologies, such as are implementing mill-level efforts to indicators (KPIs) for which reduction targets electrostatic precipitators, and by reducing continuously improve environmental are set annually. This approach was chosen our consumption of fossil fuels. In fact, performance in five key areas: to best reflect the different geographic and we are in the process of phasing out coal at technological contexts of each operation. our Calhoun (Tennessee) and Coosa Pines • Air emissions KPIs are monitored at both the mill and (Alabama) mills by switching to natural gas. • Waste generation corporate levels. This will contribute to reducing company- • Water management wide emissions of SO , TPM and CO . • Environmental incidents 2 2 All of our operations have an EMS in place. • Key chemicals In 2013, 18 out of 22 pulp and paper mills, 9 out of 18 wood products facilities39 and 8 out of 9 woodlands operations had implemented an ISO 14001-certified EMS.

Fiber Loss Total suspended Solids, Biochemical Oxygen Demand Pulp and paper Mills, 2011-2013 Pulp and paper Mills, 2011-2013

Thousands of mt kg/mt Thousands of mt kg/mt 350 60 14,000 2.0 1.8 300 50 12,000 1.6 250 10,000 40 1.4 200 8,000 1.2 30 1.0 6,000 150 0.8 20 100 4,000 0.6 0.4 10 2,000 50 0.2 0 0 0 0 2011 2012 2013 2011 2012 2013 2011 2012 2013

BOD5 TSS ■ Total Fiber Loss ■ Absolute ■ Intensity ■ Intensity

39. Total wood products facilities does not include Opitciwan and Produits Forestiers Petit-Paris (Quebec), nor Manseau (Quebec), which closed in 2013. Total ISO 14001-certified wood products facilities does not include our La Doré (Quebec) remanufacturing site. Resolute Forest Products — 2013 annual report 54

MILL ENVIRONMENTAL PERFORMANCE (cont’d)

The U.S. Environmental Protection Agency We will report on air emissions and landfilled This increase can be explained in part by enacted the Boiler Maximum Achievable waste in our upcoming 2013 GRI-compliant the restart of operations at our Gatineau Control Technology (MACT) rule in sustainability report. and Dolbeau (Quebec) mills, and by the December 2012 that will impose new limits acquisition of the three Fibrek mills, which Water Management on emissions of various contaminants, expanded our mill network. Papermaking is a water-intensive process. including particulate matter, carbon We reuse water as much as possible monoxide, mercury and hydrogen chloride For 2014, we set a target to reduce and return 95% to the environment. from boilers as of 2016. We are in the environmental incidents by 10% over 2013. The remaining 5% is captured in the end process of implementing our company-wide To support this goal, we have incorporated product or evaporated in manufacturing. compliance strategy. With the exception of environmental risk audits into our three-year All the water we use passes through primary our Augusta (Georgia) and Catawba (South compliance audit to identify improvement and secondary effluent treatment prior Carolina) mills, the rest of our U.S. facilities areas. We have also incentivized employees to being returned to the environment. are already operating in compliance with to reach our 2014 environmental incident In addition, we voluntarily report to the this rule. reduction goal by incorporating the target Carbon Disclosure Project’s (CDP) Water as an element of our annual short-term Disclosure program and continually work We have an opportunity to reduce incentive plan. to improve our understanding of the impact waste through the efficient use of fiber. of our water footprint. Key Chemicals By reducing the amount we lose through Our manufacturing processes require the processing, we can minimize the cost Environmental Incidents use of chemicals to improve the brightness of effluent treatment and minimize the Every incident at our pulp and paper mills, of our pulp, to treat our effluent and for pH waste sent to landfill. The company’s sawmills and woodlands operations, as well control. Below is a list of the key chemicals operational excellence team conducts as at our hydroelectric power facilities, is we used in 2013. fiber loss blitzes at priority mills to drive tracked. In 2013, we fell short of our 10% efficiency, and senior management reviews reduction target over 2012. There were progress toward the achievement of fiber 3 class 1 incidents and 61 class 2 incidents.40 efficiency on a monthly basis.

Water discharged 41 Pulp and paper Mills, 2011-2013 Key Chemicals 2013

3 Sodium hydroxide (thousands of dry metric tons) 116 Millions of m3 m /mt 450 70 Sodium chlorate (thousands of dry metric tons) 79 400 60 Sulfuric acid (thousands of dry metric tons) 69 350 50 Sodium bisulfite (thousands of dry metric tons) 16 300 40 Urea (thousands of metric tons) 14 250 Sodium hydrosulfite (thousands of dry metric tons) 11 200 30 150 Sulfur (thousands of dry metric tons) 5.3 20 100 Borol (thousands of dry metric tons) 2.8 10 50 Sulfur Dioxide (thousands of dry metric tons) 1.4 0 0 2011 2012 2013

■ Absolute ■ Intensity

40. Class 2 incidents include events that present a risk of moderate adverse environmental impact, contamination, liability and/or damage to the company’s reputation, such as regulatory charges, fines and the initiation of legal action against the company. 41. Materials used for pulp and paper production only, except for logs (supplied to sawmills). Unlike other information provided in this report, all data is based on 100% of production, including unconsolidated entities in which we have noncontrolling interests. Resolute Forest Products — 2013 annual report 55 Resolute Forest Products — 2013 annual report 56 PRODUCT STEWARDSHIP

our commitment The Align brand’s thermo-mechanical Our Calhoun (Tennessee) mill made process, on the other hand, keeps the lignin significant advancements in reducing its As part of our commitment to sustainability along with the cellulose. The lignin then environmental footprint in 2013, which and product diversification, we are looking serves to give the mechanical pulp two qualify certain of its products to become into developing innovative products and things: higher opacity and greater bulk. part of the Align family. One of the most practices to grow market share and extend And because this process keeps the lignin important changes involved shifting the reach of our environmentally friendly in the sheet, it requires only half the amount Calhoun’s energy source from coal to products. We strive to offer products of wood fiber needed to make traditional natural gas, considerably reducing the that help our customers reduce their uncoated freesheet. mill’s GHG emissions. environmental footprint. It’s not just the wood fiber savings that Learn how our Align grades have significantly what we are doing are significant compared to freesheet less environmental impact at alignpaper.com. competitive papers. A life cycle assessment Finding new markets (LCA) demonstrated that the uncoated Exploring fiber innovation in recycling grades in the Align portfolio (Ecopaque Offset, Ecopaque Laser, Equal Offset and At Resolute, we promote research projects To extend the reach of our recycled pulp Equal Book) have a carbon footprint that to facilitate the commercialization of products, we are looking into broadening is 85% lower than that of the average UFS innovative products such as biochemicals, their uses. Last year, we began work to have over its life cycle. That means that using bioenergy and biomaterials. We are currently our recycled kraft pulp meet U.S. Food and 100 metric tons of Align uncoated instead evaluating opportunities to diversify into Drug Administration criteria for the food of UFS can eliminate the same amount of renewable energy products. Among these: packaging market. greenhouse gas emissions as produced • Biofuel production technologies: annually by 22 passenger cars. We are leveraging our strategic expertise Growing our Align in responsible forest harvesting and eco-friendly brand Align uncoated grades are also produced access to forest biomass to investigate using 63% less energy compared to the Our AlignTM family of environmentally various technologies that could potentially average UFS. On coated grades, the LCA responsible papers requires up to 50% commercially produce biofuels; and found that Align’s ResoluteMax paper has a less wood fiber than freesheet. With a carbon footprint that is 35% lower than that • Pulp and paper process optimization: smaller environmental footprint than of the average coated freesheet over its life We are focused on reducing waste and traditional offset papers, Align papers also cycle and uses 25% less energy to produce. increasing efficiency in our manufacturing offer higher opacity and bulk at a lower processes, while efficiently managing basis weight than traditional freesheet. In March 2014, we continued to expand and increasing the value of by-products, This helps our users reduce paper, our Align™ brand of environmentally including remanufacturing production waste postage and transportation costs. responsible and budget-friendly papers by into biochemical and biomaterial products. adding two more superbrite grades, Hybrid With our thermo-mechanical pulping process and Alternative, to our existing offerings of that applies heat and mechanical grinding Ecopaque, Equal Offset and ResoluteMax. to wood fibers, 90% of the wood fiber is used. In the chemical process used to make competitive traditional uncoated freesheet (UFS) from kraft pulp, the lignin, which is the organic “glue” that holds the wood fibers together, is removed, and about half of the original wood fiber is used. Resolute Forest Products — 2013 annual report 57 Q&A With Marie-Philippe Drouin, Junior Engineer, Kénogami mill in Jonquière, Quebec

What do you do What opportunity does at the Kénogami mill? your work offer you? I’m a chemical engineer and I work on I haven’t been here six months and already projects that help make the mill’s thermo- I’ve seen far more engineering than I ever mechanical pulping process more efficient. covered in school. I have friends who went Many of my projects involve optimizing to work for engineering consulting firms. wood fiber length and improving the They work on one part of a process and they operation’s energy efficiency. One big get a narrower focus. Here, my work goes effort we are currently focused on beyond chemical engineering. I work closely is improving the fault detection system with mechanical and electrical engineers and on our supercalender machine. I’m always learning from them. There’s also a lot of retirements coming up so there is How did you get started opportunity for advancement in this field. with Resolute? How will this work I studied chemical engineering at help your career? Laval University and started working for Resolute through a co-op program in 2013. This is a great opportunity to learn in The mill’s general manager at the time, a collaborative setting. Not everyone Michel Leroux, came to present a research What do you think of working gets this kind of framework that supports project opportunity to our class, and in an industrial environment? learning as part of a team. Because my work I took it on as a grad project. This got me introduces me to many different areas of I’m not a person who likes to spend all her interested in pursuing a career at Resolute, engineering, I know I will become a better time behind a desk, and working at the mill and I eventually applied and got hired as engineer as a result. is a very active job. There are some great part of the company's internship program challenges to resolve here. If you don’t like for engineers. What do you think about routine, this is a great environment. It’s also working in the forest a very ‘real’ job because you see the raw What interested you products industry? material at the start and the finished product about working in the forest at the other end. People have been talking about paper products industry? disappearing for years, but paper will When I was working on my grad project Did you worry about safety? continue to have its place in communications. for Resolute, I would often call people at Mills that are working to be competitive When friends first heard I was going to work the mill to get information and, interestingly, will always see possibilities. I believe in the in pulp and paper they would tell me to be they didn’t always have a ready answer viability of Resolute and of the Kénogami careful, that paper mills could be a dangerous because things are always changing at mill. Of course it’s always hard to know, place. But Resolute provided me with training a pulp and paper mill. It made me realize but I think that if we continue to work the before I was even allowed on the mill floor. that papermaking is a dynamic field, always way we are working here and focus on finding I have seen the safety work Resolute is doing evolving. Before I started working for the efficiencies that bring down our operating first hand — all the reporting, the training, company, I thought my challenges would costs, we can be here for a long time. the careful use of eye protection, gloves, all be pretty straightforward: You take some boots and hats. It’s all an important part wood chips, refine and bleach them and of the culture here and it’s something make some paper. It’s a process that has I personally value. The Kénogami mill existed for generations, and I didn’t really recently achieved 996,000 hours of work think there was much to improve upon. without OSHA incidents. Some of my hours But every day we are improving the process, contributed to that and it makes me proud. working on the details that will enhance quality, efficiency or cost, and help make us competitive in a challenging marketplace. Resolute Forest Products — 2013 annual report 58 HUMAN RESOURCES

our commitment WORKFORCE AND TURNOVER LABOR RELATIONS Our long-term competitiveness is tied As of December 31, 2013, we employed Constructive labor and management relations to our ability to recruit, develop and retain approximately 8,400 people, of whom are at the foundation of good human resource top-quality employees with the right approximately 6,200 were represented management and, as such, are very important skills. We are committed to implementing by bargaining units. to Resolute’s business. Regular dialogue with new human resource practices to ensure union leaders, local union representatives and employee retention and workforce renewal. We experienced a turnover rate of 11.7%, employees at all our operations ensures that We are focused on building a company half of which was the result of retirements these key stakeholders are kept informed culture where results-driven and and the other half was natural attrition. and engaged. action-oriented employees want to be and where natural leaders can grow. RENEWAL AND RETENTION STRATEGY On February 17, 2014, we announced a five-year renewal of the master collective We believe that our employees are our agreement covering four unionized U.S. what we are doing strongest asset, and that our organization pulp and paper mills. The agreement covers is bettered through investing in the Some highlights of our 2013 work include: about 1,500 employees, represented by recruitment of new talent and developing the United Steelworkers, the International • Hired 921 new employees; the competencies of our people. Over the Brotherhood of Electrical Workers and next few years, many of our long-standing • Raised Resolute’s profile as an employer the United Association of Journeymen and workers will be taking their well-deserved using several channels: from enhancing Apprentices of the Plumbing, Pipefitting retirement, and we will need to attract skilled our social media presence (Twitter, and Sprinkler Fitting Industry of the U.S. candidates who are motivated and eager Facebook, YouTube) and participating and Canada (the “UA”). The four mills, to learn. To rise to this challenge, we have in career days hosted by Cegeps (colleges) together with our other U.S. pulp and paper built a workplace where our employees can and universities to sustaining a recruiting operations, none of which has an expiring learn, grow and contribute. presence in all our operating communities; collective agreement, represent almost half of our pulp and paper production capacity. • Maintained our labor renewal rate and Our long-term recruitment strategy includes are on target to hire 4,250 new employees revitalizing our recruitment processes, The collective agreements covering over the 2014-2018 period; leveraging social media, creating new approximately 2,000 employees in Canada • Launched our official internship and co-op communication tools and promoting our are scheduled to expire in 2014, affecting placement programs for engineers; employer brand: “Resolute. Jobs where eight of our pulp and paper operations you grow.” Another key aspect of our • Hired our first 10 engineering graduates and approximately 35% of our pulp and recruitment strategy is strengthening through our internship program, providing paper production. We also have collective the close relationships we have with the them with opportunities to accelerate agreements covering 750 employees communities in which we operate. their professional development toward in 13 woodlands and sawmill operations leadership roles; and in Canada that have either expired or are Our human resource teams frequently scheduled to expire in 2014. • Adopted a policy on workplace participate in employment fairs, open diversity, and revised and launched house events at schools and other our equal employment opportunity, community activities. anti-discriminationand­ har assment prevention policies. Resolute partnered with Cégep (College) de Saint-Félicien (Quebec) and launched a certificate program in pulp and paper manufacturing in January 2013. The program includes two internships of 120 hours each at one of our mills. 13 students graduated from this program in 2014. jobs where you grow

resolutefp.com Resolute Forest Products — 2013 annual report 60 HEALT AND SAFETY

our commitment SAFETY MANAGEMENT SYSTEM SAFETY INNOVATION We continue to diligently pursue our goal Our health and safety policy and On November 7, 2013, our Maniwaki of establishing a “Total Safety Organization” management system apply to all employees (Quebec) sawmill won a regional CSST at Resolute by embedding a day-to-day and contractors worldwide. Our SMS (Quebec’s Health and Safety Commission) safety-focused culture, where all employees provides for training and awareness, audits award for innovation in workplace safety. put safety first in making their daily and monitoring, and employee engagement The award is linked to a safety improvement decisions about performing their job tasks. through the use of joint health and safety at the planer, where workers must replace Our commitment for 2014 is to achieve committees at all the operations we manage. the knives on a daily basis. The Maniwaki an OSHA incident rate of 0.99 or below, All employees receive specific training sawmill designed a lifting system that with a long-term goal of zero incidents and on safety policies and procedures to ensure eliminates components without fasteners zero injuries in all our operations. compliance with these requirements and and allows for a more ergonomic and safe expectations for performing their tasks safely. work posture, with minimal physical effort. All policies are required to be reviewed Innovation has made the task safer and what we are doing annually at each operation, ensuring more efficient, and the system can be used Our health and safety focus is driven by our consistent adherence. by other Resolute sawmills. company values and our health and safety policy, which is centered on the three pillars Our board of directors requires audits of OSR HA ATE 2007-2013 AND of our safety management system (SMS). each operation for compliance with the SMS, 2014 TARGET PER 100 EMPLOYEES Those pillars are: which we carry out in a three-year cycle. Number of injured employees • One-on-one discussions: These allow us to In 2013, our company-wide injury severity 520 307 184 171 145 107 90 strengthen our expectations and employee rate was 25.85, a 24% reduction compared commitment to work safely; 3.06 to 2012.42 This severity rate allows us to • Near-miss reporting system: Such a measure the actual impact from injuries system allows for a high level of employee on the health of our employees. 1.95 engagement in our health and safety 1.51 1.51 1.43 processes; and 1.13 1.02 0.99 • Hazard recognition: This is performed prior to undertaking any tasks, allowing employees to evaluate and hedge against 2007 2008 2009 2010 2011 2012 2013 2014 safety-related risks, which reduces the target potential for injury.

In 2013, we: Resolute’s Approach to Building a “Total Safety Organization” • Achieved a 16% reduction in total STRUCTURE recordable injuries and a 37% reduction in lost time incident cases; and >>Safety management system (SMS) >>Performance measurement and reporting >>Reinforcement of positive behavior • Achieved an OSHA incident rate of 1.02, >>Clearly defined roles and responsibilities slightly higher than our established target of 1.0 but also our best annual safety performance on record. CULTURE >>Safety is a value Total Safety >>All injuries are preventable — there are no accidents Organization >>Safety is about people, not numbers >>Leaders set the example

INDIVIDUALS

>>Do not compromise safety >>Commit to eliminating all injuries >>Address causes, not blame 42. The severity rate is calculated by adding the number of workdays lost to the number of restricted workdays >>Everyone is accountable due to injury, multiplied by 200,000 hours worked, divided by total number of hours worked. Resolute Forest Products — 2013 annual report 61 C OMMUniTY INVOLVEMENT

our commitment We believe that this collaborative approach While Resolute strongly believes in the right fosters trust and partnership with the groups of free speech and has multiple channels We are committed to building solid and individuals most directly impacted by in place to encourage discussion and community relations by maintaining ongoing our operations. The lines of communication dialogue, we do not agree that freedom outreach with stakeholders and developing are always open, and we are listening. of expression extends to slander and libel. key strategic partnerships. Following In December 2012, Greenpeace Canada through on our commitment from 2012, issued a series of misleading, deceptive and we launched information-sharing groups Dialogue on factually inaccurate allegations concerning in key operating areas. We also focused sustainable forestry Resolute. Resolute provided clear proof that on cultivating our relationships with First While dialogue at the local level is essential these allegations were false. Nations groups, with whom we share a for building trust, it is also important to common interest in ensuring that our forests have open and honest conversations about After being cautioned that Resolute would continue to provide for future generations. broader environmental, social and economic begin legal proceedings, Greenpeace issues facing the forest products industry. admitted that the allegations in question Resolute continues to partner with groups made by it were untrue and issued a rare whose actions make a positive difference. During 2013, Resolute remained an active formal retraction in March 2013. Since then, And we are constantly inspired by our and committed participant in the Canadian unfortunately, Greenpeace has persisted employees who get involved in their Boreal Forest Agreement (CBFA), which in promoting certain misinformation communities, participating in countless brings together environmental groups concerning Resolute. events and initiatives and supporting many and forest products companies to identify important causes. solutions for sustainable development in Resolute has adopted a firm stance in the Canada’s boreal forest. Despite a breakdown face of market campaigns by Greenpeace in negotiations among parties in May 2013 Canada, including proceeding with legal what we are doing on joint plans to further support conservation action with respect to falsehoods concerning efforts and forest economies, Resolute is our operations. This decision was not taken Resolute’s information still a strong supporter of a collaborative lightly. Resolute has a responsibility to sharing program approach. We believe that to achieve protect its own reputation and that of our Through Resolute’s information-sharing successful outcomes, the CBFA must do valued employees, customers and partners. program, we maintain strong relationships a better job of directly engaging First with key members of the communities where Nations groups and the communities whose we operate. The program was launched as livelihoods are most impacted by the issues part of an initiative to better understand discussed, as well as provincial governments. local issues and concerns. Members of each facility’s management team meet While structured initiatives such as the CBFA regularly with local First Nations groups, have the potential to deliver positive and governments, business partners, chambers mutually beneficial outcomes, Resolute also of commerce, environmental organizations, supports other forums for open exchange. educational institutions, representatives In keeping with our approach to transparency from other industries, retirees and others. and sustainability, we launched, in 2013, These meetings are designed to provide a a social media platform called Forum Boréal forum for discussion on a range of issues to share information about the management of mutual importance to the participants — of the boreal forest and foster discussion from harvest area allocation and energy with Quebec communities where the conservation to controls for noise pollution. company operates. To participate in this dialogue, visit the French language site at forumboreal.com. An English version of this social media platform will be launched in 2014. Resolute continues to partner with groups whose actions make a positive difference. And we are constantly inspired by our employees who get involved in their communities, participating in countless events and initiatives and supporting many important causes.

Wabigoon (Ontario) tree nursery Resolute Forest Products — 2013 annual report 63

COMMUNITY INVOLVEMENT (cont’d)

Giving back to our national We have proudly partnered with the • Montreal (Quebec): A group of and local communities WWF as a member of their Climate Savers sustainability-minded employees rallied program since 2010. (See page 48 for more to support Les Amis de la Montagne in Resolute strives to have a positive and information.) In 2013, we expanded that 2013, helping to plant over 100 trees in meaningful impact in our national and partnership to join the organization’s Montreal’s iconic Mount Royal Park and local communities, and supports many Living Planet @ Work program. This participating in a number of fundraising registered charitable organizations each year. program provides support to companies activities throughout the year, such as As strong believers in a balanced approach who wish to engage their employees around the annual Tuques bleues snowshoe race. to sustainability, our major charitable sustainability. With the support of program These activities supported Resolute’s contributions are focused on environmental representatives, employees at our Montreal donation of C$50,000 to the organization and social programs. Through a structured corporate office formed a Green Team, in 2013. approach to donations, we choose programs and have participated in events and and partners that reflect our corporate values. • In metropolitan areas across the United initiatives such as an energy conservation States, employees from Resolute’s awareness campaign, an office-wide In 2013, we made charitable contributions recycling divisions worked closely with sustainability question-and-answer session, of approximately $1 million. At Resolute their local chapters of Keep America and the Great Canadian Shoreline Clean-Up. operations, each facility has its respective Beautiful, with a strong focus on promoting contributions budget, provided that 50% recycling in schools and businesses. of the funded activities fall within our Employees Who Inspire • Resolute employees across the strategic funding areas. Last year, donations We are proud of the important contributions organization served their communities made by Resolute facilities supported causes our employees make in the communities through individual initiatives such as diverse as environmental conservation, where they live and work. Sharing our as membership in local chambers of literacy promotion, heart disease research, time and resources is part of being a good commerce, participation in volunteer fire bullying awareness, local children’s neighbor and helps ensure we have a or rescue squads, and volunteering time hospitals, amateur sports programs, cultural positive impact on the lives of others. at shelters for the homeless. organizations, domestic violence prevention and hunger relief. And proving that even Here are just a few examples of efforts Through Resolute’s safety milestones small gestures can make a big difference, undertaken by Resolute employees in 2013: program, facilities receive cash prizes from Resolute mills further supported their our corporate office when they achieve communities in 2013 through actions such • Calhoun (Tennessee): Employees at our 250,000 or 500,000 work hours without as donating rolls of paper for a children’s Calhoun mill formed and have operated an injury. The funds are then donated coloring contest, purchasing computers the Goodfellows program for almost to local causes of the facility’s choosing. for a classroom, and providing wood chips 60 years. Since its beginnings, the program Countless deserving organizations have for a local playground. has provided assistance to local families received donations through the program, in need. In 2013, the Goodfellows prepared from the Société Alzheimer de la Sagamie As long-time supporters of United Way/ and delivered Christmas baskets to (Sagamie Alzheimer’s Foundation) in Centraide, Resolute encourages site- 275 families. Alma (Quebec), to the Grenada Soup specific campaigns to raise funds towards • Saint-Félicien and Lac-Saint-Jean Kitchen in Grenada, (Mississippi). Over the organization’s efforts to tackle a wide (Quebec): Two human resource managers the past five years, through the safety range of social issues. Recognizing the from Resolute teamed up to co-chair 2013’s milestones program, our Kénogami importance of education, we sponsored “Bicyclons avec la fondation,” a bicycle race (Quebec) mill alone has made C$60,000 in scholarship programs at various schools designed to raise funds for scholarships at local charitable contributions to Centraide, and became leading sponsors of Forces the local college, Cégep de Saint-Félicien. the Red Cross and other non-profits. AVENIR, a program that recognizes Under their leadership, the campaign students who are socially conscious, raised a record C$25,000 in support of active and responsible citizens. scholarship programs. Resolute Forest Products — 2013 annual report 64

COMMUNITY INVOLVEMENT (cont’d)

ONO TARI QUEBEC

Lasting Collaborations Fort William First Nation Atikamekw Council of Obedjiwan with First Nations On May 14, 2013, Resolute celebrated the The Opitciwan (Quebec) sawmill is a unique 10th anniversary of its Thunder Bay (Ontario) joint-venture operation that has operated In some of our operating communities sawmill, a unique business partnership successfully since 1999. The Atikamekw in Canada, First Nations peoples form between Resolute and the Fort William First Council of Obedjiwan owns 55%, while a large portion of the population. Resolute Nation. In 2012, the Thunder Bay sawmill Resolute owns 45%. The sawmill is recognizes and respects the cultural and also became the first facility in Canada to located on reserve land and employs social significance of Canada’s land, water nearly 80 community members. Resolute operate under regulations created by the and forests to its Aboriginal peoples, and has contributed to the maintenance of First Nations Commercial and Industrial we understand these resources are critical road access to the community, supported Development Act, which facilitates industrial to the future prosperity of Aboriginal infrastructure, assisted in the implementation development with First Nations on their land. communities. of the sawmill forestry service and entered The project’s ongoing success is the result of into wood purchase agreements with the our collaboration over the past 10 years with As outlined in our Aboriginal Peoples community. In September 2013, the sawmill the Fort William First Nation, the sawmill’s Policy, Resolute is committed to developing was awarded the prestigious Aboriginal 170 employees, the City of Thunder Bay, Business Leadership Award by the Forest and nurturing constructive relationships the governments of Ontario and Canada, Products Association of Canada and the with First Nations. A key aspect of this and the many contractors and suppliers that Canadian Council for Aboriginal Business, commitment is to engage in dialogue service the facility. in recognition of its exemplary history in the with Chiefs, Councils and Elders in each community, its commitment to sustainability, community located in our operating areas. Couchiching First Nation, the high quality of its production and a Through collaboration with them, we seek Mitaanjigamiing First Nation, number of other criteria. to explore mutually beneficial opportunities. Nigigoonsiminikaaning First Nation, Seine River First Nation, Kitigan Zibi Anishinabeg Public consultation is an essential step in We have maintained a partnership with the Lac La Croix First Nation, the sustainable forest management planning community of Kitigan Zibi Anishinabeg for Lac des Mille Lacs First Nation process, and Resolute actively engages First over 10 years, in which we have carried out In 2013, Resolute signed a memorandum Nations in the review of our harvesting plans forest management and harvesting activities of agreement with these six groups in the to ensure the company takes into account and paid a stumpage fee in exchange for Atikokan region of Ontario. The agreement all local environmental, social and economic volumes allocated to Kitigan Zibi by the is expected to generate significant mutually considerations. Quebec government. beneficial economic opportunities. While matters pertaining to authority and Additional Partnership Wabigoon Lake Ojibway Nation title to land are between First Nations and Opportunities Resolute assisted the Wabigoon Lake the provincial and federal governments of Ojibway Nation (Ontario) in establishing a Resolute has a number of partnerships Canada, Resolute has been referenced in a tree nursery in their community in the late with members of First Nations communities few cases of territorial claims and disputes, across Quebec and Ontario beyond those 1990s. The company has purchased more including in Barrière Lake and land east of mentioned above. Examples include: than one million trees annually from this Mistassini, in Quebec. We take these matters venture to support regeneration activities, • Working together to identify employment seriously and make every effort to support and has expanded this contract to 1.5 million and contracting opportunities; constructive dialogue in order to help trees per year. In 2013, Resolute forest • Providing support for educational identify positive solutions. regeneration coordinator John Lawson led programs; an educational session at the tree nursery, • Collaborating on wood purchase The examples that follow illustrate what in which children from the local elementary agreements, harvest planning, road is possible when we work together on construction and forest regeneration; school were invited to learn about sustainable economic initiatives. • Sharing of expertise in sustainable forest sustainable forest management. Members management and certification; of the community are also engaged in • Facilitating negotiations and providing identifying employment opportunities language translation support; and for the restart of our sawmill in Ignace. • Offering support with mapping of cultural landmarks.

These opportunities vary widely in their scope, from partnerships with one or two individuals to large business contracts. Resolute Forest Products — 2013 annual report 65 Q&A With Johnny Awashish, Process Controller at the Opitciwan sawmill43 in Obedjiwan, Quebec

What do you do at Opitciwan? the blueberry season. The mill also shuts What does a typical workday down in October for the moose and bear look like? hunt. Resolute really works with us on this and understands that this is an essential part I start work at 6:00 a.m. Typically I go to the of maintaining the community’s traditional woodyard first where I can get a sense of activities. It’s one of the reasons our how much product is going to be going out partnership with Resolute works. that day. I’m a process controller, so I’ll do things like look at the orders and check them What do you think is the against what the system says to make sure importance of the sawmill the numbers all match. If they don’t, I have in the community? to figure out why. Some of this work is about problem-solving, but mostly it’s about The sawmill definitely brings many controlling quality, reducing waste and opportunities to the community. People have generally just keeping your eyes open money to build a home and buy a car, and to find ways to help other employees do they have careers. But it wasn’t always like things more efficiently. that. At first, some people weren’t too happy about having a sawmill. They were worried How has your work about clear cuts and environmental issues. at the sawmill changed But now people understand more how it The Opitciwan sawmill won over the years? works. How harvest planning is done working the 2013 Aboriginal Forest with the Band Council. How protected areas I’ve been at the sawmill for 10 years now. Products Business Leadership like hunting territories are respected. In fact, When I started, frankly, it was just a job. Award. What does that mean I can think of some people who used to be But I was curious about how things worked to you and to the other opposed to harvesting who now ask: Hey, and why we did things the way we did. employees at the facility? when are you guys coming to do some cutting My bosses started to give me more I had heard about it, but I didn’t know much near my place? Because after a harvest, responsibilities because I asked a lot of of the details until we had a staff meeting to there’s a lot of new growth that comes up and questions and learned about the business. talk about the achievement. When they told moose love to eat young plants. Bears and They were patient with me and took the us about all the great businesses that had wolves follow the moose too. After a harvest, time to help me understand and grow. I had entered the competition and how the it’s not just trees that come back. Many of the the opportunity to pretty much do most decision to pick Opitciwan was based on animals come back too. of the jobs here and continue to look for things like how it worked with the opportunities to broaden my skills. community, our safety record, the quality What was your impression of of the product we put out and how we are the forest products industry What key challenge did you FSC-certified, it made us all proud. We keep before you took this job? explore in all the different the plaque in the employee break room. Has it changed since you began jobs you have done? It reminds us that what we do, we are doing your work? Reducing waste has always been a big very well. My dad worked in forestry, but he never area of interest for me. It’s an interesting really talked about it. It was just a job to him. challenge: How you can get the most What are some of the ways I guess I started out that way, but then I just useable cuts from each tree as opposed the sawmill works with got interested in how the sawmill worked to making wood chips, which sell for less. the community? and that led to doing much more stuff. It was pretty exciting to finally finish the big This is a First Nations community, and All the jobs that I’ve done here so far, they’ve installation of our new Canter-twin machine. there are a few traditional activities that really helped me learn a great deal about It can trim logs with great precision and that are a very important part of Atikamekw the industry. It’s an important industry that eliminates waste more than ever. culture. The sawmill respects that and we provides products we all use. And I know shut down production three times a year to from first-hand experience that it’s possible make sure everyone can participate in these to make those products in a way that activities. May is the goose hunt, August is respects the environment and the land.

43. Sociéte en Commandite Scierie Opitciwan is located in Obedjiwan (Quebec) and is an unconsolidated entity in which we have a 45% interest. Resolute Forest Products — 2013 annual report 66 Board of Corporate Directors Officers

Bradley P. Martin 2, 3 Richard Garneau Chairman of the Board; President and Vice President for Strategic Chief Executive Officer Investments, Fairfax Financial Holdings Limited Pierre Laberge Senior Vice President, Richard Garneau Human Resources President and Chief Executive Officer John Lafave Michel P. Desbiens 2, 3 Senior Vice President, Corporate Director Pulp and Paper Sales and Marketing Jennifer C. Dolan 1, 4 Corporate Director Yves Laflamme Senior Vice President, Richard D. Falconer 1, 2, 3 Wood Products, Procurement Corporate Director and Information Technology

JeffreyA . Hearn 2, 4 Jo-Ann Longworth Corporate Director Senior Vice President and Chief Financial Officer Alain Rhéaume 1, 3 Managing Partner, Trio Capital Inc. André Piché Senior Vice President, Michael S. Rousseau 1, 4 Pulp and Paper Operations Executive Vice President and Chief Financial Officer, Air Canada Richard Tremblay Senior Vice President, Ambassador David H. Wilkins 2, 4 Pulp and Paper Operations Partner, Nelson Mullins Riley & Scarborough LLP; Jacques P. Vachon Former U.S. Ambassador to Canada Senior Vice President, Corporate Affairs and Chief Legal Officer

Board Committees 1 Audit Committee 2 Environmental, Health and Safety Committee 3 Finance Committee 4 Human Resources, Compensation and Nominating and Governance Committee Resolute Forest Products — 2013 annual report 67 Shareholder Information

Annual General Meeting Investor Information Our annual meeting of stockholders will be and Financial Reporting held on Friday, May 23, 2014, at 10:00 a.m. Investor inquiries should be directed to (Eastern), at the Centre for Conservation Resolute’s Investor Relations department of Boreal Biodiversity, 2230 boulevard at [email protected]. du Jardin, Saint-Félicien, Quebec. Vous trouverez la version française Transfer Agent for Common Stock de ce rapport sur pfresolu.com. Computershare Trust Company, N.A. P.O. Box 30170, College Station, All figures reported in the document are Texas, 77842-3170, United States stated in U.S. dollars unless otherwise stated. 866 820-6919 (toll-free within the United States and Canada) 10-K Report 781 757-3100 Resolute Forest Products Inc. files its annual computershare.com/investor report on Form 10-K with the U.S. Securities and Exchange Commission, a copy of which Co-Transfer Agent (Canada) is included with this Annual Report to Computershare Investor Services Inc. Stockholders. Free copies (without exhibits) 100 University Avenue, 9th Floor are available upon request to Resolute’s Toronto, Ontario, M5J 2Y1, Canada Investor Relations department. The company’s 800 564-6253 (toll-free within SEC filings, annual reports to stockholders, the United States and Canada) news releases and other investor information computershare.com/investor can be accessed at resolutefp.com/investors.

Independent Registered Stock Listings Public Accounting Firm The shares of common stock of Resolute PricewaterhouseCoopers LLP Forest Products Inc. trade under the stock 1250 René-Lévesque Boulevard West symbol “RFP” on both the New York Stock Suite 2800 Exchange and the Toronto Stock Exchange. Montreal, Quebec, H3B 2G4, Canada Resolute Forest Products Investor Relations 111 Duke Street, Suite 5000 Rémi G. Lalonde Montreal, Quebec, H3C 2M1, Canada Vice President, Investor Relations 514 875-2160 or 1 800 361-2888 514 394-2345 [email protected] For a full list of contacts, visit resolutefp.com/contact. Media Seth Kursman Vice President, Corporate Communications, Sustainability and Government Affairs 514 394-2398 [email protected] Graphic Design / CG3 inc. / CG3 Design Graphic About resolute forest products

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, market pulp and wood products. The company owns or operates over 40 pulp and paper mills and wood products facilities in the United States, Canada and South Korea, and power generation assets in Canada. Marketing its products in close to 90 countries,

Resolute has third-party certified 100% of its managed woodlands to at least one of three 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 and other member companies of the Forest Products Association of

Canada, as well as a number of environmental organizations, are partners in the

Canadian Boreal Forest Agreement. The group works to identify solutions to conservation issues that meet the goal of balancing equally the three pillars of sustainability linked to human activities: environmental, social and economic.

Resolute is also a member of the World Wildlife Fund's Climate Savers program, in which businesses establish ambitious targets to voluntarily reduce greenhouse gas emissions and work aggressively toward achieving them. resolutefp.com RESOLUTE FOREST PRODUCTS   ANNUAL REPORT

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