NOTICE OF MEETINGS AND MANAGEMENT PROXY CIRCULAR PERTAINING TO A PLAN OF COMPROMISE AND ARRANGEMENT UNDER THE COMPANIES’ CREDITORS ARRANGEMENT ACT (CANADA) CONCERNING, AFFECTING AND INVOLVING CATALYST PAPER CORPORATION 0606890 B.C. LTD. CATALYST PAPER GENERAL PARTNERSHIP CATALYST PAPER ENERGY HOLDINGS INC. CATALYST PULP AND PAPER SALES INC. CATALYST PULP OPERATIONS LIMITED CATALYST PULP SALES INC. ELK FALLS PULP AND PAPER LIMITED PACIFICA POPLARS LTD. CATALYST PAPER HOLDINGS INC. CATALYST PAPER RECYCLING INC. CATALYST PAPER (SNOWFLAKE) INC. CATALYST PAPER (USA) INC. PACIFICA PAPERS SALES INC. PACIFICA PAPERS US INC. PACIFICA POPLARS INC. THE APACHE RAILWAY COMPANY March 23, 2012 This circular is being distributed to certain creditors of Catalyst Paper Corporation and its subsidiaries listed above by and on behalf of such entities in connection with the meetings called to consider the plan of compromise and arrangement proposed by them that are scheduled to be held at the times and places set out in the attached Notices of Meetings. These materials require your immediate attention. You should consult your financial, tax or other professional advisors in connection with the contents of these materials. Should you have any questions regarding voting or other procedures or should you wish to obtain additional copies of these materials, you may contact PricewaterhouseCoopers Inc., which acts as the Monitor, at PricewaterhouseCoopers Inc., 250 Howe Street, Suite 700, Vancouver, British Columbia, V6C 3S7 (Attention: Patricia Marshall), facsimile: 604-806-7070 or telephone: 604-806-7806 or email:
[email protected] or access the Monitor’s website at www.pwc.com/car- catalystpaper. March 23, 2012 To: The affected creditors (the “Affected Creditors”) of Catalyst Paper Corporation (“Catalyst” or the “Corporation”), 0606890 B.C.