www.resolutefp.com

PRINCIPLED LEADERSHIP

2016 Annual Report SHAREHOLDER TABLE OF CONTENTS INFORMATION

Resolute Forest Products is the proud recipient 2 2016 at a Glance Annual General Meeting Investor Information Form 10-K of four awards for our 2015 Annual Report. We and Financial Reporting were honored with two awards from the prestigious 4 Letter from the Chairman and Our annual meeting of stockholders will Resolute Forest Products Inc. fi les its MerComm Annual Report Competition (ARC) – the President and Chief Executive Offi cer be held on Thursday, May 25, 2017, Alain Bourdages annual report on Form 10-K with the gold in the written text category and bronze in 8 Who We Are the fi nancial data category. We also received two at 10:00 a.m. (Eastern) at the Museum Vice President U.S. Securities and Exchange Commission International Mercury awards for outstanding 9 Business and Sustainability Strategy Center at 5ive Points, 200 Inman Street Investor Relations (SEC), a copy of which is included with achievement in professional communications – gold 10 Resolute’s 2017 Business Priorities East, Cleveland, Tennessee 37311, 514 394-2233 this annual report to stockholders. Free for overall excellence in the combined fi nancial United States. [email protected] copies (without exhibits) are available upon and sustainability report category, and honors for 11 Our Approach to Sustainability excellence in writing in the annual report category. request to Resolute’s Investor Relations department. The company’s SEC fi lings, 12 ECONOMY Transfer Agent Media Inquiries annual reports, news releases and other for Common Stock 13 Financial Highlights Seth Kursman investor information can be accessed at 15 Market Pulp Computershare Trust Company, N.A. Vice President www.resolutefp.com/investors. 16 Wood Products P.O. Box 30170, College Station, Corporate Communications, Texas, 77842-3170, United States Sustainability and Government Affairs 19 Woodlands Stock Listings 22 Tissue 866 820-6919 (toll-free within 514 394-2398 BUILDING THE RESOLUTE the United States and Canada) [email protected] The shares of common stock of Resolute resolutefp com OF THE FUTURE 24 Newsprint AnnualReport 781 575-3100 Forest Products Inc. trade under the stock 27 Specialty Papers www.computershare.com/investor symbol RFP on both the New York Stock Vous trouverez la version française Exchange and the Toronto Stock Exchange. 28 ENVIRONMENT de ce rapport au www.pfresolu.com. Co-Transfer Agent – Canada 29 Highlights Resolute Forest Products Computershare Investor Services Inc. 30 Environmental Performance 111 Duke Street, Suite 5000, 100 University Avenue, 9th Floor, 33 Accomplishments Montréal, Quebec, H3C 2M1, Canada Toronto, Ontario, M5J 2Y1, Canada The inside pages of this report are printed on 514 875-2160 or 1 800 361-2888 ResoluteBrite 83 Plus 60 lb (89 g/m2) paper, 800 564-6253 (toll-free within manufactured at Resolute Forest Products’ 36 SOCIETY the United States and Canada) For a full list of contacts, visit Catawba (South Carolina) mill. www.computershare.com/investor 37 Highlights www.resolutefp.com/contact. ResoluteBrite 83 Plus is available with Sustainable 37 Social Performance Forestry Initiative® (SFI®) and/or Programme for the Endorsement of Forest Certifi cation (PEFC) 39 Accomplishments Independent Registered chain of custody certifi cations. Public Accounting Firm 44 Board of Directors and Corporate Offi cers Certifi cations at Catawba include: PricewaterhouseCoopers LLP Shareholder Information 1250 René-Lévesque Boulevard West, • SFI, PEFC and Forest Stewardship Council® (FSC®) chain-of-custody-certifi ed fi ber-tracking Suite 2800, Montréal, Quebec, system H3B 2G4, Canada • SFI fi ber sourcing and FSC controlled wood standards • ISO 14001-certifi ed environmental management system • ISO 9001-certifi ed quality management system

Graphic Design / CG3 inc. Printed in Canada RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 1

PRINCIPLED LEADERSHIP

Principled leadership is a defining characteristic of Resolute Forest Products, a common thread uniting the 8,000 men and women who work across our operating platform. It is reflected every day in the way we conduct business, manage the precious resources in our care, and engage with our many stakeholders and other interested parties.

At Resolute, we are focused on building a company that is both profitable and sustainable, meeting the needs of our customers, while creating shared value for our employees, shareholders, business and Aboriginal partners, and the communities in which we live and work.

The right to operate goes far beyond the nuts and bolts of daily operations. It is about demonstrating values as well as creating value. There is no substitute for being open, honest and transparent. We are guided by ethical conduct and a recognition that we can always do better, and, in turn, we raise our expectations of performance.

We defend the interests of those who depend on us for their livelihoods and quality of life; they are the source of our legitimacy. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 2 2016 AT A GLANCE

Total sales of Adjusted EBITDA1 of $249 $3.5 $279 million invested in billion million fixed assets

100% 1,100 of managed forests new hires with an additional third-party certified 2,000 expected by 2019

100% 73% 74% coal-free operations reduction in GHG emissions of energy requirements (scope 1) (scope 1 and 2) since 2000 sourced from renewable sources

1. EBITDA and adjusted EBITDA, non-GAAP financial measures, are defined and reconciled on page 13. Note: All amounts in this report are in U.S. dollars, unless otherwise indicated. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 3

Multiple awards include: Stevie® International Business Award, 29 ADRIQ Innovation Award, environmental incidents The New Economy Clean Tech Award, recorded Corporate LiveWire Innovation & Excellence Award, PAPTAC Award

Slightly over OSHA incident rate of Additional $270 million 0.77 100,000 mt invested in new state-of-the-art of pulp capacity a world-class achievement tissue facility at Calhoun mill (2015-2017)

Lumber capacity expanded by Liquidity of 140 $468 million million board feet RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 4

LETTER FROM THE CHAIRMAN AND THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

Resolute Forest Products Resolute brings principled leadership During 2016, we acquired a sawmill in to every aspect of our operations. It is Senneterre (Quebec) and permanently remains focused on a common thread binding the over closed a newsprint machine at our 8,000 employees working at some Augusta (Georgia) mill. We also opened executing its business 40 facilities in the United States and an administrative office in Plattsburgh transformation strategy – Canada. It is also reflected each and (New York) to facilitate recruitment in every day as we manage our business the United States. maximizing value in a sustainable manner, ensure the stewardship of the natural resources in Our net pension and OPEB liability generation from paper, our care, and collaborate with a range of increased by $102 million to reach growing in pulp and wood stakeholders and other interested parties. $1.3 billion at year-end, mostly due to a reduction in the applicable discount rate. products, and integrating Beginning in January 2017, the company’s our pulp into value-added, Financial Quebec pension plans are subject to new performance regulations, which provide for funding premium-quality tissue. pension deficits on a going concern rather than solvency basis. This change is 2016 was a critical year in our ongoing Our approach is marked by expected to reduce the company’s pension business transformation. We deployed contributions over the next four years and the interdependence of our significant capital to accelerate the devel- provide additional financial flexibility. business and sustainability opment of more sustainable and profitable business segments, such as the integration Capital expenditures in 2016 were of Resolute’s pulp capacity into consumer strategies as we carefully $249 million, with a significant focus on tissue products. balance environmental, the Calhoun (Tennessee) tissue project. In September, we took advantage of favor- We generated adjusted EBITDA of social and economic able market conditions to increase our $279 million in 2016, compared to already solid liquidity levels through a $276 million in 2015. For the year, priorities to improve our new senior secured credit agreement with adjusted EBITDA was $61 million higher an aggregate lender commitment of up to competitive position and in wood products and $18 million higher $185 million. At year-end, total liquidity in newsprint, but $49 million lower in generate shareholder stood at $468 million, which provides market pulp, $30 million lower in specialty enhanced flexibility to support our value. papers and $5 million lower in tissue. transformation strategy. We reported an operating loss of $26 million for the year, compared to a loss of $219 million in 2015. In 2016, Transformation we benefited from a weaker Canadian The acquisition of Atlas Tissue in late dollar, reductions in pension and other 2015, as well as the construction of a postretirement benefit (OPEB) costs, state-of-the-art tissue facility in Calhoun, lower closure costs, impairments and marks a pivotal point in Resolute’s related charges, as well as decreases in strategy to use our excess pulp capacity purchased energy expenses, depreciation to grow in tissue. Calhoun’s first rolls of and amortization expense, and fiber costs, bath tissue came off a converting line in offset by declines in pricing for market August 2016, and the entire converting pulp, newsprint and specialty papers, operation was fully operational at year-end. reduced shipments, and increases in maintenance costs. LETTER FROM THE CHAIRMAN AND RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 5 THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

Bradley P. Martin Richard Garneau Chairman of the Board of Directors President and Chief Executive Officer LETTER FROM THE CHAIRMAN AND RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 6 THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

Our new Calhoun tissue machine, the The Canadian forestlands in Resolute’s latest innovation in tissue manufacturing, World-class safety care are subject to stringent laws and began operating during the first quarter performance regulations, enforced by the federal and of 2017, while initiatives to improve the provincial governments. According to a performance at Atlas are beginning to show At Resolute, safety is a core value – one prominent survey of customers across the results. Ramp-up of production at Calhoun that all employees actively embrace. In globe, Canada’s forest products industry is will continue throughout 2017 as we 2016, we again achieved world-class safety top-ranked in terms of environmental and concurrently develop a solid customer base performance, recording an Occupational forest management practices as well as through the quality of our product offering. Safety and Health Administration (OSHA) for the quality, abundance and availability Given its favorable location, advanta- incident rate of 0.77. Our company-wide of products. Resolute further advances geous fiber costs and latest technology, severity rate, which measures the actual this leadership position with 100% forest our Calhoun tissue operation is expected lost time impact from injuries on the management certification for our owned to be one of the most competitive and health of our employees, increased slightly and managed woodlands to internation- efficient in all of North America. compared to 2015. These results reflect ally recognized standards. In 2016, we successful implementation of rigorous received no regulatory infractions in our In market pulp, following corrections to procedures as well as employee account- woodlands operations. peripheral equipment, our continuous ability. We remain committed to creating digester at Calhoun delivered its strongest a safe work environment and, ultimately, We have also instituted third-party- operating performance in the fourth quarter an injury-free workplace. certified fiber-tracking systems at all but of 2016 and is on track to reach its full one of our facilities to ensure that our potential in 2017, adding 100,000 metric wood fiber supply comes from acceptable tons of pulp capacity to Resolute’s internal Balancing sources such as certified forests and legal pulp network. environmental, harvesting operations. In addition to the acquisition of another social and In keeping with our commitment to reduce sawmill in Senneterre, our wood products our carbon footprint, we have surpassed segment benefited from the combined economic priorities our goal of reducing absolute greenhouse value generated by our Atikokan and Ignace gas (GHG) emissions by 65% by 2015, Our business and sustainability strategies (Ontario) sawmills, where production, sales compared to 2000 levels. At the end of are inextricably linked: Environmental and EBITDA all significantly improved 2016, we had lowered GHG emissions progress and socio-economic consider- from 2015. by 73%. ations go hand-in-hand. Throughout 2016, structural demand A further example of Resolute’s leadership We carefully track and measure perfor- declines, combined with weakening global in the area of climate change is an agree- mance. In 2016, we completed an currencies, continued to present challenges ment with Quebec-based CO Solutions independent survey of a diverse range 2 in both the newsprint and specialty paper to deploy leading enzyme-enabled carbon of interested parties in order to identify segments. Nevertheless, we successfully capture technology at our Saint-Félicien shared priorities that drive the development implemented newsprint price increases in (Quebec) pulp mill. The majority of CO of our sustainability strategy and reporting. 2 our domestic markets. captured at the mill will be used by Resolute’s sustainability performance Toundra Greenhouse in order to accelerate indicators and disclosures are prepared in plant growth. This recently inaugurated accordance with Global Reporting Initiative world-class complex, in which Resolute guidelines – the gold standard of balanced, owns a 49% interest, will meet 25% of its transparent reporting. heating requirements through an exchange LETTER FROM THE CHAIRMAN AND RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 7 THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

of hot water from the adjacent pulp mill We also are gratified with the awards once all equipment is fully operational. and recognition we have received on a Toundra Greenhouse already covers about regional, North American and global basis 1 million square feet and has a current for our overall sustainability leadership. annual production capacity of over 45 million cucumbers. A look ahead We maintained our focus on proactive environmental management, recording Our 2017 priorities include the start-up 29 environmental incidents in 2016 – of the tissue operation at Calhoun, a slight increase compared to 2015. ongoing optimization of the Atlas Tissue Our goal remains zero incidents. assets and a sustained focus on operating performance to maximize profitability in In 2016, Resolute hired over 1,100 new demand-challenged paper markets. It is permanent and contract employees. We our plan to reduce capital expenditures in know that our long-term competitiveness 2017 and identify opportunities to reduce is linked to attracting, developing and net debt with the goal of decreasing our retaining top talent. Recognizing that overall leverage. As we move through the our people provide us with a competitive Canada-U.S. trade disputes for supercalen- advantage, we continue to actively imple- dered paper and softwood lumber, we will ment our integrated leadership system. continue our concerted efforts to mitigate Rollout of a project to streamline our punitive trade actions. business platforms – including the integration of our human resources, Meeting the challenges of today and payroll and maintenance systems – tomorrow requires steadfast determina- is ongoing across the company. tion, strong and principled leadership, and the confidence and ongoing support of a Resolute believes it has an ethical and diverse set of partners. We are confident moral obligation to counter misinformation that together, as we embrace our common campaigns orchestrated by environmental interests and a shared sense of purpose, activist groups. We have taken action in we will build a sustainable and profitable both the Canadian and U.S. courts not Resolute for the future. only to protect our business interests and meet our fiduciary responsibilities, but also to support our business partners and to protect the very viability of rural commu- nities. We are grateful for the enormous outpouring of support from our employees, Bradley P. Martin retirees, union leadership, customers, Chairman of the Board of Directors First Nations and government officials, as well as from many highly regarded and influential sources such asThe Wall Street Journal Editorial Board, Investor’s Business Daily, National Review and Canada’s Richard Garneau Financial Post. President and Chief Executive Officer RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 8

WHO WE ARE OUR VISION

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, At Resolute Forest Products, tissue, wood products, newsprint and specialty papers, which are we are one team with one vision marketed in over 70 countries. The company owns or operates some 40 manufacturing facilities, as well as power generation where profitability and sustainability assets, in the United States and Canada. We have third-party drive our future. certified 100% of our managed woodlands to internationally recognized sustainable forest management standards.

OUR VALUES

WORK SAFELY ENSURE SUSTAINABILITY BE ACCOUNTABLE SUCCEED TOGETHER We always put the safety of our We make decisions with We are accountable for our We win together. Teamwork people first. Creating an injury- tomorrow in mind. We know performance. The future of starts with a winning attitude free workplace is everyone’s that our long-term profitability our company is in our hands. and a true desire to support business. We maintain world- depends on preserving the By empowering people, acting each other. We welcome ideas, class standards and continu- natural resources in our care with integrity, setting goals and communicate frequently and ously measure and improve our and being a responsible partner measuring progress, we deliver share best practices. safety efforts and results. in the communities where we first-class products and services live and work. to customers and create value for shareholders. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 9

BUSINESS AND SUSTAINABILITY STRATEGY

At Resolute, we report GROWING IN PULP AND Business strategy WOOD PRODUCTS our business and Since 2011, our corporate strategy has We take an opportunistic approach to stra- sustainability results been focused on transforming Resolute into tegic initiatives, pursuing only those that a more sustainable organization, one that reduce our cost position, improve product together. Our sustainability can generate consistent value for share- diversification, generate synergies or allow strategy has been holders through a competitive portfolio of us to expand into future growth markets. manufacturing assets and a solid presence Our market pulp and wood products purposely developed in long-term growth markets. This includes, segments are critical to our transformation on the one hand, a gradual retreat from strategy. Since 2011, we have completed to align our efforts in certain paper grades and, on the other, multiple projects in pulp and wood prod- environmental stewardship using our strong financial position to act ucts, reducing our exposure to structurally on opportunities to diversify and grow. challenged paper markets. and social responsibility Our corporate strategy relies on three core INTEGRATING OUR PULP with our business strategy themes: maximizing value generation from INTO VALUE-ADDED, and objectives. This paper, growing in pulp and wood products, PREMIUM-QUALITY TISSUE and integrating our pulp into value-added, We recently entered the tissue market approach underpins premium-quality tissue. In order to with the construction of a state-of-the-art successfully execute this strategic plan, our vision that profitability tissue operation at Calhoun (Tennessee) we also need to maintain a disciplined and the acquisition of Atlas Paper approach to capital allocation, as well and sustainability drive Holdings, Inc. and its subsidiaries as a level of financial leverage and flex- (Atlas Tissue). Our objective is to add our future. ibility that supports the evolution of our value by integrating our market pulp transformation. into our premium tissue production, particularly as paper utilization continues MAXIMIZING VALUE GENERATION its steady decline, effectively mitigating FROM PAPER risks associated with volatile market We compete today as a leading, lower pulp pricing. cost North American paper producer through continuous improvement and mill optimization. Maintaining this competitive advantage is a key focus. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 10

RESOLUTE’S 2017 BUSINESS PRIORITIES

Sustainability • Drive efficiencies, set manufacturing strategy cost targets and benchmark performance at all operations Our sustainability strategy, based on a balanced approach to environmental, • Manage production and inventory levels, social and economic performance, is designed to enhance our competitive taking into account market conditions position. And like our business strategy, it has three primary areas of focus. • Pursue sales strategy to produce only what customers order REINFORCING OUR ENVIRONMENTAL CREDENTIALS • Identify and support disciplined capital We are taking appropriate steps to investments at most competitive facilities responsibly manage our environmental footprint. • Pursue opportunistic growth to complement POSITIONING THE COMPANY product mix or improve competitiveness AS A COMPETITIVE EMPLOYER of existing assets We are focused on attracting and retaining the best employees by • Identify opportunities to develop providing them with opportunities to learn and grow within a dynamic organization. and market value-added products

BUILDING SOLID RELATIONS • Take advantage of Atlas acquisition IN OUR OPERATING COMMUNITIES to accelerate sale and distribution In addition to engaging in dialogue, of Calhoun tissue production we strive to have a positive and meaningful impact in the local and regional communities where we operate, and we support many registered charitable organizations each year. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 11

OUR APPROACH TO SUSTAINABILITY

Global Reporting Initiative (GRI) frame- Leadership for work, which requires specific disclosures Sustainability a profitable and based on the shared priority issues commitments and sustainable future identified by stakeholders. performance In 2016, Resolute reached out to key part- At Resolute Forest Products, sustain- In 2011, we established a set of ambi- ners and stakeholders to assess whether ability and profitability drive our future. tious commitments reflecting our approach our sustainability strategy, public commit- We carefully balance the three pillars of to balancing the company’s sustainability ments and reporting practices continue sustainability: environmental, social and priorities. Since then, we have been to reflect their most relevant interests and economic. We build on our accomplish- tracking and reporting our progress annu- needs. We worked with an independent ments of today by aspiring to be a more ally and updating our targets, as necessary, third party to survey external stakeholders efficient and competitive company, a in order to ensure continuous improvement. and other interested parties at the commu- better employer, a stronger business nity, regional and national levels in order partner, and even more deeply engaged By steadily improving our year-over-year to gain insight into their priorities. We then in the communities in which we live performance, we are pleased to report shared the results of these surveys with and work. that we have substantially achieved or our corporate sustainability committee, surpassed most of our stated goals and a cross-functional group of senior targets for 2016. managers, to determine the business Stakeholder impact of these concerns. This report summarizes Resolute’s sustain- engagement and ability performance for all the operations Overall, there have not been significant the company owned or operated as at shared priorities changes in stakeholder priorities since December 31, 2016. For the most current our last assessment in 2013. Additionally, We are committed to building solid rela- information, including other sustainability we noted a strong alignment between tionships with a broad range of community performance indicators and disclosures internal and external stakeholder assess- and business partners through ongoing prepared in accordance with the GRI ments of our company priorities – an dialogue and outreach. We value input standard, visit www.resolutefp.com/ indicator that Resolute is in tune with the from our customers and other interested sustainability. expectations of both stakeholder groups. parties, including employees and retirees, governments, First Nations and local New issues with the potential to impact communities, environmental and other our business in the future were identi- non-governmental organizations, business fied during this process and include local partners, investors, and members of the hiring and employment, investments to general public. prevent safety and environmental inci- dents, and customer satisfaction. We will The issues highlighted in the following integrate disclosures on these topics into pages have been identified by our stake- our GRI-compliant online sustainability holders as shared priority issues – that reporting over the next two years. In addi- is, of high concern to both internal and tion, three issues were ranked higher than external stakeholders, and with the poten- in past years and will be of greater focus tial to impact our business performance. for us going forward: environmentally In addition to driving the objectives of responsible procurement, public policy our sustainability strategy and our public and product regulatory compliance. commitments, these issues play an impor- tant role in determining the focus of our public sustainability reporting through the RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 12

ECONOMIC INDICATORS OF SUSTAINABILITY

13 Financial Highlights DEDICATED 15 Market Pulp 16 Wood Products TO OUR CUSTOMERS 19 Woodlands 22 Tissue AND OUR PRODUCTS 24 Newsprint 27 Specialty Papers ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 13

FINANCIAL HIGHLIGHTS

Years ended December 31, (in millions, except per share amounts) 2016 2015 2014

Sales $ 3,545 $ 3,645 $ 4,258 Operating income (loss) per segment Market pulp 43 76 63 Tissue (10) (1) — Wood products 69 2 69 Newsprint (15) (23) 20 Specialty papers 25 29 (19) Segment total 112 83 133 Corporate and other (138) (302) (307) Operating loss (26) (219) (174) Net loss attributable to Resolute Forest Products Inc. (81) (257) (277) Net loss per share attributable to Resolute Forest Products Inc. common shareholders Basic $ (0.90) $ (2.78) $ (2.93) Diluted (0.90) (2.78) (2.93) Adjusted EBITDA2 $ 279 $ 276 $ 356

Net loss including noncontrolling interests $ (76) $ (255) $ (274) Interest expense 38 41 47 Income tax provision (benefit) 19 (1) (30) Depreciation and amortization 206 237 243 EBITDA $ 187 $ 22 $ (14) Foreign exchange translation loss 7 4 32 Closure costs, impairment and other related charges 62 181 278 Inventory write-downs related to closures 7 2 17 Start-up costs 8 5 4 Net gain on disposition of assets (2) — (2) Non-operating pension and OPEB costs (credits) 24 66 (10) Write-down of equity method investment — — 61 Acquisition-related costs — 4 — Other income, net (14) (8) (10) Adjusted EBITDA2 $ 279 $ 276 $ 356

As of December 31, (in millions) 2016 2015 2014

Cash and cash equivalents $ 35 $ 58 $ 337 Total assets 4,277 4,220 4,914

2. Earnings before interest expense, income taxes, and depreciation and amortization, or “EBITDA” and adjusted EBITDA 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, gains and losses on disposition of assets, non-operating pension and OPEB costs and credits, write-down of equity method investment, acquisition-related costs, and other charges or credits. We believe that using non-GAAP measures such as EBITDA and adjusted EBITDA is useful because they are consistent with the indicators management uses internally to measure the company’s performance, and it allows the reader to more easily compare our operations and financial performance from period to period. EBITDA and adjusted EBITDA are internal measures and, therefore, may not be comparable to those of other companies. These non-GAAP measures should not be viewed as substitutes to financial measures determined under GAAP. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 14 100,000 METRIC TONS OF CAPACITY AT CALHOUN’S NEW PULP DIGESTER ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 15

Our pulp is used to make a range of products we use every day. You’ll find this renewable and biodegradable material in everything MARKET from facial tissue and paper towels to coffee filters, disposable diapers and other absorbent products, as well as in printing and PULP writing papers.

Pulp for a variety of needs

6 Resolute Forest Products is one of the few producers capable of supplying a wide 7 variety of grades of market pulp.

5 Our seven North American facilities have a

4 total capacity of 1.7 million metric tons – or approximately 10% of North American

1 2 capacity – making us the third largest pulp producer in North America. Approximately 3 80% of our virgin pulp capacity is softwood-based.

Resolute is also the world’s largest MARKET PULP PORTFOLIO producer of recycled pulp and a competi- Northern bleached softwood kraft (NBSK) tive producer of northern bleached Northern bleached hardwood kraft (NBHK) Southern bleached softwood kraft (SBSK) hardwood kraft pulp and southern bleached Southern bleached hardwood kraft (SBHK) MARKET PULP OPERATIONS hardwood kraft pulp. Pulp not converted Recycled pulp Fluff pulp 1 Calhoun (Tennessee) into paper is sold as market pulp, which 2 Catawba (South Carolina) is used to make a range of consumer 3 Coosa Pines (Alabama) products, including tissue, packaging and 4 Fairmont (West Virginia) specialty papers, as well as diapers and 2016 WORLD CHEMICAL PULP 5 Menominee (Michigan) DEMAND DISTRIBUTION, BY GRADE 6 Saint-Félicien (Quebec) other absorbent products. (millions of metric tons) 7 Thunder Bay (Ontario) In 2016, we continued to ramp up the new $100 million continuous pulp digester at our Calhoun (Tennessee) mill. This world-class equipment will grow #1 our annual market pulp capacity by producer of recycled pulp 100,000 metric tons, significantly lower in the world the mill’s overall costs and improve the quality of our products. ● Eucalyptus 23.2 39% ● NBSK 14.8 25% ● Other 9.3 16% ● SBSK 6.8 12% ● NBHK 4.4 7% ● SBHK 0.9 1% 1.7 million Total world demand 59.4 100% metric tons of capacity Source: Pulp and Paper Products Council ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 16

Wood is a logical choice for today’s environmentally conscious homeowner. Not only is it a sustainable building material, WOOD it provides perfect protection for your home. From the flooring right up to your rooftop, Resolute’s wood products are always PRODUCTS on the job. #1 Major producer Canadian producer of wood products of sustainable east of the Canadian Rockies wood products

2 facilities Resolute Forest Products is a leading 13 facilities 2 facilities producer of lumber and other wood 3 4 products for the residential construction 3 facilities 5 2 and home renovation markets, as well as 1 for specialized structural and industrial 2.6 applications. We operate 16 sawmills in Canada, two billion remanufactured wood products facilities, board feet of construction-grade two joint-venture engineered wood products lumber capacity3 facilities and a wood pellet plant.

Our sawmills produce construction-grade WOOD PRODUCTS OPERATIONS stud and dimension spruce-pine-fir lumber 1 SAWMILLS (ONTARIO) and are a major source of wood chips Atikokan, Ignace, Thunder Bay for our pulp and paper mills in Canada. 2 WOOD PELLET PLANT (ONTARIO) They also generate wood residue, which is 21 Thunder Bay primarily used to fuel our power cogenera- 3 SAWMILLS (QUEBEC) tion assets and other operations, as well Comtois (Lebel-sur-Quévillon), Girardville, as to produce wood pellets. In 2016, we facilities La Doré, Maniwaki, Mistassini, Opitciwan shipped 1.7 billion board feet of construc- (Obedjiwan),4 Outardes (Pointe-aux-Outardes), Produits Forestiers Mauricie (La Tuque), tion-grade lumber within North America. Saint-Félicien, Saint-Hilarion, Saint-Thomas, Senneterre, Senneterre−Lac-Clair Our remanufactured wood products facili- 4 REMANUFACTURED WOOD PRODUCTS ties produce bed frame components, finger FACILITIES (QUEBEC) joints and furring strips, while our engi- Château-Richer, La Doré neered wood products facilities produce 5 ENGINEERED WOOD PRODUCTS I-joists for the construction industry. FACILITIES (QUEBEC) Resolute-LP Engineered Wood, Larouche,5 Resolute-LP Engineered Wood II, Saint-Prime5

3. Our current fiber supply limits our operating capacity to about 2.1 billion board feet per year. 4. Société en Commandite Scierie Opitciwan is an unconsolidated entity in which we have a 45% interest. 5. Resolute-LP Engineered Wood Inc. and Resolute-LP Engineered Wood II Inc. are unconsolidated entities in which we have a 50% interest in each entity. ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 17

Growing our production capacity

In October 2016, Resolute acquired the assets of a second sawmill in Senneterre (Quebec). This acquisition will generate operating efficiencies and has already increased our annual production capacity by approximately 140 million board feet of lumber.

NEW PRIVATELY OWNED HOUSING UNITS STARTED (millions of units) 1.2 1.1 1.0

2014 2015 2016

Source: U.S. Census Bureau RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 18 100% OF RESOLUTE-MANAGED FORESTS ARE THIRD-PARTY CERTIFIED ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 19

From our woodlands to our sawmills and on to our pulp and paper mills, you can be sure that Resolute’s fiber supply has been responsibly sourced, and that 100% of the forestlands we own WOODLANDS or manage are certified to internationally recognized standards.

Environmentally responsible procurement is top of mind for Resolute Forest Products’ Responsible customers and increasingly influences their fiber sourcing purchasing decisions. According to the 2015 Leger Customer Market Acceptance Resolute has instituted fiber-tracking Research on Canada’s forest products, systems at our North American facilities6 2 international buyers of wood, pulp and to ensure that our wood fiber supply comes 1 paper place Canadian forest products from acceptable sources such as certified suppliers at the top of the list in terms forests and legal harvesting operations. 3 of environmental and forest management These fiber-tracking systems are third- practices, as well as for the quality, abun- party certified according to one or more of dance and availability of their products. three internationally recognized chain of 3 custody standards: SFI, Programme for the Endorsement of Forest Certification (PEFC) Regenerating, managing and FSC. Resolute uses pulp produced through our internal network, providing and certifying the us with control of our fiber sources and forests in our care ensuring the quality of our paper and tissue products. The vertical integration of the The regeneration of harvested woodlands production process also assures customers is an essential component of sustainable of the integrity of our supply chain and the forest management. Resolute relies on a long-term sustainability of our fiber supply. WOODLANDS OPERATIONS range of forest management techniques 1 ONTARIO and best practices, including regenera- We strive to improve our forest manage- Northwestern Ontario tion surveys, site preparation, the planting ment and wood fiber procurement prac- 2 QUEBEC of seedlings, and aerial and terrestrial tices, and we encourage our wood and fiber Abitibi and Nord-du-Québec Charlevoix seeding – all in combination with natural suppliers to also demonstrate continuous Côte-Nord regeneration. improvement in forest resource manage- Lac-Saint-Jean ment, wood and fiber procurement, and Mauricie We strongly believe that it is possible to third-party certification. Outaouais carefully harvest trees while maintaining 3 UNITED STATES Southeastern and Northwestern U.S. biodiversity, and protecting the forest and values important to a range of stakeholders. This is why Resolute maintains certifica- tion for 100% of the forests we manage or on which we hold significant harvesting rights to at least one of two internationally recognized forest management standards: Sustainable Forestry Initiative® (SFI®) and Forest Stewardship Council® (FSC®). We continue to be one of the largest holders of SFI and FSC forest manage- ment certificates in North America. We also maintain ISO 14001-certified environ- mental management systems at our wood- lands operations, which helps promote the conservation and sustainable use of forests and other natural resources.

6. Excluding Atlas Tissue operation in Hialeah (Florida), which sources 100% of its recycled fiber from our U.S. pulp network. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 20

OUR PAPERS

CUSTOMERS IN OVER 50 COUNTRIES

16 FACILITIES

ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 22

Whether mopping up spills in the kitchen or tending to personal hygiene, consumers can rely on Resolute’s tissue products to get them through the day. As one of the few integrated tissue manufacturers in North America, we are committed to exceeding TISSUE our customers’ expectations for flexibility, quality and service.

capacity of 62,000 short tons Expanding (56,000 metric tons) across three tissue our presence in machines and 11 converting lines. We offer Green Seal™-certified 100% the tissue market recycled products and virgin paper grades. 1 Branded products include Windsor Place®, Resolute Forest Products is building one of Green Heritage®, Harmony®, Bunny Soft® the most integrated and competitive tissue and Eversoft®. businesses in North America. 3

2 We have completed construction of a slightly over $270 million state-of-the-art Fully integrated facility in Calhoun (Tennessee) with the manufacturer of capacity to manufacture 66,000 short tons (60,000 metric tons) annually of quality products premium private-label tissue, including bath TISSUE OPERATIONS Resolute’s tissue operations benefit from and towel, aimed at the growing at-home 1 Calhoun (Tennessee) vertical integration. Our tissue products 2 Hialeah/Miami (Florida) market. With its world-class tissue machine are manufactured from 100% recycled 3 Sanford (Florida) and three converting lines, this will be one pulp or from virgin fiber (less than 3% of the most efficient tissue operations in sourced externally) from the company’s North America once start-up is complete, internal market pulp network. This allows during the first quarter of 2017, positioning us to control the production process – from Resolute as a key player in the market. Newest material input to final product – ensuring precise control, cost-competitiveness and In 2016, we continued to consolidate product offering consistent quality, while offering the flex- Atlas Tissue into our business. A manufac- ibility and customization our customers includes: turer of branded and private-label tissue demand. products for retail and away-from-home markets, Atlas Tissue has two manufac- turing facilities in Florida with a production

Green Heritage® premium 100% recycled bath tissue

Ultra Harmony® premium virgin bath tissue and towel

The first tissue parent roll was produced at Calhoun on February 28, 2017. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 23 128,000 SHORT TONS OF TISSUE CAPACITY (including 66,000 short tons of future capacity at Calhoun) ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 24

Our newsprint makes the front pages of the world’s top newspapers every day. But there’s more to the story. Whether it’s advertising brochures, circulars, inserts or directories – NEWSPRINT we provide companies and consumers with a way to connect.

NORTH AMERICAN NEWSPRINT DEMAND (millions of metric tons)

4.1 3.7 3.4 3

5 1 6 10

8

9 2014 2015 2016

2016 WORLD NEWSPRINT DEMAND 4 DISTRIBUTION, BY REGION 2 (millions of metric tons)

7

NEWSPRINT OPERATIONS 4 Calhoun (Tennessee) 8 Ponderay, Usk (Washington)7 5 Clermont (Quebec) 9 Thorold (Ontario)8 1 Amos (Quebec) 6 Gatineau (Quebec) 10 Thunder Bay (Ontario) 2 Augusta (Georgia) 7 Grenada (Mississippi) ● 3 Baie-Comeau (Quebec) Asia 10.6 47% ● Western Europe 5.4 24% ● North America 3.4 15% World’s top ● Eastern Europe 1.1 5% 2.1 ● Latin America 1.0 5% newsprint producer ● Other 0.8 4% million Total world demand 22.3 100% metric tons of capacity Resolute Forest Products is the largest global producer of newsprint by capacity. Source: Pulp and Paper Products Council With 10 mills9 strategically located to serve major markets throughout North America and abroad, we supply customers in over 50 countries.

Our total capacity is approximately 10 2.1 million metric tons, representing about 9% of worldwide capacity and facilities 42% of North American capacity.

7. Ponderay Newsprint Company (Washington) is an unconsolidated partnership in which we have a 40% interest. 8. On March 10, 2017, Resolute announced the indefinite idling of its Thorold (Ontario) newsprint mill. 9. On February 21, 2017, Resolute announced the permanent closure of its Bowater Korea Ltd. subsidiary’s Mokpo newsprint mill, located in South Korea, effective March 9, 2017. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 25

#1 PRODUCER OF NEWSPRINT IN THE WORLD BY CAPACITY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 26

1 MILLION 542,000 SHORT TONS OF UNCOATED SHORT TONS OF COATED MECHANICAL PAPER MECHANICAL PAPER CAPACITY CAPACITY ECONOMY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 27

SPECIALTY From the bestseller you just can’t put down to the magazines on your coffee table and the flyers in your mailbox, PAPERS our specialty papers make a great impression.

NORTH AMERICAN UNCOATED A North American MECHANICAL PAPER DEMAND market leader (millions of short tons)

4.2 4 1 Resolute Forest Products sells a wide 3.7 5 3.5 spectrum of coated and uncoated mechan- ical papers to major commercial printers, direct mailers, publishers, catalogers and retailers – mostly in North America.

We produce specialty papers at five 2014 2015 2016 2 3 facilities in Canada and the United States. With total capacity of approximately 1 million short tons (0.9 million metric NORTH AMERICAN COATED tons), representing 27% of North American MECHANICAL PAPER DEMAND (millions of short tons) capacity, we are the largest producer of uncoated mechanical papers in North 3.5 3.2 America and the third largest in the world. 3.0 We are also North America’s third largest producer of coated mechanical papers, SPECIALTY PAPER OPERATIONS with 542,000 short tons (492,000 metric 1 Alma (Quebec) tons) of capacity, or approximately 19% of 2 Calhoun (Tennessee) 3 Catawba (South Carolina) North American capacity. 4 Dolbeau (Quebec) 2014 2015 2016 5 Kénogami, Saguenay (Quebec) Superior products, Source: Pulp and Paper Products Council value and service

#1 We focus on meeting the evolving needs producer of uncoated and expectations of our customers by mechanical papers in offering quality, cost-effective solutions North America for every application, backed by excellent customer service.

Our latest innovative product offering, ResoluteBlonde Gloss, is a coated mechan- ical paper in a cream-white shade that is characterized by superior runnability, 3rd brightness and gloss. ResoluteBlonde Gloss largest producer of is ideal for magazine publishing and coated mechanical papers catalogs where color reproduction is a in North America key consideration. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 28

ENVIRONMENTAL INDICATORS OF SUSTAINABILITY

29 Highlights PROACTIVE 30 Performance FOR THE PLANET 33 Accomplishments ENVIRONMENT RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 29

HIGHLIGHTS Performance by the numbers

KEY PERFORMANCE INDICATORS10 2016 PERFORMANCE – ABSOLUTE 2016 PERFORMANCE – INTENSITY

11 Greenhouse gas (GHG) emissions – scope 1 1,346 thousands of mt CO2e 261.8 kg CO2e/mt 12 GHG emissions – scope 2 1,894 thousands of mt CO2e 368.4 kg CO2e/mt

Nitrogen oxide (NOx) emissions 6.5 thousands of mt 1.27 kg/mt

Sulfur dioxide (SO2) emissions 4.7 thousands of mt 0.92 kg/mt Particulate emissions 2.2 thousands of mt 0.43 kg/mt Total energy consumed (fuel and electricity) 39,202 thousands of MWh 7.62 MWh/mt Electricity used13 11,700 thousands of MWh 2.28 MWh/mt Renewable energy used (fuel and electricity) 29,018 thousands of MWh 5.64 MWh/mt Fuel used – oil/diesel 21.9 thousands of m3 0.00426 m3/mt Water used 295,247 thousands of m3 57.42 m3/mt Water discharged14 289,375 thousands of m3 56.28 m3/mt Discharges to water – total suspended solids 7.5 thousands of mt 1.45 kg/mt

Biochemical oxygen demand (BOD5) of discharges 6.4 thousands of mt 1.25 kg/mt Total waste 685 thousands of mt 133.31 kg/mt Waste recycled15 441 thousands of mt 85.75 kg/mt Waste sent to landfills 239 thousands of mt 46.34 kg/mt Power generated 2,850 thousands of MWh N/A Forest management certification16 100% N/A Number of significant spills17 0 N/A Number of significant environmental fines18 0 N/A ISO 14001-certified sites19 41 N/A Total number of sites20 51 N/A

10. Environmental data is for pulp and paper mills, except for environmental incidents and ISO 14001 certification, both of which also include sawmills and woodlands operations. Data includes Ponderay Newsprint Company (Washington), an unconsolidated partnership in which we have a 40% interest. Some of this information is preliminary and subject to change; data will be confirmed on our website. 11. Scope 1 includes “direct emissions,” which come from sources owned or controlled by the company, such as the combustion of fuel at the mill to generate heat to dry paper or to create electricity. 12. Scope 2 encompasses “indirect emissions” (the result of company activities occurring at sources owned or controlled by another company) associated with the production of purchased electricity or steam. Scope 2 emissions physically occur at the facility where electricity or steam is generated. Resolute’s electricity suppliers provide us with their grid emission factors, which the company then includes in its scope 2 emission data. 13. Represents purchased electricity, minus actual external sales of electricity produced by cogeneration facilities. 14. Resolute returns more than 95% of the water it withdraws. The balance remains within products or evaporates during the manufacturing process. 15. Includes waste used beneficially and for on-site energy recovery. 16. 100% of the timberlands managed by Resolute are third-party certified to one of two internationally recognized forest management standards: Sustainable Forestry Initiative® (SFI®) and Forest Stewardship Council® (FSC®). 17. In our financial statements, the company is required to record accidental releases of hazardous substances significant enough to risk damage to human and environmental health, or that have potential liability and reputational consequences. Between 2012 and 2016, we recorded no such incidents. 18. Material environmental contingencies are disclosed in the footnotes to the company’s consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016. Certain additional proceedings are also disclosed under the heading “Item 3 – Legal Proceedings” in the Form 10-K. 19. Includes 17 ISO 14001-certified pulp, paper and tissue mills, 16 wood products facilities, 1 hydroelectric generation and transmission network, and 7 woodlands operations. 20. Includes 20 pulp, paper and tissue mills, 22 wood products facilities, 1 hydroelectric generation and transmission network, and 8 woodlands operations. ENVIRONMENT RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 30

ENVIRONMENTAL PERFORMANCE

New and ongoing the next few years to the 2015 version of 100% the ISO 14001 standard, and working to of managed forests commitments comply with the increasingly stringent and third-party certified far-reaching requirements of the standard. Being proactive for the environment means steadily reducing Resolute Forest Products’ As part of our commitment to continuous environmental footprint and responsibly improvement and regulatory compli- managing the natural resources in our care. ance, we take a proactive and preventive approach to environmental incident and That is why we closely measure, track regulatory infraction management with and report on the company’s performance a comprehensive tracking, investigation, and progress toward our ongoing and new implementation and reporting cycle to 42% commitments. We understand that in order prevent reoccurrence. of total fiber inputs to reinforce our environmental credentials, sourced from wood chips we must be able to demonstrate that, over In 2016, we completed the first full from sawmills time, we have reduced our carbon emis- three-year cycle of environmental risk sions, made measurable performance audits at all of our pulp and paper mills. improvements and ensured careful steward- We recorded 29 environmental incidents ship of the forests we manage. across the company, and we continue to work toward our long-term goal of As an industry leader and supplier of zero incidents. choice, Resolute has moved beyond minimal regulatory compliance and envi- Resolute’s forest management prac- A- ronmental incident management to proac- tices were recognized throughout 2016. from CDP for tively differentiate ourselves in a number The company received an “A-” score for forests disclosure of key performance areas. our forests disclosure to CDP (formerly the Carbon Disclosure Project), in recognition We remain committed to maintaining of our actions to manage deforestation risk our 100% forest management (FM) and as well as the implementation of excellent chain of custody (CoC) certifications to monitoring and measurement programs. internationally recognized standards such We also received a Corporate LiveWire as Sustainable Forestry Initiative® (SFI®), Innovation & Excellence in Sustainable Programme for the Endorsement of Forestry Award for our efforts to diversify, Forest Certification (PEFC) and Forest innovate and grow our business, including Stewardship Council® (FSC®). This ensures our joint venture to develop commercial all the fiber we process comes from applications for cellulose filaments, a responsible sources. In 2016, 93% of the new source of biomaterial made of wood wood supply for our sawmills and 52% of fiber. We also won another Clean Tech virgin wood fiber inputs for our pulp and Award from The New Economy magazine paper mills were certified to internationally for Best Forestry and Paper Solutions for recognized standards. our adherence to certification standards, our commitment to reducing greenhouse Furthermore, our operations are covered gas emissions, and our partnerships with by environmental management systems Canada’s First Nations and Aboriginal (EMS) – the majority certified to the ISO communities. 14001 standard. We are committed to continuous improvement of our environ- mental performance and aim to certify 100% of our facilities, transitioning over ENVIRONMENT RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 31

Our commitments and performance for For the most current information, including Environmental all the operations the company owned or other sustainability performance indicators performance update operated as at December 31, 2016, are and disclosures prepared in accordance presented in the following table. with the Global Reporting Initiative (GRI) standard, visit www.resolutefp.com/ This performance data should be consid- sustainability. ered preliminary and is subject to change.

2016 2016 COMMITMENTS 2016 PERFORMANCE 2017 TARGETS RATING

Set new GHG reduction target using Evaluated potential impact of GHG reduction and Set new GHG reduction target accepted best practices transformation projects, as well as gained better – a longer term objective understanding of reduction objectives in through 2030 to align with the jurisdictions where we operate > FPAC’s “30 by 30” Climate Change Challenge, as well as GHG reduction targets in the jurisdictions where we operate

Provide disclosure on regulatory Reported 0 regulatory infractions for Ontario Report no more than infractions in woodlands operations, 3 infractions in each province, Reported 0 regulatory infractions for Quebec and set a maximum of 3 regulatory ++ with a long-term goal of infractions in each province, with 0 infractions a long-term goal of 0 incidents

Report 41 or fewer environmental Recorded 29 environmental incidents Record 38 incidents or less, incidents, with a long-term goal of ++ with a long-term goal of 0 incidents 0 incidents

Implement ISO 14001-certified EMS Maintained ISO 14001 EMS certification at already- Conduct gap analysis for at all pulp and paper mills, wood certified pulp and paper mills, wood products facilities eventual ISO 14001 EMS products facilities and Canadian and Canadian woodlands with the exception of our certification of 3 U.S. chip woodlands operations Produits Forestiers Mauricie (Quebec) sawmill, which production facilities and was temporarily closed during its recertification audit newly acquired Atlas Tissue (Florida) operations Obtained ISO 14001 certification for Atikokan > and Ignace sawmills in Ontario Complete ISO 14001 EMS at Thunder Bay (Ontario) pulp and paper mill certification of Menominee among the first in Canada to be successfully recertified (Michigan) pulp mill under recently released ISO 14001:2015 standard

++ Surpassed commitment + Achieved commitment = Maintained achievement > Ongoing progress x Commitment unattained RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 32

45 MILLION CUCUMBERS PRODUCED EACH YEAR ENVIRONMENT RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 33

ACCOMPLISHMENTS Whether you prefer English or Lebanese cucumbers in your salad, Quebec’s newest and largest vegetable greenhouse has got the TOUNDRA right mix for you. The world-class Toundra Greenhouse is set to grow 45 million cucumbers a year, with a little help from Resolute GREENHOUSE and the people of Saint-Félicien. 25% Toundra Greenhouse of heating requirements to be met Located on land adjacent to our through exchange of hot water Saint-Félicien (Quebec) pulp mill, from Saint-Félicien pulp mill Toundra Greenhouse is a state-of-the-art complex in which Resolute owns a 49% equity interest.

The $100 million complex, slated for completion by 2020, already covers about 1 million square feet (8.5 hectares), produces 45 million cucumbers annually 11,000 MT and employs over 100 workers. Once all of GHG emissions four construction phases are completed, avoided annually – equivalent the greenhouse will cover about 4 million to removing 2,300 cars square feet (34 hectares) and create from the road 400 jobs in the Lac-Saint-Jean region.

Toundra Greenhouse was formed in 2014 as a partnership between Resolute, the City of Saint-Félicien and local investors. Over 50 Saguenay−Lac-Saint-Jean busi- nesses were involved in making the project 90% a success. of greenhouse water requirements To achieve carbon emission reductions, fulfilled by recovering rain water Resolute has entered into an agreement

and snow with CO2 Solutions to deploy leading enzyme-enabled carbon capture tech- What else is unique about nology, capturing up to 30 metric tons of this technologically advanced CO per day from our Saint-Félicien pulp 2 greenhouse complex? mill. The majority of the CO2 will then be transported to the neighboring Toundra • Hundreds of high pressure sodium lights Greenhouse. This C$7.4 million project not are used to maintain lighting 20 hours only improves the greenhouse’s perfor- a day, 365 days a year. The roof, made mance while reducing our mill’s carbon of diffuse glass panels, allows for natural emissions, it also actively supports the light optimization by filtering in the most scale-up of an innovative, low-cost carbon favorable wavelengths of light for plant capture technology with the potential for and cucumber growth. broader deployment. • The ultimate goal is to reduce cucumber imports from outside the province of Quebec, as well as greenhouse gas emis- sions linked to transportation. ENVIRONMENT RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 34

ACCOMPLISHMENTS 100% Reducing our Joining the coal-free operations carbon footprint Carbon Pricing (scope 1) Forests are among Earth’s largest natural Leadership Coalition storehouses of carbon, which helps miti- In July 2016, Resolute became an inau- gate climate change. Therefore, according gural Canadian member of the Carbon to the Intergovernmental Panel on Climate Pricing Leadership Coalition (CPLC), Change, the best long-term strategy to a voluntary global partnership that brings reduce carbon emissions is to increase together leaders to help address climate forest carbon stocks – that is, plant more change by putting a price on carbon. trees and “grow” more forests – while Resolute supports carbon pricing as a 73% responsibly harvesting those stocks to reduction market mechanism that drives competi- expand the use of wood products and in GHG emissions tiveness, creates jobs, encourages innova- displace more fossil fuel intensive (scope 1 and 2) tion and delivers meaningful emission products. A recently published Yale study since 2000 reductions. A market price for carbon is concludes, for example, that simply included in decision-making at our facili- using wood in place of other materials in ties currently or shortly subject to cap-and- construction could eliminate up to 31% trade regulations. We advocate, however, of global CO emissions and up to 19% 2 for an equivalent carbon price across of global fossil fuel consumption. North American jurisdictions to avoid carbon leakage and competitive issues. Partnering with Inaugural Canadian member industry associations Prioritizing of the CPLC Resolute welcomes the opportunity to energy efficiency work with others to support global carbon The Tennessee Valley Authority (TVA) emission reduction efforts. As a member of recognized Resolute’s leadership in the the Forest Products Association of Canada area of environmental performance by (FPAC), we have signed on to its “30 by honoring our Grenada (Mississippi) news- 30” Climate Change Challenge, which print mill in 2016 as its top performer for commits the Canadian forest products most kilowatt-hours (kWh) saved among industry to removing 30 megatons of CO 2 its large customers. A three-year initia- per year by 2030 – more than 13% of tive to improve energy efficiency at the the Canadian government’s total emission mill – known as the thermomechanical reduction target. In the United States, we pulp inter-stage screening project – are working with the American Forest and resulted in savings of 32 million kWh in Paper Association (AF&PA) to support its 2015 alone, and 85.1 million kWh since goal of achieving at least a 20% reduction its inception. The project’s success has of member GHG emissions (intensity) reduced Grenada’s refining energy use by from 2005 levels by 2020. 15%, qualified the mill for TVA incen- tives totaling $8 million, and contributed to Resolute’s absolute scope 1 and 2 emission reductions of 73% over a year 2000 baseline. ENVIRONMENT RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 35

Producing Reducing waste 74% of total energy needs renewable energy to landfill at our mills met using renewable sources Resolute’s hydroelectric generation and It is the nature of the forest products busi- transmission network, Hydro-Saguenay, has ness that manufacturing mills generate an installed capacity of 170 MW and helps solid residues. Throughout 2016, our pulp power our Alma and Kénogami (Quebec) and paper mills identified beneficial uses paper mills. In 2016, we produced for this waste to reduce our environmental 1,110 GWh of electricity. footprint and improve our bottom line, by avoiding costly disposal to landfills. The company’s seven cogeneration facilities are located at our pulp and A significant amount of the waste we

80% paper mills: produce is used as fuel at our operations, of fuel energy derived helping to reduce our reliance on fossil from biomass sources • Calhoun (Tennessee) fuels and supporting our production of • Catawba (South Carolina) green energy. Individual operations have • Coosa Pines (Alabama) also sought out innovative partnerships in • Dolbeau (Quebec) the communities where we operate to find • Gatineau (Quebec) uses for the by-products of our processes. • Saint-Félicien (Quebec) • Thunder Bay (Ontario) Our Kénogami (Quebec) paper mill, for example, has partnered with local farmers The growth of Resolute’s clean power Average to find beneficial uses for the solid residues cogeneration business and our diversifica- produced on-site. As part of the paper- tion into renewable energy products, like making process, a sludge by-product is 36% wood pellets, have benefited our market of pulp and paper mill produced that is rich in nitrogen and position and our bottom line. residues redirected toward phosphorus, two important nutrients for beneficial uses growing plants. Dehydrating and pressing Producing renewable energy is a major more than 90% of this waste product component of our long-term strategy to turns it into useful fertilizer, diverting proactively manage our carbon footprint 20,000 metric tons from landfills every by continuously improving the energy effi- year. Thirty farmers in the region are now ciency of our operations and increasing our receiving deliveries of fertilizer made from use of lower carbon fuels. This approach the paper mill’s by-products year-round places Resolute ahead of potential regula- to help grow their crops. tions, and positions the company as a leader in GHG reductions and in the devel- Other projects include a mine site reha- opment of new, sustainable products that bilitation project at our Fairmont (West have a lower carbon footprint. Virginia) recycled pulp mill and a partner- ship with local composting facilities at our Ponderay (Washington) newsprint mill. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 36

SOCIAL INDICATORS OF SUSTAINABILITY

37 Highlights COMMITTED 37 Performance TO OUR PEOPLE AND 39 Accomplishments OUR COMMUNITIES SOCIETY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 37

HIGHLIGHTS Performance by the numbers

KEY PERFORMANCE INDICATORS21 2016 PERFORMANCE

Lost time incident rate22, 23 0.31 Total OSHA recordable incident rate24 0.77 Severity rate25 26 Fatalities – employees 0 Fatalities – contractors 0 Fatalities – total 0 Community spending (charitable contributions) $1,018,138 Total employees26 8,456 Voluntary employee turnover, including retirement 10.8% Involuntary employee turnover27 2.9% Employees unionized 64.4% Women in workforce 10.0% Women in management roles 1.0%

21. Social performance data is for all Resolute operations. Data includes Ponderay Newsprint Company (Washington), an unconsolidated partnership in which we have a 40% interest. Some of this information is preliminary and subject to change; data will be confirmed on our website. 22. The lost time incident rate is calculated by multiplying the number of incidents that were lost time cases by 200,000, divided by total number of hours worked. 23. Safety data excludes Senneterre−Lac-Clair (Quebec) sawmill, acquired on October 31, 2016, as well as Opitciwan (Quebec) sawmill. 24. The total incident rate is calculated by multiplying the number of recordable incident cases by 200,000, divided by total number of hours worked. 25. The severity rate is calculated by adding the number of workdays lost to the number of restricted workdays due to injury, multiplied by 200,000 hours worked, divided by total number of hours worked. 26. Employee data includes Senneterre−Lac-Clair and Opitciwan sawmills. 27. Employees who leave the organization due to dismissal or death in service. SOCIAL PERFORMANCE

We regularly engage with First Nations, sustainability committee. In 2016, New and ongoing customers and key stakeholders such as we created an internal product steward- commitments employees/unions, retirees, investors, ship committee – with representatives from governments, environmental non-govern- the environment, operations, legal and Resolute Forest Products’ role in our mental organizations, local communities sales departments – which has a mandate operating communities extends well beyond and suppliers/partners in order to ensure to support compliance with product the jobs we create, the taxes we pay and our sustainability strategy, public commit- stewardship regulations and to expand the charitable support we provide. We work ments and reporting continue to reflect the possible end uses of our products. to build reciprocal business relationships, the interests and needs of our stakeholders grassroots support and positive govern- and other interested parties. A tracking initiative was launched in ment relations through transparency and January 2017 to report more detailed information-sharing, as well as through To maintain effective sustainability quantitative information on outreach in our active involvement in local organizations oversight and management practices, operating communities, including volunteer and community projects. we continue to monitor our sustainability activities, charitable contributions, stake- performance and recommend areas holder engagement and other activities. for improvement through our corporate SOCIETY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 38

Our commitments and performance for For the most current information, including Social performance all the operations the company owned other sustainability performance indicators update or operated as at December 31, 2016, and disclosures prepared in accordance are presented in the following table. with the Global Reporting Initiative (GRI) This performance data should be consid- standard, visit www.resolutefp.com/ ered preliminary and is subject to change. sustainability.

2016 2016 COMMITMENTS 2016 PERFORMANCE 2017 TARGETS RATING

Maintain annual sustainability Published fifth combined annual report with By year-end 2018, transition to the reporting and transparency substantial sustainability content recently released GRI Standards for sustainability reporting developed by the Maintained reporting online in accordance with Global Sustainability Standards Board Global Reporting Initiative (GRI) framework Continue reporting to the CDP Climate, Reported to CDP (formerly Carbon Disclosure + Water and Forests programs Project), earning scores of “B” (Management) for our climate and water disclosures and “A-” (Leadership) for our disclosure to the forests program

Roll out communications Communicated supplier guidelines to By year-end 2017, review Resolute’s on supplier guidelines and 2,293 suppliers, representing 80% of total environmentally responsible procurement measure dissemination annual procurement-relevant purchasing volumes > and supplier engagement practices in order to track and report on supply chain sustainability in key procurement sectors

Launch a quality culture and Launched initiative within pulp and paper business In 2017, develop additional customer customer satisfaction initiative in segments whereby a “champion team” at each satisfaction KPIs, institute a root cause an effort to share best practices operation has set specific key performance problem elimination process, and share and continue to maintain a indicators (KPIs) that are tracked, reported and best practices across the company high level of satisfaction with used to develop action plans for continuous company products and services improvement > Set targets for 2018 based on tracked KPIs to improve on-time delivery and Discussed product quality, service, customer order fulfillment, as well as work towards feedback and best practices during monthly improved customer satisfaction conference calls, supporting organization-wide accountability

Achieve an Occupational Safety Achieved an OSHA incident rate of 0.77 and a Set 2017 targets to achieve an OSHA and Health Administration severity rate of 26 incident rate of 0.90 or less and a (OSHA) incident rate of 0.92 severity rate less than or equal to 24 or less, with a long-term goal of > zero injuries; achieve a severity rate of 25 or less

Ensure employees submit 2 to Attained an overall near-miss incident ratio Set 2017 target for 100% of hourly 3 near-miss incident reports of 4.0 per employee (29,739 near misses ++ employees to submit 3 proactive annually reported) near-miss incident reports annually

++ Surpassed commitment + Achieved commitment = Maintained achievement > Ongoing progress x Commitment unattained SOCIETY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 39

ACCOMPLISHMENTS

At Resolute, safety and community Safety a core value relations go hand in hand. Through our at Resolute Board of Directors Safety Award program, Resolute operations can earn $5,000 to Ensuring our employees’ safety is a core add to their annual community contribu- company value. We are committed to tions for every 250,000 hours worked fostering a “total safety organization,” without a recordable injury. In 2016, with a long-term goal of zero incidents we donated nearly $190,000 to charitable and zero injuries across our operations. and community organizations chosen by Implementing exceptional health and our employees, who contributed to the safety standards is inextricably linked to company’s outstanding safety perfor- operational excellence in all aspects of mance. The following significant safety our business. milestones were reached during the year at our operations: Resolute sponsors We take a proactive approach to risk • Our Thorold (Ontario) newsprint mill world champion control by combining safety leadership with achieved 1.25 million consecutive oper- individual accountability, supported by a speed skater ating hours without a single recordable stringent safety management system that injury, while our Grenada (Mississippi) Our commitment to community health and includes employee training and awareness, newsprint mill celebrated 1 million safety led to our 2016–2019 partnership audits and monitoring, as well as employee incident-free hours. with Marianne St-Gelais, world champion participation through each operation’s joint and winner of three Olympic medals in health and safety committee. • Nearly 20 of our other operations short track speed skating. reached important milestones of 250,000, 500,000 or 750,000 hours A native of Saint-Félicien (Quebec), without a recordable injury. Marianne grew up in a family of foresters. It was only natural for Resolute to sponsor Overall near-miss Our employees were also instrumental in Marianne’s journey to the 2018 Winter incident ratio of Resolute winning two major safety awards Olympics in PyeongChang, South Korea. in 2016. Resolute and our Kénogami 4.0 (Quebec) and Calhoun (Tennessee) mill In such a fast and intense sport, Marianne per employee employees received the Innovation Award must carefully plan her races to protect from the Association pour le développe- against crashes and injury. Her dedication ment de la recherche et de l’innovation to safety and preventive measures makes du Québec (ADRIQ) for developing a her an ideal Resolute Safety Ambassador. safer, more comfortable and eco-friendly chemical protective suit, which has been adopted by others in the industry.

ADRIQ Innovation Award Additionally, our Resolute-LP Larouche in the health and safety and Saint-Prime (Quebec) joint-venture product category engineered wood facilities were honored by APA–The Engineered Wood Association with a Safest Company Award, having been injury-free for over six and eight years, respectively. RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 40

PARTNERSHIP WITH CAMBRIAN COLLEGE FOR MILLWRIGHT TRAINING PROGRAM FOR ABORIGINAL STUDENTS SOCIETY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 41

Signature of a memorandum of agreement with Confederation College to promote training for Aboriginal students

• Memorandums of agreement that Building partnerships have resulted in C$100 million in Collaborating on forest with First Nations economic opportunities for seven of management planning our First Nations partners in Ontario.28 Resolute respects the importance of These groundbreaking agreements Public consultation is an essential Canada’s land, water and forests to its include significant contracts for step in the sustainable forest management Aboriginal peoples, and we understand construction and transportation. planning process. In Canada, the legal how integral these natural resources are responsibility to consult with First Nations • Our Thunder Bay (Ontario) sawmill, to the prosperity of Aboriginal commu- and harmonize forest management located on Fort William First Nation land nities. We are committed to nurturing practices with their traditional land and leased to Resolute on a long-term constructive relationships, and respecting uses lies with government. Within this basis, that employs some 200 workers, treaties, traditions and rights. framework, Resolute actively engages many from this First Nation community. First Nations in the review of our harvesting The Thunder Bay facility is the first As outlined in our Aboriginal Peoples plans. We maintain close ties with nearly in Canada to work under regulations Policy, we pursue mutually beneficial 40 First Nations communities across the created by the First Nations Commercial commercial relationships, consult on deci- areas where we operate, collaborating on and Industrial Development Act, which sions that impact Aboriginal communities, the development of mutually acceptable facilitates industrial development with and support meaningful employment and management plans. First Nations on their land. economic sustainability. • Our Opitciwan joint-venture sawmill Resolute has many other existing located in Obedjiwan (Quebec), in opera- partnerships and mutually beneficial tion since 1999. The Atikamekw Council business ventures with First Nations. of Obedjiwan has a 55% interest in the Some examples include: joint venture, while Resolute owns 45%. • Memorandums of agreement signed • Forest management and harvesting activ- in 2016 with Confederation College ities we carry out, and stumpage fees we in Thunder Bay (Ontario) and with pay in exchange for volumes allocated to the Anishinabek Employment & Training the Kitigan Zibi Anishinabeg First Nation Service (AETS), an Aboriginal employ- (Quebec) by the provincial government. ment and training organization that • More than 1.5 million seedlings supports Aboriginal peoples who are purchased annually from a tree nursery transitioning into the workforce. established by the Wabigoon Lake • A partnership with Cambrian College Ojibway Nation in Ontario in the late in Sudbury (Ontario) that encourages 1990s, with the company’s support. First Nations students to pursue trade careers. In January 2016, six students entered the industrial millwright program. • Encouraging students from First Nations in northern Ontario studying at Dennis Franklin Cromarty High School to consider a career in the trades and supporting the region’s efforts to open a First Nations trades facility.

28. Nigigoonsiminikaaning, Kiashke Zaaging Anishinaabek, Lac des Mille Lacs, Seine River, Couchiching, Mitaanjigamiing and Lac La Croix First Nations. SOCIETY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 42

1,109 Supporting workforce Engaging with our new employees hired renewal and retention operating communities

Resolute’s long-term competitiveness is Resolute strives to have a positive and tied to our ability to attract results-driven meaningful impact on the communities in and action-oriented employees, and to which we operate, targeting philanthropic allow natural leaders to learn and grow contributions to two key pillars of sustain- within our organization. To achieve this able development: social (community goal, we closely manage and track our health and education) and environmental Over performance in a number of key areas, (community projects and education). including health and safety, employee Our contributions can take many forms, $1 million demonstrated effectiveness, and labor including financial and material support, in donations and relations. and countless volunteer hours by our sponsorships employees. In 2016, we hired 1,109 new permanent and temporary employees and raised our In 2016, Resolute committed to further employer profile through targeted recruit- integrate our community engagement ment practices, such as our engineering programs to reinforce collaboration with graduate program. Since the creation a range of business and community of this program in 2013, Resolute has partners. We launched a program to track More than hired 63 engineering graduates to work in employee volunteer hours and community our network of facilities. Each graduate outreach events at all of our operations 5,400 works on a six-month rotation in various in order to share best practices among areas of an operation and is assigned a facilities and to better understand how employees mentor, who provides guidance and support we contribute to the communities where throughout the training process. we operate. covered by collective agreements In the past year, we renewed or entered In 2016, our donations and sponsorships into a number of agreements with unions, – at both the local and corporate levels – covering approximately 1,300 employees, totaled over $1 million. The following primarily in our sawmills and woodlands in examples provide a snapshot of the range Canada. The collective agreements covering of organizations we supported across our approximately 250 employees in Canada operating communities: either expired in 2016 or are scheduled • Resolute donated C$400,000 to the to expire in 2017, mainly affecting one Domaine-du-Roy and Maria-Chapdelaine sawmill and two woodlands operations. (Quebec) regional county municipalities under a five-year agreement to support We continue to train our employees on economic development projects in the Resolute’s Code of Business Conduct. Lac-Saint-Jean region. The annual All new and existing employees receive Resolute golf tournament also raised communications about the company’s funds for the area, contributing diversity, equal employment, anti-discrimi- C$105,000 for equipment purchases nation and harassment policies. for the Leucan Cancer Foundation, the CSSS Domaine-du-Roy Foundation and the Maria-Chapdelaine Center Foundation. SOCIETY RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 43

Launch of an integrated program to track donations, sponsorships and volunteerism across our operations

UQAC, will support research into the boreal forest and the impact of changes in the landscape on black spruce growth in the context of climate change, with a particular focus on the spruce budworm infestation. • At the University of South Carolina, we provide entrance award scholarships totaling up to $3,000 each year to students who are interested in the paper manufacturing field, with a preference for employees or dependents of our Catawba operation. • Resolute is a long-time supporter of the First Nations Natural Resources Youth Employment Program, a partnership with Outland Camps Inc. and others in Northwestern Ontario. In 2016, in addition to providing work experience in the field of forestry, Resolute toured • Our Coosa Pines (Alabama) pulp mill Supporting education the 48 program participants through our hosted its 22nd annual Log A Load for Thunder Bay sawmill and wood pellet Kids golf tournament, raising $32,000 and academic research plant, and discussed career opportuni- in support of the Children’s Hospital of ties at the facility with an emphasis on Alabama CHIPS (Children’s Hospital Over the years, Resolute has provided trades training. Intervention and Prevention Services) substantial financial support to universi- program to assist with treatment of ties and colleges to help spark innova- children who have been abused or tion in the forest products sector and to neglected. To date, the Coosa Pines provide ongoing scholarships to students facility has raised over $400,000 for studying biology, natural product chem- the program. istry, geography, renewable resources and environmental science. In 2016, Resolute • Resolute sponsored a fundraising donated funds for scholarships, research breakfast that raised a record $16,000 grants, buildings and other needs totaling for local youth in need in Dolbeau- over $280,000. Here are some examples Mistassini (Quebec). Over 1,000 people of our support for education: were served by staff and students at Jean-Dolbeau High School, with all • In early 2017, the company announced profits going to purchase clothing and a donation of C$1 million over five years food for disadvantaged students, as well toward the creation of a prestigious as to address medical needs. industrial research chair sponsored by the Natural Sciences and Engineering Research Council of Canada at the University of Quebec at Chicoutimi (UQAC). Our contribution, along with that of the Government of Quebec and RESOLUTE FOREST PRODUCTS — 2016 ANNUAL REPORT 44

BOARD OF CORPORATE DIRECTORS OFFICERS

Bradley P. Martin 2, 3 Richard Garneau Chairman of the Board of Directors; President and Chief Executive Officer Vice President for Strategic Investments Fairfax Financial Holdings Limited Steve Boniferro Senior Vice President Richard Garneau Human Resources President and Chief Executive Officer Yves Laflamme Michel P. Desbiens 2, 3 Senior Vice President Corporate Director Wood Products, Procurement and Information Technology Jennifer C. Dolan 1, 4 Corporate Director Jo-Ann Longworth Senior Vice President and Richard D. Falconer 1, 2, 3 Chief Financial Officer Corporate Director; Senior Partner, Lazard Canada André Piché Senior Vice President Jeffrey A. Hearn 2, 4 Tissue Group, and Calhoun, Corporate Director Catawba and Mokpo Operations

Alain Rhéaume 1, 3 Richard Tremblay Lead Director; Senior Vice President Managing Partner, Trio Capital Inc. Pulp and Paper Group

Michael S. Rousseau 1, 3, 4 Jacques P. Vachon Executive Vice President and Senior Vice President Chief Financial Officer, Air Canada Corporate Affairs and Chief Legal Officer Ambassador David H. Wilkins 2, 4 Partner, Nelson Mullins Riley & Scarborough LLP; Former U.S. Ambassador to Canada

Board Committees 1 Audit Committee 2 Environmental, Health and Safety Committee 3 Finance Committee 4 Human Resources, Compensation and Nominating and Governance Committee

Note: As at December 31, 2016 SHAREHOLDER TABLE OF CONTENTS INFORMATION

Resolute Forest Products is the proud recipient 2 2016 at a Glance Annual General Meeting Investor Information Form 10-K of four awards for our 2015 Annual Report. We and Financial Reporting were honored with two awards from the prestigious 4 Letter from the Chairman and Our annual meeting of stockholders will Resolute Forest Products Inc. fi les its MerComm Annual Report Competition (ARC) – the President and Chief Executive Offi cer be held on Thursday, May 25, 2017, Alain Bourdages annual report on Form 10-K with the gold in the written text category and bronze in 8 Who We Are the fi nancial data category. We also received two at 10:00 a.m. (Eastern) at the Museum Vice President U.S. Securities and Exchange Commission International Mercury awards for outstanding 9 Business and Sustainability Strategy Center at 5ive Points, 200 Inman Street Investor Relations (SEC), a copy of which is included with achievement in professional communications – gold 10 Resolute’s 2017 Business Priorities East, Cleveland, Tennessee 37311, 514 394-2233 this annual report to stockholders. Free for overall excellence in the combined fi nancial United States. [email protected] copies (without exhibits) are available upon and sustainability report category, and honors for 11 Our Approach to Sustainability excellence in writing in the annual report category. request to Resolute’s Investor Relations department. The company’s SEC fi lings, 12 ECONOMY Transfer Agent Media Inquiries annual reports, news releases and other for Common Stock 13 Financial Highlights Seth Kursman investor information can be accessed at 15 Market Pulp Computershare Trust Company, N.A. Vice President www.resolutefp.com/investors. 16 Wood Products P.O. Box 30170, College Station, Corporate Communications, Texas, 77842-3170, United States Sustainability and Government Affairs 19 Woodlands Stock Listings 22 Tissue 866 820-6919 (toll-free within 514 394-2398 BUILDING THE RESOLUTE the United States and Canada) [email protected] The shares of common stock of Resolute resolutefp com OF THE FUTURE 24 Newsprint AnnualReport 781 575-3100 Forest Products Inc. trade under the stock 27 Specialty Papers www.computershare.com/investor symbol RFP on both the New York Stock Vous trouverez la version française Exchange and the Toronto Stock Exchange. 28 ENVIRONMENT de ce rapport au www.pfresolu.com. Co-Transfer Agent – Canada 29 Highlights Resolute Forest Products Computershare Investor Services Inc. 30 Environmental Performance 111 Duke Street, Suite 5000, 100 University Avenue, 9th Floor, 33 Accomplishments Montréal, Quebec, H3C 2M1, Canada Toronto, Ontario, M5J 2Y1, Canada The inside pages of this report are printed on 514 875-2160 or 1 800 361-2888 ResoluteBrite 83 Plus 60 lb (89 g/m2) paper, 800 564-6253 (toll-free within manufactured at Resolute Forest Products’ 36 SOCIETY the United States and Canada) For a full list of contacts, visit Catawba (South Carolina) mill. www.computershare.com/investor 37 Highlights www.resolutefp.com/contact. ResoluteBrite 83 Plus is available with Sustainable 37 Social Performance Forestry Initiative® (SFI®) and/or Programme for the Endorsement of Forest Certifi cation (PEFC) 39 Accomplishments Independent Registered chain of custody certifi cations. Public Accounting Firm 44 Board of Directors and Corporate Offi cers Certifi cations at Catawba include: PricewaterhouseCoopers LLP Shareholder Information 1250 René-Lévesque Boulevard West, • SFI, PEFC and Forest Stewardship Council® (FSC®) chain-of-custody-certifi ed fi ber-tracking Suite 2800, Montréal, Quebec, system H3B 2G4, Canada • SFI fi ber sourcing and FSC controlled wood standards • ISO 14001-certifi ed environmental management system • ISO 9001-certifi ed quality management system

Graphic Design / CG3 inc. Printed in Canada www.resolutefp.com

PRINCIPLED LEADERSHIP

2016 Annual Report