CAPITAL INVESTMENT AT MEADOW LAKE PULP MILL ANNOUNCED

Released on April 24, 1995

Premier Roy Romanow and Mac Millar, president of Millar Western Pulp,
today announced that the Millar Western pulp mill at Meadow Lake will
implement a $32.5-million capital investment program.

The capital investment will result in the installation of a new wood
chip handling system and two high consistency bleaching systems. These
plant improvements will increase the mill's production, improve wood
utilization, and reduce chemical use.

The capital investment will be financed out of the cash flow of the
pulp mill. It will result in 125 construction jobs and a small number
of additional permanent jobs in wood handling.

"The Millar Western pulp mill has been an operational success since it
opened in 1992," Romanow said. "With the improvement in pulp prices
during the past year, the pulp mill has become a commercial success as
well. The capital investment program being announced here today
strengthens the mill and further improves its prospects for the
future."

"This investment will allow us to make productive use of trees that
previously were not commercially viable and to obtain more fibre, with
less waste, from each of the logs we cut," said Millar. "We will
increase our production from 265,000 tonnes per year to as much as
300,000 tonnes per year and at the same time will reduce our use of
chemicals. This is in line with Millar Western's commitment to
sustainable and environmentally-responsible pulp production."

The state-of-the-art Millar Western Pulp mill at Meadow Lake is a
totally chlorine-free chemi-thermomechanical pulp (CTMP) facility
producing 100 per cent aspen pulp for use in the manufacture of
printing and writing paper, and tissue. The facility is the world's
first successful zero liquid effluent discharge pulp mill and the
largest single producer of CTMP.

The Meadow Lake pulp mill is 51 per cent owned by Millar Western and 49
per cent owned by the province of Saskatchewan through the Crown
Investments Corporation.

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For more information, contact:

Mark Stobbe Janet Millar
Crown Investments Corporation Millar Western
Regina Edmonton
Phone: (306) 787-9039 Phone: (403) 486-2444