MEADOW LAKE PULP LIMITED PARTNERSHIP FILES FOR COURT PROTECTION

Released on December 28, 2005

Meadow Lake Pulp Limited Partnership announced today that, due to poor market conditions, which have affected the Meadow Lake pulp mill, it has obtained creditor protection under the Companies' Creditors Arrangement Act (CCAA). Meadow Lake Pulp Limited Partnership is jointly owned by CIC Pulp Ltd, a wholly owned subsidiary of Investment Saskatchewan Inc., and Millar Western Industries Ltd.

The Meadow Lake pulp mill's financial position has been negatively impacted by deteriorating market conditions including the high Canadian dollar, increasing transportation costs, low pulp prices and rising energy costs. These market conditions are affecting pulp mills across Canada.

CCAA protection will allow the Meadow Lake pulp mill to continue to operate, and make payments to its employees and suppliers for goods and services. The CCAA process will also provide time in which to investigate all options with respect to the future of the mill including, working with major suppliers to examine the mill's cost structure, engaging potential buyers and reviewing new partnership options.

"We understand how important this mill is to the community and to the province, but in its current state it is simply not viable," Investment Saskatchewan Inc. CEO and president Janet Wightman said. "And this move has been taken to ensure that the mill remains operational while a restructuring plan is developed. The CCAA process will give all affected parties the opportunity to work together in an effort to improve the mill's cost structure and secure the future of the Meadow Lake pulp mill while minimizing further financial losses."

The Meadow Lake mill is one of the world's first zero effluent chemi-thermomechanical pulp mills. It currently employs 170 hourly and salaried employees.

About Investment Saskatchewan

Investment Saskatchewan Inc. is a designated subsidiary crown corporation under The Crown Corporations Act, 1993 and an incorporated entity under the Saskatchewan Business Corporations Act. Formerly known as CIC Industrial Interests Inc., the Corporation presently holds an investment portfolio of $459 million in a variety of industries and can place up to $50 million in new investments annually.

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For More Information, Contact:

Conrad Hadubiak MacPherson Leslie & Tyerman LLP Regina Phone: (306) 347-8447