Market Overview

Columbia Pulp Opens Pilot Plant Producing Paper Pulp from Waste Straw in Washington

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Pilot Plant to Provide Job Training; Product Samples Ahead of Opening
of North America's first Tree-Free Paper Pulp Mill

Columbia Pulp I, LLC, announced Wednesday that the company has completed
construction on its 18,000-square-foot pilot plant in Pomeroy,
Washington. While construction is still underway for North America's
first tree-free pulp mill outside of neighboring Starbuck, Washington,
this pilot plant will replicate Columbia Pulp's innovative pulp-making
process on a smaller scale.

Columbia Pulp expects the pilot plant to produce 10 tons of pulp per
day, and to be fully operational by September.

"Our Pomeroy pilot plant will employ up to eight full-time employees,
and provide them the opportunity to learn the manufacturing process and
hone their skills on a smaller scale ahead of the Lyons Ferry Pulp Plant
opening," said Columbia Pulp CEO John Begley. "This pilot plant allows
us the opportunity to provide prospective customers with product samples
comparable to what they can purchase from the full-scale mill."

Ultimately, the first-of-its-kind Lyons Ferry Pulp Plant is expected to
provide 90 jobs in the communities of Dayton, Starbuck and surrounding
areas while eliminating the need to burn 230,000 tons of straw waste
annually. The Lyons Ferry Pulp Plant is planned to produce 400 tons of
pulp per day in its 140,000-square-foot facility. Along with producing
pulp for use in papermaking, the mill will produce environmentally
friendly biopolymers, which can be used on roads, in animal feed and
more.

Once construction is completed on the Lyons Ferry mill, the pilot plant
will remain open to produce smaller client orders.

About Columbia Pulp

Columbia Pulp's offices are located in Dayton, Wash. The company
operates a Pilot Facility in Pomeroy, Wash. and is finishing
construction on a state-of-the-art industrial scale mill in Starbuck,
Wash. Both facilities convert wheat straw and seed alfalfa into pulp and
biopolymers, used in the manufacture of sustainable, tree-free paper and
packing products, as well as numerous specialty chemical applications.
To learn more about the company, please visit www.columbiapulp.net.

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