Exhibit 13.1
 
 Annual Information Form




---



##### 



Table of Contents
  PageDocuments incorporated by reference

Forward Looking StatementsItem 1 - Date of the Annual Information Form
    
    
    1Item 2 - Corporate Structure
    
    
    12.1 Name and Incorporation of the Company
    
    
    12.2 Intercorporate Relationships
    
    
    1Item 3 - General Development of the Business
    
    
    13.1 Three Year History
    
    
    13.2 Significant Acquisitions
    
    
    33.3 Trends
    
    
    3Item 4 - Description of the Business
    
    
    34.1 General
    
    
    34.2 Industry Sector Information
    
    
    44.2.1 Packaging Products Sector
    
    
    44.2.1.1 Boxboard Group
    
    
    44.2.1.2 Containerboard Group
    
    
    44.2.1.3 Specialty Products Group
    
    
    64.2.2 Tissue Papers Sector
    
    
    94.3 Research and Development
    
    
    114.4 Competitive Conditions
    
    
    114.4.1 Our Markets
    
    
    114.4.2 Our Competitive Strengths
    
    
    124.5 Cycle Components
    
    
    124.6 Environment
    
    
    124.6.1 Regulations
    
    
    124.6.2 Environmental Mission
    
    
    124.7 Reorganizations
    
    
    134.8 Social Policies
    
    
    134.9 Business Risks
    
    
    13Item 5 - Dividends
    
    
    13Item 6 - Capital Structure
    
    
    136.1 General Description of Capital Structure
    
    
    136.2 Ratings
    
    
    13Item 7 - Market for Securities
    
    
    147.1 Trading Price and Volume
    
    
    14Item 8 - Directors and Officers
    
    
    158.1 Information concerning Directors
    
    
    158.2 Cease Trade Orders, Bankruptcies, Penalties or Sanctions
    
    
    178.3 Information concerning Executive Officers
    
    
    18Item 9 - Legal Proceedings
    
    
    19Item 10 - Transfer Agent and Registrar
    
    
    19Item 11 - Material Contracts
    
    
    19Item 12 - Interests of Experts
    
    
    19Item 13 - Audit Committee
    
    
    1913.1 Composition and Mandate
    
    
    1913.2 Relevant Education and Experience of the Members
    
    
    1913.3 External Auditors Services Fees
    
    
    2013.4 Policies and Procedures for the Engagement of Audit and Non-Audit Services
    
    
    20Item 14 - Additional Information
    
    
    20Schedule A  Charter of the Audit Committee




---



##### 



In this Annual Information Form, the terms We, Us, Our, Company and Cascades refer to
Cascades Inc., its subsidiaries, divisions and its interests in joint ventures. Except as otherwise
indicated, all dollar amounts are expressed in Canadian dollars. The information in this Annual
Information Form is stated as at December 31, 2010, except as otherwise indicated, and except for
information in documents incorporated by reference that have a different date.
 Documents Incorporated by reference
  Documents
    
    Where they are incorporated in this Annual Information FormCascades Inc.s 2010 Annual Report  Managements discussion and analysis of financial position and operating results, NEAR-TERM OUTLOOK, page 22, RISK MANAGEMENT, page 30
    
    Items 3.3, 4.61 and 4.9
 Forward-Looking Statements




---



##### 



(CASCADES)
    
    Annual Information Form
 Item 1  Date of the Annual Information Form
  Item 2  Corporate Structure
 2.1 Name and Incorporation of the Company
  Companies Act
 Companies Act
 Companies Act Business Corporations Act Business Corporations Act
 www.cascades.com.
 2.2 Intercorporate Relationships
  Jurisdiction ofCorporate Name
    
    IncorporationCascades Canada Inc.
    
    CanadaCascades USA Inc
    
    DelawareDopaco, Inc.
    
    PennsylvaniaNorampac Holding US Inc.
    
    Delaware
 Item 3  General Development of the Business
 3.1 Three Year History
 Financing activities
 Bank Financing




---



##### 



(CASCADES)
    
    Annual Information Form
  High Yield Financing
     Corporate Activities
 Boxboard Group
    Containerboard Group (Norampac)
      2




---



##### 



(CASCADES)
    
    Annual Information Form
   Specialty Products Group
   Tissue Group
     3.2 Significant Acquisitions
  3.3 Trends
  Item 4  Description of the Business
 4.1 General
   1)
    
    The Packaging Productssector which includes:
 i)
    
    The Boxboard Group, a manufacturer of premium coated boxboard and folding cartons;ii)
    
    The Containerboard Group, a manufacturer of containerboard and leading converter of
corrugated products; andiii)
    
    The Specialty Products Group, which manufactures specialty papers,
industrial packaging and consumer product packaging and is also involved in recovery
and recycling.
 2)
    
    The Tissue Paperssector operates units that manufacture and convert tissue
paper for the away from home and consumer products markets.
   3




---



##### 



(CASCADES)
    
    Annual Information Form
  4.2 Industry Sector Information
 4.2.1 Packaging Products Sector
  4.2.1.1 Boxboard Group
      Annual capacity orFacilities
    
    Products / Services
    
    ShipmentsManufacturing
    
    
    
    Annual capacityin metric tonnesJonquière, Québec
    
    From 100% virgin to 100% recycled coated boxboard
    
    
    144,000East Angus, Québec
    
    100% recycled coated boxboard
    
    
    72,000Versailles, Connecticut
    
    100% recycled coated boxboard
    
    
    140,000LaRochette, France
    
    Coated boxboard
    
    
    160,000Cascades Djupafors A.B., Sweden
    
    Coated boxboard
    
    
    62,000Converting
    
    
    
    Shipmentsin metric tonnesMississauga, Ontario
    
    Processing and printing of boxboard for folding cartons
    
    
    20,000Cobourg, Ontario
    
    Processing and printing of boxboard for folding cartons
    
    
    12,000Winnipeg, Manitoba
    
    Processing and printing of boxboard for folding cartons
    
    
    18,000Lachute, Québec
    
    Processing and printing of boxboard for folding cartons
    
    
    12,000Hebron, Kentucky
    
    Processing and printing of boxboard for folding cartons
    
    
    16,000Dopaco, Inc., Pennsylvania,
California, North Carolina,
Illinois and Ontario
    
    Packaging products for the quick-service restaurant industry
    
    
    169,000
    (1)
 
 (1)
    
    In March 2011, the Company entered into an agreement for the sale of Dopaco,
Inc. 4




---



##### 



(CASCADES)
    
    Annual Information Form
 4.2.1.2 Containerboard Group
    Annual capacity orFacilities
    
    Products / Services
    
    ShipmentsContainerboard
    
    
    
    Annual Capacityin short tonsNorampac Industries Inc., Niagara
Falls Division, New York
    
    100% recycled corrugating medium
    
    
    275,000Norampac Avot Vallée SAS, France
    
    100% recycled corrugating medium and linerboard
    
    
    155,000
    (1)Kingsey Falls, Québec
    
    100% recycled linerboard
    
    
    103,000Cabano, Québec
    
    Corrugating medium in various basis weights
    
    
    242,000Trenton, Ontario
    
    Corrugating medium in various basis weights
    
    
    194,000Mississauga, Ontario
    
    100% recycled linerboard
    
    
    173,000Burnaby, British Columbia
    
    100% recycled corrugating medium and gypsum paper
    
    
    128,000Corrugated Products
    
    
    
    Shipments in square feetNewfoundland, St. Johns
    
    Corrugated packaging
    
    
    130,000,000Moncton, New Brunswick
    
    Corrugated packaging
    
    
    300,000,000Drummondville, Québec
    
    Corrugated packaging
    
    
    907,000,000Victoriaville, Québec
    
    Corrugated packaging
    
    
    297,000,000Vaudreuil, Québec
    
    Corrugated packaging
    
    
    824,000,000Viau, Montréal, Québec
    
    Corrugated packaging
    
    
    895,000,000Le Gardeur, Québec
    
    Corrugated packaging and pallets
    
    
    69,000,000Belleville, Ontario
    
    Corrugated packaging
    
    
    250,000,000Etobicoke, Ontario
    
    Corrugated packaging
    
    
    426,000,000Jellco, Barrie, Ontario
    
    Corrugated packaging
    
    
    96,000,000Peterborough, Ontario
    
    Corrugated, packaging and pallets
    
    
    85,000,000St-Marys, Ontario
    
    Corrugated packaging
    
    
    841,000,000OCD, Mississauga, Ontario
    
    Corrugated packaging
    
    
    783,000,000
 5




---



##### 



(CASCADES)
    
    Annual Information Form
 Annual capacity orFacilities
    
    Products / Services
    
    ShipmentsVaughan, Ontario
    
    Corrugated packaging
    
    
    1,894,000,000North York, Ontario
    
    Single face sheets, corrugated packaging and display operations
    
    
    43,000,000Lithotech, Scarborough, Ontario
    
    Single face laminate
    
    
    173,000,000Winnipeg, Manitoba
    
    Corrugated packaging
    
    
    476,000,000Saskatoon, Saskatchewan
    
    Corrugated packaging
    
    
    5,000,000
    (2)Calgary, Alberta
    
    Corrugated packaging
    
    
    562,000,000Richmond, British Columbia
    
    Corrugated packaging
    
    
    438,000,000Norampac New York City Inc.,
New York
    
    Corrugated packaging
    
    
    769,000,000Norampac New England Inc.,
Leominster Division
Massachusetts
    
    Corrugated packaging
    
    
    502,000,000
    (3)Norampac Schenectady Inc.
New York
    
    Corrugated packaging
    
    
    604,000,000Norampac Industries, Inc.,
Lancaster Division
New York
    
    Corrugated packaging
    
    
    375,000,000Norampac New England Inc.,
Thompson Division
Connecticut
    
    Corrugated packaging
    
    
    195,000,000ServicesArt & Die, Etobicoke, Ontario
    
    Graphic art and printing plates
    
    
    N/A
 
 (1)
    
    In February 2011, Norampac Avot-Vallée SAS was sold.(2)
    
    In March 2010, the Saskatoon plant ceased its activities.(3)
    
    In March 2011, the Leominster plant ceased its activities. 4.2.1.3 Specialty Products Group
  a) Industrial Packaging
     6




---



##### 



(CASCADES)
    
    Annual Information Form
   Facilities
    
    Products
    
    Annual capacity in metric tonnesCascades Conversion Inc.
Kingsey Falls, Québec
    
    Roll headers and packaging products
    
    
    65,000Converdis inc.
Berthierville, Québec
    
    Packaging products
    
    
    50,000Cascades Sonoco Inc., Birmingham
Alabama
    
    Roll headers and packaging products
    
    
    50,000Cascades Sonoco Inc., Tacoma
Washington
    
    Roll headers and packaging products
    
    
    30,000Cascades Rollpack S.A.S., Saucy-sur-
Meurthe and Châtenois, France
    
    Roll headers and packaging reams
    
    
    30,000Cascades Multi-Pro Drummondville, Québec
    
    Sheeting, dividers, laminated board and honeycomb packaging products
    
    
    15,000Cascades Enviropac, Berthierville
and St. Cesaire, Québec
    
    Honeycomb packaging products
    
    
    8,000Cascades Enviropac  Toronto
Ontario
    
    Honeycomb packaging products
    
    
    6,000Cascades Enviropac HPM LLC
Grand Rapids, Michigan
    
    Honeycomb packaging products and other packaging products
    
    
    10,000Cascades Papier Kingsey Falls
Québec
    
    Uncoated board
    
    
    93,000
 b) Consumer Product Packaging
   ® ®
 ® ®
  Territory
    
    2009
    
    2010Québec
    
    
    46
    %
    
    
    46
    %Ontario
    
    
    14
    %
    
    
    15
    %The rest of Canada
    
    
    2
    %
    
    
    4
    %United States
    
    
    38
    %
    
    
    35
    %
 7




---



##### 



(CASCADES)
    
    Annual Information Form
  Annual capacityFacilities
    
    Products
    
    in kilogramsPlastiques Cascades
Kingsey Falls, Québec
    
    Polystyrene foam containers
    
    
    9,500,000Cascades Plastics Inc.
Warrenton, Missouri
    
    Polystyrene foam containers
    
    
    5,000,000Plastiques Cascades  Re-Plast
Notre-Dame-du-Bon-Conseil, Québec
    
    Park furniture, patio and balcony planks, plastic lumber
    
    
    6,000,000Cascades Inopak
Drummondville, Québec
    
    Coin wrappers, multi-use packaging
    
    
    5,000,000Cascades Forma-Pak
Kingsey Falls, Québec
    
    Filler flats, trays, specialty packaging products
    
    
    14,500,000Cascades Moulded Pulp, Inc.,
Rockingham, North Carolina
    
    Filler flats, trays and specialty packaging products
    
    
    6,000,000
 c) Specialty Papers
        8




---



##### 



(CASCADES)
    
    Annual Information Form
 Annual capacity(MT: metric tonnesFacilities
    
    Products / Services
    
    ST: short tons)Cascades Lupel
Trois-Rivières, Québec
    
    Manufacture of backing for vinyl flooring
    
    55,000 MTCascades East Angus, Québec
    
    Manufacture of kraft paper
    
    100,000 MTCascades Auburn Fibre, Maine
    
    Manufacture of kraft de-inking pulp
    
    75,000 MTCascades Fine Papers Group Inc.,
Rolland Division
Saint-Jérôme, Québec
    
    Manufacture of uncoated fine paper
    
    155,000 STCascades Fine Papers Group Inc.,
Breakey Fibres Division
Sainte-Hélène-de-Breakey, Québec
    
    Manufacture of de-inked kraft pulp
    
    75,000 MTCascades Fine Papers Group Inc.,
Converting Center Division
Saint-Jérôme, Québec
    
    Converting of fine papers, kraft and chipboard
    
    115,000 ST
 d) Recovery and Recycling
   4.2.2 Tissue Papers Sector
       9




---



##### 



(CASCADES)
    
    Annual Information Form
             Annual capacity inFacilities
    
    Products / Services
    
    
    short tonsManufacturing /
ConvertingCandiac, Québec
    
    Paper towels, bathroom tissue, paper napkins
    
    
    77,000Lachute, Québec
    
    Paper hand towels, bathroom tissue
    
    
    43,000Kingsey Falls, Québec
    
    Paper towels, facial tissue, bathroom tissue, paper hand towels
    
    
    113,000Cascades Tissue Group  North Carolina, Rockingham
    
    Paper towels, facial tissue, bathroom tissue, paper napkins, paper hand towels
    
    
    63,000Cascades Tissue Group  Wisconsin,
Eau Claire
    
    Paper towels, bathroom tissue, facial tissue and paper napkins
    
    
    62,000Cascades Tissue Group  Pennsylvania,
Ransom and Pittston
    
    Paper towels, bathroom tissue, facial tissue and paper napkins
    
    
    63,000ManufacturingToronto PM , Ontario
    
    Parent rolls
    
    
    64,000
 10




---



##### 



(CASCADES)
    
    Annual Information Form
 Annual capacity inFacilities
    
    Products / Services
    
    
    short tonsCascades Tissue Group  Oregon,
St-Helens
    
    Parent rolls
    
    
    77,000Cascades Tissue Group  Tennessee
Inc., Memphis
    
    Parent rolls, bathroom tissue
    
    
    46,000Cascades Tissue Group  New York
Inc., Mechanicville
    
    Parent rolls
    
    
    58,000ConvertingToronto, Ontario
    
    Paper towels, bathroom tissue, facial tissue, paper napkins
    
    
    N/ALaval, Québec
    
    Paper napkins
    
    
    N/ACascades Tissue Group  Arizona Inc., Kingman
    
    Paper towels, bathroom tissue, paper hand towels, paper napkins
    
    
    N/ACascades Tissue Group  New York Inc., Waterford
    
    Paper towels, bathroom tissue, paper hand towels, paper napkins
    
    
    N/ABest Diamond Packaging, LLC Kinston, North Carolina
    
    Paper hand towels
    
    
    N/AConvertingCascades Tissue Group  IFC Disposables Inc.,
Brownsville, Tennessee
    
    Industrial wipes
    
    
    N/A
 4.3 Research and Development
   4.4 Competitive Conditions
 4.4.1 Our Markets
     11




---



##### 



(CASCADES)
    
    Annual Information Form
 4.4.2 Our Competitive Strengths
 Leading Market Positions with Environmentally Sustainable Product Focus
 Fully Integrated Recycling Solutions Provider
 Diversified Portfolio of Products, Markets and Geographic Locations
 Strong Presence in Consumer-Oriented End Markets
 4.5 Cycle Components
   4.6 Environment
 4.6.1 Regulations
   Country
    
    Capital Expenses
    
    
    Operating CostsCanada
    
    $
    12,570,270
    
    
    $
    46,452,029United States
    
    $
    321,118
    
    
    $
    23,548,333Europe
    
    $
    629,772
    
    
    $
    5,531,078Total
    
    $
    13,521,160
    
    
    $
    75,531,440
 4.6.2 Environmental Mission
  12




---



##### 



(CASCADES)
    
    Annual Information Form
 4.7 Reorganizations
  4.8 Social Policies
  Cascades inc.
 www.cascades.com
 4.9 Business Risks
  Item 5  Dividends
   Item 6  Capital Structure
 6.1 General description of capital structure
    6.2 Ratings
    13




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
  Credit Risk
    
    Moodys
    
    
    S & P
    
    
    DBRSHighest quality
    
    Aaa
    
    AAA
    
    AAAHigh quality (very strong)
    
    Aa
    
    AA
    
    AAUpper medium grade (strong)
    
    
    A
    
    
    
    A
    
    
    
    AMedium grade
    
    Baa
    
    BBB
    
    BBBLower medium grade (somewhat speculative)
    
    Ba
    
    BB
    
    BBLow grade (speculative)
    
    
    B
    
    
    
    B
    
    
    
    BPoor quality (may default)
    
    Caa
    
    CCC
    
    CCCMost speculative
    
    Ca
    
    CC
    
    CCNo interest being paid or bankruptcy petition filed
    
    
    C
    
    
    
    C
    
    
    
    CIn default
    
    
    C
    
    
    
    D
    
    
    
    D
 
 Source:
    
    Securities Industry and Financial Markets Association and Dominion Bond Rating Services  Rating agency
    
    Rating
    
    Qualitative
    
    Most recent updateS&P
    
    B+
    
    Stable outlook
    
    November 2010Moodys
    
    Ba3
    
    Stable outlook
    
    December 2010DBRS
    
    BB high
    
    Negative outlook
    
    October 2010
  Item 7  Market for Securities
 7.1 Trading Price and Volume
  Toronto
Stock Exchange  Market price range  Year 2010
 Month
    
    High
    
    Low
    
    Market Price Range
    
    Trading VolumeJanuary
    
    
    9.80
    
    
    
    7.78
    
    
    
    7.97
    
    
    
    6,074,109February
    
    
    8.64
    
    
    
    7.18
    
    
    
    8.20
    
    
    
    4,927,826March
    
    
    8.56
    
    
    
    7.95
    
    
    
    8.16
    
    
    
    4,945,022April
    
    
    8.35
    
    
    
    7.85
    
    
    
    7.92
    
    
    
    4,612,453May
    
    
    7.92
    
    
    
    5.86
    
    
    
    6.87
    
    
    
    11,450,728June
    
    
    7.07
    
    
    
    6.35
    
    
    
    6.42
    
    
    
    3,285,045July
    
    
    7.16
    
    
    
    6.11
    
    
    
    6.93
    
    
    
    2,114,653August
    
    
    7.33
    
    
    
    6.20
    
    
    
    6.31
    
    
    
    2,876,387September
    
    
    6.74
    
    
    
    6.29
    
    
    
    6.36
    
    
    
    2,822,850October
    
    
    6.91
    
    
    
    6.31
    
    
    
    6.72
    
    
    
    5,473,760November
    
    
    7.10
    
    
    
    5.71
    
    
    
    6.10
    
    
    
    5,476,639December
    
    
    6.74
    
    
    
    5.93
    
    
    
    6.70
    
    
    
    3,657,481
  14




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
   Item 8  Directors and Officers
  8.1 Information concerning Directors
  Mr. Bernard Lemaire
 École des Hautes Études Commerciales  Montréal
 Mr. Laurent Lemaire
  Mr. Alain Lemaire
 Institut des pâtes et
papiers
 Mr. Martin P. Pelletier, Eng., Ph. D
 2
 15




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
 Mr. Paul R. Bannerman
  Mr. André Desaulniers
  Mr. Louis Garneau
 Université Laval
 Ms. Sylvie Lemaire
 École polytechnique Montréal
 Mr. Laurent Verreault
  Mr. Robert Chevrier
  16




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
  Mr. David McAusland
 Fondation de lÉcole nationale du cirque
 Mr. James B.C. Doak
 Diplôme détudes collégiales
 Mr. Georges Kobrynsky
  8.2 Cease Trade Orders, Bankruptcies, Penalties or Sanctions
       17




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
    8.3 Information concerning Executive Officers
 Executive Officers
    
    Occupation in the CompanyLaurent Lemaire 
Warwick (Québec)
    
    Chairman of the Board of DirectorsBernard Lemaire 
Kingsey Falls (Québec)
    
    Executive Vice-Chairman of the Board of DirectorsAlain Lemaire 
Kingsey Falls (Québec)
    
    President and Chief Executive OfficerMario Plourde 
Kingsey Falls (Québec)
    
    Chief Operating Officer of the Company and President and Chief
Operating Officer of Specialty Products GroupAllan Hogg 
Kingsey Falls (Québec)
    
    Vice-President and Chief Financial OfficerChristian Dubé
Sutton (Québec)
    
    Vice-President, Business DevelopmentMaryse Fernet 
Kingsey Falls (Québec)
    
    Vice-President, Human ResourcesClaude Cossette 
Kingsey Falls (Québec)
    
    Vice-President, Organizational DevelopmentJean-Luc Bellemare 
Kingsey Falls (Québec)
    
    Vice-President, Corporate Procurement and Internal Consultant  ITDominic Doré
Mont-Saint-Hilaire (Québec)
    
    Vice-President, Information TechnologyHubert Bolduc 
Montreal (Québec)
    
    Vice-President, Communications and Public AffairsLéon Marineau 
Kingsey Falls (Québec)
    
    Vice-President, EnvironmentRobert F. Hall

Sherbrooke (Québec)
    
    Vice-President, Legal Affairs and Corporate SecretarySuzanne Blanchet 
Candiac (Québec)
    
    President and Chief Executive Officer, Tissue GroupMarc-André Dépin 
Boucherville (Québec)
    
    President and Chief Executive Officer, Containerboard and
Boxboard Group (Norampac)
    18




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
    Item 9  Legal Proceedings
  Item 10  Transfer Agent and Registrar
 th
 Item 11  Material Contracts
   3 4
 3 4
 7 8
 Item 12  Interests of Experts
 Ordre des comptables agréés du Québec.
 Item 13  Audit Committee
 13.1 Composition and mandate
 www.cascades.com
 13.2 Relevant Education and Experience of the Members
  19




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
 Name of Committee Member
    
    Relevant Education and ExperienceRobert Chevrier
    
    Mr. Chevrier is a Fellow of the Institute of
Chartered Accountants. He sits on the Boards of
other Canadian listed companies and on other
Audit Committees. His education and experience
allows him to have a good understanding of the
accounting principles used by the Company and he
has the ability to read and understand a set of
financial statements that present a breadth and
level of complexity of accounting issues that are
generally comparable to those issues that can
reasonably be expected to be raised by the
Companys financial statements.Laurent Verreault
    
    As Chairman of the Board of Directors and Chief
Executive Officer of GLV Inc., a manufacturer of
engineered equipment, primarily focused on the
production of equipment for the pulp and paper
industry, Mr.Verreault is both financially and
operationally literate and understands the
breadth and complexity of accounting issues that
can reasonably be expected to be raised in the
course of reviewing the Companys financial
statements. He is a member of the Board of
Directors of Group TMX Inc.James B.C. Doak
    
    An economist, Mr. Doak has more than 20 years of
experience as a chartered financial analyst and
is a past President and Director of the Toronto
CFA Society. He has been a Board member of
several public companies, namely, PetroKazahstan
Inc., Superior Propane Inc., and Spar Aerospace
Inc. He has held senior positions with
ScotiaMcLeod Inc., First Marathon Securities Ltd.
and McLeod Young Weir Ltd., and was the founder
of Enterprise Capital Management Inc., where he
served as President until 2002. He is President
and Managing Director of Megantic Asset
Management Inc., an investment company.Georges Kobrynsky
    
    Mr.Kobrynsky is a Director of companies and held
the position of Senior Vice-President,
Investments, Forest Products of the Société
générale de financement du Québec from 2005 to
2010. He has also held for more than 30 years,
various senior positions at Domtar Inc. Mr.
Kobrynsky is both financially and operationally
literate and understands the breadth and
complexity of accounting issues that can
reasonably be expected to be raised in the course
of reviewing the Companys financial statements.
He is a member of the Board of Directors and of
the Audit Committee of Supremex Inc.
 13.3 External Auditors Services Fees
  FeesFees
    
    December 31, 2009
    
    December 31, 2010Audit Fees (1)
    
    $
    2,111,019
    
    
    $
    2,010,910Audit-Related Fees (2)
    
    $
    766,136
    
    
    $
    899,084Tax Fees (3)
    
    $
    446,454
    
    
    $
    278,969Other Fees (4)
    
    
    N/A
    
    
    
    N/ATotal
    
    $
    3,323,609
    
    
    $
    3,188,963
 (1)
    
    Professional services provided in connection with statutory and regulatory filings and audit of the annual financial
statements of the Company.(2)
    
    Professional services related to auditing as well as consultations on accounting and regulatory matters.(3)
    
    Professional services regarding compliance with income tax laws.(4)
    
    Various other services. 13.4 Policies and Procedures for the Engagement of Audit and Non-Audit Services
  Item 14  Additional Information
     20




---



##### 



(CASCADES LOGO)
    
    Annual Information Form
      www.sedar.com www.cascades.com
 Cascades Inc.
 21




---



##### 



CHARTER OF THE
AUDIT COMMITTEE
 OF THE BOARD OF DIRECTORS OF CASCADES INC. ( the Company»)
 1. Purpose
  
    
    accounting and financial reporting process;
    
    systems of internal accounting and financial controls;
    
    external auditors qualifications, independence and performance;
    
    internal audit function and process;
    
    the Companys compliance with legal and regulatory requirements;
    
    fulfill any other responsibilities assigned to it from time to time by the Board.
 2. Division of responsibilities
    3. Composition and organization
    4. Meetings and resources
 in camera




---



##### 



CHARTER OF THE
AUDIT COMMITTEE
     5. duties and responsibilities
  Financial reporting
 
    
    Monitor the quality and integrity of the Companys accounting and
financial reporting system through discussions with management,
the external auditors and the internal auditor;
    
    Review with management and the external auditors the annual
audited financial statements of the Company, including the
information contained in managements discussion and analysis,
related press releases and the external auditors report on the
annual financial statements prior to public disclosure and filing
with the Securities Administrators;
    
    Review the unaudited interim financial statements, including
managements discussion and analysis for each interim period of
the fiscal year and related press releases prior to public
disclosure and filing with the Securities Administrators;
    
    Review the financial information contained in prospectuses,
offering memoranda, the annual information form and other reports
that include audited or unaudited financial information submitted
for approval by the Board;
    
    Review with the external auditors and management, the quality,
appropriateness and disclosure of the Companys accounting
principles and policies, the underlying assumptions and reporting
practices, and any proposed changes thereto;
    
    Review financial analyses and other written communications prepared by management, the
internal auditor or external auditors, setting forth significant financial reporting issues
and judgments made in connection with the preparation of the financial statements, including
analyses of the effects of alternative generally accepted accounting principles methods 
(« GAAP ») on the financial statements;
    
    Verify the compliance of management certification of financial reports with applicable
legislation;
    
    Review important litigation and any regulatory or accounting initiatives that could have a
material effect upon the Companys financial situation or operating results and the
appropriateness of the disclosure thereof in the documents reviewed by the Committee;
    
    Review the results of the external audit, and any significant problems encountered in the
performance of the audit, and managements response or action plan related to any management
letter issued by the external auditors.
 Risk management and internal control
 
    
    Periodically receive managements report assessing the adequacy and effectiveness of the Companys disclosure controls
and procedures and systems of internal control;
    
    Review insurance coverage for the Company annually and as may otherwise be appropriate;
    
    Review the Companys risk assessment and risk management policies, including the Companys policies regarding hedging,
investment and credit; review significant capital costs and other major expenditures, related party transactions and
any other transactions which could alter the Companys financial or corporate structure, including off-balance sheet
items;
 
 -2-




---



##### 



CHARTER OF THE
AUDIT COMMITTEE
 
    
    Assist the Board in carrying out its responsibility for ensuring that the Company is compliant with applicable legal
and regulatory requirements;
    
    While ensuring confidentiality and anonymity, establish procedures for the receipt, retention and treatment of
complaints received by the Company regarding accounting, internal accounting controls or auditing matters, including
employee concerns regarding accounting or auditing matters.
    
    Periodically review with the Board, the external and internal auditors, and members of management,
the Companys anti-fraud program and practices.
 Internal Audit Function
 
    
    Review with management, the internal audit staff qualifications
and experience and, if required, recommend the appointment or
replacement of the internal auditor;
    
    Regularly assess the internal audit functions performance, its
responsibilities, its staffing, budget and the compensation of its
members;
    
    Annually review the internal audit plan;
    
    Undertake private discussions with the internal auditor to
establish internal audit independence, the level of co-operation
received from management, the degree of interaction with the
external auditors, and any unresolved differences of opinion or
disputes.
 External Auditors
 
    
    Recommend to the Board, the appointment of the external auditors
and, if appropriate, their removal (in both cases, subject to
shareholder approval), evaluate and compensate them and assess
their qualifications, performance and independence;
    
    Ensure that as representatives of the shareholders, the external
auditors report to the Committee and to the Board;
    
    Approve all auditing services provided by the external auditors
and determine and approve in advance non audit services provided,
in compliance with applicable legal and regulatory requirements;
    
    Discuss with the external auditors the quality and not just the
acceptability of the Companys accounting principles but also the
quality of those principles, including: i) all critical accounting
policies and practices used ; ii) any alternative treatments of
financial information that have been discussed with management,
the ramification of their use as well as; iii) any other material
written communications between the Company and the external
auditors, including any disagreement or unresolved differences of
opinion between management and the external auditors that could
have an impact on the financial statements;
    
    Review at least once a year the external auditors report stating
all relationships the external auditors have with the Company and
confirming their independence, and holding discussions with the
external auditors as to any relationship or services that may
impact the quality of the audit services or their objectivity and
independence;
    
    Review the Companys hiring policies for employees or former employees of the external auditors.
 Performance Evaluation of the Committee
 
    
    Prepare and review, with the Board, an annual performance
evaluation of the Committee and its members and assess once a
year, the adequacy of its mandate and, if required, make
recommendations to the Board.
 
 -3-