EXHIBIT 99.1
                                                                   ------------


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                               [GRAPHIC OMITTED]
                         [LOGO - ABITIBI CONSOLIDATED]

                        1155 Metcalfe Street, Suite 800
                                Montreal, Quebec
                                 Canada H3B 5H2









                        ANNUAL INFORMATION FORM FOR THE
                      FISCAL YEAR ENDED DECEMBER 31, 2006











                                 MARCH 14, 2007






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<PAGE>

                               TABLE OF CONTENTS

DOCUMENTS INCORPORATED BY REFERENCE...........................................4
GLOSSARY OF TERMS.............................................................4
ITEM 1: DATE OF ANNUAL INFORMATION FORM.......................................5
ITEM 2: CORPORATE STRUCTURE...................................................5
         FORMATION OF ISSUER..................................................5
         SUBSIDIARIES.........................................................5
ITEM 3:  GENERAL DEVELOPMENT OF THE BUSINESS..................................6
         3.1   BUSINESS PROFILE...............................................6
         3.2   THREE-YEAR HISTORY.............................................6
               SG&A INITIATIVE................................................6
               IN-DEPTH OPERATIONS REVIEW.....................................6
               SALE BY THE COMPANY OF ITS 50% SHARE
                OWNERSHIP IN PANASIA..........................................7
               PERMANENT CLOSURES.............................................7
               THIRD PARTY CERTIFICATIONS OBTAINED DURING
                 THE PAST THREE YEARS.........................................7
               FINANCING ACTIVITIES: U.S. DEBT OFFERINGS,
                CREDIT FACILITIES AND OTHERS..................................7
               EXPANSION OF THE ABITIBI-LP JOINT VENTURE......................8
               IROQUOIS FALLS MODERNIZATION...................................9
               ALMA MILL......................................................9
               AUGUSTA NEWSPRINT - PURCHASE GIVING COMPANY
                CONTROLLING INTEREST AND OPTION ANNOUNCEMENT..................9
               FULL CONTROL OF ALABAMA RIVER NEWSPRINT COMPANY
                AND REORGANISATION IN THE CORPORATE STRUCTURE.................9
               SALE OF VOYAGEUR PANEL.........................................9
               SALE BY THE COMPANY OF ITS REMAINING INTEREST IN
                SFK PULP FUND.................................................9
         3.3   TRENDS........................................................10
               NEWSPRINT MARKET..............................................10
               COMMERCIAL PRINTING PAPERS MARKET.............................10
               LUMBER MARKET.................................................10
               CAPITAL EXPENDITURE...........................................10
ITEM 4: DESCRIPTION OF THE BUSINESS..........................................10
         PAPER AND WOOD PRODUCTS SALES AND ASSETS DISTRIBUTION...............11
         NEW PRODUCT.........................................................11
         PRINCIPAL PRODUCTION FACILITIES.....................................12
         COMPETITION.........................................................13
         ENVIRONMENTAL POLICIES..............................................13
         HUMAN RESOURCES.....................................................13
         FIBRE SUPPLY........................................................13
         ENERGY SUPPLY.......................................................14
         FOREIGN EXCHANGE....................................................14
         LITIGATION..........................................................15
               SOFTWOOD LUMBER DISPUTE - SETTLEMENT..........................15
         BUSINESS RISKS......................................................15
ITEM 5: DIVIDENDS............................................................15
ITEM 6: DESCRIPTION OF CAPITAL STRUCTURE.....................................16
         6.1   GENERAL DESCRIPTION OF CAPITAL STRUCTURE......................16
               AUTHORIZED AND ISSUED SHARE CAPITAL...........................16
               DESCRIPTION OF THE COMMON SHARES..............................16
               DESCRIPTION OF THE CLASS A PREFERRED SHARES...................16
         6.2   RATINGS.......................................................17
ITEM 7: MARKET FOR SECURITIES................................................18
ITEM 8: DIRECTORS AND OFFICERS...............................................19
ITEM 9: TRANSFER AGENT AND REGISTRAR.........................................23
ITEM 10: MATERIAL CONTRACTS..................................................23
ITEM 11: INTERESTS OF EXPERTS................................................23


                                                                             2
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM

<PAGE>


ITEM 12: AUDIT COMMITTEE INFORMATION.........................................23
          PRE-APPROVAL POLICIES AND PROCEDURES...............................24
          EXTERNAL AUDITORS SERVICES FEES (BY CATEGORY)......................25
ITEM 13: SUBSEQUENT EVENTS...................................................25
          CREATION OF PARTNERSHIP IN ENERGY GENERATION - HYDRO
            ASSETS IN ONTARIO TO BE REGROUPED INTO ACH LIMITED PARTNERSHIP ..25
          MERGER OF EQUALS WITH BOWATER INCORPORATED.........................26
          ABITIBI-CONSOLIDATED TO INDEFINITELY IDLE FORT WILLIAM,
           ONTARIO PAPER MILL................................................26
ITEM 14: ADDITIONAL INFORMATION..............................................26


EXHIBIT "A" - Charter of the Audit Committee of the Board of Directors of
Abitibi-Consolidated Inc.





                                                                             3
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM

<PAGE>

                      DOCUMENTS INCORPORATED BY REFERENCE

Certain specifically  identified pages of the Company's  Management  Discussion
and Analysis (the "2006 MD&A"),  the  Abitibi-Consolidated  Inc.,  Consolidated
Financial  Statements  for the fiscal year ended  December  31, 2006 (the "2006
Financial  Statements")  and the report of the auditors  thereon dated March 6,
2007, filed with the securities  commission or similar authority in each of the
provinces  of Canada  and the U.S.  Securities  and  Exchange  Commission,  are
incorporated  by  reference  into  and  form an  integral  part of this  Annual
Information Form.

                               GLOSSARY OF TERMS

Unless otherwise noted or the context  otherwise  indicates,  references to the
"Company" are to Abitibi-Consolidated  Inc., its subsidiaries and its interests
in joint ventures and other entities.

-------------------------------------------------------------------------------
FORWARD-LOOKING STATEMENTS
-------------------------------------------------------------------------------

Certain  statements  contained  in  this  Annual  Information  Form  and in the
Company's  2006 MD&A,  including  statements  which may  contain  words such as
"anticipate",  "could",  "expect",  "seek", "may", "likely",  "intend", "will",
"believe"  and  similar  expressions,  statements  that are  based  on  current
expectations  and estimates about the markets in which the Company operates and
statements  of  the  Company's  belief,   intentions  and  expectations   about
developments,  results  and  events  which  will or may  occur  in the  future,
including  statements  relating to trends,  expected operating cost savings and
expected capital expenditures,  constitute "forward-looking  statements" within
the  meaning  of the "safe  harbour"  provision  of the United  States  Private
Securities  Litigation Reform Act of 1995, and are based on certain assumptions
and analysis made by the Company  derived from its experience and  perceptions.
In addition, other written or oral statements, which constitute forward-looking
statements  may be made from time to time by or on behalf of the Company.  Such
forward-looking  statements are subject to important risks,  uncertainties  and
assumptions  which are  difficult  to predict  and which  affect the  Company's
operations,  including but not limited to: the prices and  consumption  of, and
the  demand  for,  the  products  that  the  Company   sells;   future  capital
expenditures  (including  the amount and  nature of the  expenditures)  and the
results of these  expenditures;  business  strategies and measures to implement
strategies; competitive strengths, goals, expansion and growth of the Company's
business and operations,  fluctuations  in foreign  exchange or interest rates;
labour unrest; the ability to renew water use rights relating to the operations
of  some  of  the  Company's  hydroelectric  facilities;  fluctuations  in  the
availability or costs of raw materials or energy;  changes in existing forestry
regulations or changes in how they are administered,  which could result in the
loss of certain contractual or other rights or permits that are material to the
Company's  business;  the impact of  fluctuations in duties or taxes imposed on
lumber exported to the United States; the impact of general economic conditions
in the United  States and Canada and in other  countries  in which the  Company
does business;  underfunded  pension  liability;  competitive  actions by other
companies;  industry  conditions,  including the adoption of new  environmental
laws and regulations and changes in how they are interpreted and enforced;  the
availability  of  qualified  personnel  or  management;  the outcome of certain
litigation  or disputes;  conditions  in the capital  markets;  the approval of
regulatory  authorities;  opportunities available to or pursued by the Company;
the ability to conclude the proposed  combination with Bowater  Incorporated on
the proposed terms and schedule and without material  concessions;  the ability
of the Company to successfully  integrate companies or businesses acquired; and
other  factors,  many of which are  beyond  the  control  of the  Company.  The
Company's actual results,  performance or achievement  could differ  materially
from those expressed in, or implied by, these  forward-looking  statements and,
accordingly,  no assurance can be given that any of the events  anticipated  by
the  forward-looking  statements  will transpire or occur, or if any of them do
so, what  benefits,  including the amount of proceeds,  the Company will derive
therefrom.  The Company  disclaims  any  intention or  obligation  to update or
revise any forward-looking statements,  whether as a result of new information,
future events or otherwise.


                                                                             4
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM

<PAGE>


                           ABITIBI-CONSOLIDATED INC.
                            ANNUAL INFORMATION FORM


ITEM 1:  DATE OF ANNUAL INFORMATION FORM

THIS ANNUAL INFORMATION FORM IS DATED AS AT MARCH 14, 2007. EXCEPT AS OTHERWISE
INDICATED,  THE INFORMATION CONTAINED IN THIS ANNUAL INFORMATION FORM IS STATED
AS AT  DECEMBER  31,  2006 AND ALL DOLLAR  AMOUNTS  ARE  EXPRESSED  IN CANADIAN
DOLLARS.


ITEM 2:  CORPORATE STRUCTURE

FORMATION OF ISSUER

The Company results from the  amalgamation of  Abitibi-Price  Inc.  ("API") and
Stone-Consolidated  Corporation ("SCC") under the CANADA BUSINESS  CORPORATIONS
ACT, pursuant to a certificate and articles of amalgamation dated May 30, 1997.

API was incorporated under the laws of Canada on February 9, 1914. SCC resulted
from the amalgamation of Stone-Consolidated  Corporation (the "Former SCC") and
Rainy River Forest  Products  Inc.  ("RR"),  pursuant to a plan of  arrangement
effective  as at November 1, 1995.  The Former SCC was  incorporated  under the
laws of Canada on June 22, 1993 and acquired its  operating  assets on December
17, 1993 from its sole shareholder at that time, Stone Container  (Canada) Inc.
Prior to that date, SCC had no history as a separate  operating  entity. RR was
incorporated  under  the laws of  Ontario  on April  28,  1941.  The  principal
executive  office and the registered  office of the Company are located at 1155
Metcalfe Street, Suite 800, Montreal, Quebec, Canada H3B 5H2.

SUBSIDIARIES

The following  lists the principal  subsidiaries  of the Company as at December
31,  2006,  as  well  as  their  respective   jurisdictions  of  incorporation.
Parent-subsidiary  relationships are denoted by indentations.  Unless otherwise
indicated,  100  percent  of the  shares  of each  subsidiary  are owned by the
immediate parent company.

<TABLE>
<CAPTION>
CORPORATION                                                           GOVERNING JURISDICTION
-----------                                                           ----------------------
<S>                                                                   <C>
Abitibi-Consolidated Inc.                                                    Canada
     Abitibi-Consolidated Company of Canada(1) ("ACCC")                      Quebec
          Donohue Corp.                                                      Delaware
               Abitibi Consolidated Sales Corporation(2) ("ACSC")            Delaware
                          Augusta Newsprint Company(3)                       Georgia
</TABLE>



------------
(1)  ACCC holds most of the Canadian operating assets of the Company.
(2)  ACSC  also  holds  a  100%   interest  in   Abitibi-Consolidated   Alabama
     Corporation ("ACAC"),  which is the surviving entity from the amalgamation
     on November 1, 2006 of Abitibi-Consolidated  Alabama Recycling Corporation
     and  Abitibi-Consolidated  Alabama  Corporation.  ACAC  holds 99% and ACSC
     holds 1% ownership interest in Alabama River Newsprint Company.
(3)  ACSC holds a 52.5% interest in Augusta Newsprint Company.

                                                                             5
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

ITEM 3:  GENERAL DEVELOPMENT OF THE BUSINESS

3.1      BUSINESS PROFILE

The Company is a global leader in newsprint and uncoated groundwood (commercial
printing) papers as well as a major producer of wood products, generating sales
of $4.9 billion in 2006. The Company owns or is a partner in 19 paper mills, 20
sawmills,  four (4)  remanufacturing  facilities  and two (2)  engineered  wood
facilities  in Canada,  the United States and the United  Kingdom.  The Company
supplies  customers in  approximately  70 countries  and employs  approximately
12,500 people.  Responsible  for the forest  management of  approximately  15.8
million  hectares  of  woodlands  in Canada,  the Company is  committed  to the
sustainability  of the  natural  resources  in its care.  The  Company  is also
amongst North America's largest recyclers of newspapers and magazines,  serving
21 metropolitan  areas in Canada and the U.S., and 13 regions in the U.K., more
than 28,000 Paper Retriever(R) and paper bank containers.

The Company is one of the  lowest-cost  global  newsprint  producers,  annually
marketing  approximately 4 million tonnes of newsprint,  including  third-party
volumes,  2 million  tonnes of commercial  printing  papers and 2 billion board
feet of lumber.

For a more complete  description  of the Company's  products and services,  see
"Description of the Business" in item 4 of this Annual Information Form.

3.2      THREE-YEAR HISTORY

         SG&A INITIATIVE

In  April of  2006,  as a  result  of a  review  of its  selling,  general  and
administrative  ("SG&A")  costs,  the Company  began to  implement  its plan to
reduce  these  expenses  at  its  Head  Office,  as  well  as the  general  and
administrative  costs incurred at the mills,  where these expenses are included
in costs of  products  sold.  The  objective  was to remove $35 million of cost
annually, by the middle of 2007, through process improvements,  regionalization
or centralization of certain functions, as well as eliminating some expenses.

By the end of 2006, the Company had reduced its SG&A costs by $40 million.

         IN-DEPTH OPERATIONS REVIEW

On  January  26,  2005,  the  Company  announced  an  in-depth  review  of  its
operations, in order to achieve cost, productivity and market mix improvements.
The strategic plan also included strategic initiatives to be implemented over a
two-year period.  The plan initially targeted an improvement of $175 million in
earnings before interest, taxes, depreciation and amortization (EBITDA) related
to cost reduction,  productivity  and market mix, while it targeted $75 million
from  increased  revenue  related  to future  Alternative  Offset(R)  and Equal
Offset(R) conversions,  and the relaunch of the Lufkin, Texas mill. As a result
of this review, the Company took, among others, the following actions:

         o    In  December  2005,  the Company  permanently  closed the Kenora,
              Ontario  and  Stephenville,   Newfoundland   paper  mills.  These
              closures  resulted in the permanent  removal of 434,000 tonnes of
              newsprint  capacity.  The Company also  announced  the  permanent
              closure of paper  machine  number  seven at the Grand Falls paper
              mill.  The  machine  at  the  Grand  Falls  mill  has  an  annual
              production capacity of approximately 60,000 tonnes of newsprint.

         o    In  December   2005,   the  Company   sold  its   privately-owned
              timberlands  located  near  Thunder  Bay  for  $55  million.  The
              timberlands  comprised  approximately  196,000 hectares (or about
              485,000 acres).

         o    As  announced  in  the  fourth   quarter  of  2005,  the  Company
              permanently  closed one paper  machine at the  Bridgewater  mill,
              located in Ellesmere Port, U.K. on February 28, 2006. The closure
              of  the  machine  removed  60,000  tonnes  of  annual   newsprint
              capacity.

                                                                             6
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM

<PAGE>

By the  end  of  2006,  the  Company  achieved  over  $200  million  in  EBITDA
improvement, exceeding the $175 million target. However, none of the additional
$75 million  target has been  realized,  the Company  having  delayed  both the
future Alternative  Offset(R) and Equal Offset(R)  conversions and the relaunch
OF the Lufkin, Texas mill.

         SALE BY THE COMPANY OF ITS 50% SHARE OWNERSHIP IN PANASIA

On November 17, 2005, the Company completed the sale of its 50% share ownership
in Pan Asia Paper  Company  Pte Ltd.  to Norske  Skogindustrier  ASA of Norway.
Initially  announced  in  September  2005,  the  transaction  generated  a cash
consideration of US$600 million plus a cash purchase price  adjustment  payment
of up to US$30  million  depending  on the  achievement  of  certain  financial
performance  objectives in 2006,  payable in 2007. No price adjustment has been
booked by the Company as at December 31, 2006.

         PERMANENT CLOSURES

In the  fourth  quarter  of 2004,  the  Company  recorded  the  effects  of the
permanent  closure of two previously  idled paper mills located in Port-Alfred,
Quebec (idled in 2003) and Sheldon,  Texas (idled in 2002) permanently removing
646,000 tonnes from its production  capacity.  The announcement of the closures
was made on January 26, 2005.

         THIRD PARTY CERTIFICATIONS OBTAINED DURING THE PAST THREE YEARS

On October 18, 2004, the Company's Quebec-West Woodlands Division and Champneuf
sawmill  were the first in  Quebec to be  certified  by the  Canadian  Standard
Association  ("CSA") under standard CSA PLUS 1163 - Chain of Custody for Forest
Products  Originating  from a Defined Forest Area. This standard is designed to
chart the  progress  of fibre  used by  sawmills  from its  point-of-origin  in
forests that have been certified under the CSA's sustainable  forest management
standard.

On December 6, 2005, the Company was certified as a member of the Customs-Trade
Partnership  Against  Terrorism  (C-TPAT)  program,  a U.S.  Customs and Border
Protection program.  With this certification,  the Company benefits from faster
processing of shipments at the U.S. border.

After implementing the Chain-of-Custody certification for fibre sourcing at its
Kenogami and Laurentide paper mills,  demonstrating leadership in environmental
responsibility  and fibre sourcing,  the Company  continued its effort on fibre
source traceability and in 2006 began  implementation in three additional paper
mills.

As at December 31, 2006,  all of the  Company's  total  managed land base (15.8
million  hectares) in Canada(4)  was  certified  under  recognized  Sustainable
Forest Management ("SFM") standards with third party certification. The Company
chose to certify  publicly-owned  lands under the CSA's SFM  Standard.  For its
private  holdings,  the  Company  chose  to  implement  a  system  based on the
Sustainable Forestry Initiative ("SFI") Standard. By December 2006, over 63,000
hectares(5) were certified under the SFI Standard.

         FINANCING ACTIVITIES: U.S. DEBT OFFERINGS, CREDIT FACILITIES AND OTHERS

On June 15,  2004,  ACCC  issued,  by way of a private  placement in the United
States  later  followed  by  an  exchange   offer  for  equivalent   registered
securities,  US$200  million  of 7.75%  notes due 2011 and  US$200  million  of
floating rate notes due 2011. The notes were issued by ACCC and unconditionally
guaranteed  by the  Company.  The net proceeds  from the offering  were used to
reduce outstanding debt under the Company's existing revolving credit facility,
to repay the US$118 million  floating-rate  term loan maturing on June 30, 2004
of Alabama River Newsprint Company and for general corporate purposes.


--------
(4)  The  commitment  was made by the  Company in 2004 and does not include the
     St-Raymond  de  Portneuf  crown land for which the  Company  acquired  the
     sawmill and the management of the land in 2005.
(5)  In  December  2005,  the  Company  sold  its  privately-owned  timberlands
     (approximately 196,000 hectares) located near Thunder Bay.

                                                                             7
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

On March 9, 2005,  the Company  filed with the AUTORITE DES MARCHES  FINANCIERS
(the  Quebec  securities  regulatory  authority)  and the U.S.  Securities  and
Exchange Commission a Final Short Form Base Shelf Prospectus in connection with
the issuance by ACCC of up to US$800 million of debt securities unconditionally
guaranteed as to payment by the Company. The debt securities may be issued from
time to time until  April 2007 at such prices and under such other terms as may
be  determined  at the time of issue.  On March 28,  2005,  the Company  issued
US$450  million of 8.375%  notes due April 1, 2015.  The notes were offered and
sold in a public  offering in the United States only. The net proceeds from the
offering were used to repay US$337  million of the US$401 million of 8.3% notes
due on August 1, 2005 and a portion of the outstanding debt under the Company's
revolving  credit  facilities.  As well, on April 5, 2005,  the Company  repaid
US$100 million of the US$300 million of 6.95% notes due on December 15, 2006.

On  October  3,  2005,  the  Company  renewed  its  revolving  credit  facility
arrangements.  Two new  banking  facilities  were put into  place  maturing  in
December  2008: a $550 million  facility  secured by certain fixed assets and a
$150 million facility secured by certain working capital elements, as permitted
under the Company's  bond  indentures.  The  facilities  require the Company to
maintain certain financial ratios including,  an interest coverage ratio of not
less  than  1.5x  for  the  term  of the  agreement  and a net  funded  debt to
capitalization  ratio of not more than 70% until  December  31, 2007 and of not
more than 65% thereafter. Exempt from the calculation of the net funded debt to
capitalization  ratio is up to $500 million of non-cash asset write downs on an
after-tax basis. At the end of 2006, $479 million of the $500 million exemption
was used.

On October 28, 2005,  the Company  finalized a US$300  million  North  American
securitization  program, and on December 9, 2005, it completed a US$125 million
International  securitization  program. The North American program is committed
for three years while the International  program is uncommitted.  Through these
two  securitization  programs,  the  Company  sells most of its trade  accounts
receivable in order to reduce its working capital requirements. The programs do
not   require   the   Company  to   maintain  a  specific   credit   rating  or
company-specific  financial  covenants.  Under these programs,  the outstanding
proceeds, as at December 31, 2006, were $433 million. The outstanding proceeds,
as at December 31, 2005, were $459 million.

On December 16, 2005,  the Company  announced the expiration and the completion
of its cash tender offer for certain series of its  outstanding  notes. A total
of  US$1,065.5  million in aggregate  principal  amount of notes were  tendered
prior  to the  expiration  date  and a  total  of  US$578.8  million  aggregate
principal amount of notes were accepted for purchase by the Company.

In the third  quarter of 2006,  the  Company  increased  its  revolving  credit
facilities  from $700  million  to $750  million,  as a new  lender  joined the
banking syndicate.  Net funded debt to capitalization ratio,  calculated as per
the  requirements of the Company's  revolving  credit  facilities,  amounted to
58.3% at the end of the year, and the interest  coverage ratio was 2.6x for the
twelve-month  period ended  December 31, 2006. At the end of December 2006, the
Company had drawn $180 million on these credit facilities.

On December 15, 2006,  the Company  repaid the  remaining  US$15 million of the
US$300  million of 6.95% notes due on December 15, 2006 and US$4 million of the
US$200  million  of 6.95%  notes due  April 1,  2008.  At the end of 2006,  the
current portion of the long-term debt was $72 million,  compared to $18 million
at the end of the previous  year.  The  remaining  US$61  million of the US$200
million of 7.625% notes comes to maturity on May 15, 2007.

Further  information  may be found in note 26 of the Company's  2006  Financial
Statements and in the section  entitled  "Financial  Position and Liquidity" of
the 2006 MD&A.

         EXPANSION OF THE ABITIBI-LP JOINT VENTURE

On November 30,  2005,  Engineered  Wood Inc.  ("Abitibi-LP")  inaugurated  its
second engineered wood facility to produce solid-sawn  I-Joists,  in St. Prime,
in the  Saguenay-Lac-St-Jean  region  of  Quebec.  With  an  annual  production
capacity of 75 million  linear feet,  this  investment  of $13 million  created
approximately  40 new  jobs.  With  this new  facility,  Abitibi-LP  is now the
largest manufacturer of solid sawn I-Joists in North America.

                                                                             8
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

         IROQUOIS FALLS MODERNIZATION

In the fourth  quarter of 2004,  the Company  completed,  as  scheduled  and on
budget,  the  modernization  of  its  hydroelectric  generating  facilities  at
Iroquois Falls, Ontario. The modernization of its facilities,  meant to produce
an  additional 13  megawatts,  constituted  an investment of $32 million by the
Company.

         ALMA MILL

The Company  continues to achieve  success with its ABIOFFSETTM  grades,  which
consist of ALTERNATIVE  OFFSET(R),  EQUAL  OFFSET(R) and  INNOVATIVE  OFFSET(R)
grades.  The  Company  converted  in 2004 a machine  aT ITS Alma  paper mill to
produce these grades on a consistent basis by the end of that year.

         AUGUSTA NEWSPRINT - PURCHASE GIVING COMPANY CONTROLLING INTEREST
         AND OPTION ANNOUNCEMENT

On July 1, 2004, the Company  acquired for US$10.5  million an additional  2.5%
interest in Augusta Newsprint Company ("ANC"),  which operates a newsprint mill
in Augusta,  Georgia,  thereby  increasing  its interest to 52.5% and obtaining
control. As a result,  since 2005, the Company's  financial  statements include
ANC's  complete  financial  results,  assets  and  liabilities,  and  show as a
non-controlling interest the partner's 47.5% share in the subsidiary.

On July 25, 2006,  the Company  announced  its intent to exercise its option to
acquire the remaining 47.5% interest in ANC and to concurrently sell the 55,000
acres of ANC's  timberlands.  In January of 2007,  the  Company and its partner
decided  to delay the  acquisition,  by the  Company,  of the  remaining  47.5%
interest  to a later  date and to  proceed  with the  sale of  55,000  acres of
timberlands,  with all proceeds from the sale going to the Company. Final terms
of the agreement are expected to be concluded in the first quarter of 2007.

         FULL CONTROL OF ALABAMA RIVER NEWSPRINT COMPANY AND REORGANISATION
         IN THE CORPORATE STRUCTURE

On June 2, 2004, the Company exercised its option to purchase its partner's 50%
interest in Alabama River Newsprint Company and Alabama River Recycling Company
(collectively, the "Alabama Joint-Ventures") at a pre-determined nominal amount
of US$5 million.  As part of the  transaction,  both partners  renounced  their
respective  loans,  resulting in the recognition of an excess of  consideration
over the book value of the non-controlling  interest of US$12 million allocated
in  property,  plant and  equipment.  On July 1, 2004,  Alabama  Joint-Ventures
merged to form Alabama River Newsprint Company ("ARNC").

On October 31, 2006, Abitibi Consolidated Sales Corp. ("ACSC") became a partner
of ARNC with a 1% interest. On November 1, 2006,  Abitibi-Consolidated  Alabama
Recycling  Corporation  ("ACAR"),  a  partner  of  ARNC,  merged  with and into
Abitibi-Consolidated  Alabama Corporation ("ACAC"),  another partner of Alabama
River Newsprint Company. Since November 1, 2006, ACSC and ACAC are the only two
partners of ARNC.

         SALE OF VOYAGEUR PANEL

On May 19,  2004,  the  Company  sold  its  interest  in  Voyageur  Panel  Ltd.
("Voyageur  Panel") to  Ainsworth  Lumber Co.  Ltd.  for net  proceeds of US$41
million.  In 2005, the Company received a purchase price adjustment  payment of
US$2 million related to the transaction.  Voyageur Panel was an oriented strand
board  ("OSB") joint venture  owned by Boise  Cascade  Corporation  (47%),  the
Company (21%),  Northwestern  Mutual Life Insurance Company (17%), and Allstate
Insurance  Company  (15%).  In the second quarter of 2004, an after-tax gain of
$19 million was recorded as a result of the transaction.

         SALE BY THE COMPANY OF ITS REMAINING INTEREST IN SFK PULP FUND

On February 27, 2004,  the Company sold its  remaining 25% interest in SFK Pulp
Fund for gross  proceeds of $118  million.  Net proceeds  from such offering of
approximately  $112 million were used for the repayment of certain  outstanding
debt and for general corporate purposes.  As a result of this transaction,  the
Company no longer has an interest in SFK Pulp Fund.

                                                                             9
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

3.3      TRENDS

         NEWSPRINT MARKET

The Company expects global demand to increase  slightly in 2007, with continued
positive  growth in Europe and Latin America as well as higher growth levels in
certain  countries  in Asia,  such as China and  India.  However,  the  Company
expects  demand in North  America to  decline  by 5% to 6% on a tonnage  basis,
resulting mainly from continued decline in newspaper circulation and a sluggish
advertising  environment.  Key risk factors to the Company's demand expectation
include  cost-control  measures by the newspaper publishers as well as economic
factors.

         COMMERCIAL PRINTING PAPERS MARKET

The Company expects the outlook for 2007 to be positive for uncoated groundwood
grades  with  demand to grow by 2% to 3%. The main  drivers of this  growth are
expected  to be a rebound in  supercalendered  demand as well as the  continued
uncoated freesheet substitution strategy with the Company's ABIOFFSETTM grades.
The main risk factors to the Company's  uncoated  groundwood demand expectation
are the decline in retail  advertising and direct mail, the decline in uncoated
freesheet demand as well as economic factors.

         LUMBER MARKET

The Company  expects  U.S.  housing  starts to remain low for the first half of
2007 and then increase for the second half of the year. In Canada,  the Company
expects housing starts to slightly decrease from 2006.

         CAPITAL EXPENDITURE

The  Company  intends  to limit  its  capital  expenditure  program  in 2007 to
approximately $165 million and to continue to apply free cash flows towards the
reduction of long-term debt.


ITEM 4:  DESCRIPTION OF THE BUSINESS

The Company's principal  operations produce and market newsprint and commercial
printing papers.  The Company's  operations also include the  manufacturing and
marketing of wood products, all as described below:

NEWSPRINT.  With a total annual production  capacity of 3.7 million tonnes, the
Company is the leading producer of newsprint in North America.  The Company has
a significant presence in major international markets.

COMMERCIAL  PRINTING  PAPERS.  The  Company  is the  North  American  leader in
production of uncoated  groundwood papers with total annual production capacity
of approximately 2.1 million tonnes.  The Company produces the full spectrum of
uncoated groundwood papers.

WOOD PRODUCTS.  The Company is the largest Canadian  producer of lumber east of
the Rockies and the sixth  leading  lumber  producer in North  America.  It has
ownership  interests  in  20  sawmills,  4  remanufacturing  facilities  and  2
engineering wood facilities in Canada having a total annual production capacity
of over 2.1 billion board feet.  Lumber  products  manufactured at its sawmills
include  studs,  structural  lumber and  remanufactured  wood  products  (i.e.,
furniture parts, fencing, bed frames, etc.). Its sawmills enable the Company to
maximize the use of the timber it harvests  while  providing a secure supply of
wood chips to its newsprint and commercial printing paper operations. The major
markets for its lumber  products are the Eastern  United  States,  Northwestern
United States and Eastern Canada.


                                                                            10
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

Distribution of sales for the three business segments is set forth in the table
below:

<TABLE>
<CAPTION>
                             --------------------------------------------------------------------------
                                   NEWSPRINT         COMMERCIAL PRINTING PAPERS       WOOD PRODUCTS
    ---------------------------------------------------------------------------------------------------
<S>                                <C>               <C>                              <C>
    UNITED STATES                    58.3%                     83.1%                      56.3%
    ---------------------------------------------------------------------------------------------------
    CANADA                            9.9%                     11.4%                      43.7%
    ---------------------------------------------------------------------------------------------------
    MIDDLE EAST/AFRICA                4.2%                      1.6%
    ---------------------------------------------------------------------------------------------------
    LATIN AMERICA                    12.1%                      2.7%
    ---------------------------------------------------------------------------------------------------
    ASIA                              3.4%                      0.1%
    ---------------------------------------------------------------------------------------------------
    UK/EUROPE                        12.1%                      1.1%
    ---------------------------------------------------------------------------------------------------
</TABLE>

See "Consolidated Business Segments" in the Company's 2006 Financial Statements
for segmented results of these businesses.

See  "Consolidated   Geographic  Segments"  in  the  Company's  2006  Financial
Statements  for a breakdown of sales of the  Company's  products by  geographic
areas.

PAPER AND WOOD PRODUCTS SALES AND ASSETS DISTRIBUTION

The  Company's  sales and  assets  are  geographically  diverse.  In 2005,  the
geographical  breakdown of the Company's sales by final  destination was 13% in
Canada,  67% in the  United  States  and 20% in other  countries.  The  Company
supplies a very diverse order book of over 1,600 customers worldwide.  In 2005,
its  newsprint,   commercial   printing  papers  and  wood  products   segments
contributed  54%,  29%  and  17%,  respectively,  to  its  consolidated  sales,
excluding purchased and resold newsprint and inter-segment wood products. As at
December  31,  2005,  its capital  assets  (comprised  of  property,  plant and
equipment  and  intangible  assets) and goodwill  totalled  approximately  $6.0
billion,  with 76% of such capital  assets and  goodwill in Canada,  20% in the
United States and 4% in other countries.

In 2006, the geographical breakdown of the Company's sales by final destination
was 15% in Canada,  66% in the United  States and 19% in other  countries.  The
Company  supplies a very diverse order book of over 1,700 customers  worldwide.
Its  newsprint,   commercial   printing  papers  and  wood  products   segments
contributed  54%,  31%  and  15%,  respectively,  to  its  consolidated  sales,
excluding purchased and resold newsprint and inter-segment wood products. As at
December  31,  2006,  its capital  assets  (comprised  of  property,  plant and
equipment  and  intangible  assets) and goodwill  totalled  approximately  $5.7
billion,  with 76% of such capital  assets and  goodwill in Canada,  20% in the
United States and 4% in other countries.

In North America,  the Company distributes paper products primarily through its
own sales force, directed from White Plains, New York and sales representatives
throughout  North  America.  Internationally,  the Company has sales offices in
Montreal,  Quebec and in Ellesmere  Port,  U.K. and supplements its sales force
efforts with independent commissioned sales agents and distributors.

The Company  distributes  wood products  primarily  through its own sales force
based in Montreal, Quebec and a sales office in Vancouver, British Columbia.

NEW PRODUCT

On January 6, 2006, the Company announced its newest paper product:  INNOVATIVE
OFFSETTM. INNOVATIVE OFFSETTM is an environmentally-friendly and cost-effective
paper,  delivering  up to 20%  savings  through a  lighter  basis  weight  that
provides  stiffness  and  print  quality.  Totally  Chlorine  Free,  INNOVATIVE
OFFSETTM also requires approximately 50% less wood fibre than commodity offset.
Produced at the Beaupre and Alma mills in Quebec,  INNOVATIVE OFFSETTM delivers
a brightness level of 81 and a whiteness of 90 and is surface-treated to assure
better ink hold-out and on-press performance.

                                                                            11
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

PRINCIPAL PRODUCTION FACILITIES

The location  and capacity of each of the  Company's  paper  manufacturing  and
sawmill operations are set forth below.


<TABLE>
<CAPTION>
At-a-glance Newsprint and Commercial Printing Papers
As at December 31, 2006
(capacity in thousands of tonnes)
                                                                                                           TOTAL
                        NUMBER OF                       ALTERNATIVE &              SPECIALTY,            COMMERCIAL
                          PAPER                          EQUAL OFFSET   DIRECTORY  BULKY NEWS   MARKET    PRINTING      TOTAL MILL
MILLS                   MACHINES  NEWSPRINT  SC PAPERS   & HI-BRITE      PAPER      AND OTHER    PULP      PAPERS        CAPACITY
<S>                     <C>       <C>        <C>        <C>             <C>        <C>          <C>      <C>           <C>
CANADA
Alma (Quebec)                  3          -                       205         145                               350          350
Amos (Quebec)                  1        207                                                                       -          207
Baie-Comeau (Quebec)           4        577                                                                       -          577
Beaupre (Quebec)               2          -                       223                                           223          223
Belgo (Quebec)                 4        116                       130                     130                   260          376
Clermont (Quebec)              2        354                                                                       -          354
Fort Frances (Ontario)         3          -         72            216                               93          381          381
Fort William (Ontario)         1          -                                               141                   141          141
Grand Falls
  (Newfoundland)               2        191                                                10                    10          201
Iroquois Falls (Ontario)       2        240                                                38                    38          278
Kenogami (Quebec)              2          -        207                                                          207          207
Laurentide (Quebec)            2          -        360                                                          360          360
Mackenzie
  (British Columbia)           1        186                                                                       -          186
Thorold (Ontario)              2        414                                                                       -          414
---------------------------------------------------------------------------------------------------------------------------------
                              31      2,285        639            774         145         319       93        1,970        4,255

UNITED STATES
Alabama River (Alabama)        1        264                                                                       -          264
Augusta (Georgia)              2        426                                                                       -          426
Lufkin (Texas)                 2        150        234                                                          234          384
Snowflake (Arizona)            2        375                                                                       -          375
---------------------------------------------------------------------------------------------------------------------------------
                               7      1,215        234              -           -           -        -          234        1,449
INTERNATIONAL
Bridgewater (United Kingdom)   2        209                                                                       -          209
---------------------------------------------------------------------------------------------------------------------------------
                               2        209          -              -           -           -        -            -          209
---------------------------------------------------------------------------------------------------------------------------------
                              40      3,709        873            774         145         319       93        2,204        5,913
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AT-A-GLANCE WOOD PRODUCTS INFORMATION
As at December 31, 2006
                                                                                      ----------------------------------------
                                                                                                Share of Production
                                                                     ----------       ----------------------------------------
                                                                     Facilities       Ownership   Capacity(MLf)  Capacity(MBf)
                                                                     ----------       ----------------------------------------
<S>                                                                  <C>              <C>         <C>            <C>
SAWMILLS

QUEBEC

    Abitibi             Comtois, Senneterre                                   2            100%                           280

    Lac-Saint-Jean      Chibougamau, Girardville/Normandin,
                        La Dore, Roberval, Saint-Thomas                       5            100%                           583
                        Saint-Ludger-de-Milot
                        (Produits Forestiers Petit-Paris)                     1             50%                            44

    Saguenay            Laterriere, Peut-Saguenay, Saint-Fulgence
                        (Produits Forestiers Saguenay)                        3             77%                           209

    Mauricie            La Tuque                                              1            100%                            79
                        La Tuque (Produits Forestiers La Tuque)               1             82%                            49

    Cote-Nord           Pointe-aux-Outardes                                   2            100%                           181

    Quebec              Saint-Raymond                                         1            100%                            34
                        Saint-Hilarion                                        1            100%                            51

    British Columbia    Mackenzie                                             2            100%                           549

 Intercompany transactions                                                                                               (218)
------------------------------------------------------------------------------------------------------------------------------
TOTAL - SAWMILLS                                                             19                                         1,841
==============================================================================================================================

REMANUFACTURING AND ENGINEERED WOOD FACILITIES

    Lac-Saint-Jean      Saint-Prime, La Dore                                  2            100%                            46
                        Larouche, Saint-Prime
                        (Abitibi-LP Engineering Wood Inc)                     2             50%             73

    Charlevoix          Chateau-Richer, Manseau                               2            100%                            88
------------------------------------------------------------------------------------------------------------------------------
TOTAL - REMANUFACTURING AND ENGINEERED WOOD FACILITIES                        6                             73            134
==============================================================================================================================

The Company holds a 45% investment in Societe en Commandite Scierie Opitciwan, in Obedjiwan, Quebec,
which has an annual production capacity of 27 MBf.

The investment in this company is accounted for by using the equity method in the Company's consolidated
financial statements.
</TABLE>

                                                                            12
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

COMPETITION

Competition is present in all markets for the Company's products. The Company's
main  competitors are North American and Western  European paper  manufacturers
and North American lumber producers.  While selling prices, cost of production,
quality and customer  service are generally the principal  factors  influencing
competition,  other factors such as risks related to foreign exchange,  cost of
fibre supply,  can also have an impact on the Company's  competitive  position.
See  the  section  entitled  "Risk  and  Uncertainties  -  Global  Markets  and
Competition"  of the Company's 2006 MD&A for a more detailed  discussion of the
foregoing.

ENVIRONMENTAL POLICIES

The Company is committed to protecting and enhancing the resources in its care.
The  Company  has  determined  that  integrating  its vision and values and its
Environmental,  Health and Safety ("EH&S") Policy into its daily  activities is
the best way to meet its  business  objectives.  The  Environmental  Management
System  is  used  to  plan  activities,  implement  procedures  and  distribute
resources  among  the  Company's   divisions  to  help  them  comply  with  the
environmental  aspects  of the EH&S  Policy  and meet the  requirements  of the
Company's  Environmental  and Sustainable  Forest  Management  Policy.  To best
achieve these  objectives,  the Company has set guidelines  that are adapted to
the activities of the Company's different divisions.

The Company is subject to environmental laws and regulations relating to forest
management,  air  emissions,   wastewater  discharge,  waste  management,  site
operations  and landfill  sites.  The Company  believes  that it is in material
compliance   with  all  laws  and   regulations   governing   its   activities.
Environmental  expenditures  that will  benefit the Company in future years are
recorded at cost and  capitalized  as part of  property,  plant and  equipment.
Amortization  is charged to income over the estimated  future benefit period of
the  assets.  Environmental  expenditures  that are not  expected  to provide a
benefit to the Company in future periods are accrued on a non-discounted  basis
and expensed to earnings, on a site-by-site basis, including when a requirement
to remedy an  environmental  exposure is probable and a cost can be  reasonably
estimated.  The financial and operational  effects of environmental  protection
requirements on capital  expenditures are described more specifically under the
heading "Risk and  Uncertainties  -  Environment"  of the 2006 MD&A and in note
27(b) to the Company's 2006 Financial Statements.

HUMAN RESOURCES

As at December 31, 2006, the Company employed  approximately  12,500 employees.
Fifteen collective  bargaining  agreements covering  approximately 1,600 of our
employees have been renewed in 2006 with two (2) paper mills, 5 sawmills,  five
(5)  woodlands  operations  and three (3)  groups of office  employees.  Twenty
collective  bargaining   agreements,   covering   approximately  2,400  of  our
employees,  which expired on or before December 31, 2006, are in the process of
being renewed. The facilities covered by these collective agreements consist of
two (2) paper mills, six (6) sawmills,  ten (10) groups of woodlands operations
and two (2) groups of recycling  facilities.  In 2007, six (6) other collective
bargaining  agreements will expire for one (1) paper mill, two (2) sawmills and
three (3) groups of woodlands operations, covering approximately 730 employees.
While  the  Company  does  not  anticipate  any  labour  disruptions  at  these
facilities,  as  is  the  case  with  any  negotiation,  the  possibility  that
disruptions will arise exists.

FIBRE SUPPLY

Fibre  represents  the Company's  major raw material in the  production of wood
products,  paper and pulp.  The Company  uses both virgin fibre (wood chips and
logs) and recycled  fibre (old  newspapers  and magazines) as fibre sources for
its paper mills.

The virgin fibre supply  required by the Company in Canada is mostly assured by
cutting right  agreements  with  provincial  governments.  The  agreements  are
granted for various terms, from five (5) to 25 years, and are generally subject
to regular  renewal every five (5) years.  They  incorporate  commitments  with
respect to sustainable forest management,  silvicultural  work, forest and soil
renewal as well as cooperation  with other forest users.  The Company  believes
that it is in material compliance with all forest regulations.

                                                                            13
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

Wood chips supplied from the Company's sawmills,  together with fibre exchanges
with independent  sawmills and long-term contracts with third parties conducted
at market prices,  represent  approximately 93% of the Company's  Canadian pulp
and paper  mills  requirements  for virgin  fibre.  For its  operations  in the
provinces of British Columbia, Ontario and Newfoundland,  the Company relies on
internal sources, for the most part, and the open market to supply in fibre its
wood  products,  paper and pulp  production  requirements  and such  sources of
supply are more than adequate to meet the Company's requirements.

On April 1, 2005,  the Annual  Allowable  Cut (AAC) on Crown land in Quebec was
reduced  by 20% in all  regions,  for a period of three  years as a result of a
recommendation  of the Coulombe  Commission.  The impact of this measure on the
Company's sawmills, and those of its partnerships, was a net reduction of 17.4%
of the  timber  supply  originating  from  Quebec  Crown  land  for the  period
comprised between April 1, 2005 and March 31, 2008.

On December 8, 2006, new AAC calculations  were announced by the Chief Forester
of Quebec.  The reduction for the province in AAC for spruce,  pine and fir was
revised to 23.8% from the initial  20%, but  regional  reductions  vary greatly
from  one  region  to the  other.  This  reduction  is the  result  of  several
governmental initiatives, including the creation of new protected areas and the
introduction  of a series of  measures  to  enhance  biodiversity.  The new AAC
levels will be effective on April 1, 2008.

The  Company  estimates  that  these  new ACC  calculations  will  result  in a
reduction  of 19.7%  of its  allowable  cuts,  and  those of its  partnerships,
compared  to the 17.4%  reduction  imposed  for the  period of April 1, 2005 to
March 31, 2008.  Mitigating  measures  proposed by the Chief Forester of Quebec
could  partially  offset these  reductions.  As a result of these  measures,  a
tightening of the supply of virgin fibre to the Company's Quebec paper mills is
expected.

Virgin fibre in the United States is obtained mainly through  long-term  supply
contracts.

The Company is amongst the largest North  American  recyclers of old newspapers
and  magazines.  The Company is  involved in the  recovery of old paper and has
contracts with numerous municipalities,  cities,  recyclers,  waste haulers and
brokers in countries  where its mills are located.  The  Company's own recovery
network in North  America and the U.K.  accounts for 40% of its recycled  fibre
needs.

The Company  believes  that the balance of fibre  supply  between its  internal
sources and the open market is adequate to support its current  wood  products,
paper and pulp production requirements.

ENERGY SUPPLY

In its manufacturing  processes, the Company consumes a large volume of energy.
Expressed in Gigajoules,  the Company  self-generates  approximately 35% of the
steam and power  required  in its paper  mills.  Another  35% of its  energy is
comprised of electricity bought in regulated  jurisdictions.  For the remaining
30%, the Company is exposed to  fluctuations  in energy  commodity  prices.  In
2006, the evolution of North  American  energy  commodities  was mixed with oil
product prices increasing and natural gas price decreasing.

The Company's ability to continue to internally generate hydroelectric power in
some cases is conditional  upon its ability to maintain and renew its rights to
utilize and manage  provincial  waterways.  These rights are subject to certain
conditions and their renewal is subject to government discretion. The prices of
electricity have been more stable in the main regulated jurisdictions where the
Company  has  operations,  but they have also  increased  between 5% and 18% in
2006.  Crude oil price increased in 2006 by 17% compared to 2005. This increase
had a direct impact on the price of residual oil consumed by the Company, which
increased by 26% in 2006. For the same period,  natural gas price  decreased by
17%,  mainly  impacted by weather  conditions.  See section  entitled "Risk and
Uncertainties  - Energy" of the Company's 2006 MD&A for additional  information
on the pricing of the Company's energy requirements.

FOREIGN EXCHANGE

The Company's foreign exchange risk and foreign exchange  management policy are
described in the 2006 MD&A under the section entitled "Risk and Uncertainties -
Foreign Exchange".

                                                                            14
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

LITIGATION

         SOFTWOOD LUMBER DISPUTE - SETTLEMENT

In April  2006,  the  governments  of Canada  and the United  States  reached a
framework  agreement (the  "Agreement") for a settlement of the lumber dispute.
Under the  Agreement,  which was  implemented  on October 12, 2006,  the United
States terminated the antidumping ("AD") and countervailing  ("CVD") orders and
ceased  collecting  cash deposits of AD and CVD duties as of that date. The two
governments also have taken steps to seek to terminate all related  litigation,
including all cases to which the Company is a party.

Under the terms of the  Agreement,  all but US$1  billion of duty  deposits  by
Canadian producers was to be returned. According to the terms of the Agreement,
the Company sold the right to its refunds to Export  Development  Canada (EDC),
pursuant to which the Company received an amount equal to its refunds, less its
share of the US$1  billion  that the  United  States did not  reimburse.  As of
October 12, 2006, the Company had paid a total of approximately  US$258 million
in AD and CVD  deposits.  In December of 2006,  the  Agreement  received  final
approval by the Canadian  Parliament  and the Company  received  US$239 million
from EDC representing  approximately  81.9% of the deposit  amounts,  including
interest  accruing from the date of deposits.  This amount represents the total
of the refunds the Company was entitled to receive.

Since October 12, 2006, exports of softwood lumber to the United States are now
subject to either a three-tiered  export tax or a combination of a lower-tiered
export tax and volume restrictions, as elected region by region. These measures
will be effective during periods when a U.S. market  benchmark  composite price
for lumber is at or below  US$355 per  thousand  board feet.  Since  January 1,
2007,  all Quebec  mills are subject to monthly  quotas and a tax which  ranges
between 0 and 5 % depending on Framing Lumber  Composite Price (FLCP).  For the
operations in  British-Columbia,  the volume is not limited,  but the tax could
range from 0 to 15 % depending on the FLCP and if volumes  exported  exceed the
allocation  for this region the tax will be increased by 50%. The  agreement is
for a  minimum  seven-year  term,  but  could be  terminated  after  two  years
(although the U.S.  lumber  coalition  could not file new AD or CVD cases for a
minimum three-year period).

BUSINESS RISKS

For a  description  of the risks  affecting  the  Company's  business,  see the
section entitled "Risks and Uncertainties" in the 2006 MD&A.

ITEM 5: DIVIDENDS

The Company is not subject to  restrictions  on payment of dividends  under any
loan agreements.  Pursuant to the CANADA BUSINESS CORPORATIONS ACT, the Company
is prohibited to declare or pay a dividend if there are reasonable  grounds for
believing  that it is,  or  would  after  the  payment  be,  unable  to pay its
liabilities as they become due or the realizable  value of the Company's assets
would thereby be less than the aggregate of its  liabilities and stated capital
of all classes. Dividends on common shares declared by the Company (the "Common
Shares") are paid on a quarterly  basis and the amount may vary from quarter to
quarter.

On July 25, 2006, the Company's Board of Directors suspended the payment of the
quarterly dividend.

The following dividend payments were made for the three most recently completed
financial years preceding the date of this Annual Information Form:

    -    2006:  Dividends  of $0.025  per share  were paid on March 1, 2006 and
         June 1, 2006.

    -    2005: Dividends of $0.025 per share were paid each quarter.

    -    2004: In the first quarter of 2004,  two dividend  payments of $0.025
         per  share  were  paid  as a  result  of  the  Company's  decision  to
         synchronize  announcements  of  its  quarterly  results  and  dividend
         declarations.  For the three remaining quarters of 2004,  dividends of
         $0.025 per share were paid.

                                                                            15
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

ITEM 6:  DESCRIPTION OF CAPITAL STRUCTURE

6.1      GENERAL DESCRIPTION OF CAPITAL STRUCTURE

The following  information reflects the Company's articles of amalgamation,  as
currently in effect:

         AUTHORIZED AND ISSUED SHARE CAPITAL

The authorized  share capital of the Company consists of an unlimited number of
Common  Shares  and an  unlimited  number  of  Class A  preferred  shares  (the
"Preferred  Shares"),  issuable in series. As at December 31, 2006, the Company
only had Common Shares outstanding.

         DESCRIPTION OF THE COMMON SHARES

The holders of the Common Shares shall have one vote for each Common Share held
at all meetings of the  shareholders  of the Company,  except meetings at which
only holders of another  specified class or series of shares of the Company are
entitled to vote  separately as a class or series.  Subject to the prior rights
of the holders of the  Preferred  Shares the holders of Common  Shares shall be
entitled to receive any  dividends  declared by the board of  directors  of the
Company.  In the event of the  dissolution,  liquidation  or  winding-up of the
Company, whether voluntary or involuntary,  or any other distribution of assets
of the  Company  among its  shareholders  for the  purposes of  winding-up  its
affairs,  subject to the prior  rights of the holders of the  Preferred  Shares
with  respect to  priority  in the  distribution  of assets  upon  dissolution,
liquidation,  winding-up  or  distribution  for the purpose of  winding-up  its
affairs,  the  holders of the Common  Shares  shall be  entitled to receive the
remaining property and assets of the Company.

         DESCRIPTION OF THE CLASS A PREFERRED SHARES

The Preferred Shares shall be issuable in series from time to time. The holders
of the Preferred  Shares as a class shall not be entitled to receive notice of,
to attend or to vote at, any meetings of the shareholders of the Company except
as required by law or in accordance  with any voting rights which may from time
to time be  attached  to any  series of the  Preferred  Shares or if the rights
attaching to the Preferred Shares as a class are to be amended, in which latter
case a  two-thirds  majority  of the votes cast at a meeting of the  holders of
Preferred Shares duly called for that purpose and at which holders of Preferred
Shares representing not less than a majority of the aggregate of the amounts of
consideration  stated in all Preferred  Shares then  outstanding are present in
person  or  represented  by  proxy  in  accordance  with  the  by-laws  of  the
Corporation  is required.  No class of shares equal or senior to the  Preferred
Shares may be created or issued  without  the  approval  of the holders of each
series of the Preferred  Shares  voting as a class and  separately as a series.
The  Preferred  Shares shall be entitled to priority over the Common Shares and
over any other shares of the Company  ranking  junior to the  Preferred  Shares
with respect to priority in the payment of dividends  and the  distribution  of
assets in the event of  liquidation,  dissolution  or  winding-up  or any other
distribution  of assets by the  Company  for the  purposes  of  winding  up its
affairs.  The holders of the Preferred  Shares shall be entitled to receive and
shall  participate  rateably in any dividend declared by the board of directors
of the  Company.  No  dividends  shall at any time be  declared  or paid on any
shares of the  Company  ranking  junior to the  Preferred  Shares,  unless  all
dividends  up to and  including  the  dividend  payable for the last  completed
period for which such  dividend  is  payable  on each  series of the  Preferred
Shares then issued and  outstanding has been declared and paid or set apart for
payment  at the date of such  declaration  or  payment  on such  shares  of the
Company  ranking junior to the Preferred  Shares.  The Company shall not at any
such time call for redemption or redeem or purchase for  cancellation or reduce
or otherwise pay off any shares of the Company  ranking junior to the Preferred
Shares,  unless all dividends up to and including the dividend  payable for the
last completed  period for which such dividend is payable on each series of the
Preferred  Shares then issued and outstanding has been declared and paid or set
apart for payment at the date of such call for redemption,  purchase, reduction
or other payment.


                                                                            16
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

6.2      RATINGS

Four rating  agencies  rate the  Company's  debt  instruments,  namely  Moody's
Investors Service  ("Moody's"),  Standard & Poor's Rating Services ("Standard &
Poor's"),  Dominion Bond Rating Service Limited ("DBRS") and Fitch Ratings Ltd.
("Fitch"). Credit ratings are intended to provide investors with an independent
measure of the credit quality of any issue of securities. The rating changes in
2006 did not significantly increase the Company's interest expense.

On November 15, 2006,  Standard & Poor's  revised its outlook on the Company to
negative from stable.  At the same time, the long-term  corporate credit rating
was affirmed at B+. On September 21, 2006, Moody's announced the implementation
of its new rating  methodology.  As a result,  the corporate  family rating was
maintained  at B1, and the rating for the senior  unsecured  notes was  changed
from B1 to B2. The  liquidity  rating is SGL-2 and the outlook is stable.  Both
DBRS (BB (low), trend negative) and Fitch (B+, stable outlook) maintained their
respective ratings in 2006.

On January 29,  2007,  following  the  announcement  by the Company and Bowater
Incorporated  ("Bowater") of a definitive  agreement to combine in an all-stock
merger  of  equals,   DBRS  placed  the  Company  under  review  with  positive
implications,  Fitch put the  Company  on rating  watch  positive  and  Moody's
affirmed  the  Company's  ratings and changed  the outlook to  developing  from
stable. On January 30, 2007, Standard & Poor's affirmed its rating and outlook.

As at March  14,  2007,  the  Company's  family  rating  was B1 and its  senior
unsecured notes were rated B2 (with a developing  outlook) by Moody's, B+ (with
a negative  outlook) by Standard & Poor's,  BB (low)  (outlook under review) by
DBRS  and B+ by  Fitch.  Fitch  initiated  coverage  of the  Company's  debt on
December 12, 2005 and rated the senior  unsecured bonds B+ and the secured bank
debt BB -. The table below  summarises  the  different  ratings as at March 14,
2007:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
      RATING AGENCY             CORPORATE                OUTLOOK                       SECURITY RATING
                              FAMILY RATING
--------------------------------------------------------------------------------------------------------------------
<S>                           <C>                      <C>                        <C>
          DBRS                  BB (low)                   ____                   Unsecured Notes: BB (low)
--------------------------------------------------------------------------------------------------------------------
          Fitch                    B+                      ____                      Unsecured Notes: B+
                                                                                    Secured Bank debt: BB-
--------------------------------------------------------------------------------------------------------------------
         Moody's                   B1                   Developing                   Unsecured Notes: B2
--------------------------------------------------------------------------------------------------------------------
    Standard & Poor's              B+                    Negative                    Unsecured Notes: B+
--------------------------------------------------------------------------------------------------------------------
</TABLE>

Moody's  credit  ratings are on a long-term  debt rating scale that ranges from
Aaa to C, which  represents  the range from  highest to lowest  quality of such
securities  rated.  According to the Moody's rating system, an obligation rated
"B" is consider speculative and is subject to high credit risk. Moody's applies
numerical  modifiers 1, 2 and 3 to each generic rating  classification  from Aa
through Caa in its corporate bond rating system.  The modifier 1 indicates that
the  obligation  ranks in the higher end of its generic  rating  category,  the
modifier 2  indicates  a  mid-range  ranking,  and the  modifier 3  indicates a
ranking  in the lower  end of that  generic  rating  category.  Moody's  Senior
Ratings are generally  employed for speculative  grade corporate  issuers.  The
Senior  Implied Rating is an opinion of a corporate  family's  ability to honor
its financial  obligations and is assigned to a corporate  family as if it had:
1) a single class of debt, or 2) a single  consolidated legal entity structure.
The Senior Implied Rating differs from Moody's Issuer Rating,  which references
an obligator's senior unsecured  obligations (that may be junior in its capital
structure) and which also reflects the obligator's actual corporate  structure.
By contrast,  the Senior Implied Rating assumes away such  structural and legal
complexities.  Moody's  employs the general  long-term  rating scale for Senior
Implied Ratings.

Standard & Poor's  credit  ratings  are on a long-term  debt rating  scale that
ranges from AAA to D, which represents the range from highest to lowest quality
of such securities rated. According to Standard & Poor credit rating system, an

                                                                            17
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

obligation rated B is more vulnerable to non-payment than obligations rated BB,
but the obligor currently has the capacity to meet its financial  commitment on
the obligation. Adverse business, financial, or economic conditions will likely
impair the obligor's  capacity or willingness to meet its financial  commitment
on the  obligation.  The ratings from AA to CCC may be modified by the addition
of a plus (+) or minus  (-) sign to show  relative  standing  within  the major
rating categories.

DBRS' credit  ratings are on a long-term debt rating scale that ranges from AAA
to D,  which  represents  the range  from  highest  to lowest  quality  of such
securities rated. According to the DBRS rating system, an obligation rated "BB"
is defined to be  speculative  and  non-investment  grade,  where the degree of
protection  afforded interest and principal is uncertain,  particularly  during
periods of economic  recession.  Entities in the BB area typically have limited
access to capital markets and additional  liquidity support, and in many cases,
small  size  or  lack  of  competitive  strength  may  be  additional  negative
considerations.  Each rating category is denoted by the subcategories "high" or
"low" modifier to show relative  standing  within the major rating  categories.
The lack of one of these  designations  indicates a rating which is essentially
in the "middle" of the category.

Fitch's  credit  ratings are on a long-term  debt rating scale that ranges from
AAA to D, which  represents  the range from  highest to lowest  quality of such
securities  rated.  According to the Fitch rating system, an obligation rated B
is  defined  to be highly  speculative.  BB  ratings  indicate  that there is a
possibility of credit risk  developing,  particularly  as the result of adverse
economic change over time; however,  business or financial  alternatives may be
available to allow financial commitments to be met. Securities rated BB are not
investment  grade. B ratings indicate that significant  credit risk is present,
but a limited margin of safety  remains.  Financial  commitments  are currently
being  met;  however,  capacity  for  continued  payment is  contingent  upon a
sustained, favourable business and economic environment. The ratings from AA to
CCC may be modified  by the  addition of a plus (+) or minus (-) sign to denote
relative status within major rating categories.

Credit   ratings   accorded  to   securities   by  rating   agencies   are  not
recommendations to purchase,  hold or sell securities  inasmuch as such ratings
do not comment as to market price or suitability for a particular investor. The
Company cannot give any assurance that any rating will remain in effect for any
given  period  of time or that any  rating  will not be  revised  or  withdrawn
entirely by a rating agency in the future if in its judgment  circumstances  so
warrant  and,  if any such  rating is so revised or  withdrawn,  the Company is
under no obligation to update this Annual Information Form.


ITEM 7:  MARKET FOR SECURITIES

The Common Shares of the Company are listed on the Toronto Stock Exchange under
the stock symbol "A".  The Common  Shares are also listed on the New York Stock
Exchange  under the symbol  "ABY".  The  following  information  sets forth the
monthly  volume and price ranges of the Common Shares traded on both  exchanges
for the 2006 calendar year:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                    TSX (A)                                    NYSE (ABY)
                      -------------------------------------      ------------------------------------------
MONTH                 HIGH ($)     LOW ($)           VOLUME      HIGH($US)     LOW ($US)            VOLUME
-----------------------------------------------------------------------------------------------------------
<S>                   <C>         <C>         <C>                 <C>           <C>          <C>
January                  5.10        4.33        61,623,593          4.36          3.71         12,732,600
-----------------------------------------------------------------------------------------------------------
February                 4.55        3.82        45,348,569          3.98          3.30         11,469,100
-----------------------------------------------------------------------------------------------------------
March                    4.94        3.90        61,722,869          4.29          3.42         18,559,800
-----------------------------------------------------------------------------------------------------------
April                    5.13        4.45        40,520,041          4.53          3.82         16,671,700
-----------------------------------------------------------------------------------------------------------
May                      4.90        3.72        48,883,027          4.43          3.38         13,020,300
-----------------------------------------------------------------------------------------------------------
June                     3.81        2.82        57,605,597          3.46          2.51         28,611,100
-----------------------------------------------------------------------------------------------------------
July                     3.20        2.57        50,985,934          2.89          2.27         18,276,100
-----------------------------------------------------------------------------------------------------------
August                   3.06        2.67        32,718,718          2.77          2.37         11,115,000
-----------------------------------------------------------------------------------------------------------
September                3.09        2.71        81,986,131          2.78          2.42         12,511,100
-----------------------------------------------------------------------------------------------------------
October                  3.39        2.73        80,438,169          2.97          2.40         24,656,500
-----------------------------------------------------------------------------------------------------------
November                 2.98        2.53        58,992,342          2.64          2.23         21,746,400
-----------------------------------------------------------------------------------------------------------
December                 2.99        2.57        44,058,996          2.56          2.24         23,706,600
-----------------------------------------------------------------------------------------------------------
</TABLE>

                                                                            18
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

ITEM 8: DIRECTORS AND OFFICERS

The  names  of the  directors  of the  Company,  as  well as  their  respective
principal  occupations  within the five preceding  years,  the  municipality of
residence, information on the periods during which each has served on the Board
of  Directors  of the  Company  and the  identity of the members of each of the
committees of the Board of Directors of the Company are set forth below.

<TABLE>
<CAPTION>
------------------------------ --------------------------------------------------------------- -----------------------
<S>                            <C>                                                             <C>
      JOHN Q. ANDERSON         PRINCIPAL OCCUPATION: Chairman and CEO, BigWheel Partners       COMMITTEES:
   Jacksonville, Florida,      Inc.                                                            -Audit
        United-States                                                                          -Environmental,
                               POSITION DURING THE PAST 5 YEARS:   Same                        Health & Safety
       Director since
          May 2006             OTHER BOARDS AND COMMITTEES FOR REPORTING ISSUERS:  None

------------------------------ --------------------------------------------------------------- -----------------------

        HANS P. BLACK          PRINCIPAL OCCUPATION:  Chairman of Interinvest Consulting       COMMITTEES:
  Montreal, Quebec, Canada     Corporation of Canada                                           -Audit
                                                                                               -Human Resources &
       Director since          POSITION DURING THE PAST 5 YEARS:  Same                         Compensation
        January 2005
                               OTHER BOARDS AND COMMITTEES FOR REPORTING ISSUERS:
                               Director:   Nymox Pharmaceutical Corporation (1999-2006)
                                           Amorfix Sciences Ltd. (2006-present)
                                           RPMH Global Marco Fund (2007-present)

                               Committees: Nymox Pharmaceutical Corporation: Chair, Audit
                                           Amorfix Life Sciences Ltd.: Audit, Chair Corporate
                                           Governance

------------------------------ --------------------------------------------------------------- -----------------------

    JACQUES BOUGIE, O.C.       PRINCIPAL OCCUPATION:  Corporate Director                       COMMITTEES:
  Montreal, Quebec, Canada                                                                     -Corporate Governance
                               POSITION DURING THE PAST 5 YEARS:                               -Human Resources &
       Director since          2002-2006: Corporate Director                                   Compensatoin
        October 2004           1993-2001: President and Chief Executive Officer, Alcan
                               Aluminium Ltd.

                               OTHER BOARDS AND COMMITTEES FOR REPORTING ISSUERS:
                               Director:         Nova Chemicals Inc. (2001-present)

                               Committees:       Nova Chemicals Inc.: Audit, Public Policy
                                                 and Responsible Care

------------------------------ --------------------------------------------------------------- -----------------------

      MARLENE DAVIDGE,         PRINCIPAL OCCUPATION:  Partner, Torys LLP                       COMMITTEES:
  Toronto, Ontario, Canada                                                                     -Corporate Governance
                               POSITION DURING THE PAST 5 YEARS:  Same                         -Human Resources &
       Director since                                                                          Compensation
         April 2001            OTHER BOARDS & COMMITTEES FOR REPORTING ISSUERS:  None

------------------------------ --------------------------------------------------------------- -----------------------
</TABLE>

                                                                            19
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

<TABLE>
<CAPTION>
------------------------------ --------------------------------------------------------------- -----------------------
<S>                            <C>                                                             <C>
      WILLIAM E. DAVIS,        PRINCIPAL OCCUPATION:  President and Chief Executive Officer,   COMMITTEES:
   Skaneateles, New York,      Metropolitan Development Foundation of Central New York         -Audit
        United-States                                                                          -Corporate Governance
                               POSITION DURING THE PAST 5 YEARS:
       Director since          2003-2006: Corporate Director
         April 2003            2002-2003: Chairman, National Grid U.S.A. (holding company)
                               1993-2002: Chairman of the Board and Chief Executive Officer,
                               Niagara Mohawk Holdings and Niagara Mohawk Power Corporation

                               OTHER BOARDS & COMMITTEES FOR REPORTING ISSUERS:
                               Director:         Consol Energy Inc. (2004-present)

                               Committees:       Consol Energy Inc.:  Chair, Nominating and
                                                 Corporate Governance, Audit

------------------------------ --------------------------------------------------------------- -----------------------

      DAVID A. GALLOWAY
  Toronto, Ontario, Canada     PRINCIPAL OCCUPATION:  Chairman of the Board of Bank of         COMMITTEES:
       Director since          Montreal                                                        -Environment, Health
        October 2006                                                                           & Safety
                               POSITION DURING THE PAST 5 YEARS:                               -Human Resources &
                               1998-present: Chairman of the Board of Bank of Montreal         Compensation

                               OTHER BOARDS & COMMITTEES FOR REPORTING ISSUERS:
                               Director:   Bank of Montreal (1998-present)
                                           E.W. Scripps Company (2002-present)
                                           Shell Canada Limited (2006-present)
                                           Toromont Industries Ltd. (2002-present)

                               Committees: Bank of Montreal:  Corporate Governance,
                                           Compensation and  Risk Oversight
                                           E.W. Scripps Company:  Chairman, Compensation
                                           Shell Canada Limited:  Corporate Governance and
                                           Compensation
                                        Toromont Industries Ltd.:  Audit and Reserve

------------------------------ --------------------------------------------------------------- -----------------------

      LISE LACHAPELLE,         PRINCIPAL OCCUPATION:  Corporate Director                       COMMITTEES:
  Montreal, Quebec, Canada                                                                     -Audit
                               POSITION DURING THE PAST 5 YEARS:                               -Chair,
       Director since          2003-2006: Corporate Director and consultant                    Environmental, Health
         April 2002            2001-2002:  President and Chief Executive Officer,  Canadian    & Safety
                               Pulp and Paper Association

                               OTHER BOARDS & COMMITTEES FOR REPORTING ISSUERS:
                               Director:   Industrielle Alliance Inc. (1995-present)
                                           Russel Metals Inc. (1996-present)
                                           Innergex Power Trust  (2003-present)

                               Committees: Industrielle Alliance Inc. :  Governance, Human
                                           Resources and Investment
                                           Russel Metals Inc.:  Corporate Governance &
                                           Nomination and Environment, Health & Safety
                                           Innergex Power Trust:  Chair, Corporate
                                           Governance and Acquisitions

------------------------------ --------------------------------------------------------------- -----------------------

   GARY J. LUKASSEN, C.A.      PRINCIPAL OCCUPATION:  Corporate Director                       COMMITTEES:
Mississauga, Ontario, Canada                                                                   -Chair, Audit
                               POSITION DURING THE PAST 5 YEARS:  Same                         -Environment, Health
       Director since                                                                          & Safety
         April 2003            OTHER BOARDS & COMMITTEES FOR REPORTING ISSUERS:
                               Director:   The North West Company (1987-present)
                                           Stelco Inc. (2004-present)

                               Committees: The North West Company: Audit and Human
                                           Resources & Compensation
                                           Spinrite Income Fund:   Chair, Audit and
                                           Compensation and Corporate Governance

------------------------------ --------------------------------------------------------------- -----------------------
</TABLE>

                                                                            20
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

<TABLE>
<CAPTION>
------------------------------ --------------------------------------------------------------- -----------------------
<S>                            <C>                                                             <C>
     JOHN A. TORY, Q.C.,       PRINCIPAL OCCUPATION:  Corporate Director                       COMMITTEES:
  Toronto, Ontario, Canada                                                                     -Corporate Governance
                               POSITION DURING THE PAST 5 YEARS:  Same                         -Chair, Human
       Director since                                                                          Resources &
         April 1965            OTHER BOARDS & COMMITTEES FOR REPORTING ISSUERS:                Compensation
                               Director:   The Thomson Corporation (1978-present)
                                           Rogers Communications Inc. (1979-present)

                               Committees: The Thomson Corporation:  Human Resources
                                           Rogers Communications Inc.:  Executive,
                                           Nominating, Corporate Governance,
                                           Compensation and Finance

------------------------------ --------------------------------------------------------------- -----------------------

       JOHN W. WEAVER          PRINCIPAL OCCUPATION:  President and Chief Executive Officer,   COMMITTEES: None
  Montreal, Quebec, Canada     Abitibi-Consolidated Inc.
      President and CEO
                               POSITION DURING THE PAST 5 YEARS: Same
     BECAME DIRECTOR IN
         APRIL 1999            OTHER BOARDS & COMMITTEES FOR REPORTING ISSUERS: None

------------------------------ --------------------------------------------------------------- -----------------------
</TABLE>

Each  director  holds office until the earlier of the next annual  shareholders
meeting of the Company or the  appointment  or  nomination  of such  director's
successor.

The name,  municipality of residence in Canada, and positions of each executive
officer of the Company,  as at December 31,  2006,  and for the five  preceding
years, are set forth below.

<TABLE>
<CAPTION>
-------------------------------------- -----------------------------------------------------------------------------
NAME AND MUNICIPALITY OF RESIDENCE     OFFICES
-------------------------------------- -----------------------------------------------------------------------------
<S>                                    <C>
RICHARD DROUIN, O.C., c.r.             Chairman of the Board
Sillery, Quebec, Canada                Mr. Drouin retired as Board Chair and director, effective January 1, 2007.
-------------------------------------- -----------------------------------------------------------------------------
JACQUES BOUGIE, O.C.                   Chairman of the Board
Montreal, Quebec, Canada               Mr. Bougie assumed the  responsibility of Board Chair,  effective January 1,
                                       2007
                                       He has served on the Board of Directors of the Company  since  October 2004.
                                       He also serves on the Board of Directors of Nova  Chemicals  Inc. and McCain
                                       Foods Ltd. and he sits on a number of advisory  committees and  foundations,
                                       including CGI Group Inc.
-------------------------------------- -----------------------------------------------------------------------------
JOHN W. WEAVER                         President and Chief Executive Officer
Montreal, Quebec, Canada
-------------------------------------- -----------------------------------------------------------------------------
ALAIN GRANDMONT,                       Senior Vice-President, Commercial Printing Papers (2005 to present)
Montreal, Quebec, Canada               Formerly Senior Vice-President, Value-Added Paper Operations and Sales
                                       (2004),
                                       Senior Vice-President, Value-Added Paper
Operations (2002-2003).
-------------------------------------- -----------------------------------------------------------------------------
YVES LAFLAMME                          Senior Vice-President, Woodlands and Sawmills (2006 to present)
Montreal, Quebec, Canada               Formerly Vice-President, Sales, Marketing and Value-Added Wood Products
                         Operations (end of 2004-2005),
                                       Vice-President, Sales and Marketing, Wood Products (2002-2003).
-------------------------------------- -----------------------------------------------------------------------------
</TABLE>


                                                                            21
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

<TABLE>
<CAPTION>
-------------------------------------- -----------------------------------------------------------------------------
NAME AND MUNICIPALITY OF RESIDENCE     OFFICES
-------------------------------------- -----------------------------------------------------------------------------
<S>                                    <C>
PAUL PLANET                            Senior Vice-President, Supply Chain (2006 to present)
Montreal, Quebec, Canada               Formerly Senior Vice-President, International Newsprint (2005),
                                       Senior Vice-President, International
                                       Newsprint Operations and Sales (2004),
                                       Senior Vice-President, International
                                       Sales & Operations (2003), Senior
                                       Vice-President, International Newsprint
                                       Sales (2002).
-------------------------------------- -----------------------------------------------------------------------------
PIERRE ROUGEAU                         Senior Vice-President, Corporate Development and Chief Financial Officer
Montreal, Quebec, Canada
-------------------------------------- -----------------------------------------------------------------------------
THOR THORSTEINSON                      Senior Vice-President, Newsprint (2006 to present)
Montreal, Quebec, Canada               Formerly, Senior Vice-President, North America Newsprint Sales and
                            Operations (2005-2006),
                                       Senior Vice-President, Newsprint and
Operations (2002-2005).
-------------------------------------- -----------------------------------------------------------------------------
JACQUES P. VACHON                      Senior Vice-President, Corporate Affairs and Secretary
Montreal, Quebec, Canada
-------------------------------------- -----------------------------------------------------------------------------
</TABLE>

To the knowledge of the Company and based upon information provided to it by
the Company's directors and executive officers, except as disclosed below, none
of such directors or executive officers

         (a)  is, as at the date of this Annual  Information  Form or has been,
              within 10 years before the date of this Annual  Information Form,
              a director or executive  officer of any company,  that while that
              person was acting in that capacity:

              i)     was the  subject of a cease  trade or similar  order or an
                     order  that  denied  the  relevant  company  access to any
                     exemption under  securities  legislation,  for a period of
                     more than 30 consecutive days;

              ii)    was subject to an event that resulted,  after the director
                     or executive  officer ceased to be a director or executive
                     officer, in the company being the subject of a cease trade
                     or  similar  order or an order that  denied  the  relevant
                     company   access  to  any   exemption   under   securities
                     legislation,  for a  period  of more  than 30  consecutive
                     days; or

              iii)   or  within a year of that  person  ceasing  to act in that
                     capacity,  became  bankrupt,  made a  proposal  under  any
                     legislation  relating to  bankruptcy  or insolvency or was
                     subject to or instituted any  proceedings,  arrangement or
                     compromise  with  creditors  or had a  receiver,  receiver
                     manager or trustee appointed to hold its assets; or

         (b)  has,  within  the  10  years  before  the  date  of  this  Annual
              Information  Form,  become  bankrupt,  made a proposal  under any
              legislation  relating  to  bankruptcy  or  insolvency,  or become
              subject  to  or  instituted  any   proceedings,   arrangement  or
              compromise with creditors, or had a receiver, receiver manager or
              trustee appointed to hold its assets; or

         (c)  has, since December 31, 2000 been subject to:

              i)     any penalties or sanctions  imposed by a court relating to
                     securities  legislation  or  by  a  securities  regulatory
                     authority or has entered into a settlement  agreement with
                     a securities regulatory authority; or

              ii)    any other  penalties  or  sanctions  imposed by a court or
                     regulatory body that would likely be considered  important
                     to a reasonable investor in making an investment decision.

         Gary J.  Lukassen  was a director  of Stelco  Inc.,  a Canadian  steel
         producer,  until  March 31,  2006.  On January 29,  2004,  Stelco Inc.
         announced that it had obtained an Order of the Ontario  Superior Court
         of Justice  to  initiate a  Court-supervised  restructuring  under the
         COMPANIES' CREDITORS ARRANGEMENT ACT ("CCAA"), in order to restore its
         financial health and competitive  position in the North American steel
         industry.  Stelco Inc.  emerged from CCAA protection at the end of the
         day on March 31, 2006.

                                                                            22
===============================================================================
ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

         Jacques  Bougie was a director of Novelis Inc. until October 21, 2006.
         Up and until  October 26,  2006,  Novelis  Inc. was subject to a cease
         trade order issued by the Ontario Securities Commission on December 1,
         2005 and the AUTORITE DES MARCHES  FINANCIERS  (Quebec) on December 5,
         2005 for  Novelis'  failure  to  timely  file its 2005  third  quarter
         financial results.

As at December 31, 2006,  directors and executive officers of the Company, as a
group,  beneficially  owned  directly or  indirectly,  or exercised  control or
direction over 439,381 of the Company's Common Shares,  representing  0.100% of
the  Company's  outstanding  Common  Shares,   612,389  deferred  share  units,
1,029,030  restricted  share units and  6,413,900  options to  purchase  Common
Shares of the Company.


ITEM 9:  TRANSFER AGENT AND REGISTRAR

The Company's  transfer agent and registrar is  Computershare  Trust Company of
Canada, located at 100 University Ave., 8th Floor, Toronto, Ontario, Canada M5J
2Y1.


ITEM 10: MATERIAL CONTRACTS

The  following  material  contract  was entered into other than in the ordinary
course of business and in the most recent  financial  year or prior thereto but
on or after January 1, 2002 and remains in effect:

o    On November 17, 2005, the Company entered into a share purchase  agreement
     pursuant  to which  it sold  its 50%  share  ownership  in Pan Asia  Paper
     Company  Pte  Ltd.  to  Norske  Skogindustrier  ASA of  Norway  for a cash
     consideration  of US$600  million plus a cash  purchase  price  adjustment
     payment of up to US$30  million  depending on the  achievement  of certain
     financial  performance  objectives  in 2006,  payable  in  2007.  No price
     adjustment has been booked by the Company as at December 31, 2006.


ITEM 11:  INTERESTS OF EXPERTS

The  Company's  auditors  are  PricewaterhouseCoopers  LLP  ("PwC"),  Chartered
Accountants,  who have prepared an independent  auditors' report dated March 6,
2007 in respect of the Company's 2006 Financial  Statements  with  accompanying
notes as at and for the year ended  December 31, 2006 and for each of the years
in  the  three-year  period  ended  December  31,  2006  and  the  management's
assessment on the  effectiveness of internal  control over financial  reporting
and on the  effectiveness  of the  Company's  internal  control over  financial
reporting as of December 31,  2006.  PwC has advised that they are  independent
with  respect to the Company  within the  meaning of the Rules of  Professional
Conduct of the  Institute of Chartered  Accountants  of Quebec and the rules of
the US Securities and Exchange Commission.


ITEM 12: AUDIT COMMITTEE INFORMATION

As at December 31, 2006,  the Audit  Committee of the board of directors of the
Company (the "Audit  Committee") was composed of Gary J. Lukassen (Chair),  Dr.
Hans P. Black,  William E. Davis,  Lise  Lachapelle and John Q.  Anderson,  who
joined the Audit Committee on May 9, 2006. The education and experience of each
Audit Committee member that is relevant to such member's  responsibilities as a
member of the Audit Committee are set forth below:

o    GARY J. LUKASSEN.  Mr. Lukassen,  after articling with Price Waterhouse in
     Montreal,  obtained his Chartered Accountant degree in 1967. He joined the
     Hudson's   Bay  Company   ("HBC")  in  1975  and  was   appointed   Senior
     Vice-President  Finance  and  Administration  in  1987.  He was  Executive
     Vice-President  and Chief  Financial  Officer  of HBC from 1989  until his
     retirement  in 2001. He was also a member of the Board of Directors of HBC
     from 1987 to 2001.  Mr.  Lukassen is  currently a member of the  following

                                                                            23
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

     Boards of Directors: The Northwest Company Fund, and Spinrite Income Fund.
     He is Chairman of the audit committee for both companies.

o    DR. HANS P. BLACK. Dr. Black graduated from McGill  University in Montreal
     with a Doctorate in Medicine  and is a member of the  Montreal  Society of
     Financial  Analysts (MSFA) and the Chartered  Financial Analyst Institute.
     Dr.  Black is also Chair of the Audit  Committee of the board of directors
     of Wi2Wi Inc.  and  Chairman  of  Interinvest  Consulting  Corporation  of
     Canada, a global money management firm.

o    WILLIAM E. DAVIS.  Mr.  Davis holds a Bachelor of Science  degree from the
     United States Naval Academy at Annapolis,  a Master of Science degree from
     George  Washington  University  and a Doctorate  in Science from the State
     University of New York. He is currently a member of the following  Boards:
     Consol  Energy  Inc.  where he is also a member  of the  Audit  Committee,
     Syracuse  University  Board of Trustees and The  Metropolitan  Development
     Foundation  of Central New York,  Inc.,  where he serves as  Chairman  and
     Chief Executive Officer.

o    LISE  LACHAPELLE.  Mrs.  Lachapelle  holds a Bachelor  degree in  Business
     Administration  from the University of Montreal (HEC). She also studied at
     the University of Western Ontario and the Harvard Business School. She was
     President  and Chief  Executive  Officer  of the  Canadian  Pulp and Paper
     Association from 1994 until January 2002.

o    JOHN Q. ANDERSON.  Mr.  Anderson is Chairman and CEO of BigWheel  Partners
     Inc., a private  equity  investment  affiliate of Fenway  Partners Inc., a
     leading  private  investment  firm in New York  with  $1.4  billion  under
     management. He studied at Stanford University and graduated with his BS in
     Mechanical  Engineering.  He also received in 1977, a MBA with Distinction
     from Harvard Business School.

The Company has determined  that the Audit  Committee was composed  entirely of
outside  directors,  all of whom are considered  "independent" and "financially
literate" for the purposes of Canadian Securities Regulations.

         PRE-APPROVAL POLICIES AND PROCEDURES

The  Audit  Committee  has  adopted  a  policy  and  procedures  regarding  the
engagement of the Company's auditors, which are summarized below.

At the  mid-year  meeting,  the  auditors  submit  for  approval  to the  Audit
Committee  an  engagement  letter  outlining  the scope of the audit  services,
including all statutory  engagements as required under securities and corporate
laws,  proposed  to be  performed  during  the  fiscal  year.  This  letter  of
engagement  must include a fee proposal for all audit  services  proposed to be
rendered  during the fiscal year.  This letter of engagement  must also outline
the scope of the  services  proposed to be  performed  in  connection  with the
interim review of the quarterly consolidated financial statements for the first
and second quarters of the following  fiscal year,  prior to the appointment of
PwC as auditors by the  shareholders at the Company's next annual  meeting.  In
addition,  the  engagement  letter may include a specific  list of  permissible
audit-related and non-audit  services that are generally expected and necessary
in the normal course of the Company's business,  and that Management recommends
the Audit Committee engage the auditors to provide.

At the request of Management,  the Audit Committee may approve additional audit
services  and  permissible   audit-related  and  non-audit  services.  In  such
circumstances,  the auditors must issue  separate  engagement  letters for each
additional  service.   Such  engagement  letters  must  confirm  to  the  Audit
Committee,  and  Management  also  confirms  that  the  proposed  services  are
permissible under all applicable securities legislation or regulations.

To ensure the prompt handling of day-to-day tax-related matters, Management may
request  the  Audit  Committee  to  pre-approve  a maximum  periodic  amount of
tax-related  services that may be rendered by the auditors on a  pre-identified
list of specific tax-related matters for the next quarter.

                                                                            24
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

To ensure prompt handling of unexpected matters,  the Audit Committee delegates
to its Chair the authority to approve additional audit services and permissible
audit-related and non-audit services.  Based on the materiality of the proposed
services, the Chair may decide that a special meeting of the Audit Committee is
necessary in order to appropriately assess the proposal.  The Chair reports any
action taken to the Audit Committee at its next regular meeting.

The Audit  Committee is informed  quarterly as to the status and estimated fees
regarding  services  actually  provided  by  the  auditors  pursuant  to  these
pre-approval procedures.

The  auditors  and  Management  must ensure that all audit,  audit-related  and
non-audit  services  provided  to the Company  have been  approved by the Audit
Committee.  The  Vice-President  and Corporate  Controller is  responsible  for
tracking  all  auditors'  fees  against the  estimates  for such  services  and
reporting to the Audit Committee every quarter.

As required by the U.S.  SARBANES-OXLEY  ACT OF 2002, all audit,  audit-related
and non-audit  services  rendered by PwC pursuant to  engagements  entered into
since May 6, 2003 are  pre-approved  by the Audit  Committee  pursuant to these
pre-approval  procedures.  In 2006, no  audit-related  and  non-audit  services
rendered by the auditors  were  required to be approved by the Audit  Committee
pursuant to the DE MINIMIS exception set out in paragraph  (c)(7)(i)(C) of Rule
2-01 of  Regulation  S-X and S.2.4 of  Multilateral  Instrument  52-110 - Audit
Committees.

         EXTERNAL AUDITORS SERVICES FEES (BY CATEGORY)

In 2006 and 2005,  the  aggregate  amounts  billed  for  professional  services
rendered by the Company's  auditors,  PwC, to the Company and its  subsidiaries
were approximately as follows:

Fees in millions of dollars                       2006                     2005
Audit fees                                        $2.9                     $1.4
Audit-related fees                                $0.6                     $0.3
Tax fees                                          $0.2                     $0.2
All other non-audit fees                           $0                       $0
Total                                             $3.7                     $1.9

"Audit fees" are fees for professional  services for the audit of the Company's
consolidated financial statements, Management's assessment on the effectiveness
of internal  control over financial  reporting and on the  effectiveness of the
Company's internal control over financial reporting as of December 31, 2006 and
review of quarterly financial  statements,  services that are normally provided
by PwC in connection  with statutory and  regulatory  filings or engagements or
any other services  performed by PwC to comply with generally accepted auditing
standards;  "audit-related  fees" are fees for assurance  and related  services
that are typically  performed by the independent public accountant;  "tax fees"
are fees for tax compliance,  tax advice and tax planning; and "non-audit fees"
are fees for any services not included in the first three categories.

On March 6, 2007, the board of directors of the Company has revised the written
charter for the Audit Committee that sets out the roles and responsibilities of
the committee. A copy of this charter is attached as Exhibit "A" to this Annual
Information   Form,   and  can  be   found   on  the   Company's   website   at
WWW.ABITIBICONSOLIDATED.COM.


ITEM 13:  SUBSEQUENT EVENTS

The information below is stated as at March 14, 2007.

         CREATION OF PARTNERSHIP IN ENERGY GENERATION - HYDRO ASSETS IN ONTARIO
         TO BE REGROUPED INTO ACH LIMITED PARTNERSHIP

On January 26, 2007,  the Company  announced that it had entered into a binding
letter of intent with the CAISSE DE DEPOT ET PLACEMENT DU QUEBEC (the "Caisse")
to create a partnership  to hold the Company's  Ontario  hydroelectric  assets,
consisting of eight (8) generation  facilities  totalling 136.8 MW of installed
capacity.  The Company will retain a 75%  interest in the limited  partnership,
called ACH Limited  Partnership,  while the Caisse will acquire a 25% interest.
The Caisse has also  provided a  commitment  to ACH Limited  Partnership  for a
10-year  unsecured term loan of $250 million,  non recourse to the Company,  to
partially  fund  the  acquisition  of the  facilities.  The  transaction,  on a
consolidated  basis,  is expected to yield gross  proceeds of $297.5 million to

                                                                            25
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

the Company.  ACH Limited  Partnership  is intended to be the Company's  growth
vehicle in energy  generation.  Closing of the  transaction is expected to take
place in the first  half of 2007 and is  subject  to  execution  of  definitive
agreements and certain other conditions and approvals.

         MERGER OF EQUALS WITH BOWATER INCORPORATED

On January 29, 2007, the Company and Bowater  announced a definitive  agreement
to combine in an all-stock merger of equals.  The combination will create a new
leader in  publication  papers.  The  combined  company,  which  will be called
AbitibiBowater Inc. ("AbitibiBowater"),  will have pro forma annual revenues of
approximately US$7.9 billion ($9.3 billion), making it the 3rd largest publicly
traded paper and forest  products  company in North America and the 8th largest
in the world. The combined enterprise value of the two companies at the time of
the announcement was in excess of US$8 billion ($9.4 billion).

John W. Weaver,  President and Chief Executive Officer of the Company,  will be
Executive  Chairman  of  AbitibiBowater,   and  David  J.  Paterson,  Chairman,
President and Chief Executive  Officer of Bowater,  will be President and Chief
Executive Officer of AbitibiBowater. The AbitibiBowater Board of Directors will
consist of 14 directors, seven (7) from each company.

AbitibiBowater's headquarters and executive office will be located in Montreal,
Quebec,  with a U.S.  regional  manufacturing  and sales office in  Greenville,
South Carolina.

Under the terms of the  transaction,  each common  share of the Company will be
exchanged for 0.06261 common share of  AbitibiBowater,  and each Bowater common
share will be exchanged for 0.52 common share of  AbitibiBowater.  The exchange
ratio will result in 48% of AbitibiBowater  being owned by former  shareholders
of the  Company  and  52% of  AbitibiBowater  being  owned  by  former  Bowater
shareholders.

The  combination  has been approved  unanimously  by the Boards of Directors of
both  companies,   which  received  fairness  opinions  from  their  respective
financial advisors.  The combination is subject to approval by the shareholders
of both companies,  regulatory approvals, and customary closing conditions.  It
is  expected  to be  completed  in the third  quarter of 2007.  The Company and
Bowater will continue to operate separately until the transaction closes.

         ABITIBI-CONSOLIDATED TO INDEFINITELY IDLE FORT WILLIAM, ONTARIO
         PAPER MILL

On February 20, the Company  announced  that  effective  February 25, 2007, its
Fort William  paper mill  located in Thunder Bay,  Ontario will be idled for an
indefinite period. The mill has an annual production  capacity of approximately
145,000  tonnes  of  commercial   printing  papers.   The  idling  will  affect
approximately  265  employees  at the  mill  and  an  additional  88  employees
associated with the woodlands operations.


ITEM 14:  ADDITIONAL INFORMATION

When securities of the Company are in the course of a distribution  pursuant to
a short  form  prospectus,  or when a short form  prospectus  has been filed in
respect  of a  distribution  of the  Company's  securities,  (i) copies of this
Annual  Information Form,  together with copies of any document or the relevant
pages of any document  incorporated  by  reference  in this Annual  Information
Form, (ii) copies of the comparative  consolidated  financial statements of the
Company  for its most  recently  completed  financial  year  together  with the
accompanying  report  of the  auditors  and  copies  of any  interim  financial
statements of the Company  subsequent to the financial  statements for its most
recently completed financial year, (iii) copies of the information  circular of
the Company in respect of its most recent annual meeting of  shareholders  that
involved the election of directors, and (iv) copies of any other documents that
are incorporated by reference into the short form  prospectus,  may be obtained
from the Secretary of the Company on request.  At any other time, copies of the
documents referred to in (i) to (iii) above, may be obtained from the Secretary
of the  Company,  provided  that the  Company  may  require  the  payment  of a
reasonable  charge if the  request is made by a person or company  who is not a
security holder of the Company.

                                                                            26
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

Additional  financial  information  is provided in the Company's 2006 Financial
Statements and 2006 MD&A.

Most of the information,  above-mentioned, relating to the Company may be found
on  SEDAR  at  WWW.SEDAR.COM,  on  EDGAR  at  WWW.EDGAR-ONLINE.COM  and  on the
Company's website at www.abitibiconsolidated.com.






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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>


<PAGE>

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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM

                                  EXHIBIT "A"

                                    CHARTER
                                     OF THE
                                AUDIT COMMITTEE
                                     OF THE
                BOARD OF DIRECTORS OF ABITIBI-CONSOLIDATED INC.

1.    The Audit Committee of Abitibi-Consolidated Inc. shall be composed of not
      less than three directors, each of whom (a) shall be independent,  within
      the meaning of that term in the relevant securities legislation and stock
      exchange  rules,  of the  Corporation  and of any  shareholder  holding a
      sufficient number of shares to exert influence on the Board of Directors,
      (b) shall have no relationships with management,  the Corporation and its
      related  entities  that in the  opinion of the Board may  interfere  with
      their  independence  from  management and from the  Corporation,  and (c)
      shall not receive,  other than for service on the Board, the Committee or
      any other  Committee of the Board,  any  consulting,  advisory,  or other
      compensatory  fee from the  Corporation or any of its related  parties or
      subsidiaries. The members of the Audit Committee shall possess the mix of
      characteristics, experiences and skills to provide an appropriate balance
      for the performance of the duties of the Committee and in particular each
      member of the Committee shall be "financially literate", and at least one
      member shall be a "financial expert" within the meaning of those terms in
      the relevant securities legislation and stock exchange rules. A quorum of
      the  Committee  shall be one-half of the members,  and a majority vote of
      the members  present  shall be required to pass a resolution of the Audit
      Committee.  The Audit  Committee is responsible to the Board of Directors
      of the Corporation.

      The  Chair  shall  be  appointed  annually  by  the  Board.  The  Chair's
      responsibilities   shall   include  (i)  presiding  at  meetings  of  the
      Committee,  (ii) providing  leadership to enhance the  effectiveness  and
      focus of the  Committee,  (iii) ensuring that the Committee has access to
      timely and relevant  information  and resources to support its work, (iv)
      setting with  management  the agenda for each meeting,  and (v) acting as
      liaison  between  the  Committee  and the Board,  and the  Committee  and
      Management.

2.    The objectives of the Audit Committee are as follows:

      (a)   To  assist  the Board in the  discharge  of its  responsibility  to
            monitor the component  parts of the audit process and the integrity
            of the Corporation's financial reporting.

      (b)   To provide independent  communication between the Committee and the
            director of internal audit and the external auditor.

      (c)   To monitor  the  independence  of the  external  auditor and of the
            director of internal audit.

      (d)   To maintain the credibility  and  objectivity of financial  reports
            and to satisfy itself as to the adequacy of the supporting  systems
            of internal control over financial reporting.

      (e)   To facilitate in-depth and candid discussions between the Committee
            and  management and the director of internal audit and the external
            auditor  regarding   significant   issues  involving  judgment  and
            impacting quality.

      (f)   To enhance the quality of the Corporation's financial reporting.


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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>


      (g)   To ensure that the external auditor remains ultimately  accountable
            to the  Audit  Committee  and the Board as  representatives  of the
            shareholders.

3.    The Audit Committee has the responsibility to exercise the powers set out
      in this  Charter.  However,  it is not the duty of the  Audit  Committee,
      INTER ALIA, to plan or to conduct  audits or to assess the  effectiveness
      of internal  control over  financial  reporting or to determine  that the
      Corporation's  financial  statements  are  complete or  constitute a fair
      presentation  or are in accordance  with  generally  accepted  accounting
      principles.  These matters are the  responsibility  of management and the
      external  auditor.  It is also not the  duty of the  Audit  Committee  to
      conduct  investigations,   to  resolve  disagreements,  if  any,  between
      management and the external auditor or to ensure compliance with laws and
      regulations and the Corporation's Code of Conduct.

4.    To achieve its objectives, the Audit Committee shall:

      (a)   Review,  at a meeting of the Committee,  the  Corporation's  annual
      financial  statement,   management's  report  on  internal  control  over
      financial  reporting and Management's  Discussion and Analysis  ("MD&A").
      This will include a review of the annual financial statements to be filed
      with regulatory  officials and provided to all shareholders and financial
      statements and other financial  disclosure  included in prospectuses  and
      other   similar   documents.   The   Committee   shall  also  review  the
      Corporation's  Annual Information Form and Annual Report on Form 40-F and
      other similar documents. These reviews will include:

            (i)      discussions with management and the external auditor and a
      consideration  of a report by the external auditor to the Audit Committee
      of matters related to the conduct of the audit;

            (ii)     receiving  a timely  report  from  management  on internal
      control over financial reporting;

            (iii)    receiving  a  timely  report  from  the  external  auditor
      respecting the auditor's  judgment  respecting both the acceptability and
      quality of the financial  statements  including  the critical  accounting
      policies  and  practices  adopted  by  management  in their  preparation,
      alternative  treatments and disclosures of financial  information  within
      generally  accepted  accounting  principles that have been discussed with
      management  and  the   ramifications  of  the  use  of  such  alternative
      disclosures  and  treatments,  the  effectiveness  of  the  Corporation's
      internal  control  over  financial  reporting  including  the fairness of
      management's  assessment of such effectiveness,  the selection of changes
      in  significant  accounting  policies,  the  methods  used to account for
      significant unusual  transactions,  the effect of significant  accounting
      policies in controversial or emerging areas, the degree of aggressiveness
      or conservatism, as the case maybe, of the accounting policies adopted by
      the   Corporation,   the  process  used  by  management  in   formulating
      particularly  significant  accounting  estimates  and the  basis  for the
      external  auditor's  conclusions  regarding the  reasonableness  of those
      estimates  and any other  material  written  communications  between  the
      external  auditor  and  management,  such  as any  management  letter  or
      schedule of unadjusted differences;

            (iv)     a  review  of  significant  adjustments  arising  from the
      audit;

            (v)      a review of disagreements between the external auditor and
      management   over  the   application  of  accounting   policies  and  the
      disclosures in the financial statements;

            (vi)     a review of all material  off-balance  sheet  transactions
      and other  relationships with  non-consolidated  entities that may have a
      material  current  or future  effect on the  financial  condition  of the
      Corporation  including their disclosure or lack thereof in the applicable
      quarterly or annual financial statements;


                                                                            2
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>


            (vii)    a review of the  external  auditor's  recommendations  for
      improvements to the  Corporation's  operations and internal  control over
      financial reporting;

            (viii)   a review of the nature and size of unadjusted  errors of a
      non-trivial amount; and

            (ix)     a review of  compliance  with various  covenants.

      (b)   Determine, based on its review and discussion, whether to recommend
      the approval by the Board of such  financial  statements and MD&A and the
      financial disclosure in such prospectuses and other similar documents and
      the Annual Information Form.

      (c)   Review with  management,  the  director  of internal  audit and the
      external auditor and, if considered  appropriate,  approve the release of
      the Corporation's  quarterly financial  statements,  the related MD&A and
      Press Release.

      (d)   Review with  management  the  Corporation's  internal  control over
      financial  reporting  and its  effectiveness  and  discuss  the  types of
      information to be disclosed when the Corporation (i) makes earnings press
      releases or (ii) discusses  financial  information and earnings  guidance
      with analysts and rating agencies.

      (e)   Review with management, the external auditor and legal counsel, the
      Corporation's  procedures to ensure  compliance  with applicable laws and
      regulations,  and any significant litigation, claim or other contingency,
      including  tax  assessments,  that would have a material  effect upon the
      financial  position  or  operating  results  of the  Corporation  and the
      disclosure or impact on the results of these matters in the quarterly and
      annual financial statements.

      (f)   Meet with the Corporation's  external auditor to review and approve
      their  Integrated  Audit Plan with  particular  emphasis on risk  factors
      which could lead to a material  misstatement of the financial statements,
      the scope and timing of the audit,  the  assumptions  and decisions  that
      have been made in developing the plan and  co-ordination  of work between
      the external auditor and the internal audit department.

      (g)   Review estimated audit and audit-related  fees and expenses for the
      current year, and approve audit and  audit-related  fees and expenses for
      the prior year. The authority for the  determination  and payment of fees
      to the external auditor rests solely and exclusively with the Committee.

      (h)   Review,  or delegate to one or more  members of the  Committee  the
      responsibility to review and if deemed appropriate, to approve and in the
      case of approval by a delegate,  to subsequently  receive a report to the
      Committee,  of the  nature  of and the  estimated  cost of all  non-audit
      services,  permitted by securities  legislation and stock exchange rules,
      that are proposed to be provided by the  Corporations'  external  auditor
      prior to the commencement of such services.  All such non-audit  services
      shall be disclosed to the  shareholders  periodically  as required by the
      relevant securities legislation and stock exchange rules.

      (i)   Receive reports on all incidents  involving  fraud,  theft or other
      significant  illegal acts of which  management  or the  external  auditor
      become aware.

      (j)   At least once each year:

            (i)   Meet privately with  management to assess the  performance of
                  the external auditor.

            (ii)  Meet  privately  with the  external  auditor,  amongst  other
                  things,  to  understand  any  restrictions  placed on them or
                  other  difficulties  encountered  in the course of the audit,
                  including  instructions on the scope of their work and access


                                                                            3
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ABITIBI-CONSOLIDATED INC.
2006 ANNUAL INFORMATION FORM
<PAGE>

                  to  requested  information  and  the  level  of  co-operation
                  received from management during the performance of their work
                  and  their   evaluation  of  the   Corporation's   financial,
                  accounting and audit personnel and systems.

            (iii) Meet  privately with the director of internal audit to assess
                  the  objectivity  and  independence of  the director and  his
                  or her staff and the  relationship  between them,  management
                  and the external auditor.

      (k)   Periodically  meet  in  in-camera  sessions  without  the  external
      auditor, management or the internal auditor

      (l)   Review  a joint  written  report  from  the  external  auditor  and
      management  of all  relationships  between  the  auditor  and its related
      entities and the Corporation and its related entities, including all work
      performed  and fees accrued or paid for such work of a non-audit  nature,
      confirming,  or otherwise, that in the auditor's professional judgment it
      is  independent  of the  Corporation  and  discuss  this  report with the
      external auditor in order to evaluate the objectivity and independence of
      the auditor.

      (m)   Receive  confirmation  from  the  external  auditor  that  it  is a
      registered  public  accounting  firm as prescribed  by  applicable  laws,
      including  securities  legislation  and stock  exchange  rules.  At least
      annually,  obtain and review a report by the external auditor  describing
      the firm's  internal  quality-control  procedures,  any  material  issues
      raised by the most recent internal  quality-control review or peer review
      of  the  firm  or by  any  inquiry  or  investigation  by  government  or
      professional  authorities  within the preceding five years respecting one
      or more  independent  audits  carried  out by the firm and steps taken to
      address any issues arising from such reviews or investigations.

      (n)   Evaluate  the  performance  of  the  external  auditor,  and  if so
      determined,  take such steps as the Committee deems necessary,  including
      recommendations  to the Board,  to replace the external  auditor or if so
      determined,  take such steps as the Committee deems necessary to seek the
      reappointment of the external auditor by the shareholders.

      (o)   Regarding the services  provided by the internal audit  department,
      the Audit Committee will:

            (i)   review  the   objectivity,   qualifications,   adequacy   and
                  experience  of the  internal  audit  staff  and  approve  the
                  appointment,  dismissal or replacement of the director of the
                  internal audit department;

            (ii)  review  and  approve  annually  the  planned  scope  for  the
                  internal audit  program,  its  objectives,  and the resources
                  required to attain these objectives;

            (iii) periodically  throughout  each year review the reports of the
                  internal  audit  department  which describe the activities of
                  the internal audit department for the preceding period; and

            (iv)  review the working  relationship  between the internal  audit
                  department  and  external  auditor,  and between the internal
                  audit department and management.

      (p)   Obtain   from  both  the   internal   audit   department   and  the
      Corporation's  external  auditor the major findings and internal  control
      recommendations over financial reporting reported during the period under
      review, the response of management to those  recommendations,  and review
      the follow-up  performed by management and the internal audit  department
      in order to monitor  whether  management  has  implemented  an  effective
      system of internal control over financial reporting.


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      (q)   Review  significant   emerging  accounting  and  reporting  issues,
      including recent professional and regulatory  pronouncements,  and assess
      their impact on the Corporation's financial statements.

      (r)   Review  policies  and  procedures  for the receipt,  retention  and
      treatment  of  complaints  received by the  Corporation  from  employees,
      shareholders  and other  stakeholders  regarding  accounting  issues  and
      financial  reporting,  internal  control  over  financial  reporting  and
      internal or external auditing matters.  The Committee should be satisfied
      that sufficient  controls are in place to ensure that all such complaints
      can  be  received   anonymously   and  with  an  appropriate   degree  of
      confidentiality  and that potential employee  informants are aware of the
      process that is in place.  The  Committee  should also be satisfied  that
      processes are in place to ensure that all such complaints,  regardless of
      significance, are presented to the Committee.

      (s)   Review policies for approval of senior management expenses.

      (t)   Review the periodic  certifications  by the chief executive officer
      and the chief  financial  officer of the  Corporation  regarding  (i) the
      omission of any statements of material fact and the absence of any untrue
      statements  of material  fact that would result in  misleading  financial
      disclosures,  (ii) the existence of any  significant  deficiencies in the
      design or operation of internal  control over financial  reporting  which
      could  adversely  affect the  Corporation's  ability to record,  process,
      summarize and report financial data and (iii) any significant  changes in
      internal  control over financial  reporting or changes to the environment
      in which the internal control over financial  reporting operate including
      corrections of material deficiencies and weaknesses.

      (u)   Review  hiring  policies for  employees or former  employees of the
      external auditor and their compliance with applicability regulation.

      (v)   Review  with  management  the  Corporation's   financial   computer
      systems,  including procedures to keep the systems secure and contingency
      plans developed to deal with possible computer failures.

      (w)   Review  procedures in place to monitor  compliance  with applicable
      laws and regulations and the Corporation's Code of Conduct.

      (x)   Review policies with respect to risk assessment and risk management
      systems and  controls,  especially  in relation to  derivatives,  foreign
      currency exposure and insurance.

      (y)   Meet  annually  with the  Chair of the  Environmental,  Health  and
      Safety  Committee  to  assess  environmental  issues  that  could  have a
      material impact on the financial statements.

      (z)   Whenever  it may be  appropriate  to do so, to retain  and  receive
      advice from experts,  including independent legal counsel and independent
      public   accountants,   and  to  conduct  or  authorize  the  conduct  of
      investigations into any matters within the scope of the responsibility of
      the Committee as the Committee may consider appropriate.  The Corporation
      shall ensure that  funding is  available  to the  Committee in respect of
      such activities.

      (aa)   Report  regularly  to the  Board  in  writing  on  the  activities,
      findings and conclusions of the Committee.

      (bb)   Perform such other  functions as may be delegated from time to time
      by the Board.

      (cc)   Review this Charter on an annual  basis and  recommend to the Board
      any changes to it that the Committee considers advisable.


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