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                                                                     EXHIBIT 1
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NORSKE SKOG CANADA LIMITED

ANNUAL INFORMATION FORM

MARCH 15, 2003
<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                       <C>
Incorporation...............................................................3
Corporate Profile...........................................................3
Competitive Strengths ......................................................4
Business Strategy...........................................................5
Lines of Business...........................................................6
Fibre Supply...............................................................12
Competition................................................................12
Properties.................................................................13
Human Resources............................................................13
Environment................................................................13
Research and Development...................................................14
Capital Expenditures ......................................................15
Foreign Operations.........................................................15
Dividends..................................................................15
Stock Exchange Listings....................................................15
Transfer Agent and Registrar...............................................15
Additional Information.....................................................15
Officers...................................................................17
Summary of Financial Information...........................................18
</Table>


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                      As printed from word file: NO CHARGE
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                           NORSKE SKOG CANADA LIMITED

                             ANNUAL INFORMATION FORM

                 WITH RESPECT TO THE YEAR ENDED DECEMBER 31, 2002

                                GLOSSARY OF TERMS

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

AOX or ADSORBABLE ORGANIC HALIDES - the measurement of total chlorinated
organic compounds in pulp mill effluents.

BASIS WEIGHT - the weight of paper per specified area, such as gsm.

CAPACITY - the number of units which can be produced in a year based on
operating with the normal number of shifts and maintenance interruptions.

COATED PAPER - Paper which is coated with clay and treated to impart a smooth
glossy surface.

CONTAINERBOARD - Any type of single and multi-ply, solid and corrugated
boards used to make boxes and other containers for shipping materials, and
the type of paperboard used to make them up.

DIOXINS - chlorinated chemical compounds, of which certain members have been
identified as carcinogens.

DIRECTORY PAPER - lightweight uncoated groundwood paper suitable for printing
bulky telephone and commercial directory books.

EFFLUENT - outflowing waste discharge from a pulp and paper mill.

FURANS - Toxic contaminants associated with the formation of dioxin in the
bleaching of pulps with chlorine compounds.

FURNISH - a blend of different types of pulps and additives which are
provided to the paper machine for making paper.

GROUNDWOOD SPECIALTY PAPER - coated and uncoated printing papers, with
mechanical pulp as their major component, which differ from newsprint in
brightness, surface characteristics and end uses.

HI-BRITE or HIGH-BRIGHTNESS PAPER - a group of uncoated groundwood papers
with brightness levels greater than standard newsprint.

HOG FUEL - wood waste, a by-product from sawmilling and log sorting
activities, used in boilers as an energy source.

LIGHTWEIGHT COATED PAPER or LWC PAPER - coated paper having a basis weight
generally below 72 gsm and used principally for magazine and mail order
catalogues, inserts, flyers, coupons and direct mail. The term is often used
interchangeably with coated groundwood paper.

LINERBOARD - a type of kraft paperboard, generally unbleached, used to line
or face corrugated core board (on both sides) to form shipping boxes and
various types of containers.

NEWSPRINT - A printing paper whose major use is in newspapers. It is made
largely from groundwood or mechanical pulp reinforced to varying degrees with
chemical pulp.

PARTICULATE EMISSIONS - the discharge of all airborne solid or liquid
materials other than uncombined water.

PRINTABILITY - The ease with which paper can be printed to high quality
standards with the least amount of spoilage.

PRINTING PAPERS - A general term used to describe those grades of paper used
by the printing trades, including job, book, magazine, and newspaper printers.

PULP - The generic term describing the fibres derived from wood. Pulp can
result from a variety of pulping processes including cooking, refining,
grinding or the processing and cleaning of waste paper. Pulp can be either in
a wet or dry state. Types of pulp include:

     BLEACHED PULP - Pulp that has been purified or whitened by chemical
     treatment to alter colouring matter and has taken on a higher brightness
     characteristic.


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     CHEMICAL PULP - Obtained by cooking wood in solutions of various chemicals.
     The principal chemical processes are sulphite and sulphate (kraft).

     DEINKED PULP - Obtained by removing inks, clays and coatings, bindings and
     other additives from waste papers (primarily old newspapers) so that it can
     be reused as a source of papermaking furnish.

     KRAFT PULP - Chemical pulp produced by an alkaline cooking process using
     sodium sulphate.

     MARKET PULP - Pulp sold on the open market between companies.

     NORTHERN BLEACHED SOFTWOOD KRAFT (NBSK) PULP - kraft pulp produced from
     slow-growing coniferous trees indigenous to the forests of Canada, the
     northern United States and Scandinavian countries. NBSK pulp is noted for
     its strength and length of fibre.

     REFINER MECHANICAL PULP - pulp made by processing untreated wood chips in
     mechanical atmospheric refiners.

     THERMOMECHANICAL PULP - Pulp produced from wood chips using heated
     mechanical processes to break the bonds between the wood fibres.

PULPWOOD - logs which are used for making pulp as opposed to those used for
making lumber and panel products.

RUNNABILITY - the ease with which paper can be run through presses with the
least amount of breakages.

SOFT CALENDER - a machine which improves the smoothness and gloss of paper by
running it through a combination of steel rolls and proprietary synthetic
rolls during the on-machine papermaking process.

TOTAL REDUCED SULPHUR or TRS - The four reduced sulphur compounds that
contribute to the typical odour emitted by kraft pulp mills.

TWIN-WIRE - refers to a paper machine with forming wires on both sides of the
paper surface which provide a more uniform quality of sheet for both printing
surfaces. Older machines typically only have a forming wire on the lower
surface.

UNCOATED SPECIALTY PAPER - uncoated printing papers, with mechanical pulp as
their major component, which differ from newsprint in brightness, surface
characteristics and end uses.

WOODFREE - paper grades manufactured almost entirely with kraft pulp, and
containing less than 10 per cent groundwood or mechanical pulp.

MEASUREMENTS

GSM - grams per square metre.

KG/ADBT - kilograms per air-dried bleached tonne of production.

TONNE - metric ton - 1,000 kilograms or 2,204 pounds (1.1023 tons).


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                             ANNUAL INFORMATION FORM

               (WITH RESPECT TO THE YEAR ENDED December 31, 2002)

                              AS OF MARCH 15, 2003

                                  INCORPORATION

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

We were formed on September 1, 2001 by the amalgamation under the Canada
Business Corporations Act of Norske Skog Canada Limited and Pacifica Papers
Inc.

Norske Skog Canada Limited's principal predecessor was British Columbia
Forest Products Limited, which was a company formed by the amalgamation under
the laws of the Province of British Columbia on December 30, 1971 of its
predecessor company, incorporated by certificate of incorporation, with
memorandum and articles, under the laws of the Province of British Columbia
on January 31, 1946, and 24 of its wholly owned subsidiaries. On September 2,
1988, British Columbia Forest Products Limited changed its name to Fletcher
Challenge Canada Limited. Prior to July 2000, 50.76% of Fletcher Challenge
Canada Limited was owned by Fletcher Challenge Limited of New Zealand
("Fletcher Challenge New Zealand"). In July 2000, Norske Skogindustrier ASA
completed a transaction with Fletcher Challenge New Zealand whereby all of
the business and assets of Fletcher Challenge New Zealand's paper division
worldwide were acquired by Norske Skogindustrier ASA. As part of this
transaction, Norske Skogindustrier ASA acquired Fletcher Challenge New
Zealand's 50.76% interest. On December 15, 2000, Fletcher Challenge Canada
Limited changed its name to Norske Skog Canada Limited.

Pacifica Papers Inc.'s predecessor was Pacifica Papers Limited Partnership.
On June 8, 1998 Pacifica Papers Limited Partnership, through its indirect
wholly owned subsidiary, Pacifica Papers Acquisition Company Ltd., acquired
all the shares of MB Paper Limited from MacMillan Bloedel Limited. On March
12, 1999 the unitholders of Pacifica Papers Limited Partnership approved a
reorganization pursuant to which Pacifica Papers Limited Partnership changed
is corporate form from a partnership to a corporation. As part of this
reorganization, 28,750,000 common shares of Pacifica Papers Inc. were
distributed to all the unitholders of Pacifica Paper Limited Partnership in
exchange for their partnership units on a one for one basis.

Our principal office is located at 250 Howe Street, 16th Floor, Vancouver,
British Columbia, V6C 3R8.

We own all the issued and outstanding shares of the following principal
subsidiaries (each of which is established under the laws of British Columbia
unless otherwise noted): Elk Falls Pulp and Paper Limited, Norske Skog Canada
Finance Limited, Norske Skog Canada (Japan) Ltd. (Japan), Norske Skog Canada
Pulp Operations Limited, Norske Skog Canada Pulp Sales Inc., Norske Skog
Canada Sales Inc., Norske Skog Canada (USA) Inc. (California), NSCL Holdings
Inc. (Delaware), Pacifica Papers Sales Ltd., Pacifica Papers Sales Inc.
(Delaware), Pacifica Poplars Ltd., Pacifica Poplars Inc. (Delaware), and
Pacifica Papers U.S. Inc. (Delaware). We are, along with our subsidiary
Norske Skog Canada Pulp Operations Limited, a partner of the general
partnership NorskeCanada.

                                CORPORATE PROFILE

We are the third largest newsprint and uncoated groundwood specialty paper
manufacturer based in North America measured by production capacity. We are
also the largest producer of coated and uncoated specialty papers and
newsprint, and the only producer of lightweight coated paper, on the west
coast of North America. We also produce market pulp and containerboard.

Our four integrated pulp and paper operations are located in British
Columbia, at Crofton and Elk Falls on the east coast of Vancouver Island,
Port Alberni on the west coast of Vancouver Island, and Powell River on the
west coast of the British Columbia mainland.


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The capacities by product, in thousands of tonnes, of our pulp and paper
facilities as at December 31, 2002 are:

<Table>
<Caption>
                                      SPECIALTIES
                       ----------------------------------------
                                     OTHER UNCOATED
                       DIRECTORY       GROUNDWOOD                                            CONTAINER-   MARKET
MILL                    PAPER         SPECIALTIES     LWC PAPER    NEWSPRINT    SUB-TOTAL      BOARD      PULP(1)    TOTAL
---------------------------------------------------------------------------------------------------------------------------
<S>                    <C>           <C>              <C>          <C>          <C>          <C>          <C>        <C>
Crofton..............      150             -               -          280          430            -         250         680
Elk Falls............        -           145               -          365          510          114         160         784
Port Alberni.........      223             -             209            -          432            -           -         432
Powell River.........        -           232               -          227          459            -           -         459
                           ---           ---             ---          ---        -----          ---         ---       -----
Total................      373           377             209          872        1,831          114         410       2,355
                           ---           ---             ---          ---        -----          ---         ---       -----
                           ---           ---             ---          ---        -----          ---         ---       -----
</Table>

     (1)  Total pulp capacity of 740,000 tonnes is reduced by 330,000 tonnes in
          order to reflect the pulp that is provided to our paper and
          containerboard operations.

Our principal business is groundwood printing papers, consisting of
groundwood coated and uncoated paper, specialty papers and newsprint.
Printing papers comprise approximately 78% of our pulp and paper
manufacturing capacity. For the year ended December 31, 2002, groundwood
printing papers contributed approximately 81% of our sales revenues.

The principal markets for our products are located in North America and the
North Pacific Rim. Some products are also marketed in Europe and other
overseas locations.

                              COMPETITIVE STRENGTHS

We believe that we have the following competitive strengths:

o    STRONG MARKET POSITION. We are the third largest producer of newsprint and
     uncoated groundwood specialty papers based in North America measured by
     production capacity. We are also the largest producer of coated and
     uncoated specialty papers and newsprint, and the only producer of
     lightweight coated paper, on the west coast of North America. We have
     annual production capacity of approximately 2.4 million tonnes of paper,
     market pulp and containerboard.

o    DIVERSIFIED PRODUCT MIX. Since 1993, we have introduced or expanded a
     number of specialty and differentiated product lines, including lightweight
     newsprint grades, coated papers, lightweight uncoated specialty papers
     (primarily directory), sawdust-based pulp and whitetop linerboard. These
     products are of superior quality and offer enhanced margins over standard
     commodity grades. Additionally, as a result of the Pacifica acquisition and
     the sale of our Mackenzie pulp operations, market pulp accounts for only
     17% of our manufacturing capacity, significantly reducing our exposure to
     volatile pulp markets.

o    UPGRADED, COST-COMPETITIVE MANUFACTURING FACILITIES. Over the last five
     years, we have invested approximately $571 million in our manufacturing
     facilities to shift production towards higher margin papers, reduce unit
     production costs, increase operating efficiency, improve product quality,
     increase capacity and meet environmental regulations.

o    STRONG SUPPLY CHAIN MANAGEMENT PRACTICES. NorskeCanada introduced new
     supply chain systems in 2000 to improve its supply chain and order
     fulfillment processes. These processes range from the purchase of raw
     materials to the delivery of finished paper products to our customers.
     These new systems have allowed us to reduce inventory levels, increase
     inventory turnover and provide faster delivery to customers. We believe our
     inventory tracking capability is among the best in the industry and enables
     us to make better use of the barges, rail cars, trucks and containers that
     we use to ship our products. With better planning and scheduling, we are
     now able to ship our products to customers using the most cost-efficient
     mode of transportation on virtually every shipment. We have applied our
     order fulfillment, distribution and procurement expertise to further lower
     the supply chain costs at our Powell River and Port Alberni facilities.
     Following the acquisition of Pacifica Papers Inc. in 2001, we harmonized
     our order fulfillment systems to better service our customers'
     requirements.

o    LIGHTWEIGHT ALKALINE PAPERMAKING TECHNOLOGY. Over the last few years,
     NorskeCanada has switched its paper mills to alkaline papermaking, which
     uses lower-cost precipitated calcium carbonate, or PCC, fillers in the


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<Page>

     production process. In addition to being a lower-cost input, the PCC filler
     leads to increased brightness. Our high performance newsprint and
     lightweight uncoated specialty papers (primarily directory) are created
     utilizing alkaline papermaking processes, and we believe these products are
     well recognized by our customers for their quality and performance. In
     addition, the use of PCC fillers enhances sheet quality to facilitate the
     production of papers with a lower basis weight. A lower basis weight gives
     us an important competitive advantage because a higher volume of lower
     basis weight paper can be stored on each paper roll, thereby reducing
     shipping, storage and handling costs and warehouse space required for
     inventories. The use of lower basis weight paper by our customers also
     reduces their postage costs. We have implemented the alkaline paper making
     process at all our facilities.

o    SAWDUST PULP EXPERTISE. We are one of the few manufacturers of
     sawdust-based pulp in the world. The strength, ease of refining and
     dimensional stability of this product allow our customers to partially
     substitute this product for hardwood and more expensive softwood pulps,
     providing cost savings for them. In addition, we realize higher margins for
     sawdust pulps as a result of low-cost sawdust inputs, a by-product of the
     sawmilling process. These higher margins allow us to offset earnings
     volatility during periods of low pulp prices.

o    PROVEN AND EXPERIENCED MANAGEMENT TEAM. Our management team is comprised of
     seasoned industry professionals with experience operating through multiple
     business cycles in the paper and forest products industry. Our senior
     executives have an average of over 20 years of industry experience and 15
     years with NorskeCanada.

                                BUSINESS STRATEGY

We intend to achieve greater earnings stability and maximize cash flow by
strengthening our position as a leading producer of value-added paper and
related forest products within western North America. Key principles of our
strategy include:

o    REDUCING OPERATING COSTS AND IMPROVING EFFICIENCY. We are committed to
     continuing to reduce operating costs and improve efficiency. As an example,
     we believe cost reductions are possible through increased machine speed and
     efficiency, better managing of fibre inputs and reducing energy use and
     paper waste.

o    OPTIMIZING FIBRE MIX TO REDUCE COSTS. We have reduced the weight per square
     meter of paper produced, which results in lower fibre costs and lower
     distribution costs for our products. We intend to maximize our supply and
     use of the lowest cost chip supply available to us through inventory and
     wood species management. We intend to continue to use low cost PCC filler
     and to reduce kraft input without reducing the quality of our products,
     while improving printability and decreasing high-cost fibre inputs by
     improving our mechanical pulp quality and through paper machine
     improvements. Within our pulp operations, we plan to maximize usage of
     low-cost alternative fibre and local residual wood chips, which results in
     lower transportation costs for our inputs.

o    CONTINUING TO FOCUS MARKET/PRODUCT MIX FOR MAXIMUM PROFITABILITY. In
     addition to improving profitability by reducing basis weights, we also plan
     to increase profitability within our paper operations by: increasing
     directory volumes in place of standard newsprint; rationalizing paper
     grades to improve productivity and decrease downtime resulting from machine
     changeovers; and developing fewer grades of newsprint to minimize storage
     and handling costs, trim losses and kraft inputs. Within our pulp
     operations, we plan to continue our focus on higher value segments by
     targeting our sawdust-based pulp to higher value added end uses, including
     tissue, specialty printing and writing, and bleached linerboard.

o    EXERCISING DISCIPLINE IN CAPITAL SPENDING. We will continue to maintain a
     value-based discipline for reinvesting in our business, focusing on modest
     capital, high payback projects that enhance our product line, improve
     productivity, reduce energy consumption, maximize the efficient use of
     fibre supply and reduce costs.

o    OPTIMIZING OPERATIONS WITH OUR EXPANDED ASSET BASE. We acquired Pacifica in
     August, 2001 in order to generate significant synergies without requiring
     major corresponding capital expenditures. Our initial August 31, 2003
     target of capturing $60 million of annualized synergies (which assumes
     operating at full capacity) was increased to $100 million. By the end of
     2002, we exceeded our target, capturing $115 million of annualized
     synergies. We will continue to review our operations in manufacturing,
     sales and marketing, supply chain, fibre supply and selling, general and
     administrative activities to ensure remaining opportunities for
     efficiencies and streamlining are investigated.


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o    BECOME THE PREFERRED SUPPLIER FOR OUR CUSTOMERS. We are implementing
     initiatives to improve service levels, distribution and customer
     relationships. We will seek to differentiate ourselves from our competitors
     by becoming a trusted source of supply that consistently produces reliable
     products. Market and product development activities will be focused on
     customer needs, as will enhancements to service levels for technical
     support and supply chain management.

                                LINES OF BUSINESS

We have two lines of business: paper, and pulp and containerboard.

PAPER

     PAPER OPERATIONS

We manufacture our groundwood specialty papers and newsprint on 12 paper
production lines at our four mill locations at Crofton, Elk Falls, Port
Alberni and Powell River, British Columbia.

Our capacity, in thousands of tonnes, as compared to our production for each
of the last two years is as follows:

<Table>
<Caption>
                                                            YEAR ENDED DECEMBER 31
                                 ANNUAL CAPACITY      ------------------------------------
MILL                            DECEMBER 31, 2002     2002 PRODUCTION      2001 PRODUCTION
--------------------------      -----------------     ------------------------------------
<S>                             <C>                   <C>                  <C>
Crofton...................                430                 410                   377
Elk Falls.................                510                 437                   443
Port Alberni..............                432                 352                   382
Powell River..............                459                 413                   422
                                        -----               -----                 -----
                                        1,831               1,612                 1,624
                                        -----               -----                 -----
                                        -----               -----                 -----
</Table>

   CROFTON

Crofton's capacity for the year ending December 31, 2002 is 430,000 tonnes of
newsprint and directory paper. On a 48.8 gsm equivalent basis the annual
capacity of the Crofton paper operations is approximately 525,000 tonnes.

The Crofton paper mill, which produces newsprint and directory paper, has
three paper machines put in operation in 1964, 1968 and 1982. All machines
were installed with, or have been converted to, twin-wire sheet formation,
which provides a more uniform quality of sheet for both printing surfaces.
Pulp furnish for the paper mill comes from a three-line thermomechanical pulp
mill and the kraft pulp mill. In addition, approximately 60,000 tonnes of
recycled deinked pulp are purchased annually from an outside supplier under a
long-term contract. Reduced fibre requirements, made possible by the move to
lighter weight paper production at the mill, allowed the closure of a
groundwood pulp mill in September, 1999. In 2002, the refiner mechanical pulp
mill was also closed.

Crofton's No. 1 paper machine produces up to 118,000 tonnes of newsprint and
directory paper. The No. 2 paper machine produces up to 100,000 tonnes
annually of lightweight directory paper grades used in telephone and other
directories, as well as other lightweight printing papers. The No. 2 paper
machine remains capable of producing newsprint grades as market conditions
warrant. To further our objective to produce highly runnable directory paper,
we completed $16 million in modifications to the No. 2 paper machine in May
1999. These modifications enable the Crofton mill to produce an innovative
directory paper at the lowest industry basis weight. This directory paper has
improved consistency, runnability and printability. Crofton's directory paper
production can be supplemented by excess production capacity available on the
No. 1 paper machine.

A $27 million upgrade of Crofton's No. 3 paper machine, completed in January,
1997, increased production capacity by approximately 23,000 tonnes annually,
on a 45 gsm equivalent basis, to 212,000 tonnes of newsprint, and has
resulted in significant improvements in machine trim, sheet profiles and roll
quality. Further improvements totaling $14 million to Crofton's
thermomechanical pulp refining and screening systems and to the No. 3 paper
machine were completed in August 1999. These improvements have resulted in
improved consistency in quality and lower production costs for light basis
weight paper manufactured at the Crofton mill. In 2001, the Crofton mill
invested $13 million on bark presses to increase hog burning capability and
reduce gases.


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     ELK FALLS

Elk Falls' capacity for the year ending December 31, 2002 is 510,000 tonnes
of newsprint and high brightness uncoated specialty grades of paper. On a
48.8 gsm equivalent basis, the annual capacity of the Elk Falls paper
operations is approximately 530,000 tonnes.

The Elk Falls paper mill, which produces newsprint and soft calendered high
brightness specialty papers, has three paper machines put in operation in
1952, 1957 and 1982. All machines were installed with, or converted to,
twin-wire sheet formation. Pulp furnish for the newsprint mill is supplied
primarily from the mill's seven-line thermomechanical pulp mill and its
semi-bleached kraft pulping facilities.

Paper machine No. 1 has a capacity to produce approximately 146,000 tonnes of
newsprint. Paper machine No. 2 has the capacity to produce approximately
145,000 tonnes of uncoated groundwood specialty grades. Paper machine No. 5
has the capacity to produce approximately 219,000 tonnes of newsprint.

Elk Falls has continually broadened its range of uncoated groundwood
specialty papers to meet the needs of commercial printers. We have met the
demand for better quality through equipment upgrades to produce a cleaner,
more refined pulp furnish. We have improved smoothness and printability to
meet the exacting standards of large commercial printers, and we have
developed high brightness offset papers in a variety of basis weights. The
No. 2 paper machine has a soft roll calendering system designed to produce up
to 145,000 tonnes annually of uncoated groundwood specialty papers. Soft
calendered specialty grades, marketed under the electracal and electrasoft
labels, are used mainly by the growing commercial print market for
advertising flyers and newspaper supplements. We are one of the largest
suppliers of soft calendered papers on the west coast of North America.

Elk Falls increased the capacity of its thermomechanical pulp peroxide bleach
plant and improved filler systems in fiscal 1996, enabling increased
production of higher brightness specialty papers.

To further our runnability strategy for newsprint, $30 million in capital
expenditures were completed at Elk Falls in January, 1999. We replaced the
headbox on the No. 5 paper machine and improved the thermomechanical pulp
process to enable the production of lighter weight newsprint with enhanced
runnability. Costs and efficiency are also improved as a result of the
upgrade, with an increase in capacity of approximately 9,000 tonnes, on a 45
gsm equivalent basis. In 2001, a new $15 million precipitator was installed
to improve air quality. In 2002, we commenced the initial work on an
estimated $45 million rebuild of the Elk Falls No. 2 recovery boiler to
increase capacity and maintain reliability.

     PORT ALBERNI

Port Alberni's capacity for the year ending December 31, 2002 is 432,000
tonnes of directory paper and lightweight coated paper. Port Alberni's annual
directory paper capacity on a 48.8 gsm equivalent basis is approximately
303,000 tonnes.

The Port Alberni paper mill has three paper machines. Two of the paper
machines were put in operation in 1957, with the third paper machine put in
operation in 1968.

Paper machine No. 3 has the capacity to produce approximately 116,000 tonnes
of directory paper, paper machine No. 4 has the capacity to produce
approximately 107,000 tonnes of directory paper and paper machine No. 5 has
the capacity to produce approximately 209,000 tonnes of lightweight coated
paper.

In 1995 paper machine No. 5 underwent a $200 million conversion from
newsprint to higher value lightweight coated paper production. Paper machine
No. 5 is the only lightweight coated paper machine in western North America.
The technology utilized for the conversion of paper machine No. 5 allows for
the coating of paper on both sides simultaneously, reduces the amount of
kraft pulp required to produce conventional lightweight coated paper and
produces the desired product quality in terms of runnability, printability
and bulk.

Pulp furnish for the paper mill is supplied primarily from the mill's
thermomechanical pulp plant and groundwood mill and, at present, from kraft
pulp supplied from the Crofton mill. We have installed equipment at the Port
Alberni mill to allow the use of recycled fibre in telephone directory paper,
and approximately 60,000 tonnes of recycled deinked pulp is purchased
annually from an outside supplier under a long-term contract.


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<Page>

     POWELL RIVER

Powell River's capacity for the year ending December 31, 2002 is 459,000
tonnes of newsprint and uncoated groundwood specialty paper. Powell River's
annual capacity on a 48.8 gsm equivalent basis is approximately 473,000
tonnes.

The Powell River paper mill has three paper machines. The paper machines were
put in operation in 1957, 1967 and 1981.

No. 9 paper machine has the capacity to produce 119,000 tonnes of hi-brite,
uncoated groundwood specialty papers or newsprint, No. 10 paper machine has a
capacity of 158,000 tonnes and produces only high quality, soft calendered,
specialty papers, and No. 11 paper machine is Powell River's largest machine
with a capacity to produce 182,000 tonnes of newsprint.

Pulp furnish for the paper mill comes primarily from a thermomechanical pulp
plant. In November, 2001 we permanently closed the kraft pulp mill, which
consumed a high-cost fibre diet which resulted in higher unit costs than our
other two pulp mills at Elk Falls and Crofton, both of which have roughly
twice the capacity of the Powell River pulp mill. We now supply the pulp
requirements of the paper machines at Powell River from our Elk Falls and
Crofton facilities.

Significant recent capital expenditures include a $120 million power boiler
installed in 1997 to meet more stringent air emission standards, a $13
million precipitator installed in 2000 and an $8 million project to reduce
miscellaneous TRS emissions completed in June, 2001.

The Powell River mill has the capability to use recycled deinked pulp on a
limited scale. Recycled deinked pulp is purchased from an outside supplier
under a long-term contract.

We hold a 50.1% economic interest in Powell River Energy Inc., or Powell
River Energy, which owns two hydroelectric dams near the Powell River mill
with a combined generating capacity of 82 megawatts. Pursuant to a power
purchase agreement between us and Powell River Energy, Powell River Energy
will provide the power generated by its facilities to us at a fixed rate
approximating current British Columbia Hydro and Power Authority rates for a
period of 10 years. Powell River Energy's hydroelectric facilities will
continue to supply approximately 40% to 45% of the annual power needs of the
Powell River mill.

     PAPER MARKETING

We believe our groundwood coated and uncoated specialty papers and newsprint
are regarded by publishers and commercial printers as high quality products
with excellent runnability and printability on printing presses.

The principal customers for our groundwood specialty papers and newsprint are
commercial printers, telephone directory publishers and newspaper publishers,
located primarily in western and central North America and the North Pacific
Rim. Groundwood specialty and newsprint customers are served primarily by our
sales and marketing personnel in North America and Japan and distributors and
agents in other geographic markets.

The following table sets out our paper sales revenue by country or geographic
region:

<Table>
<Caption>
                                                   UNITED                      OTHER
                                        CANADA     STATES     PACIFIC RIM     OFFSHORE     TOTAL ($ MILLIONS)
                                        ------     ------     -----------     --------     ------------------
<S>                                     <C>        <C>        <C>             <C>          <C>
Year ended December 31, 2000.......       12%        67%          15%            6%             1,585
Year ended December 31, 2001.......       12%        65%          13%           10%             1,572
Year ended December 31, 2002.......       14%        68%          13%            5%             1,193
</Table>

Historically, approximately two-thirds of our paper sales revenue has been
derived from the United States. The United States is the world's largest
consumer of newsprint, with consumption of approximately 10 million tonnes in
2002, representing about 28% of total world consumption.

For the years ended December 31, 2002 and 2001, paper accounted for 81% of
our consolidated net sales revenue. No single customer accounts for more than
10% of our consolidated net sales revenue nor is a material part of our
business dependent on a small group of customers. Groundwood specialty paper
and newsprint markets are not subject to significant seasonal fluctuations.


                                       9
<Page>

The Crofton, Elk Falls and Powell River mills are located on tidewater and
have deep-sea vessel loading facilities. Paper is shipped primarily by
deep-sea vessel, and for inland destinations by combination of ship, barge,
rail and truck. We use the services of independent warehouses in western
North America and Europe for distribution to our customers.

We have built effective long-term relationships with our customers for our
specialty papers and newsprint, based on a partnership approach to produce
the best product for their particular needs. As a result, we expect to remain
a preferred supplier to many of those customers.

PULP AND CONTAINERBOARD

     PULP AND CONTAINERBOARD OPERATIONS

We manufacture market pulp on three kraft pulp lines at our Crofton and Elk
Falls pulp and paper mills, located in British Columbia on the east coast of
Vancouver Island. The Elk Falls pulp and paper mill also manufactures
containerboard products.

Our capacity, in thousands of tonnes, as compared to our production for each
of the last two years, is as follows:

<Table>
<Caption>
                                                   ANNUAL CAPACITY                YEAR ENDED DECEMBER 31
                                    MILL        DECEMBER 31, 2002(1)       2002 PRODUCTION      2001 PRODUCTION
                                 ---------      --------------------       ---------------      ---------------
<S>                              <C>
Market pulp.................     Crofton                250                      212                  271
                                 Elk Falls              160                      162                  172
Containerboard..............     Elk Falls              114                      114                  102
                                                        ---                      ---                  ---
Total ......................                            524                      488                  545
                                                        ---                      ---                  ---
                                                        ---                      ---                  ---
</Table>

(1)  Total pulp capacity of 740,000 tonnes is reduced by 330,000 tonnes in order
     to reflect the pulp that is provided to our paper and containerboard
     operations.

The Crofton kraft pulp mill is a two-line mill, with the first line starting
up in 1957 and the second in 1965. It is equipped with two continuous
digesters and eight batch digesters, which provide the flexibility to cook
different species of chips independently and to blend them into a wide
variety of pulp grades that can be tailored to individual customer needs.
Crofton's batch digesters utilize a rapid displacement heating, or RDH,
cooking system. The RDH system allows for rapid turnaround in the batch
cooking process, as the cooking liquor is rapidly extracted and replaced in
the cooking vessel for each batch without a significant loss in temperature.
This technology improves the overall quality of Crofton pulps and provides a
stronger and more uniform pulp than conventional cooking.

The Crofton kraft pulp mill produces a range of high quality Northern
bleached softwood kraft, or NBSK, pulp grades, predominantly for customers
that require high strength pulp in applications such as printing and writing
papers. A number of specialty pulp grades are also produced at Crofton,
including a high fir pulp for the manufacture of ceremonial wrapping paper
(washi papers) in Japan. With the permanent closure of the kraft pulp mill at
Powell River, we are re-directing some of the market pulp from our kraft pulp
mills at Crofton and Elk Falls to supply the pulp requirements of the paper
machines at Port Alberni and Powell River.

The Elk Falls kraft pulp mill is equipped with five batch digesters and three
continuous digesters with a total annual market pulp capacity of 160,000
tonnes. The mill manufactures a sawdust-based pulp branded "Elk Prime", with
a capacity of 160,000 tonnes per year. Substantially all of the mills' long
fibre pulp capacity is used internally.

Elk Prime is a fully bleached sawdust-based pulp that is manufactured from a
combination of low-cost sawdust, wood shavings and chip screenings. Blending
of these residuals produces a pulp with an average fibre length between that
of conventional softwood and hardwood pulps, giving Elk Prime the special
properties of both wood types including ease of refining, high strength and
dimensional stability. Manufacturers of products such as specialty papers,
tissue, paper toweling, printing and writing and other paper products can
substitute Elk Prime for portions of their conventional NBSK pulp feedstock,
realizing cost savings and, in many cases, improved quality. Sawdust-based
pulps have an added environmental advantage in that they are made from fibre
that would otherwise have been a waste product. Elk Falls uses some
sawdust-based pulp in producing its specialty brands of high quality
linerboard, sold to customers who manufacture corrugated containers for a
wide range of products.


                                       10
<Page>

The Elk Falls kraft pulp mill was initially commissioned in 1956, with its
sawdust-based pulp production beginning in 1964. The mill has been
extensively modernized over recent years to meet or exceed current
environmental standards and to improve operating efficiency and costs. In
late 1996, we completed a project to increase sawdust-based pulp capacity at
a cost of $21 million. This project included a new 325 tonne per day digester
to replace a smaller existing system, plus related equipment and machine
upgrades. As a result of this project, Elk Prime production capacity was
increased by 32,000 tonnes per year with a corresponding reduction in NBSK
pulp production.

All of the kraft pulp operations are equipped with chlorine dioxide bleaching
systems and secondary effluent treatment facilities and are presently
operating in substantial compliance with applicable environmental laws and
regulations.

The Elk Falls mill also has a containerboard specialties machine that was
originally installed in 1966. The machine produces primarily specialty
whitetop linerboard grades for sale to the packaging industry in western
North America. Annual production capacity of containerboard is approximately
114,000 tonnes.

Whitetop linerboard is a premium product that combines a layer of unbleached
kraft pulp with a layer of bleached kraft pulp. The two layers are not glued
together but are formed on the paper machine by uniting bleached and
unbleached stock into what is known as a duplex stock. This specialty product
is white on the top and brown on the reverse side and is used in packaging,
where bright, high quality graphics are important. Elk Falls' competitive
advantage in producing this product stems from its ability to produce a
lightweight, high-performance sheet. The inclusion of sawdust-based pulp in
the furnish also results in a smoother, more consistent surface which
performs better in customers' conversion facilities.

Production of whitetop linerboard grades totaled approximately 99,700 tonnes,
or 87%, of production from the Elk Falls containerboard machine in the year
ended December 31, 2002. The majority of this product is marketed under the
brand name "SilverLiner."

The furnish for the containerboard specialties produced at Elk Falls is
comprised of long-fibre pulp and alternative fibre sources such as
sawdust-based pulp and rejects from the Elk Falls kraft pulp mill as well as
clippings received from converting plants and post-consumer waste.

     PULP AND CONTAINERBOARD MARKETING

Our primary pulp customers include manufacturers of coated paper, woodfree
printing and writing papers (manufactured almost entirely with kraft pulp,
and containing less than 10% groundwood or mechanical pulp), tissue, toweling
and sanitary products, and a wide variety of unique and specialized products.
Our ability to produce specialty pulps, customized pulp blends at Crofton and
sawdust-based pulp at Elk Falls provides marketing advantages, and allows for
an increase in market share in target segments that have a long-term need for
our products.

Access to high quality softwood species and unique processing capabilities
have enabled the development of a range of specialty blended pulps such as a
high fir pulp for washi paper in Japan and a high cedar pulp for the medical
garment industry in the United States. These pulps are marketed as unique
grades and achieve a pricing premium over standard NBSK grades.

Our marketing strategy for pulp is to continue the development of worldwide
markets for sawdust-based pulp and to optimize the margins for premium NBSK
and specialty pulps. This strategy is designed to provide customers with
softwood-based pulps that add value to their papermaking activities and
produce higher overall margins.

The following table sets out our market pulp and containerboard sales revenue
by country or geographic region:

<Table>
<Caption>
                                                                                                    TOTAL
                                       CANADA    UNITED STATES   PACIFIC RIM    OTHER OFFSHORE   ($ MILLIONS)
                                       ------    -------------   -----------    --------------   ------------
<S>                                    <C>       <C>             <C>            <C>              <C>
MARKET PULP
Year ended December 31, 2000......       8%           4%            39%            49%               429
Year ended December 31, 2001......       8%           4%            38%            50%               275
Year ended December 31, 2002......       1%           1%            48%            50%               207

CONTAINERBOARD
Year ended December 31, 2000......      30%          66%             3%             1%                91
Year ended December 31, 2001......      20%          54%            25%             1%                82
Year ended December 31, 2002......      17%          47%            35%             1%                82
</Table>


                                       11
<Page>

Pulp customers are served by sales and marketing staff in Canada and Japan
and a network of agents in locations throughout the world.

The Crofton and Elk Falls pulp mills are located on tidewater and have
deep-sea vessel loading facilities. Pulp is shipped to offshore locations by
deep-sea vessels and to inland North American destinations by a combination
of ship, barge, rail, and truck.

Containerboard produced by Elk Falls is sold primarily to corrugated box
plants located in western Canada and the western United States. In recent
years, the marketing strategy for containerboard has been to increase the
sales volume of specialty whitetop linerboard grades which have provided
higher prices and greater price stability than unbleached linerboard and
corrugated medium grades.

For the year ended December 31, 2002, pulp and containerboard accounted for
19% of our consolidated net sales revenue. This compares with 19% for the
year ended December 31, 2001. There is no single customer which accounts for
more than 10% of pulp and containerboard consolidated net sales revenue, nor
is a material part of our business dependent upon a small group of customers.

                                  FIBRE SUPPLY

Our pulp and paper operations consume wood fibre which is purchased from more
than 50 independent mills. Our fibre supply comes primarily from residual
wood chips and sawdust from lumber operations located on the coast or in the
southern Interior of British Columbia and secondarily from the chipping of
pulp logs originating from locations throughout the region.

Sawmill wood chips presently comprise 54% of the fibre supply for our pulp
and paper operations. The remainder is comprised of pulp logs (28%), sawdust
(14%) and recycled deinked pulp (4%). Five wood chip, log and sawdust
suppliers provide 49% of our fibre supply. The supply contracts with these
companies were negotiated for indefinite ("evergreen") terms, or when certain
of our timber and processing assets were sold.

In addition, through an evergreen contract with a coastal log producer,
additional wood chips can be obtained from regional sawmills. This supplier
provides an additional 11% of our fibre supply.

Together, all of these long-term, secure supply agreements provide
approximately 60% of the fibre supply for our pulp and paper operations.

In December, 2002 one of our fibre suppliers commenced creditor protection
proceedings. It is too early to determine the impact of this development on
our fibre supply.

The remainder of the fibre requirements for the four pulp and paper
operations is sourced from independent suppliers, many under long-term
contracts. Fibre is purchased from these suppliers at market prices or at
prices determined under market-based formulas.

To enhance our fibre security, we maintain a surplus fibre position. As a
result of our fibre position, we make annual sales of approximately 225,000
cubic meters of surplus fibre to regional customers. In addition, we engage
in fibre trading activities to ensure optimum allocation of different fibre
grades to the appropriate product.

                                   COMPETITION

The markets for our products are highly competitive on a global basis. The
pulp and paper industry is essentially a commodity market in which producers
compete primarily on the basis of price. In addition, since a majority of our
production is directed to export markets, we compete on a worldwide basis
against many producers of approximately the same or larger capacity. In
export markets, Canadian producers generally compete with American, European
and Asian producers.


                                       12
<Page>

                                   PROPERTIES

Our head office is located in leased premises in Vancouver, British Columbia.
The lease covers an aggregate of 40,842 square feet and expires February 15,
2016.

Each of our Crofton, Elk Falls, Powell River and Port Alberni pulp and paper
manufacturing facilities are situated on land we own. The Crofton mill is
located on a 107 hectare site, the Elk Falls mill is located near the town of
Campbell River, British Columbia on a 78 hectare site, the Powell River mill
is located on a 94 hectare site and the Port Alberni mill is located on a 44
hectare site. Each of our properties is the subject of a mortgage in favor of
our lenders to secure our credit facilities.

                                 HUMAN RESOURCES

We have approximately 3,800 employees.

All of the approximately 2,900 hourly employees at our pulp and paper mills
are members of either the Communications, Energy & Paperworkers Union of
Canada, or CEP, or the Pulp, Paper and Woodworkers of Canada, or PPWC.
Twenty-seven employees in the Port Alberni Mill are represented by the Office
and Technical Employees Union, or OTEU.

The current collective agreements with each of CEP and PPWC expire in April,
2003. New collective agreements with these unions have been negotiated and
those agreements expire April 30, 2008. The collective agreement with the
OTEU expires on April 30, 2006.

                                   ENVIRONMENT

Our operations are subject to a wide range of general and industry-specific
environmental laws and regulations including those related to waste
management, air emissions, water discharges and remediation of environmental
contamination. There has been significant upgrading of our facilities during
the last few years to comply with solid and special waste, effluent and air
regulations. Environmental performance is monitored regularly by us. We
believe that our facilities are operating in substantial compliance with
applicable environmental laws and regulations.

In addition to regular monitoring of emission points and reporting to
regulatory authorities, we manage our environmental performance through an
environmental management system. This system is registered to the ISO 14001
standard at all of our facilities. The environmental management system
utilizes annual internal surveillance audits and bi-annual external
compliance audits of our manufacturing facilities. The audit findings are
communicated to management and a committee of the board of directors, so that
appropriate action plans can be developed to address any deficiencies. Audits
were completed during late 2002 and no material problems were uncovered
during those reviews.

RECYCLED CONTENT IN GROUNDWOOD PAPER

We are a major supplier of newsprint, directory and other groundwood printing
papers to western North America. The most significant of these markets is the
western United States, where in three states--California, Arizona and
Oregon--newspaper publishers and commercial printers are required by law to
use a certain proportion of recycled containing paper. While the other
western U.S. states and Canada do not have legislated requirements for
recycled containing paper, many printers and publishers are demanding some
recycled containing paper as part of their supply mix.

We currently meet this market demand through the use of recycled pulp
purchased from Newstech Recycling Inc., located in Coquitlam, British
Columbia. This deinked post-consumer recycled pulp is mixed with virgin pulp
furnish to produce newsprint and directory paper that meets the legislated
requirement.

SOLID WASTE

One of the most significant environmental issues faced by our operations is
the disposal of solid waste. Most non-recyclable waste is disposed of at
on-site landfills and we will shortly need additional capacity at our Crofton
location. If it is unavailable, off-site disposal will be necessary and costs
will increase. We will continue to work to reduce volumes sent to landfill by
increasing recycling efforts and investigating alternative uses for boiler
ash and recaust waste.


                                       13
<Page>

EFFLUENT

In the early 1990s, the British Columbia provincial government mandated the
elimination of AOX in mill effluent by December 31, 2002. In July 2002, this
regulation was amended to 0.6 kilograms per tonne of pulp produced effective
Dec 31, 2002. All of our facilities are operating below this new limit which
is similar to legislation recently enacted in the United States.

The Port Alberni and Powell River mills do not produce kraft pulp or use a
brightening process involving chlorine or chlorine derivatives, so they do
not produce any AOX or dioxins in their effluent.

AIR EMISSIONS

Over the past five years, substantial environmental capital has been spent at
all facilities upgrading air emissions controls and infrastructure. This
includes an odour collection and treatment system at Crofton, a new wet
precipitator for the Elk Falls power boiler, a fluidized bed boiler
conversion at Port Alberni, and a new fluidized bed boiler at Powell River.
Our facilities are well positioned to be compliant with future air emissions
standards.

In 2002, all of our pulp and paper mills continued to make improvements to
their emission levels. At Crofton, improvements were realized on odour and
fine particulate emissions controls and monitoring equipment. At Elk Falls,
the new power boiler wet precipitator performance was optimized to reduce
ambient salt haze. At Port Alberni, particulate emissions were improved from
the power boiler as a result of better operational practices. At Powell
River, fine particulate emissions from the power boiler were further reduced
with improvements in the quality of delivered hog fuel.

Coastal pulp mills that use sea salt laden hog fuel will be subject to
federal limits in 2006 for dioxin and furan concentrations in emissions. All
of our facilities are in compliance with these requirements which are being
reviewed by regulators in 2003. A potential reduction in the planned 2006
federal limit may impact our Port Alberni operation forcing the use of more
expensive sea salt free hog fuel.

In 2002, we spent approximately $4.1 million on environmental capital
projects. We estimate that capital expenditures relating to known
environmental matters, including compliance issues and the assessment and
remediation of the environmental condition of our properties will total
approximately $5.7 million in 2003 and $14 million in 2004. While we believe
that our estimate for environmental projects for the remainder of 2003 and
2004 is reasonable, there can be no assurance that actual expenditures will
not exceed the estimated amounts.

CONTAMINATED SITES

In 2001, we sold our interest in the pulp operations at Mackenzie but
retained responsibility for certain decommissioning projects. This residual
responsibility for two old landfills and a black liquor storage lagoon was
managed diligently through 2002. The landfills and the black liquor storage
lagoon were decommissioned to the satisfaction of the local government
regulators and with good cooperation between the new owner and ourselves.

Provincial legislation governing contaminated sites came into effect in
British Columbia on April 1, 1997. If a particular site exceeds prescribed
levels of certain classes of substances, the site is determined to be a
"contaminated site" under the legislation. The legislation specifies the
circumstances in which a "site profile" must be prepared in respect of any
property that has been used for certain industrial or commercial purposes. If
a site is determined to be contaminated, remediation will normally be
required under government supervision. As current and past owners of mill
sites, all forest products companies in British Columbia may face remediation
costs particularly as a result of historical operations and disposal
practices. Compliance with this legislation has not resulted in any material
cost to us but there can be no guarantee that such costs will not be incurred
in the future as a consequence, for example, of discovery of unknown
conditions, or changes in enforcement policies.

                            RESEARCH AND DEVELOPMENT

We will continue to contribute to industry supported research organizations
such as the Pulp and Paper Research Institute of Canada. In addition,
research required to meet our specific needs is conducted at private
laboratories under the direction of our technical experts and at the mill
laboratories.

Business unit technical staff provide scientific and technological expertise
in support of operations and product development efforts.


                                       14
<Page>

Our research and development expenditures totalled approximately $5 million
for the year ended December 31, 2002 and $5 million for the year ended
December 31, 2001.

                              CAPITAL EXPENDITURES

Over the past five years our capital expenditures on continuing operations have
totalled approximately $571 million. In the year ended December 31, 2002,
approximately $82 million was spent on various environmental, and maintenance of
business and discretionary projects. The following table summarizes capital
expenditures on continuing operations by business segment over the past five
years:

<Table>
<Caption>
                                              YEAR ENDED DECEMBER 31
                          -------------------------------------------------------------
      $ Millions          2002       2001       2000        1999       1998       TOTAL
                          -------------------------------------------------------------
<S>                       <C>        <C>        <C>         <C>        <C>        <C>
Paper                      59        103         97         100         69         428
Pulp & Containerboard      23         34         55          21         10         143
                          -------------------------------------------------------------
Continuing Operations      82        137        152         121         79         571
                          -------------------------------------------------------------
                          -------------------------------------------------------------
</Table>

                               FOREIGN OPERATIONS

We have no foreign manufacturing operations.

                                    DIVIDENDS

The Corporation is currently restricted from paying dividends under the terms
of its bond indentures while its Consolidated Fixed Charge Ratio is below
2.0:1. No dividends were paid in the year ended December 31, 2002. The
following dividends (per share) were paid in the year ended December 31, 2001:

<Table>
<Caption>
                                                             YEAR ENDED
                                                          DECEMBER 31, 2001
                                                          -----------------
<S>                                                       <C>
Common Shares                                                   $0.30
</Table>

                             STOCK EXCHANGE LISTINGS

The Corporation's Common Shares are listed for trading on The Toronto Stock
Exchange under the symbol NS.

                          TRANSFER AGENT AND REGISTRAR

CIBC Mellon Trust Company; Vancouver, Toronto and Montreal.

                             ADDITIONAL INFORMATION

Reference is made to the section of our Annual Report for the year ended
December 31, 2002 entitled "Management's Discussion and Analysis" and to the
section of the accompanying Information Circular entitled "Election of
Directors", both of which are incorporated by reference herein.

Additional information, including principal holders of our securities,
executive compensation and loans to directors, executive officers and senior
officers is contained in the accompanying Information Circular for the
Corporation's 2003 Annual Meeting. Additional financial information is
provided in our comparative financial statements and management's discussion
and analysis for our most recently completed fiscal year, which are contained
in our Annual Report for the year ended December 31, 2002.

In addition, we will provide to any person, upon request to the Secretary:

(a)  when our securities are in the course of a distribution pursuant to a short
     form prospectus or a preliminary short form prospectus which has been filed
     in respect of a distribution of our securities;

     (i)   one copy of our Annual Information Form, together with one copy of
           any document, or the pertinent pages of any document, incorporated
           by reference in the Annual Information Form;


                                       15
<Page>

     (ii)  one copy of our comparative financial statements for our most
           recently completed fiscal year together with the accompanying report
           of the auditor and one copy of any of our interim financial
           statements subsequent to the financial statements for our most
           recently completed fiscal year;

     (iii) one copy of our Information Circular in respect of our most recent
           annual meeting of shareholders that involved the election of
           Directors; and

     (iv)  one copy of any other documents that are incorporated by reference
           into the preliminary short form prospectus or the short form
           prospectus and are not required to be provided under (i) to (iii)
           above; or

(b)  at any other time, one copy of any other documents referred to in (a) (i),
     (ii) and (iii) above, provided we may require the payment of a reasonable
     charge if the request is made by a person who is not a holder of our
     securities.


                                       16
<Page>

                                    OFFICERS

As at March 15, 2003, the name and municipality of residence of each of the
officers of the Corporation, the office held by each and the principal
occupation of each during the past five years are as follows:

<Table>
<Caption>
NAME AND MUNICIPALITY OF RESIDENCE                                 PRINCIPAL OCCUPATION
----------------------------------          -------------------------------------------------------------------
<S>                                         <C>
JAN A. OKSUM                                Chairman, Deputy Chief Executive Officer and Senior Vice-President,
Oslo, Norway                                Norske Skogindustrier ASA.

W. THOMAS STEPHENS                          Deputy Chairman.
Greenwood Village, Colorado                 Corporate Director.
                                            Previously, President and Chief Executive Officer, MacMillan Bloedel
                                            Limited.

RUSSELL J. HORNER                           President and Chief Executive Officer.
Vancouver, British Columbia                 Previously, President and Chief Operating Officer; Chief Operating
                                            Officer, Australasia, Fletcher Challenge Paper Division, Fletcher
                                            Challenge Limited.

JAMES E. ARMITAGE                           Senior Vice-President, Sales and Marketing.
Vancouver, British Columbia                 Previously, Senior Vice-President, Newsprint; Vice-President,
                                            Worldwide Newsprint Sales.

JESSE M. BEAMAN                             Senior Vice-President, Operations.
Surrey, British Columbia                    Previously, Vice-President, Crofton Pulp and Paper; Manager,
                                            Crofton Paper. Previously, Vice-President, Eastern Operations,
                                            Building Materials; Vice-President, Business Transformation,
                                            Printing Papers; and General Manager, Alberni Specialties,
                                            MacMillan Bloedel Limited.

W.R. (RON) BUCHHORN                         Vice-President, Human Resources.
West Vancouver, British Columbia            Previously, Vice-President Compensation and Rehabilitation Services,
                                            Workers' Compensation Board of British Columbia.

STUART H. CLUGSTON                          Vice-President, Corporate Affairs.
Vancouver, British Columbia                 Previously, Director, Communication Management.

RALPH LEVERTON                              Vice-President, Finance and Chief Financial Officer.
Surrey, British Columbia                    Previously, Chief Financial Officer, Secretary and Treasurer;
                                            Consultant; President and Chief Operating Officer, Harmac Pacific Inc.;
                                            Vice-President, Finance, Chief Financial Officer and Secretary, Harmac
                                            Pacific Inc.

ROBERT H. LINDSTROM                         Vice-President, Strategy.
Burnaby, British Columbia                   Previously, Vice-President, Supply and Utilities, Pulp Operations;
                                            Director, Strategic Planning, Pulp Operations.

R. SCOTT MCLEAN                             Senior Vice-President, Supply Chain and Information Technology.
West Vancouver, British Columbia            Previously, Vice-President, Supply Chain; Principal Consultant,
                                            PricewaterhouseCoopers LLP.

VALERIE B. SEAGER                           Corporate Secretary and Legal Counsel
Vancouver, British Columbia                 Previously, Vice President and General Counsel, Norigen Communications
                                            Inc.; Partner, Heenan Blaikie

PETER M. STAIGER                            Treasurer.
Vancouver, British Columbia                 Previously, Controller Treasurer; Corporate Controller; and Manager,
                                            Corporate Reporting.
</Table>


                                       17
<Page>

                        SUMMARY OF FINANCIAL INFORMATION

ANNUAL INFORMATION

<Table>
<Caption>
                                                    YEAR ENDED                                  YEAR ENDED
                                             --------------------------    6 MONTHS ENDED         JUNE 30
                                             DECEMBER 31    DECEMBER 31      DECEMBER 31     ----------------
                                                2002           2001             2000          2000      1999
-------------------------------------------------------------------------------------------------------------
                                                                 (MILLIONS OF DOLLARS)
<S>                                          <C>            <C>            <C>               <C>       <C>
Net Sales                                      $1,482         $1,389          $  729         $1,253    $1,037
Operating Earnings (Loss)                        (122)            80             108            104       (41)
Net Earnings (Loss)                              (123)            45              83             99        36
Total Assets                                    2,894          3,150           2,721          2,599     2,551
Long Term Debt (Net of Current Portion)           886          1,164             -              -         -
Other Long-Term Debt Obligations                  188            153              90             87        83

                                                      (DOLLARS PER WEIGHTED AVERAGE COMMON SHARE)
Net Earnings (Loss)                             (0.64)          0.32            0.66           0.80      0.29
Dividends Declared                                -             0.30            0.30           0.60      0.60
Dividends Paid                                    -             0.30            0.30           0.60      0.60
-------------------------------------------------------------------------------------------------------------
</Table>

QUARTERLY INFORMATION

<Table>
<Caption>
                                                                 YEAR ENDED DECEMBER 31, 2002
-----------------------------------------------------------------------------------------------------
                                                           Q1            Q2           Q3          Q4
-----------------------------------------------------------------------------------------------------
                                                                    (MILLIONS OF DOLLARS)
<S>                                                     <C>           <C>          <C>         <C>
Net Sales                                                 324           360          392         406
Net Earnings (Loss)                                       (42)          (24)         (20)        (37)

                                                         (DOLLARS PER WEIGHTED AVERAGE COMMON SHARE)
Net Earnings (Loss)                                     (0.24)        (0.13)       (0.09)      (0.18)
Dividends Declared                                        -               -            -           -

                                                                          (DOLLARS)
Price Range Per Share                 High               7.60          7.45         7.45        5.67
(The Toronto Stock Exchange)           Low               6.76          6.56         5.10        4.70
</Table>

<Table>
<Caption>
                                                                 YEAR ENDED DECEMBER 31, 2001
-----------------------------------------------------------------------------------------------------
                                                           Q1            Q2           Q3          Q4
-----------------------------------------------------------------------------------------------------
                                                                    (MILLIONS OF DOLLARS)
<S>                                                     <C>           <C>          <C>         <C>
Net Sales                                                 364           290          322         413
Net Earnings (Loss)                                        33             5           19         (12)

                                                         (DOLLARS PER WEIGHTED AVERAGE COMMON SHARE)
Net Earnings (Loss)                                      0.26          0.04         0.13       (0.07)
Dividends Declared                                       0.15          0.15          -           -

                                                                          (DOLLARS)
Price Range Per Share                 High              19.75         19.40        18.80        6.88
(The Toronto Stock Exchange)           Low              15.80         18.00         5.70        5.39
</Table>

<Table>
<Caption>
                                                     SIX MONTH FISCAL YEAR ENDED DECEMBER 31, 2000
--------------------------------------------------------------------------------------------------
                                                                   Q1             Q2
--------------------------------------------------------------------------------------------------
                                                                (MILLIONS OF DOLLARS)
<S>                                                             <C>             <C>
Net Sales                                                        $351           $378
Net Earnings                                                       39             44

                                                     (DOLLARS PER WEIGHTED AVERAGE COMMON SHARE)
Net Earnings                                                     0.31           0.35
Dividends Declared                                               0.15           0.15

                                                                      (DOLLARS)
Price Range Per Share                 High                      18.10          17.00
(The Toronto Stock Exchange)           Low                      14.60          14.35
</Table>


                                       18
<Page>

<Table>
<Caption>
                                                                   YEAR ENDED JUNE 30, 2000
-----------------------------------------------------------------------------------------------------
                                                           Q1            Q2           Q3          Q4
-----------------------------------------------------------------------------------------------------
                                                                    (MILLIONS OF DOLLARS)
<S>                                                     <C>           <C>          <C>         <C>
Net Sales                                                $275          $299         $331        $348
Net Earnings                                               10             9           23          57

                                                         (DOLLARS PER WEIGHTED AVERAGE COMMON SHARE)
Net Earnings                                             0.08          0.07         0.19        0.46
Dividends Declared                                       0.15          0.15         0.15        0.15

                                                                          (DOLLARS)
Price Range Per Share                 High              18.50         17.75        18.90       17.80
(The Toronto Stock Exchange)           Low              13.60         14.00        14.80       14.75
</Table>

Further discussion of our financial results is contained within the Management's
Discussion and Analysis section of the Annual Report for the year ended December
31, 2002.


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