---

May 17, 2004

ANNUAL INFORMATION FORM



2003



CAMBIOR INC.



---

Table of Contents

|ITEM I   | NAME AND INCORPORATION                            | 7                                        
|-------- | ------------------------------------------------- | -----------------------------------------
|ITEM II  | INTERCORPORATE RELATIONSHIPS                      | 7                                        
|ITEM III | GENERAL DEVELOPMENT OF THE BUSINESS               | 10                                       
|ITEM III | GENERAL DEVELOPMENT OF THE BUSINESS               | 11                                       
|1.       | THREE-YEAR HISTORY                                | 11                                       
|         | 1.1                                               | 2001                                     
|         | 1.2                                               | 2002                                     
|         | 1.3                                               | 2003                                     
|         | 1.4                                               | Current Year 2004                        
|2.       | SIGNIFICANT ACQUISITIONS AND
    DISPOSITIONS     | 17                                       
|3.       | TRENDS                                            | 17                                       
|4.       | RISK FACTORS                                      | 18                                       
|         | 4.1                                               | Mining Industry and Mining Projects      
|         | 4.2                                               | Competition                              
|         | 4.3                                               | Sale of Production and Mineral Reserves  
|         | 4.4                                               | Currencies                               
|         | 4.5                                               | Foreign Activities                       
|         | 4.6                                               | Insurance and Mining Activities          
|         | 4.7                                               | Compliance with Environmental Regulations
|         | 4.8                                               | Litigation                               
|         | 4.9                                               | Title Matters                            
|ITEM IV  | NARRATIVE DESCRIPTION OF THE BUSINESS             | 25                                       
|1.       | MINING ACTIVITIES - PROCESS                       | 25                                       
|2.       | MINING ACTIVITIES - PRODUCTS                      | 26                                       
|         | 2.1                                               | Gold                                     
|         | 2.2                                               | Niobium                                  
|3.       | MINING ACTIVITIES - CANADA                        | 28                                       
|         | 3.1                                               | Gold Production                          
|         | 3.2                                               | Ferroniobium Production                  
|         | 3.3                                               | Exploration and Development              
|4.       | MINING ACTIVITIES - INTERNATIONAL                 | 35                                       
|         | 4.1                                               | South America: Guiana Shield             
|         | 4.2                                               | United States: Carlota Project           
|         | 4.3                                               | South America: Andes                     
|5.       | MINERAL RESERVES AND RESOURCES                    | 46                                       
|6.       | OTHER ASPECTS OF THE BUSINESS                     | 52                                       
|         | 6.1                                               | Marketing of Production                  
|         | 6.2                                               | Government Regulation                    
|         | 6.3                                               | Environment                              
|         | 6.4                                               | Human Resources                          
|         | 6.5                                               | Research and Development                 
|         | 6.6                                               | Taxes                                    
|         | 6.7                                               | Mining Development and Construction      
|         | 6.8                                               | Intellectual Property                    
|ITEM V   | SELECTED CONSOLIDATED FINANCIAL
    INFORMATION   | 62                                       
|1.       | FOR EACH OF THE LAST FIVE FISCAL
    YEARS        | 62                                       
|2.       | FOR THE QUARTERS OF THE LAST TWO
    FISCAL YEARS | 69                                       
|3.       | DIVIDENDS                                         | 71                                       

---



|          |                                      |   
|--------- | ------------------------------------ | --
|          |                                      |   
|ITEM VI   | MANAGEMENT'S DISCUSSION AND ANALYSIS | 71
|ITEM VII  | MARKET FOR SECURITIES                | 71
|ITEM VIII | DIRECTORS AND OFFICERS               | 72
|ITEM IX   | ADDITIONAL INFORMATION               | 75

---

List of Maps and Tables

Figure 1. Cambior's Corporate
Structure...........................................................................9

Figure 2. Cambior's Mines and Projects -
Location.......................................................10

ExplanatoryNotes:1.
      All dollar amountspresented in this Annual
      Information Form areexpressed in US dollars, unless otherwise indicated.2.
      Production results are in metric units, unless otherwise
      indicated.3.
      Cambior Inc. carries on business in Canada. The
      subsidiaries ofCambior Inc. carry on business in Canada and elsewhere.
      In thisAnnual Information Form, the words "Company" and "Cambior"
      areused interchangeably and in each case refer, as the
      context mayrequire, to all or any of Cambior Inc. and its
      subsidiaries.


Cautionary Note to US Investors

The United States Securities and Exchange
Commission (the "SEC") permits mining companies, in their filings with the SEC,
to disclose only those mineral deposits that a company can economically and
legally extract or produce. We use certain terms in this document, such as "mineral
resources", that are recognized and mandated by Canadian securities
regulators but are not recognized by the SEC. US investors are urged to
consider closely the disclosure on the technical terms in section 5 of Item IV.

---

Page 1
Special Note Regarding Forward-looking Statements

This Annual Information Form contains or
incorporates by reference certain information that may constitute
"forward-looking statements". All statements other than statements of historical
fact set forth herein, including, without limitation, statements regarding
production targets and timetables, potential mineralization and reserves,
exploration results, future plans and objectives of the Company including
(without limitation) work programs, development plans and exploration budgets,
and disclosure relating to reduction of hedging and off-balance sheet
transactions and to contractual commitments are forward-looking statements that
may involve a number of known and unknown risks, uncertainties and other
factors.

Forward-looking statements, which involve
assumptions and describe the Company's future plans, strategies and expectations
are generally identifiable by use of the words "may", "will", "should",
"continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or
"project" or the negative of these words or other variations on these words or
comparable terminology. There can be no assurance that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements.

The following are some of the important
factors that could cause actual results or outcomes to differ materially from
those discussed in the forward-looking statements: hazards normally encountered
in the mining business including unusual or unexpected geological formations,
rock bursts, cave-ins, floods and other conditions; delays and repair costs
resulting from equipment failure; liability under environmental legislation;
uncertainties in mining reserves and mineral resources, competition for mining
properties with Canadian and foreign companies that may have substantially
greater financial and other resources; material fluctuations in metal prices;
fluctuations in the market price of gold and foreign currencies relative to the
Canadian Currency; risks involved with investments in emerging countries
including stability of legislation and policy, unilateral revocation of mining
rights and political instability; federal, state and provincial legislation
governing the acquisition and ownership of mining rights, mining duties, income
taxes, labor, health, safety standards, exports and other related matters.
Such risks and uncertainties are more
particularly described in section 4 of Item III below and, as regards specific
assets, projects or activities, in the relevant portions of this Annual
Information Form.

Any forward-looking statement speaks only of
the date on which it is made and the Company undertakes no obligation to update
any forward-looking statement or statements to reflect events or circumstances
after the date on which the statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it is not
possible for the Company to predict which factor will arise.

---

Page 2Glossary

Mining Terms

By-product:a secondary metal or
mineral product recovered in the milling process.

Carbon-in-leach (CIL) process: a modification of CIP
whereby carbon is added directly into the slurry during leaching as opposed to
CIP where carbon is added after leaching is complete.

Carbon-in-pulp (CIP) process: a process used to recover
dissolved gold from a cyanide leach slurry. Coarse activated carbon particles
are moved counter-current to the slurry, absorbing gold as they pass through the
circuit. Loaded carbon is removed from the slurry by screening. Gold is
recovered from the loaded carbon by stripping in a caustic cyanide solution
followed by electrolysis.

Concentrate: a product containing the valuable metal and from which most
of the waste material in the ore has been eliminated.

Contained ounces: ounces in the ground without reduction due to mining
loss or processing loss.

Converter: a furnace in which the pyrochlore concentrate is converted
into ferroniobium and heat is produced by the oxidation reaction.

Cut-off grade: the lowest grade of mineralized material considered
economic; used in the estimation of mineral reserves in a given deposit.

Deferred stripping: additional waste mining in excess of
the average stripping ratio for some period of time during the mine plan in an
open-pit operation. Costs related to this additional waste mining are
capitalized when occurring and charged back to operating costs when waste mining
is less than the average stripping ratio.

Depletion: the decrease in quantity of mineral reserves in a deposit or
property resulting from extraction or production.

Dilution: an estimate of the amount of waste or low-grade mineralized
rock which will be mined with the ore as part of normal mining practices in
extracting an orebody.

Grade: the relative quantity or percentage of metal or mineral content.

ISO 14001: a standard established by the International Organization for
Standardization setting forth the guidelines for an environmental management
system.

Kaizen: a management system of continuous improvement that empowers
employees to change business processes and contribute to achieving corporate
objectives.

---

Page 3
Leach/heap leach: to dissolve minerals or metals out of
ore with chemicals. Heap leaching gold involves the percolation of a cyanide
solution through crushed ore heaped on an impervious pad or base.

Mineral reserves:mineral reserves are divided into two categories; proven and probable mineral
reserves, which are more particularly defined herein under section 5 of Item
IV.

Mineral resources:mineral resources are divided into three categories; measured, indicated and
inferred, which are more particularly defined herein under section 5 of Item
IV.

Recovery:the
proportion of valuable material obtained during the mining or processing.
Generally expressed as a percentage of the material recovered compared to the
total material present.

Restoration:operation consisting of
restoring a mining site to a satisfactory condition.

Stope: the
underground excavation from which the ore is extracted.

Stoping: the
process of mining the orebody.

Stripping: the process of removing
overburden or waste rock to expose ore.

Tailings: the material that remains after all metals or minerals
considered economic have been removed from ore during milling.

Tailings pond: a containment area used to deposit tailings from milling.

Financial Terms

AMEX:American Stock Exchange.

Call option: option giving the purchaser the right but not the obligation
to buy gold at a predetermined (strike) price.

Counter-parties: the persons that the Company has entered into hedging
transactions with and include the Company's lenders.

Depreciation: the amortization of costs over the life of
an asset, including depreciation of physical assets, depletion of mining
properties and amortization of developments costs.

Derivative: a financial instrument whose value depends upon the values of
underlying assets, interest rates, currency exchange rates or indices.

---

Page 4

Direct mining cost:the average cost of producing an ounce of gold at the mine, excluding deferred
stripping costs, refining and transportation costs and by-product credits.

EBITDA:earnings before interest,
taxes, depreciation, depletion and amortization, non-hedge derivative gain/loss
and writedown of assets.

Forward sales:the sale of a
commodity for delivery at a specified future date and price, usually at a
premium to the spot price.

Hedge:a risk
management technique used to manage commodity price, interest rate, foreign
currency exchange or other exposures arising from regular business transactions.

Hedging:a future transaction made
to protect the price of a commodity as revenue or cost and secure cash flows.

LIBOR:the prime interest rate per annum at which deposits in U.S. dollars are loaned by banks in the
London interbank market.

Margin:money or securities
deposited with a broker as security against possible negative price
fluctuations.

Margin call:call for margin deposit
as security for the counter-party.

Mark-to-market valuation:
the process of evaluating the hedging commitment based on current
market conditions, including spot price, volatility, gold lease rate, rate of
interest, and the pertinent time period.

Mine operating cost:the average cost of producing an ounce of gold. Includes deferred stripping
costs, refining and transportation costs and by-product credits less royalties,
depreciation and restoration.

Prepaid gold forward sales agreement:an agreement to deliver a quantity of gold over a period of time. The cash
proceeds are received up front and accounted for as deferred revenue.

Royalty:cash payment or physical
payment (in-kind) generally expressed as a percentage of Net Smelter Returns ("NSR")
or mine production.

Spot price:the current price of a
metal for immediate delivery.

TSX:the Toronto Stock Exchange.

---

Page 5
Variable volume forward: a contract for a nominal
quantity of gold maturing at fixed delivery dates. The delivery dates and strike
prices are fixed, but quantity to be delivered during any specific month may
vary from a minimum of 80% to a maximum of 150% of the nominal quantity based on
the spot gold price.

Volatility:propensity for
variability.A market or share is volatile when it records rapid
variations.

---

Page 6Conversion Table

|                   |   |                                |                         |                       
|------------------ | - | ------------------------------ | ----------------------- | ----------------------
|METRIC SYSTEM      |   |                                | IMPERIAL SYSTEM        
|                   |   |                                |                         |                       
|1 metre (m)        |   |                                | =                       | 3.2808 feet (ft)      
|                   |   |                                |                         |                       
|1 kilometre (km)   |   | =                              | 0.6214 mile (mi)       
|                   |   |                                |                         |                       
|1 gram (g)         |   |                                | =                       | 0.0322 troy ounce (oz)
|                   |   |                                |                         |                       
|1 kilogram (kg)    |   | =                              | 2.2046 pounds (lbs)    
|                   |   |                                |                         |                       
|1 tonne (t)        |   |                                | =                       | 1.1023 tons (t)       
|                   |   |                                |                         |                       
|1 gram/tonne (g/t) |   | =                              | 0.0292 ounce/ton (oz/t)
|                   |   |                                |                         |                       
|                   |   |                                |                         |                       
|                   |   |                                |                         |                       
|                   |   |                                |                         |                       
|SYMBOLS USED       |   |                                |                        
|                   |   |                                |                         |                       
|Au                 | = | gold                           |                         |                       
|                   |   |                                |                         |                       
|Cu                 | = | copper                         |                        
|                   |   |                                |                         |                       
|FeNb               | = | ferroniobium                   |                        
|                   |   |                                |                         |                       
|Nb                 | = | niobium                        |                        
|                   |   |                                |                         |                       
|Nb2O5              | = | niobium pentoxide (pyrochlore)

---

Page 7

Item I Name and Incorporation

The Company was incorporated on November 7,
1973 under the name "Niobec Inc." and was continued under Part IA of the Companies Act (Québec) pursuant to a certificate of continuance dated
November 29, 1985. At the time of its continuance, the Company amended its
articles to enable itself to issue shares to the public. The Company's articles
were again amended on March 14, 1986 to change its name to "Cambior Inc.".

Cambior's articles were restated on January 1,
1988 when the Company amalgamated with Rouanda Mines Inc., a wholly-owned
subsidiary of Cambior, itself a product of the amalgamation between Aiguebelle
Resources Inc. and another wholly-owned Cambior subsidiary. The Company's
articles were again restated on January 1, 1994 when Cambior amalgamated with
VSM Exploration Inc., a wholly-owned Cambior subsidiary acquired through private
purchases followed by an insider bid.

The Company's registered office is located at
1075, 3rd Avenue East, Val-d'Or, Québec, Canada, J9P 6M1, and its executive
office at 1111 St. Charles Street West, East Tower, Suite 750, Longueuil,
Québec, Canada, J4K 5G4.

Item II Intercorporate Relationships

Cambior Inc. owns all of its main Canadian
assets directly and serves as the holding company for the other companies in the
group. A diagram featuring Cambior's main assets and privately-held
subsidiaries (with the jurisdiction of incorporation for each of them shown
in brackets under its name)is set forth on page 8. All shares held by
Cambior in these subsidiaries are voting shares, except for the Class III
non-voting Preference Shares of OGML (as defined below) which Cambior owns in
totality.The location of Cambior's principal assets is
illustrated on the page following the diagram.

OMAI Gold Mines Limited ("OGML"), a 95%-owned
subsidiary of Cambior, was incorporated on August 15, 1991 pursuant to the Companies Act of the Co-operative Republic of Guyana ("Guyana"), and
continued on February 3, 1997 under section 339 of the Companies Act 1991
(Guyana). OGML holds the mining rights and the assets comprising the Omai mine
and manages operations thereat. More detailed information on this subsidiary
and the Omai mine is given in subsection 4.1.1 of Item IV below.OGML's
registered office is at 176-D, Middle Street, Cummingsburg, P.O. Box 12249,
Georgetown, Guyana.

---

Page 8

Rosebel Gold Mines N.V. ("RGM"), a 95%-owned
1 subsidiary of Cambior, was incorporated on May 8, 2002 pursuant to
the Commercial Codeof Suriname. RGM holds the mining rights and assets
comprising the Rosebel mine and manages operations thereat. More detailed
information on this subsidiary and the Rosebel property is given in subsection
4.1.2 of Item IV below. RGM's registered office is at Heerenstraat NR8,
Paramaribo, P.O. Box 2973, Suriname.

CBJ Caiman Inc. ("CBJ Caiman") was created on
November 29, 2003 by the merger, pursuant to the Canada Business Corporations
Act, of a wholly-owned subsidiary of Cambior, incorporated for said purpose
on October 22, 2003, and Ariane Gold Corp. ("Ariane"), a publicly-held
corporation the shares of which traded on the TSX. Caiman holds indirectly
exclusive exploration permits and related assets comprising the Camp Caiman
project in French Guiana. Caiman's registered office is 1111 St. Charles Street
West, East Tower, Suite 750, Longueuil, Québec, Canada, J4K 5G4.More detailed information on this subsidiary's principal asset,
the Camp Caiman project, is given in subsection 4.1.3 of Item IV below.

On August 13, 1991, Cambior USA, Inc. ("Cambior
USA"), a wholly-owned subsidiary of Cambior, acquired Carlota Copper Company.More detailed information on this subsidiary's
principal asset, the Carlota copper project, is given in section 4.2 of Item IV
below.

Cambior also holds interests, and options to
earn direct or indirect interests in exploration and development properties
located in Peru. Cambior holds such interests primarily through its wholly-owned
subsidiary, Sociedad Minera Cambior Peru S.A., which has its office at Ave. José
Casimiro Ulloa No. 312, Urb. San Antonio, Miraflores, Lima 18, Peru.More detailed information on Peruvian exploration properties is
given in subsection 4.3.1 of Item IV below.

|1 | As the Government
    of Suriname also holds Class B voting shares since commencement of
    commercial production, its overall             
|- | --------------------------------------------------------------------------------------------------------------------------------------------
|  | participation in
    RGM's share capital is slightly different than 5% (currently approximately
    6%). However, all Class B shares will be
|  | redeemed over the
    next years and, in any event, no dividends will be paid prior to the full
    redemption of Class B shares.           
|  | Therefore, only
    Class A shares are considered for the purposes of reflecting each
    shareholder's true and permanent participation    
|  | in RGM's share
    capital.                                                                                                                 



---

Page 9
Cambior's Corporate Structure



> (1)
>       On April 21, 2004, Cambior
>       announced an agreement to acquire, through a merger transaction, all
>       shares of SequoiaMinerals Inc., which holds
>       the other 50% interest in the Niobec mine.(2)
>       Notwithstanding non
>       controlling interests in OGML and RGM, the Company accounts for its
>       investment on a fullyconsolidated basis and
>       reports 100% of production due to OGML's and RGM's capital structure and
>       the rules governingcash flow distribution.(3)
>       This project is indirectly
>       owned by CBJ Caiman through wholly-owned subsidiaries.

---

Page 10
Cambior's Mines and Projects - Location



---

Page 11

Item III General Development of the Business

1.Three-Year History

1.1 2001

2001 was a transition year for the Company.
Initially, its efforts were directed to complete its financial restructuring but
progressively its focus moved towards the development and implementation of a
strategic plan to rebuild shareholder value through the profitable mining of
metals and minerals.

On January 12, 2001, Cambior simultaneously
closed an amended and restated restructuring agreement, a second amended and
restated $65 million credit facility agreement and a $55 million prepaid gold
forward sale agreement (collectively, the "2001 Agreements"). The aggregate
proceeds of the 2001 Agreements, which replaced and superseded the credit
agreements entered into on December 22, 1999, were used to refinance Cambior's
remaining bank debt.

The $65 million five-year credit facility
concluded with a banking syndicate led jointly by J.P.Morgan Chase Canada and
The Bank of Nova Scotia and including the National Bank of Canada and Société
Générale (collectively, the "2001 Financial Creditors"), consisted of a $55
million non-revolving term loan and a $10 million revolving credit facility. As
part of this transaction, Cambior issued to the banking syndicate, 1.3 million
warrants to purchase common shares at Cdn $0.56 per share, exercisable at any
time on or before December 31, 2005.

The $55 million prepaid gold forward sale
agreement concluded with Crédit Suisse First Boston (subsequently replaced by
The Bank of Nova Scotia) provides that 233,637 ounces of gold shall be delivered
in equal instalments on the last business day of each month from July 2001 to
December 2005.

On January 18, 2001, Cambior closed a $6.3
million private placement with Jipangu Inc. ("Jipangu"), a privately-held
investment company focused on gold, which subscribed 15 million common shares at
a price of $0.42 per share. In late September 2001, it closed a $3.7 million
private placement whereby Jipangu subscribed for 6,491,228 common shares at a
price of $0.57 each. Proceeds of both placements were used to repay a mortgage
loan secured by the Company's interest in the Niobec mine.

On September 28, 2001, the Company sold its
50% interest in the El Pachón copper project located in Argentina to a
wholly-owned subsidiary of Noranda Inc., thereby concluding its financial
restructuring program undertaken in late 1999.The Company received $13 million
at closing and will receive $2 million no later than four years from closing.
The $13 million cash proceeds were applied to reduce indebtedness under the 2001
Agreements and pay related fees.

On October 26, 2001, the Company agreed with Golden Star
Resources Ltd. ("Golden Star") to acquire, inter alia, its 50% interest
in the Rosebel property located in Suriname,

---

Page 12

concluded simultaneously a Cdn $5.8 million
private placement with Jipangu and received Cdn $3.4 million from the exercise
by Jipangu of 2.1 million previously issued common share purchase warrants.

Golden Star agreed to sell its interest in
Rosebel for a cash consideration of $8 million and a (gold price participation)
right to receive a quarterly payment of an amount equal to 10% of the excess, if
any, of the average quarterly market price above $300/oz for gold production
from Rosebel's soft and transitional ore and above $350/oz from Rosebel's hard
ore up to a maximum of 7 million ounces produced. In addition to the Rosebel
transaction:

- 



The subscription agreement concluded with
Jipangu provided for the issue of 4,950,000 units at a price of Cdn $1.17 per
unit, each unit consisting of one common share and one warrant entitling its
holder to purchase one additional common share at an exercise price of $0.83
until November 30, 2002. Under said subscription agreement, Jipangu shall:

- not acquire, directly or indirectly more than 45% of
  the total issued and outstanding common shares of the Company;
- in the event of a third party cash
  take-over bid for all common shares of Cambior, either (i) tender its shares
  to such bid provided that the Company's board of directors is so recommending,
  or (ii) make a superior offer to all shareholders;
- if it wishes to dispose of more than
  10% of Cambior's outstanding shares, if so requested by the Company and for a
  six-month period, proceed through an underwritten secondary offering or
  otherwise in an orderly manner; and
- be entitled to propose such number of
  nominees for election at the Company's board of directors that will be
  proportionate to its shareholdings but up to a maximum of four nominees (two
  of which being unrelated to Jipangu), subject however to Jipangu holding a
  minimum of 10% of the Company's issued and outstanding common shares.

This private placement closed on December 12,
2001. During that month, the Company filed a mineral reserves report on Rosebel
pursuant to the Canadian National Instrument 43-101 for mining projects.

---

Page 13

1.2 2002

2002 was significant for the Company as it was
positioning itself for future growth and profitability. In accordance with this
objective, the Company strengthened its balance sheet, renegotiated its hedging
obligations, moved the Rosebel project to the construction phase and implemented
a new management philosophy based on continuous improvement and the Kaizen
System.

On January 10, 2002, the Company and the
Government of Suriname agreed to new business conditions and modifications to
the terms of the 1994 Mineral Agreement governing the development and operation
of the Rosebel project. In essence, the Company obtained:

- 

availability of power at a base cost
  of 3¢ per kwh when the quarterly market price of gold is under $310 per ounce
  (increasing gradually to a maximum of 7¢ per kwh when the price of gold is in
  excess of $375 per ounce).

On February 27, 2002, Cambior completed a
private placement of 21,346,154 special warrants for gross proceeds of Cdn
$27.75 million. Each special warrant issued at Cdn $1.30 entitled its holder to
receive, without payment of any further consideration, one common share and
one-half of one common share purchase warrant. Each whole warrant was
exercisable at a price of Cdn $1.70 until February 27, 2003. The net proceeds
were added to working capital. The issue of shares and warrants underlying the
special warrants, was qualified by a final short form prospectus dated March 12,
2002.

On May 10, 2002, RGM was formally incorporated.

On May 16, 2002, the Company completed a
public offering of 27,272,728 units for gross proceeds to the Company of
$38,595,000 (Cdn $60 million). Each unit consisted of one common share and
one-half of one common share purchase warrant. Each whole warrant was
exercisable at a price of Cdn $3.00 until November 24, 2003. The Company used a
portion of the gross proceeds to repay indebtedness under the 2001 Agreements
and the remainder was added to the Company's working capital.

On May 16, 2002, the Company acquired Golden
Star's 50% interest in the Rosebel project together with Golden Star's shares in OGML. Additional information on the Rosebel transaction is provided above
under sections 1.1 and 1.2 of Item III.

> 1
>       As the Government of
>       Suriname also holds Class B voting shares since commencement of commercial
>       production, its overallparticipation in RGM's
>       share capital is slightly different than 5% (currently approximately 6%).
>       However, all Class B shares will beredeemed over the next
>       years and, in any event, no dividends will be paid prior to the full
>       redemption of Class B shares.Therefore, only Class A
>       shares are considered for the purposes of reflecting each shareholder's
>       true and permanent participationin RGM's share capital.



---

Page 14

In June 2002, the 2001 Financial Creditors
agreed to reduce the mandatory hedging requirement under the 2001 Agreements
from 70% to 35% of the Company's production from its existing gold mines until
2005, and also agreed not to subject any new gold production of the Company
during the Loan Life (as defined in the 2001 Agreements) to mandatory hedging
requirements.

On November 28, 2002, the Company issued
4,950,000 common shares to Jipangu following the exercise of an equivalent
number of warrants for aggregate exercise proceeds of $4,123,350. The warrants
were previously issued as described hereinabove under section 1.1 of Item
III.

On December 18, 2002, RGM was granted a
25-year renewable Right of Exploitation for the Rosebel project, following the
Government's approval of the feasibility study and the environment impact
assessment, which were completed during the third quarter of 2002. In addition,
the Council of Ministers of Suriname and the National Assembly ratified an
amendment to the 1994 Mineral Agreement which sets forth the business terms for
the development and operation of the Rosebel project. The amendments include,
among other things, the improved business conditions agreed upon by the
Government on January 10, 2002 and referred to above.

1.3 2003

In 2003, while strengthening its financial
position, the Company was largely focused on the construction and development of
its Rosebel project to begin commercial production in the first quarter of 2004.

On February 7, 2003, Cambior closed a third
amended and restated $65 million credit facility agreement (the "2003 Credit
Facility"). The initial drawdown of $22 million was used to repay the $22
million balance owing under the second amended and restated credit facility
agreement (the "2001 Credit Facility"). The remainder of the 2003 Credit
Facility was used to finance the construction and development of the Rosebel
project. The 2003 Credit Facility was entered into with a banking syndicate led
by the Bank of Nova Scotia and including Standard Bank London Limited (as
syndication agent), the National Bank of Canada, Société Générale, NM Rothschild
& Sons Limited and HSBC Bank USA (collectively, the "2003 Financial Creditors").
The 2003 Credit Facility, which replaced and superseded the 2001 Credit
Facility, consists of a $55 million non-revolving term loan and a $10 million
revolving credit facility maturing on December 31, 2007. The 2003 Credit
Facility contained certain covenants relating to gold hedging which were amended
afterwards as indicated hereinafter; detailed information on such covenants
is provided below under section 6.1 of Item IV.

On February 27, 2003, the Company received Cdn
$17.1 million from the exercise of warrants previously issued in February 2002.
From such proceeds, $5 million was used to reduce Cambior's indebtedness under
the 2003 Credit Facility, with the remainder added to working capital.

---

Page 15

On March 18, 2003, the Company and Aurizon
Mines Ltd. ("Aurizon"), its joint-venture partner in the Sleeping Giant mine,
announced the deepening of the mine shaft by 200 meters to reach a depth of
1,060 meters. The Cdn $7 million investment shall be incurred between the first
quarter of 2003 and the third quarter of 2004. This decision results from of a
significant deep drilling program that began in 2001 and indicated the depth
extension of known mineralized zones.

On July 1st, 2003, the Company
announced an agreement with the Government of Guyana to assume the management of
the bauxite operations of Government-owned Linden Mining Enterprises, Ltd. ("Linmine"),
located approximately 100 kilometers south of Georgetown. Cambior has already
been performing contract mining services for Linmine since 2000 and, pursuant to
the aforementioned agreement, started on August 1st, 2003 to assume,
on a contractual basis, the operations as well as administration and marketing
activities for Linmine.

On August 12, 2003, the Company completed a
public offering of 40 million units for gross proceeds to the Company of $72.2
million (Cdn $100 million). Each unit consisted of one common share and one-half
of one common share purchase warrant. Each whole warrant is exercisable at a
price of Cdn $3.75 until August 12, 2008. In connection with such offering, the
2003 Credit Facility was modified as follows:

- the 2003 Financial Creditors waived the requirement
  to prepay the 2003 Credit Facility from the proceeds of said offering1;
- the 2003 Financial Creditors eliminated
  the mandatory hedging requirement; and
- the Company agreed to maintain a $10 million
  reserve cash balance until the achievement of commercial production at the
  Rosebel project.

On September 19, 2003, the Company was
included in the S&P/TSX Composite Index, as well as in the sub-indices: S&P/TSX
Small Cap Index; S&P/TSX Capped Materials Index and S&P/TSX Capped Gold Index.

On September 26, 2003, the Company announced a
merger agreement with Ariane to acquire Ariane's Camp Caiman gold project
located in French Guiana. This transaction was completed on November 29, 2003.
Additional information on this project is provided herein under section 4.1.3
of Item IV.

On October 22, 2003, the Company announced the
deepening of the Mouska mine's internal shaft by 210 meters to reach a depth of
880 meters for a total investment of Cdn $11 million to be incurred in 2004 and
the first half of 2005. The shaft deepening work will require a 10-month
production shutdown, scheduled from January to October 2004, since current
infrastructure does not allow for the simultaneous hoisting of ore and shaft
deepening work. This decision results from a significant drilling program which
began in 2002 and allowed the confirmation of the extension at depth of lenses.

_____________________________________
1

---

Page 16

On November 24, 2003, the Company received Cdn $40.9 million
from the exercise of warrants issued on May 16, 2002, which proceeds were added
to working capital.

1.4 Current Year 2004

On February 11, 2004, the Rosebel mine in
Suriname achieved commercial production, and its 2004 production target is
245,000 ounces of gold at a mine operating average cost of Cdn $184 per ounce.

On April 21, 2004, the Company and Sequoia
Minerals Inc. ("Sequoia") announced their agreement for a merger transaction
whereby Cambior will acquire Sequoia's 50% interest in the Niobec mine. The
Company, which already owns a 50% interest in the Niobec mine located in
northeastern Québec, Canada, will acquire thereby the full operatorship of the
mine.

Under the envisaged transaction, Sequoia will
merge with a wholly-owned subsidiary of Cambior and Sequoia shareholders will
receive one Cambior share for each 6.3 Sequoia shares. The exchange ratio
implies a price of Cdn $0.60 for each Sequoia share based on the closing price
of Cambior's share on the TSX on April 19, 2004 and represents a premium of
27.7% of the average closing price of Sequoia during the 20 trading days prior
to such date. Upon completion of the merger, Cambior will issue approximately
17.2 million common shares to the Sequoia shareholders. The agreement provides
for a break fee of Cdn $2 million in the event that Sequoia terminates the
proposed transaction to accept a superior offer. The merger transaction is
subject to:

> (a)
>       the satisfactory
>       negotiation and conclusion of a formal merger agreement;(b)
>       regulatory approval;(c)
>       the completion of each
>       company's due diligence review prior to closing;(d)
>       its approval by Sequoia
>       shareholders at a special meeting to be held in June2004;(e)
>       its approval by the banking
>       syndicate of each company;(f)
>       the conversion, before or
>       immediately after the closing, of the convertibledebentures owned by Capital
>       d'Amérique CDPQ inc. (into 22,722,109 commonshares of Sequoia), Fonds
>       de solidarité des travailleurs du Québec (FTQ) (into9,793,497 common shares of
>       Sequoia) and SGF Mines inc. (SGF) (into9,088,844 common shares of
>       Sequoia); and(g)
>       the obtaining of a fairness
>       opinion by Sequoia.

Including the current outstanding common shares of Sequoia,
the outstanding stock options and the conversion of debentures, this merger
transaction is based on

---

Page 17

108.1 million common shares of Sequoia and is scheduled to
close promptly following the special meeting of Sequoia shareholders.

On April 24, 2004, the Company completed a
two-phase flow-through private placement of 681,819 common shares for gross
proceeds to the Company of $2,235,493 US (Cdn $3 million) (the first phase
closed on March 18, 2004).

Cambior produced 152,000 ounces of gold at a
mine operating cost of $240 per ounce in the first quarter of 2004, compared to
134,000 ounces of gold at $252 per ounce for the corresponding quarter of 2003.
Such increase, as well as the lower unit cost, stem principally from the
start-up of the Rosebel mine. For the quarter, revenues totaled $59.4 million
($45.6 million for same quarter in 2003), earnings reached $7.3 million
(compared to a loss of $2.3 million in the same quarter of 2003) and cash flow
from operating activities was $7.8 million.

In accordance with its stated policy with
respect to gold hedging, the Company reduced its gold delivery commitments from
746,000 ounces at December 31, 2003 to 498,000 ounces at March 31, 2004.
Subsequent to the end of the first quarter, the Company further reduced the
hedge book to 246,000 ounces as at May 12, 2004.

From February 11, 2004, the beginning of
commercial production, to March 31, 2004, the Rosebel mine produced 27,300
ounces at a mine operating cost of $163 per ounce, which represents the lowest
cash cost of any Cambior mine. Unit costs were better than expected due to lower
energy costs. A reconciliation of ore production and mineral reserve estimates
for the first quarter shows a gain of 8% in tonnage and 4% in grade for a total
gain of 12% in ounces. Rosebel is scheduled to process 4.6 million tonnes of ore
in 2004 at an average grade of 1.8 g Au/t and a gold process recovery of 93%,
for production of 245,000 ounces of gold at an average mine operating cost of
$184 per ounce.

2.Significant Acquisitions and Dispositions

During the year 2003, the Company did not complete any
significant acquisition or disposition within the meaning of Form 44-101F1, AIF, of National Instrument 44-101,
Short Form Prospectus Distributions.

3.Trends

It is not expected that the worldwide gold
production will increase in the short and medium term. This flat production, the
de-hedging by producers and low real interest rates are all positive fundamental
factors that support a sustained increase in the gold price. The geopolitical
environment and the continued relative weakness of the US dollar also support
the current price of gold.

For 2004, the Company's objective remains the
appreciation of its share price through growth of its net asset value. To
achieve this, the Company will be implementing the following strategies:

---

Page 18

1. Maximize value of mining operations and projects

- 

2. Grow reserve/resource base

- 

3. Maintain financial capacity

- 

4. Maintain active investor relations program

- 

4.Risk
Factors

By the very nature of its activities, the
Company is subject to various financial, operational and political risks in the
normal course of business that could have a significant impact on its
profitability and levels of operating cash flow. The Company assesses and seeks
to manage these risks by applying high operating standards, including careful
managing and planning of its facilities, hiring qualified personnel and
developing their skills through training and development programs, establishing
and maintaining internationally-recognized standards, independent audits and
purchasing insurance policies.READERS SHOULD CAREFULLY
CONSIDER THE RISK FACTORS SET FORTH BELOW.

4.1 Mining Industry and Mining Projects

Exploration and development projects have no operating
history upon which to base estimates of future operating costs and capital
requirements. Mining projects frequently require a number of years and
significant expenditures during the mine development phase before production is
possible. Development projects are subject to the completion of successful
feasibility studies, obtention of necessary governmental permits and securing
necessary financing. The economic feasibility of such development projects is
based on many factors such as estimation of reserves, metallurgical recoveries,
future metal prices, and capital and operating costs of such projects.

---

Page 19

Exploration and development of mineral
deposits thus involve significant financial risks which even a combination of
careful evaluation, experience and knowledge may not eliminate. While the
discovery of an orebody may result in substantial rewards, few properties which
are explored are ultimately developed into producing mines. In fact, a mine must
generate sufficient revenues to offset operating and development costs such as
the costs required to establish reserves by drilling, to develop metallurgical
processes, to construct facilities and to extract and process metals from the
ore. Once in production, it is impossible to determine whether current
exploration and development programs at any given mine will result in the
replacement of current reserves with new reserves.

Because it holds interests in several mines,
Cambior is subject to risks and hazards inherent to the mining industry,
including fluctuations in metal prices, costs of constructing and operating a
mine as well as processing and refining facilities in a specific environment,
availability of economic sources of energy and adequacy of water supply,
adequate access to the site, unanticipated transportation costs, delays and
repair costs resulting from equipment failure, changes in the regulatory
environment (including regulations relating to prices, royalties, duties, taxes,
restrictions on production, quotas on exportation of minerals, as well as the
costs of protection of the environment and agricultural lands), and industrial
accidents and labor actions or unrest.

The occurrence of any of these factors could
materially and adversely affect the development of a project and as a result
materially and adversely affect Cambior's business, financial condition, results
of operations and cash flow. Cambior is also subject, through its activities, to
risks normally encountered in mining operations. Blasting, drilling, mining and
processing of ore comprise risks and hazards such as environmental hazards,
including discharge of pollutants or hazardous chemicals, unanticipated grade
and tonnage of ore to be mined and processed, unusual or unexpected adverse
geological or geotechnical formation, or unusual or unexpected adverse operating
conditions, slope failure, rock bursts, cave-ins, failure of pit walls or dams,
fire, and natural phenomena and "acts of God" such as inclement weather
conditions, floods, earthquakes and other hazards.

These occurrences could result in damage to,
or destruction of, mineral properties or production facilities, personal injury
or death, environmental damage, delays in mining, monetary losses and possible
legal liability. Cambior may incur liability as a result of pollution and other
casualties, and may not be able to insure fully or at all against such risks,
due to political reasons, unavailability of coverage in the market place or
other reasons, or may decide not to insure against such risks as a result of
high premiums or for other reasons. This can result in delayed production,
increase in production costs or liability. Paying compensation for obligations
resulting from such liability may be very costly and could have an adverse
effect on Cambior's financial position.

---

Page 20

4.2 Competition

The Company is in competition with other
mining companies for the acquisition of interests in precious and base metal
mining properties. In the pursuit of such acquisition opportunities, Cambior
competes with several Canadian and foreign companies that may have substantially
greater financial and other resources. Although Cambior has acquired many such
assets in the past, there can be no assurance that its acquisition efforts will
succeed in the future.

Cambior and its joint venture partner in the
Niobec mine are the only producers of niobium in North America. They compete on
a worldwide basis against two major producers of ferroniobium, both located in
Brazil, for the sale of the mine's output. Companhia Brasilera de Metalurgia e
Mineraçâo ("CBMM") is the world's largest producer of ferroniobium with an
estimated market share of more than 70%. Mineraçâo Catalâo, a member of the
Anglo-American p/c group, holds a market share similar to Niobec's.

4.3 Sale of Production and Mineral Reserves

The Company based its mineral reserve
estimates as at December 31, 2003 on a $350 per ounce gold price. A sensitivity
analysis using a gold price of $325 per ounce indicate that the Company's
overall proven and probable reserves for the current gold operations would be 5%
less. More detailed information regarding proven and probable reserves as
well as mineral resources is provided below in section 5 of Item IV. In the
event of a sustained, significant drop in the gold price, the Company may be
required to re-evaluate its assets.

There are numerous uncertainties inherent in
estimating proven and probable reserves including many factors beyond Cambior's
control. The estimation of mineral reserves is a complex and subjective process
and the accuracy of any such estimate is a function of the quantity and quality
of available data and of the assumptions made and judgements used in engineering
and geological interpretation. Results of drilling, metallurgical testing and
production and the evaluation of mine plans subsequent to the date of any
estimate may justify revision of such estimates.

From the second half of 1996 to April 2001,
and except for a short-lived surge in late September and October of 1999, there
was a continued decline in world gold prices. Commencing approximately in May
2001, the gold market price progressively recovered to reach and remain above
$300 per ounce, averaging $363 per ounce in 2003 compared to $310 in 2002.

The Company derives almost all of its revenues
and earnings from the sale of gold and niobium. The gold price is subject to
fluctuations resulting from factors beyond the Company's control. These factors
include general price inflation, changes in investment trends and international
monetary systems, political events and changes in gold supply and demand on the
public and private markets. The gold market is characterized by significant
above-ground reserves which can dramatically affect the price should a

---

Page 21

portion of these reserves be brought to
market. In 1999, the gold market felt the effects of gold reserve sales by some
central banks as well as the effects of the announcement at the end of September
1999 by European central banks of a self-imposed annual limit on gold sales (the
"Washington Agreement"). The group of 15 signatories to the Washington
Agreement, due to expire on September 27, 2004, issued a statement on March 18,
2004 indicating that it will be renewed for a period of five years. The renewal
should provide for continued stability in the marketplace.

As was required by the Company's loan
covenants until August 2003, the Company used in the past various instruments to
reduce the volatility of its revenues and secure the cash flows from its
operating mines. In August 2003, the Company was able to eliminate the lenders'
requirement to maintain a revenue protection program. The Company's outstanding
instruments issued in compliance with this program impact on the price that the
Company realizes on the sale of gold. More detailed information concerning
the Company's hedging program, is provided below under section 6.1 of Item IV.

A significant part of the annual production
from the Niobec mine is sold under the terms of commercial contracts with third
party purchasers. However, these purchasers are not bound to purchase and take
delivery of all of Niobec's production under the terms of these contracts and
there can be no assurance that these contracts will be renewed upon their expiry
or that Cambior will be able to enter into agreements with other purchasers in
the event that the existing contracts are not renewed. In 2003, the ferroniobium
market was impacted by adverse market conditions in the North American steel
industry and a highly competitive pricing environment. The Company is pursuing
its efforts to offset the loss of North American market share by attracting new
customers in Asia. Cambior and its joint venture partner in the Niobec mine
believe they have maintained their targeted 13% to 15% share of the worldwide
supply.

4.4 Currencies

Most of the Company's activities are in Canada
and the Guiana Shield. Fluctuations in the Canadian currency relative to the US
Dollar have an important impact on cash flows from the Company's operations as
the proceeds of metal sales are in US dollars while approximately 44% of
operating costs are in Canadian dollars. Thus, any significant increase in the
value of the Canadian dollar relative to the US dollar coupled with stable or
declining metal prices entails an adverse effect on Cambior's earnings. Changes
in the local Guyanese and Surinamese currencies have little impact on cash flow
from the Company's operations as most disbursements for the Omai and Rosebel
mines are quoted in US dollars.

In order to protect itself from the aforesaid
currency fluctuations, the Company holds hedging contracts for an amount of $9
million at December 31, 2003 at an average rate of $1.00 = Cdn $1.3406. The
Company's activities in French Guiana are based on Euros and are therefore
subject to fluctuations of this currency relative to the US dollar.

---

Page 22

4.5 Foreign Activities

A significant portion of Cambior's production,
reserves and resources comes from the Omai and Rosebel mines and the Camp Caiman
project, all located in the Guiana Shield. Accordingly, risks associated with
conducting business in said region of the world are material for Cambior. More
particularly, Cambior's investments in OGML and RGM and in projects in other
countries are subject to the usual risks involved with any investment in
emerging countries which include, but are not limited to, risks relating to
stability of legislation and policy, repatriation of capital and profits,
expropriation, reliability of title to mining and other properties, unilateral
revocation of mining rights with or without cause, political instability,
economic hardship, local currency devaluation and others. Cambior cannot fully
eliminate these risks.

Cambior has, in the context of the Rosebel
mine, obtained foreign investment insurance from a syndicate of insurers,
including Export Development Canada ("EDC"), an agency of the Government of
Canada. As at January 30, 2004, the foreign investment insurance that was
subscribed also included coverage with respect to Cambior's activities in Guyana
and Peru. This type of insurance typically covers the following risks:

- 

Expropriation: actions by a
  foreign government that would have the effect of an expropriation by
  interfering with the exercise of fundamental rights accruing from a
  corporation's investment in the foreign country, including the corporation's
  right to export its goods from the foreign country, or by rendering impossible
  either the use or disposition of the corporation's assets, or the conduct of
  regular business activities by the corporation in the foreign country.

Political violence:
  means, generally speaking, damage, destruction or loss of tangible property of
  the corporation resulting from war, riot, insurrection, revolution, rebellion,
  sabotage or other similar politically motivated hostile acts in the foreign
  country. Coverage is also provided for loss of use of the corporation's
  facilities for a certain period of time as a direct result of the
  above-mentioned circumstances.

In all the above-indicated countries, Cambior
must comply with mining laws governing exploration, mining, processing and
marketing of minerals, as well as mineral agreements in some cases. These laws
are generally similar in effect to comparable laws in North American
jurisdictions. Non-compliance with these standards and agreements may entail
fines for Cambior or the suspension or cancellation of operating permits.
Cambior believes that it is in substantial compliance with all legislation,
regulations and administrative standards applicable to its activities.

In Suriname, the Company has taken measures to prevent illegal
miners from working on or around the Rosebel property. While such measures
cannot totally and

---

Page 23

permanently eliminate such illegal activities, they have
minimized the impact thereof in a satisfactory manner thusfar.

In the event of a dispute arising at its
foreign operations, Cambior may be subject to the exclusive jurisdiction of
foreign courts or may not be successful in subjecting foreign persons to the
jurisdiction of courts in Canada. Cambior may also be hindered or prevented from
enforcing its rights with respect to a governmental entity because of the
doctrine of sovereign immunity. However, the Mineral Agreements which apply to
OGML and RGM stipulate that any disagreement between the parties thereto shall
be submitted to international arbitration.

Many of the same types of foreign investment
and foreign business risks prevail in other countries. There can be no assurance
that foreign investment insurance coverage will be available to or subscribed by
Cambior in relation to future investments in the above-indicated countries or in
other countries where Cambior may invest.

4.6 Insurance and Mining Activities

Cambior carries insurance against property
damage and comprehensive general liability insurance for all operations. It is
also insured against gold and silver bullion thefts and losses of goods in
transit. The property damage insurance policies include coverage for some
business interruption resulting from an insured loss.

Where economically feasible and based on
availability of coverage, the Company transfers a number of operational and
financial risks to insurance companies. The availability of such insurance
depends on the Company's past insurance loss records and general market
conditions.

The Company utilizes the services of its insurance advisors
and insurance underwriters to identify potential risks and mitigation measures.

Risks not insured against include mine
cave-ins, mine flooding or other comparable hazards. Furthermore, there are
risks attributable to most types of environmental pollution against which the
Company cannot insure or against which it has elected not to insure. The Company
believes that it has taken adequate precautions to minimize the risk of
environmental pollution.

Underground mining is generally subject to
certain types of risks and hazards, including unusual or unexpected rock
formations, underground cave-ins, pressures and other conditions. Open-pit
mining is also generally subject to various types of risks and hazards, the
greatest being pit wall failure.

4.7 Compliance with Environmental Regulations

New or expanded environmental regulations, if
adopted, could affect Cambior's projects or otherwise have a material adverse
effect on its operations. As a result, expenditures on any and all projects,
actual production quantities and rates and cash operating costs, among other
things, may be materially and adversely affected and may differ materially

---

Page 24
from anticipated expenditures, production quantities and
rates, and costs, and estimated production dates may be delayed materially, in
each case. Any such event would materially and adversely affect Cambior's
business, financial condition, results of operations and cash flows.

4.8 Litigation

On May 29, 2003, a writ of summons was served
on OGML in connection with a class action in Guyana claiming total compensation
of approximately $2 billion for damages allegedly caused by the Omai gold mine
in Guyana since 1995. The action was filed on behalf of the same group of people
that previously filed actions without success in both Québec and Guyana.

OGML has a rigorous and extensive water
monitoring program that demonstrates full compliance with environmental
regulations in Guyana based on Guyanese, Canadian, American and World Bank
standards. Furthermore, Guyana's Environmental Protection Agency and the Guyana
Geology and Mines Commission ensure independent monitoring of OGML's compliance
regarding the Essequibo River. Their findings confirm OGML's results.

Cambior and OGML consider this action as unfounded and
frivolous and OGML will contest it vigorously.

In addition, the Company is subject to various
claims, legal proceedings, potential claims and complaints arising in the normal
course of business. The Company is also subject to the possibility of new income
tax and mining duty assessments for some years. The Company does not believe
that unfavourable decisions in any pending procedures or the threat of
procedures related to any future assessment or any amount it might be required
to pay will entail a material adverse effect on the Company's financial
condition.

4.9 Title Matters

The granting of title to mineral rights in
French Guiana results from a lengthy process involving the French authorities at
the local (French Guiana) as well as national (Paris) levels. In connection with
the Ariane merger transaction which closed in November 2003, the Company
obtained a title opinion confirming that the permits comprising the Camp Caiman
project are in good standing and validly held. While said permits expire on July
21, 2004, a mining concession application for the project was filed with the
French authorities in July 2003 and, in accordance with the application of
French mining law, the validity of the current permits will extend until the
French authorities will have made a decision on the mining concession
application. Although the Company has received a formal acknowledgement
indicating that said application was duly filed, there is no guarantee that a
mining concession will be granted for the Camp Caiman project.

---

Page 25Item IV Narrative Description of the Business
1.Mining Activities - Process1

Cambior is involved primarily in mining and
exploring for gold and, to a lesser extent, other metals and minerals from
deposits and properties located in the Americas. In that respect, Cambior
pursues more particularly the following activities:

- 

Mineral projects are different from other
types of industrial projects because of the problems and opportunities that
arise from working with the geological environment. There are four special
features of mineral projects in this respect. Mineral deposits are:

- 

The role of the mineral sector is to find,
delineate and develop economic mineral deposits, and then to extract the
valuable mineral commodities they contain for the benefit of society. The
process of attaining economic production of minerals consists of a multistage
series of activities by which minerals are converted from unknown geological
resources to marketable commodities. The mineral supply process consists of
three main phases: exploration, development and production.

The physical occurrence of mineral deposits in
nature and the demand for mineral commodities in the economy provide the basic
stimulus for mineral supply. Favourable perceptions of exploration geologists
and market researchers regarding these geological and market factors combine to
guide the selection of environments for exploration.

The mineral exploration phase is a sequential
information-gathering process. In the primary exploration stage, potentially
favourable areas of land are initially selected within an environment of
interest and, then, these areas are subjected to a series of geological,
geophysical, and geochemical tests. The successful result of primary exploration
is the discovery of mineral occurrences. At this stage, the ultimate size,
quality and value of each mineral occurrence is unknown.

> 1
>       Text on pages
>       25 to 26 describing the mineral supply process is adapted from the Basics
>       of Mining Modular Course provided bythe Department
>       of Mining and Metallurgical Engineering, McGill University, Montreal,
>       Québec.

---

Page 26

The mineral occurrences discovered provide
justification for the second, or delineation, stage of exploration, in which
information is obtained for estimating the size, quality and physical
characteristics of the discovery relevant to mineral extraction. The successful
result of delineation is the definition of possible economic discoveries for
evaluation.

When sufficient delineation has been
completed, a decision is made that determines whether a mineral deposit should
be developed to production. If the characteristics of the delineated deposit
provide justification for mine development, what is perceived to be an economic
mineral deposit is the end result of mineral exploration.

The development phase establishes productive
mining and mineral processing capacity. Processing may be required to upgrade
the mine product to a concentrate (or, in the case of gold, doré bars) for
transportation and sale. Thus, the construction of processing facilities is
carried out in parallel with mine development. The installation of a mill at the
mine site may be required, or a common processing facility may be used to treat
ores from a number of mines in a region.

When a mine has been developed and related
processing facilities constructed, the production phase commences. The mining
stage may include the stripping of waste for open-pit mining, the preparation of
stopes for underground mining, the development of ore reserves, drilling,
blasting, materials handling to the processing facilities, the filling of
mined-out stopes, and associated technical and planning services. The processing
stage includes, for instance, crushing, grinding, flotation, filtering and
drying for base metal ores, leaching or cyanidation followed by carbon-in-pulp
adsorption for gold ore, tailings disposal, and the loading of concentrate
products for shipment.

When mineral reserves are exhausted, the mine
is generally closed. During the rehabilitation phase, which may be initiated
several years before mine closure, the mine site must be restored to a state
compatible with the rest of the surrounding nature and topography. As well,
safeguards must be taken to reduce to a minimum future damages to the
environment that may result from surface subsidence and the exposure of
underground openings as well as mine tailings to groundwater.

2.Mining Activities - Products1

2.1 Gold

Gold is a bright yellow precious metal which
is characterized by its malleability, ductility and high density. Gold is the
third best electrical and thermal conductor, behind silver and copper. Although
this metal is chemically stable (which means that its physical state does not
change under the influence of air, heat, humidity and most solvents), it may
nonetheless dissolve in certain cyanide solutions or in a mixture of nitric and
hydrochloric acid. Despite its scarcity, gold is disseminated throughout the
earth's crust. Commonly found in nature in the form of an alloy, it occurs in
quartz veins or in

> 1
>       Text on pages 26 to 28
>       describing gold and niobium is adapted from the 1995 Grolier Multimedia
>       Encyclopedia (copyright 1995Grolier Incorporate),
>       Mindscape Complete Reference Library (copyright Mindscape Inc.) and
>       Microsoft Encarta 96 Encyclopedia(copyright 1993-1995
>       Microsoft Corporation).

---



Page 27

secondary alluvial deposits (placers) in the form of dust, grains, flakes or
nuggets (its rarest form).

From ancient times, gold has been known and prized for its
beauty, luster, corrosion resistance and malleability. In addition, the
processing of gold into pure form is relatively easier than the refining of most
other metals. Alloyed with other metals to enhance its hardness, gold has been
used extensively in minting. In recent times, gold has been chiefly used in
jewellery and, to a lesser but progressively increasing extent, in industrial
applications, given its low chemical reactiveness.

On account of its scarcity, gold has been widely used as a
medium of exchange for international transactions, particularly during the 19th
and 20th centuries. However, World War I disturbed the international monetary
system, and the gold standard was gradually phased out, which furthered the rise
of the US dollar as the main currency in international monetary transactions.

Gold is traded on world markets, with benchmark prices for
gold generally based on the London bullion market quotation and which may be
subject to considerable fluctuations. Gold can be readily sold on numerous
markets throughout the world and it is not difficult to ascertain its market
price at any particular time.

Due to the size of the international bullion market and above
ground stocks, individual gold producers or other market participants generally
do not significantly influence pricing or total quantities offered and sold.
Primary demand for gold is in the fabrication of jewellery and industrial
applications which accounts for approximately 80% of the annual demand. Other
uses include coin and bar fabrication, dentistry and decorative applications.

Cambior's gold production is regularly shipped to the Royal
Canadian Mint, in Ottawa, Ontario, or to other refiners, to be refined to meet
market delivery standards and subsequently sold on the international market on a
competitive basis. The existence of numerous companies and institutions capable
of refining gold and the large number of gold buyers on the market prevent
Cambior from having to depend on a single refiner or purchasing client. Gold
marketing considerations are reviewed in section 6.1 of Item IV below.

The following table indicates the respective contributions
from each of the producing gold mines and divisions in relation to Cambior's
overall gold production for the last two years.

---



Page 28

|                          |         | 2003       |         | 2002      
|------------------------- | ------- | ---------- | ------- | ----------
|Cambior's share           |         | % of total |         | % of total
|                          | Ounces  | production | Ounces  | production
|Omai Mine                 | 271,000 | 52.0       | 319,600 | 56.2      
|Doyon Division (1)        | 217,200 | 41.6       | 216,200 | 38.0      
|Sleeping Giant mine (50%) | 33,500  | 6.4        | 33,000  | 5.8       
|Total                     | 521,500 | 100.0      | 568,800 | 100.0     

(1)

2.2 Niobium

Niobium is a greyish white metal which turns bluish when
exposed to air for a long period of time. When polished, niobium resembles
steel. Niobium is noted for its malleability, ductility and electrical
conductivity. Niobium is characterized by its resistance to impacts, corrosion
and high temperatures.

Discovered in 1801, it was not until 1874 that a Swedish
scientist succeeded in isolating the niobium element for the first time.
Although the International Union of Pure and Applied Chemistry adopted and
confirmed the name "niobium" in 1950, this metal is sometimes called
"columbium". Niobium is mainly used in special alloys in the steel industry, as
it enhances impact strength as well as wear and corrosion resistance. It is also
used in the manufacturing of superconducting magnets, and in medical
applications such as the design of artificial joints and pacemakers.

3. Mining Activities - Canada

In Québec, mining rights are governed by the Mining Act.
Until January 1, 1966, Crown lands containing mineralized zones could be granted
as a mining concession. In 1966, the mining concession system was replaced by a
system of claims and mining leases. A claim entitles its holder to explore for
minerals on the subject land. It remains in force for a term of two years from
the date it is registered and may be renewed indefinitely subject to continued
exploration works in relation thereto. A mining lease entitles its holder to
mine and remove valuable mineral substances from the subject land. Leases are
granted initially for a term of 20 years and are renewable up to three times,
each for a duration of 10 years.

The Mining Act was amended in June 1998 to bring
material changes to the acquisition process of mining titles whereby map
designation now replaces staking, and to consolidate under the same heading
several exploration titles for different mineral substances.

All of Cambior's Canadian mines are underground mines and,
unless otherwise specified herein, are readily accessible by existing roads and
benefit from available water supply and electric power supply sources.

---



Page 29

3.1 Gold Production

In Canada, the Company currently owns interests in three gold mines, all of
which are in commercial production.

> 3.1.1 Doyon Division

The Doyon Division is comprised of Cambior's wholly-owned
Doyon and Mouska mines, located approximately 40 kilometres east of
Rouyn-Noranda, in the Province of Québec, Canada. Operating information of the
Doyon Division for the last two years is set forth in the following table.

|DOYON DIVISION             | 2003      | 2002     
|-------------------------- | --------- | ---------
|Ounces (Au)                | 217,200   | 216,200  
|Tonnage milled (tonnes)    | 1,278,000 | 1,287,000
|Grade milled (g Au/t)      | 5.6       | 5.5      
|Recovery (%)               | 95        | 96       
|Direct mining costs ($/oz) | 267       | 228      

In 2003, the Doyon Division produced 217,200 ounces of gold,
similar to the 2002 production. The Doyon mill processed 1,278,000 tonnes from
the Doyon Division with a grade of 5.6 g Au/t, reaching a recovery of 95%.
Capital expenditures totalled $10.6 million. During 2003, the exploration work
at the Doyon-Mouska properties consisted of 32,399 meters of drilling; in
addition, some 41,442 meters for development drilling and 39,924 meters for
definition drilling were drilled from underground drifts; no exploration
drilling from surface was conducted at the Doyon-Mouska properties.

Current proven and probable mineral reserves at the Doyon
Division stand at 6.8 million tonnes grading 5.8 g Au/t, representing 1.3
million ounces contained. In 2003, the Company identified resources in the J
sector in close proximity to the Doyon shaft infrastructure that are anticipated
to be converted into reserves in 2004.

In 2004, the production target for the Doyon Division will be
192,000 ounces of gold at an estimated direct mining cost of $264 per ounce. The
decline in production and rise in operating costs are related to a planned
10-month shutdown of the Mouska mine from January to October 2004 to allow for
the deepening of the internal shaft, as well as the strength of the Canadian
dollar against the US currency. The mill is expected to process 1.3 million
tonnes at a grade of 4.7 g Au/t.

Capital expenditures for 2004 are estimated at $ 17.8
million, mainly for shaft deepening expenditures at Mouska ($6.5 million) and
for underground exploration and mineral reserve development in the extensions of
the mineralized zones and the new J Zone at Doyon ($7.7 million). The 2004
exploration program (surface and underground) and mineral reserve development
program will include more than 50,000 metres of diamond drilling. Drilling will
focus on the search for new mineral reserves and resources at depth

---



Page 30

and on the extensions of the known ore zones.

> i) Doyon Mine

Effective January 1st, 1998, Cambior acquired the remaining
50% undivided interest in the Doyon mine from Barrick Gold Corporation ("Barrick").
Pursuant to this transaction, Barrick was granted a participation right in
future revenue from the Doyon mine, under which it will receive an annual
payment equal to 24.75% of (i) the surplus, if any, of the average market price
(as defined in the January 27, 1998 purchase agreement) for one troy ounce of
gold over $375, multiplied by (ii) the number of gold ounces produced at the
Doyon mine during the relevant year; this right applies to a maximum cumulative
production of 2,600,000 ounces of gold as from January 1st, 1998, up to a
maximum cumulative payment to Barrick of $30 million. As at December 31, 2003,
no payment had been made, and 1,513,000 ounces remained subject to the
agreement.

The Doyon property is located in Bousquet Township, 41
kilometres east of Rouyn-Noranda, in Northwestern Québec and covers 1,993
hectares. It consists of 116 claims and a mining lease that was renewed for a
10-year period until July 2, 2010.

The Doyon mine was discovered in 1974 by SOQUEM. Commercial
open-pit mining began in March 1980, and underground mining began in 1985. The
transition to full-scale underground mining was completed on March 31, 1989.

The Doyon mine deposit is divided into three sectors, namely
the 1.0 Zone, the 2.0 Zone and the West Zone. Given the physical features of the
deposit, the mining method used is sub-level stoping. The mineralization of the
2.0 Zone consists mostly of large envelopes containing gold-bearing veinlets
associated with small quantities of pyrite and chalcopyrite. The mineralization
of the 1.0 Zone consists of veinlets and accumulations of pyrite which form
continuous lenses. Both zones lie within volcanic rocks.

The mineralization in the intrusive rocks lies within narrow
quartz-pyrite veins having fair continuity. The gold mineralization in the West
Zone is associated with narrow quartz veins, the orientation of which varies but
dominantly follows a north-south trend. The composition of country rock is
dioritic at upper levels and tonalitic at deeper levels.

The mine facilities and equipment include a conventional mill
equipped with a semi-autogenous grinding mill and cyanidation and carbon-in-pulp
processing facilities, a high-density sludge plant, a water treatment plant, a
tailings pond and settling pond (both allowing for natural degradation of the
cyanide, decanting and recirculation of the water used in milling), electrical
and mechanical maintenance shops and a headframe, mechanized mobile underground
equipment, as well as a warehouse and an administrative building. During 1998,
the Company moved the paste fill plant that was in place at the Chimo Mine, now
closed, to the Doyon mine site. The plant was commissioned at the end of
September 1998.

All ore extracted from the Doyon mine is currently processed on site at the
mill. Throughout 2003, the daily milling rate averaged 3,500 tonnes of ore
compared to

---



Page 31

3,525 tonnes in 2002. As of December 31, 2003 mining reserves
of the Doyon mine indicated a reduction of 92,000 contained ounces compared to
those of December 31, 2002. More detailed information regarding proven and
probable reserves as well as mineral resources is provided below in section 5 of
Item IV.

All of Cambior's rights, title and interest in and to the
Doyon mine were hypothecated in favor of the financial creditors in connection
with the 1999 credit agreements. Such hypothecation was maintained in favor of
the 2001 Financial Creditors in connection with the 2001 Agreements and is still
hypothecated in favour of the 2003 Financial Creditors in connection with the
2003 Credit Facility.

As of December 31, 2003, the Doyon mine employed 433 people,
including 130 staff employees, and 303 unionized hourly workers, compared to 428
employees as at December 31, 2002. Contractors also provided a workforce of 44
employees. During the second quarter of 2002, the Company entered into a 6-year
collective agreement with the hourly unionized workers, effective retroactively
as of December 1st, 2000 and ending on November 30, 2006.

> ii) Mouska Mine

The Mouska property is adjacent to the western border of the
Doyon property. Cambior owns this 876-hectare property through 22 claims and two
mining leases, one expiring in 2011 and one expiring in 2018. The principal
facilities include a headframe, a service building housing electrical and
mechanical shops and an administrative office. There is no mill on site as all
of the ore mined is processed at the Doyon milling facilities.

The Mouska deposit can be described as a lode-type deposit,
the economic mineralization of which is confined in narrow quartz veins (less
than one metre) having good lateral continuity. Economic lenses are found both
in volcanic rocks (andesite) and in the Mooshla intrusive (diorite). It is in
the latter environment that the current reserves and the best potential for
additional reserves are found. Considering the geometry of the deposit,
shrinkage stoping is being used for mining operations.

Cambior acquired the Mouska property in 1986, in connection
with the privatization of most of Soquem's assets. The property's production is
subject to two royalties. The first, a 2% royalty on the value of gold recovered
is payable to Newmont Mining Corporation. The second royalty is a 0.20% royalty
on gold produced, payable to the estate of an individual. During 2002, the
Company bought back 80% of the second royalty, which was a 1% royalty prior
thereto. The company paid $460,000 in 2003 in respect of these two royalties.

Underground exploration at Mouska began in October 1987,
pre-production development followed in May 1990, and commercial production
commenced on July 1st, 1991.

The underground exploration and development drilling during
2003 allowed the renewal of an estimated 107,500 ounces of gold mining reserves,
increasing the aggregate mining reserves of the Mouska mine by 46,800 contained
ounces compared to those of

---



Page 32

December 31, 2002. More detailed information regarding proven and probable
reserves as well as mineral resources is provided below in section 5 of Item IV.

All of Cambior's right, title and interest in and to the Mouska mine remains
hypothecated pursuant to the 2003 Credit Facility, in favor of the 2003
Financial Creditors.

As at December 31, 2003, 37 employees were working at the
Mouska mine compared to 123 employees as at December 31, 2002. The collective
agreement covering hourly workers, which was to expire on October 17, 2004, has
been extended to October 17, 2007.

> 3.1.2 Sleeping Giant Mine

The Sleeping Giant property covers an area of 2,908 hectares
comprising 71 claims and three mining leases, one expiring in 2008 and two
others in 2018, and is located 80 kilometres north of Amos, Québec. Title to the
property is held equally by Aurizon and Cambior, subject to two royalties: the
first is a 2% royalty on gross operating earnings (as defined in the relevant
agreement) held by Central Asia Goldfields Corporation; and the second is a 15%
net profits interest (as defined in the relevant agreement) held by Mattagami
Lake Exploration Ltd. on the greater part of the Sleeping Giant mine. No payment
has been required pursuant to these royalties thusfar, and none is expected to
be required in 2004. The Sleeping Giant mine also includes a 900-tonne per day
capacity mill, a headframe and ancillary surface facilities as well as a
tailings pond.

The Sleeping Giant mine is a high-grade lode-type gold
deposit. The narrow (50 cm or less) smoky quartz veins are characterized by a
high sulphide content (5% to 50%). Vein continuity varies between 50 and 500
metres laterally and between 100 and 750 metres vertically. Some veins remain
open at depth. Given the ore's physical characteristics, shrinkage and room and
pillar stoping are currently being used for mining operations.

Pursuant to a joint venture agreement with Aurizon dated
January 29, 1991, Cambior is operator under the supervision of a management
committee composed of two representatives of each participant. During the late
1980's, Aurizon was the sole owner and operator of the mine, but temporary
reserve depletion in 1991 resulted in a shutdown of operations. An exploration
program funded by Cambior during 1992 led to the delineation of additional
mining reserves and to Cambior's acquisition of a 50% undivided interest in the
property. Commercial gold production resumed on July 15, 1993.

During 2003, some 177,000 tonnes of ore and 77,600 tonnes of
waste were hoisted to surface. Some 81,009 metres of underground and surface
exploration and reserve development drilling were completed. Reserve development
drilling (52,275 metres) mainly established reserves to the South and upper
extension of Zone 8 and in Zone 3 on level 665.

---



Page 33

A 31,000-metre reserve development drilling program will
continue in 2004 on Zones 3, 8, 16 and 30 in order to extend the known reserves
and resources. An 11,000-metre exploration program is planned for the
high-potential areas of the mine (Zones 30 West, 7 and 8) to find additional
reserves and resources. Cambior's share of capital expenditures for 2004 is
estimated at $3.0 million, including $1.0 million to complete the development
program associated with the mine deepening project.

As of December 31, 2003, the Company's share of mineral
reserves of the Sleeping Giant mine stands at 209,000 tonnes at 11.8 g au/t,
representing 79,200 ounces of gold contained, an increase of 1,800 contained
ounces compared to those of December 31, 2002. More detailed information
regarding proven and probable reserves as well as mineral resources is provided
below in section 5 of Item IV. During the year, the Company's share of
capital expenditures totalled $4.4 million, principally related to the mine
deepening program on three levels. The shaft deepening was completed in late
December of 2003, and related infrastructure will be developed in the first
semester of 2004.

Cambior's share of gold production from the Sleeping Giant
mine totalled 33,300 ounces in 2003 the same as in 2002 and more than forecast
in the original 2003 mine plan, due to higher grades in the zone 8 area of the
mine. Direct mining costs for 2003 were $251 per ounce. The increase in direct
mining cost is mainly due to the strengthening of the Canadian dollar against
the US dollar. Operating information for the Sleeping Giant mine for the last
two years is set forth in the following table:

|SLEEPING GIANT MINE (Cambior's 50% share) |        |        
|----------------------------------------- | ------ | -------
|                                          | 2003   | 2002   
|Ounces (Au)                               | 33,300 | 33,000 
|Tonnage milled (tonnes)                   | 88,000 | 101,426
|Grade milled (g Au/t)                     | 12.1   | 10.5   
|Recovery (%)                              | 97     | 97     
|Direct mining costs ($/oz)                | 251    | 225    

The Company's share of the target 2004 production is 34,800
ounces of gold. Unit costs are expected to be higher than last year due to
additional stope preparation and the strength of the Canadian dollar relative to
the US currency.

All of Cambior's right, title and interest in and to the
Sleeping Giant mine (being a 50% undivided interest) remains hypothecated
pursuant to the 2003 Credit Facility, in favor of the 2003 Financial Creditors.

As at December 31, 2003, 213 people were employed at the
Sleeping Giant Mine. Contractors also provided a workforce of 77 people. The
current five-year collective agreement is in force until July 31, 2007.

---



Page 34

3.2 Ferroniobium Production

> 3.2.1 Niobec Division

The Niobec Division consists of Cambior's interest (50%) in the Niobec mine.
The mine first produces a niobium pentoxide (Nb2O5) concentrate which is
thereafter converted on site into standard grade ferroniobium (FeNb). The Niobec
mine is the only North American source of pyrochlore (the primary niobium ore)
in operation and the world's third largest producer of niobium. The mine is
located on a 2,455-hectare property, comprised of two mining leases granted
until 2005 and 61 claims, 15 kilometres northwest of Chicoutimi, in Simard
Township, Québec. The property's facilities include a headframe, a pyrochlore-to-niobium
pentoxide (Nb2O5) concentrator, a concentrate-to-ferroniobium converter and
ancillary surface installations.

The Niobec deposit is located in the southern portion of the
Saint-Honoré carbonatite, which is mainly comprised of dolomitic carbonates in
the centre and calcitic carbonates on the edges. The vertical lenses, which are
irregularly shaped, are 10 to 80 metres wide and up to 300 metres long. The
deposit is open at depth. The mining method used for mining operations is
blasthole stoping.

Commercial production of concentrates at the Niobec mine
began in March 1976. Cambior manages the marketing and sales of all commercial
production from the mine, at cost plus a nominal fee, under the direction of a
management committee. Mining operations are managed by Sequoia (which holds the
other 50% interest in the Niobec mine), on similar terms. Prior to Sequoia, the
manager (and holder of the 50% interest) was Mazarin Inc. ("Mazarin"), then the
parent company of Sequoia. As a result of an arrangement by Mazarin in November
2003, Sequoia replaced Mazarin which had purchased its 50% interest in the
Niobec mine from Teck Corporation ("Teck") on March 2001 and had replaced Teck
as manager of mining operations under the terms of a joint venture agreement.

From the commencement of commercial production until the end
of 1994, production from the Niobec mine was sold in the form of concentrates to
firms in Europe, India, Japan and the United States for conversion into
ferroniobium and distribution in their respective markets. Commercial production
of ferroniobium at the mine site commenced in December 1994 following the
construction of a plant to convert niobium pentoxide concentrates into
ferroniobium grading 66% niobium using an aluminothermic process. Ferroniobium
produced at the Niobec mine is currently distributed in North America, Europe
and Asia.

The Niobec mine has had an excellent history of mineral
reserve renewal over the 27 years that it has been in operation. The mine life,
is at least 15 years at the current mining rate. The Company's share of proven
and probable mineral reserves currently totals 11.3 million tonnes at an average
grade of 0.65% Nb2O5, basically unchanged from last year. More than 90% of the overall mineral reserves are located
above level 1450 and can be mined using the current underground infrastructure,
minimizing the development expenses required for their extraction.

---



Page 35

All of Cambior's right, title and interest (being a 50%
undivided interest) in and to the Niobec mine remains hypothecated pursuant to
the 2003 Credit Facility, in favor of the 2003 Financial Creditors.

On April 21, 2004, the Company and Sequoia announced their
agreement for a merger transaction whereby the Company will acquire Sequoia's
50% interest in the Niobec mine. This agreement is subject to regulatory
approvals as well as other conditions described hereinabove under section 1.4
of Item III.

As at December 31, 2003, the Niobec mine employed 226 people.
Collective labour agreements have been entered into with the hourly workers and
the technical and office personnel on September 14, 2001 and were in force until
April 30, 2004. The renewal of the collective labour agreements is being
negotiated by Sequoia, the Niobec mine manager.

3.3 Exploration and Development

During 2003, Canadian exploration activities were focused
entirely in Québec and mainly devoted to gold projects. Expenditures amounted to
$3,993,000. A portion of these expenses was financed with flow-through shares
funding of $1,497,000 and expenditures were reduced by $1,685,000 in Québec
government grants.

The portfolio of exploration properties has slightly
increased compared to 2002. Of the claims acquired, only ten claims were
acquired through staking. During the year 2003, 311 claims were abandoned. At
the end of 2003, the portfolio comprised 3,420 mining titles covering 87,980
hectares (880 km

The capital invested in 2003 yielded a discovery at the
Westwood project located on the eastern portion of the Doyon mine, and favorable
results at the Gemini-Turgeon project in the Abitibi region of Québec, Canada.

The 2004 exploration and development budget for the Westwood
project is estimated at $1.7 million. Exploration and development will remain
focused on or near the Company's mine sites and advanced projects. On the
Westwood area of the Doyon property, the Company will continue drilling to test
the Westwood mineralization at depth, and will initiate a major underground
exploration program on the eastern portion of the Doyon property, where a
2.6-kilometre exploration drift will be driven from the 14th level of the mine
to the eastern edge of the property, reaching the Westwood area by the end of
2006. A major drilling program is planned to test the Warrenmac and Westwood
areas to a vertical depth of 2,000 metres, and will be carried out between
mid-2004 and the end of 2007.

4. Mining Activities - International

As of December 31, 2003, the Company did not hold any right
or interest in any producing mine outside of Canada, except for the Omai mine
located in Guyana. However, the Rosebel mine located in Suriname began
commercial production during the first quarter of 2004. Also, in November 2003,
the Company acquired the Camp

---

36Caiman gold project located in French Guiana in respect of which the
completion of a feasibility study is scheduled for the fourth quarter of 2004.

4.1 South America: Guiana Shield

> 4.1.1 Gold Production: Omai Mine

The Omai mine site lies approximately 160
kilometres south of the city of Georgetown, the capital of Guyana. Guyana is a
former British colony located on the north eastern coast of South America
covering an area of 214,970 square kilometres and hosting a population of
approximately 700,000 people. The Omai mine property covers 4,550 hectares and
is held through an exclusive mining licence (the "Mining Licence") granted on
December 12, 1991, to OGML, the mine operator.

Cambior and the State of Guyana respectively
own 95% and 5% of the voting common shares of OGML1. Cambior
increased its participation in OGML from 65% to 95% on May 16, 2002 when, in
connection with the Rosebel transaction, it acquired all of Golden Star's shares
of OGML.

The relationship among Cambior, OGML and the
State of Guyana is governed by a Mineral Agreement executed on August 16, 1991.
This Agreement provides in particular for a 5% in-kind royalty on mineral
production payable to the Government of Guyana. Effective as of May 15, 2001,
the Government of Guyana agreed to reduce the aforesaid royalty from 5% to 4%
when the price of gold (determined by the London Bullion Market) is lower than
$280 per ounce. The Mineral Agreement provides the main legal framework for
activities at Omai; among other things, it allows for the exportation and sale
of gold production and capital and profit repatriation, and stipulates that any
disagreement between the parties thereto shall be submitted to international
arbitration.

The Omai property consisted, until April 2002,
of two distinct deposits: the Fennell and Wenot deposits. Following the ore
depletion of the Wenot deposit in April 2002, the pit is now used for the
disposal of tailings; only the Fennell deposit remains in production and the
reserves therefrom are expected to be fully depleted in late 2005. The Fennell
deposit is centred on a small 400-metre diameter quartz diorite intrusive. Free
gold mineralization is associated with shallow dipping quartz-carbonate veins
with thicknesses varying from a few millimetres to 1.5 metres. Main veins also
extend a few hundred metres into the surrounding volcanics and carry significant
mineralization.

Open pit commercial gold production commenced
on January 15, 1993. A mill expansion became operational during the third
quarter of 1996 and consisted of an increase in the capacity of the cyanidation
and carbon-in-pulp mill circuits as well as the

|                                                                                                                                                                                                                                   | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|While the State of Guyana
      also holds options entitling it to increase its shareholdings up to 32% in
      OGML, the Company has not received any indication that the State would
      exercise such options in the future.

---

37addition of three grinding mills. This allowed the daily
milling rate to increase from 13,000 tonnes to about 20,000 tonnes of ore per
day by the end of 1996.
At the beginning of 2003, the surface
infrastructure at the Omai mine included a conventional mill equipped with two
grinding circuits using cyanidation and carbon-in-pulp processes with gravity
circuits, service buildings, administrative offices, a warehouse, a maintenance
shop, a laboratory and camp facilities to house employees. During 2003, a
portion of the original grinding circuit was dismantled and sold to RGM. The
installation of additional secondary crushing equipment maintained hard rock
throughput at the Omai mine. Electric power is supplied by fifteen diesel
generators with a total installed capacity of 48 megawatts. The mine site also
includes a tailings pond allowing the natural degradation of the cyanide and
decanting of processed ore and recirculation of the water used in milling.
The plant capacity was reduced as planned in May 2003 from
21,000 to 15,500 tonnes per day following the depletion of soft rock ore.
Cambior provided full financing for the
construction of the Omai mine in return for full reimbursement on a priority
basis of its investment plus a competitive return on investment. Once all
amounts owed to Cambior shall have been repaid, cash flow from operations, net
of royalty payments and corporate income taxes, would be available for payment
of dividends on shares of OGML. The Company has obtained foreign investment
insurance coverage for its investment in OGML from a syndicate of insurers
including EDC (collectively the "Insurers"). The eventual proceeds of this
insurance policy are assigned pursuant to the terms of the 2003 Credit Facility
in favour of the 2003 Financial Creditors. Additional
information on the foreign investment insurance is provided above, under section
4.5 of Item III.

Operating information as regards the Omai mine for the last
two years is set forth in the following table.

OMAI MINE1
      2003
      2002Ounces (Au)
      271,000
      319,600Tonnage milled (tonnes)
      5,748,000
      7,727,300Grade milled (g Au/t)
      1.6
      1.4Recovery (%)
      92
      92Direct mining costs ($/oz)
      200
      224


1. Notwithstanding minority interests in OGML, Cambior takes 100% of the Omai
  mine production into account, given the capital structure and cash flow
  distribution of OGML.

During 2003, the Omai mine produced 271,000 ounces of gold,
in line with the original 2003 mine plan despite the temporary suspension of its
activities during a few days in April 2003, due to the blockage of the
property's access road in the town of Linden by protesters reacting to power
outage and a shortage of water supply in the Linden

---

38community. The mill processed 5.7 million tonnes of ore
(15,750 tonnes per day) at an average grade of 1.61 g Au/t. The operating cost
per tonne milled was $10.36 for 2003.
Direct mining cost declined to $200 per ounce
as head grade improved, reflecting the direct feed grade from the Fennell pit,
with the low-grade soft rock stockpile supplying only 3% of the mill feed.
Mineral reserves declined over the year, as
the mine was able to replace only 9% of the ounces produced in 2003. At the end
of the year, the mineral reserves stood at 359,100 ounces of gold contained,
based on a gold price of $350 per ounce. Should the ongoing exploration program
not lead to the discovery of new mineral reserves or resources, the Omai mine
will be exhausted in the second half of 2005.
In 2004, the Omai mill is scheduled to process
5.7 million tonnes of ore grading 1.4 g Au/t at a recovery rate of 91%. Total
production is targeted at 234,000 ounces of gold at an estimated direct mining
cost of $202 per ounce. Lower gold production is anticipated for 2004 because of
a lower head grade following the depletion of the Fennell pit expected in the
third quarter of 2004. Subsequent mill feed in the fourth quarter will come from
low-grade ore stockpiles averaging 0.9 g Au/t accumulated during the initial
years of production. No capital expenditures are expected for the remainder of
the Omai mine life, which will entail a positive impact on the free cash flow
generated by the Omai mine.
In 2003, exploration work continued on two
properties adjacent to the Omai mine concession. Exploration expenditures
totalled $1.0 million and consisted mainly of 32 diamond drilling holes for a
total of 7,900 meters. No significant results have been obtained to date.
The Company is scheduled to invest $1 million
in exploration around the Omai mine to find additional ore reserves. Efforts are
also being deployed to utilize the Company's assets and trained workforce to
generate additional revenues. Since 2000, the Company has been providing
contract mining services to Guyanese bauxite mines, and started on August 1st,
2003 to assume, on a contractual basis, the operations as well as administration
and marketing activities for Linmine.
The Company has also initiated its restoration
program, and will step up its efforts to maximize the work done during the
operating period to reduce the overall cost thereof. The closure plan has been
approved by the Government of Guyana and is expected to cost approximately $4.5
million, of which $3.3 million has been provided for to date in the Company's
balance sheet.
On February 12, 2002, a Justice of the High
Court of the Supreme Court of Judicature of Guyana ordered that the
representative action brought against OGML in 1998, purporting to represent
23,000 claimants and seeking approximately $100 million in damages relating to
the Omai tailings dam failure that occurred in August 1995, be struck out for
repeated failure by the plaintiffs to file an affidavit. On March 18, 2002, the
plaintiffs filed an appeal against the February 12, 2002 dismissal. In
connection with the

---

391995 tailings dam failure, OGML settled over
95% of the claims made against it by residents of the Essequibo River. These
various claims initially totalled 522 writs representing 881 claimants and the
very few remaining claims have not yet been paid because the claimants have
either not turned up to receive payment or cannot be located.
On May 29, 2003, a writ of summons was served
on OGML in connection with a class action in Guyana claiming total compensation
of approximately $2 billion for damages allegedly caused by the Omai gold mine
in Guyana since 1995. The action was filed on behalf of the same group of people
that previously filed the above-described action without success. Cambior and
OGML consider this action as unfounded and frivolous.
As at December 31, 2003, a total of 507
employees worked for OGML. This number was reduced to 494 as at March 31, 2004
and will continue to decrease as a result of the Omai mine's closure scheduled
for 2005. The collective agreement, establishing wages for hourly employees was
renewed as of February 27, 2003 and will cover the period leading to the
production shutdown in 2005.4.1.2 Gold Production: Rosebel MineThe Rosebel property is located in Suriname,
South America, approximately 100 kilometres south of the city of Paramaribo, the
capital of Suriname. The property is accessible by plane or by road from
Paramaribo and covers 17,000 hectares in the Brokopondo district, between the
Suriname River to the East and the Saramacca River to the West. The property is
held by RGM, a 95%-owned1 subsidiary of Cambior.
The Rosebel property was optioned in 1992 by
Golden Star from Grasshopper Aluminum Company N.V. ("Grassalco"), a state-owned
mining company. Cambior held a 50% interest in the property from June 1994 to
May 2002 when it acquired Golden Star's 50% interest therein for a consideration
of $8 million in cash and a price participation interest of 10% of the excess
gold price above $300 per ounce for soft and transitional ore and above $350 per
ounce for hard rock ore up to a maximum of 7 million ounces produced.
Production from the Rosebel mine is subject to
a fixed royalty of 2% of production payable to the Government of Suriname, a
price participation of 6.5% on the amount exceeding a market price of $425 per
ounce of gold, when applicable, and 0.25% of production payable to a foundation
to be established by RGM to stimulate mineral exploration in Suriname.
Cambior's shares of RGM were pledged in favor of the 2003
Financial Creditors under the 2003 Credit Facility.
As the Government of Suriname also holds Class B voting
      shares since commencement of commercial production, its overall
      participation in RGM's share capital is slightly different than 5%
      (currently approximately 6%). However, all Class B shares will be redeemed
      over the next years and, in any event, no dividends will be paid prior to
      the full redemption of Class B shares. Therefore, only Class A shares are
      considered for the purposes of reflecting each shareholder's true and
      permanent participation in RGM's share capital.

---

40A feasibility study and an environmental
impact assessment were filed with the Government of Suriname in May 1997.
Following additional drilling on the property, a revised feasibility study was
submitted to the Government in December 1997. From 1998 to year 2000, the
project remained on care and maintenance due to the low price of gold
environment.
During 2001, the feasibility study was updated
to include only the mining and processing of soft and transition ore, thereby
reducing significantly the project's estimated capital expenditures. A mineral
reserve report regarding the property was filed in December 2001. An optimized
feasibility study for the project was completed in August 2002 and submitted
shortly thereafter to the Government of Suriname, with an environmental impact
assessment, for approval.
On December 18, 2002, RGM was granted a
25-year renewable Right of Exploitation for the Rosebel mine from the Government
of Suriname, following the Government's approval of the feasibility study and
the environmental impact assessment. In addition, the Council of Ministers and
the National Assembly of Suriname approved amendments to the 1994 Mineral
Agreement which sets forth the legal framework for the development and operation
of the Rosebel project. The amendments consist of, among other things, the
relinquishing by Grassalco, of its options to purchase up to a 40% interest in
the Rosebel project in return for the Government holding a 5% carried
participation in the share capital of RGM (the above-described Class A shares)
and redeemable shares for $2 million (the above-described Class B shares) upon
commencement of commercial production. The capital structure of RGM provides for
the reimbursement of all capital invested by Cambior prior to distribution of
dividends to its shareholders. Additional information on the Rosebel
transaction is provided above under sections 1.1 and 1.2 of Item III.
The 1994 Mineral Agreement, as amended, is
similar, in all material respects, to the one in effect for the Omai mine in
Guyana. Besides covering mining rights and related matters, it outlines various
business conditions, including the right to export gold, to hold funds in
foreign bank accounts, to access local currency at market rates and to import
goods, with few exceptions, on a duty-free basis. The 1994 Mineral Agreement, as
amended, provides for an income tax rate being the lesser of the statutory rate
in effect and 45%, an international dispute resolution mechanism and a
debt-to-equity capital structure of 4 to 1.
Following the acceptance of the 2002 revised
and optimized feasibility study and the environmental impact assessment, the
granting of the 25-year renewable Right of Exploitation and the completion of
financing and political risk insurance coverage, the Company, through its
subsidiary RGM, officially commenced construction of the Rosebel mine in January
2003. The construction phase was completed in February 2004 and commercial
production began on February 11, 2004.
The Rosebel mine's general environment and
climate is very similar to that of the Omai mine, thus enabling the Company to
draw on its more than 12 years of development and operating experience in the
Guiana Shield. The Rosebel mine has advantages over

---

41the Omai mine with easier access via the
national highway and availability of hydro-electrical power. RGM concluded a
long-term power agreement that is indexed to the price of gold, which provides
for the supply of 8 mega watts of average power and 12 mega watts for peak power
to the mine and mill facilities.
The property hosts six principal deposits as
well as numerous gold prospects in two distinct areas: the Pay Caro, East Pay
Caro and Koolhoven deposits are located on the North Limb and the Rosebel, Mayo
and Royal Hill deposits are located on the South Limb.
The facilities and equipment include a
processing plant similar to Omai's existing facilities, typical maintenance and
warehouse facilities, a transmission line to tap into the Afobaka power
generating station owned by a major bauxite producer, and related support
infrastructure.
As of December 31, 2003 the mineral reserves
at Rosebel stood at 47 million tonnes at 1.6 g Au/t, representing 2.4 million
ounces of gold contained, calculated by using a long-term gold price of $350 per
ounce, and based on the designed pits. In April 2004, the Company began an
intensive drilling program to increase mineral reserves and resources laterally
and at depth in the current pits; all of the deposits are still open in at least
one direction. This program will continue in 2005. The Company is also planning
a grassroots exploration program on the surrounding properties: Headley's Reef
and Thunder Mountain.
Initially, ore throughput at the Rosebel
processing plant is expected to be 14,000 tonnes per day as the plan is to
process the upper portion of the deposits, which do not require crushing
capacity. The feasibility study provides for the processing rate to decrease to
12,000 tonnes per day in the second year of operations and thereafter as more
transition and hard rock ore will be processed. The ore from the six identified
deposits will be mined by open pit using trucks and shovels. The capital cost
for the Rosebel mine amounted to $95 million over a 14-month construction
period.
The Rosebel mine is scheduled to process 4.6
million tonnes of ore in 2004 at an average grade of 1.8 g Au/t and a gold
process recovery of 93%, for production of 245,000 ounces of gold. It is
anticipated that approximately 16.2 million tonnes of ore and waste will be
mined. The average mine operating cost is expected to be $184 per ounce, which
is higher relative to the August 2002 feasibility study due to higher power
costs resulting from indexation to the gold price. Total production costs are
estimated at $275 per ounce, including $82 in depreciation. The 2004 production
figure excludes a permanent gold circuit inventory of 4,000 ounces that will be
retained in the carbon-in-leach (CIL) circuit for the duration of the
operations. The primary source of mill feed will be the Pay Caro and East Pay
Caro deposits, located in the north limb of the Rosebel property, and the Royal
Hill deposit, located in the south limb. The waste-to-ore ratio for 2004 is
estimated at 1.9 to 1.
Capital expenditures for 2004 are estimated at $18.8 million,
and include amounts to complete the construction program ($6.0 million), acquire
mine equipment ($4.3 million)

---

42and carry out exploration and development
drilling ($4.0 million). A total of 34,000 metres of diamond drilling will be
executed between March and December 2004 to expand reserves at the known
deposits and find new deposits.
RGM has set-up a community relations team
responsible of maintaining good relations with surrounding communities. In 2003,
this team has had extensive meetings with the said communities to address all
issues of concern to them including training, development of skills, employment
of people from said communities, and to minimize negative impacts, to the
communities, from the Company's activities.
The Company has obtained foreign investment
insurance coverage for its investment in RGM for a portion of the losses
resulting from certain political risks that may affect the Rosebel mine. The
eventual proceeds of this insurance policy are assigned pursuant to the terms of
the 2003 Credit Facility in favour of the 2003 Financial Creditors.Additional information on the
foreign investment insurance is provided above, under section 4.5% Item III.

As at December 31,
2003, a total of 1,104 non-unionized employees worked for RGM. Following the
completion of the construction phase, this workforce decreased and stood at 886
as at March 31, 2004.

> 4.1.3 Exploration and Development: Camp Caiman project

The Camp Caiman project is located about 45
kilometres southeast of Cayenne, the capital city of French Guiana, an overseas
department of France located on the northeastern coast of South America between
Brazil and Suriname. French Guiana covers an area of 91,000 square kilometres
and hosts a population of officially 165,000 people.

Over 95% of French Guiana is covered by
rainforest with no infrastructure. Several field and construction activities can
only be carried out during the dry season between August and November. However,
access to the Camp Caiman project area from Cayenne is by paved highway.

The property is indirectly held by CBJ Caiman,
a wholly-owned subsidiary of the Company, and was acquired in November 2003, as
a result of a merger transaction with Ariane. The Camp Caiman project is
comprised of three exploration permits totalling 71 square kilometres: the Camp
Caiman (30km2), Trésor (20km2) and Camp Caiman Patawa
(21km2) permits. While said permits expire on July 21, 2004, a mining
concession application for the project was filed with the French authorities in
July 2003 and, in accordance with the application of French mining law, the
validity of the current permits will extend until the French authorities will
have made a decision on the mining concession application. The mineral rights
held by the Company are subject to the French mining laws applicable in French
Guiana.

Under the terms of the merger agreement,
Cambior issued 14,834,621 common shares to Ariane shareholders valued at $2.64 (Cdn
$3.58) each, based on the closing prices of the Companies' shares on the TSX on
the date the transaction was announced. The

---

43Company also entitled the holders of 1,265,989
options issued under the Ariane employee stock option plan to obtain equivalent
options of Cambior and hold them until their original scheduled expiry.
Gold mining has been carried out in French
Guiana since 1857 and a total of approximately 195 tonnes of gold has been
declared, essentially from alluvial and eluvial deposits. Systematic regional
exploration funded by the French government and carried out by
Bureau de Recherches Géologiques et Minières("BRGM") using soil geochemistry, identified a number of primary gold deposits
(including the 7 kilometres long gold-in-soil geochemical anomaly that
eventually became the Camp Caiman project) that had been previously explored by
private mining companies. Significant exploration expenditures over the past few
years resulted in the delineation of two large primary gold deposits, the Scout
and the CC-88 Zones, at Camp Caiman.

The initial drill program discovered the Scout
Zone in 1996, which led to an expanded diamond drilling program in 1997 and the
discovery of the CC-88 Zone. A pre-feasibility study of both deposits was
carried out in April 1999. Further delineation drilling took place in 2000 and
2001 after the publication of the study.

A substantial amount of drilling has been
carried out at Camp Caiman, with a total of 47,723 meters of diamond drilling
and 25,546 meters of reverse circulation as at December 31, 2002. Three drill
programs were conducted in 2003, including 15,438 metres of diamond drilling and
10,482 metres of reverse circulation drilling ('Scout').

The first program allowed new resources on the
Camp Caiman project to be assessed, with a total of about 1.2 million ounces of
contained gold at an average grade of 2.39 g Au/t. The second drill program,
carried out in June and July, tested the periphery of the main zones, including
the Fourca zone north of Zone CC-88, and Zone CC-93 northwest of the Scout zone.
The results for the CC-93 and Fourca zones and to the east of Zone CC-88 were
disappointing. However, results to the west of the Scout zone and in the new
Quatre Buses zone south of the Scout zone were encouraging. The last drill
program was conducted in the fourth quarter of 2003 and was aimed at testing the
site of the future tailings pond and waste dumps, and completing definition
drilling of certain areas of the CC-88 and Scout zones and testing their
extensions.

The regional geology is dominated by
northwest-trending belts of clastic, metasedimentary and metavolcanic rocks cut
by a prominent east-west striking deformation zone. These rocks form part of the
Guiana Shield, a tectonically stable shield area of Proterozoic age, which
extends south into Brazil and west into Venezuela. The gold mineralization is
associated with zones of sulphides and bluish to dark grey quartz veins, which
contain rare grains of visible gold.

All premineral host rocks are cut by a zone of
strong shearing and related deformation features such as shears, dragfolding and
strain-slip schistosity as well as folding. Post-mineral north-striking dolerite
dikes of late Paleozoic age cut across the mineralized zone.

---

44All rocks have been intensely weathered to a
fine-grained mixture of kaolinite, illite and saprolite, in which original
rock-forming minerals have been destroyed but original rock textures have been
variably preserved. A saprock zone of variable thickness represents a transition
from saprolite to unweathered rock. The saprock zone is always present and
averages less than 5 meters thick, though, locally, it may be up to 20 meters
thick. The depth to the base of weathered rock varies from 30 to 120 meters. The
known gold mineralization at Camp Caiman is located in two zones: Zone CC-88 and
Scout Zone.
In the Scout Zone, mineralization appears to
be structurally confined to numerous narrow and elongated zones averaging about
8 meters true thickness at a 1 g/t gold cutoff. Strike lengths vary up to a
maximum of 250 meters and dips are steep to the north. Zone CC-88 is higher
grade and appears to be both stratigraphically and structurally controlled. At a
1 g/t cutoff, the mineral deposit varies from 25 to 85 meters thick. Zone CC-88
plunges 35o to the southeast, where it has been intersected to a depth of 260
meters. Mineralization identified to date is open along strike and down dip.
Correlation of the mineral deposit grade intersections in drill holes indicates
good continuity along both strike and down dip. Deeper down-plunge intersections
within hard rock are high grade and extensions of this mineralization may be
amenable to underground mining methods.
A preliminary assessment study performed in
2003 showed that the project contains 1.2 million ounces of measured and
indicated resources. Capital expenditures on the Camp Caiman project are
estimated at $5.2 million for 2004. These expenditures consist mainly of
drilling (13,300 meters) to upgrade the mineral resources and prepare a final
feasibility study and an environmental impact assessment by the end of the year
2004. Assuming all permits have been obtained from the relevant French
authorities, the Camp Caiman gold project is expected to enter the construction
phase in 2006 and commence production in 2007. Work for a new access road to the
project will be initiated in 2004 and should be completed at the end of 2005.4.2 United States: Carlota Copper Project

Cambior USA acquired the Carlota project in
1991 when it purchased all the shares of Westmont Mining Inc. In March 1993,
Cambior entered into an agreement with Magma Copper Company (now BHP Copper
Inc., a wholly-owned subsidiary of BHP Billiton) to acquire the reserves in the
Cactus portion of the Carlota/Cactus pit. BHP Copper Inc. holds a 5% net smelter
return royalty on production from 42 claims of the property.
The Carlota project is located a few
kilometres from the town of Miami, in Arizona, and hosts three copper-oxide
deposits. It consists of 526 claims, of which 23 are patented1 claims
and 13 are patent-pending, and 490 are unpatented2 claims, covering
an area of
A patented mining claim is one for which the United
      States Government has passed to the holder thereof, exclusive title to the
      locatable minerals and, in most cases, to the surface and to all
      resources. A "patent" is the document by which the government conveys full
      legal title to the mining claim. No further assessment work needs to be
      done once a patent has been granted; however, taxes and other fees must be
      paid.
      An unpatented mining claim is a particular parcel of public land for
      which an individual or company has asserted a right of452,250 hectares. The copper mineralization is
predominantly within the breccia and dacitic volcanics and within the Kelly
fault in the Carlota/Cactus deposit. It is found within breccia and schists in
the Eder deposits.
A feasibility study prepared in 1993 and
revised in 1996 confirmed that the copper process and recovery method known as "SX-EW"
(Solvent Extraction and Electro winning) would be the most appropriate method
for the Carlota project. This method calls for the use of electrolysis in the
production of pure copper (saleable on a commercial basis) from a copper
concentrated sulphuric acid solution. This solution is obtained by leaching
copper from crushed ore then extracting the copper from the leach solution using
an organic solvent, and finally returning the copper contained in this organic
solvent into solution for the final electro winning stage.
The project development was postponed pending
improved market conditions, and the Carlota project was under care and
maintenance since the revised feasibility study. In 2003, the Company initiated
a joint feasibility study with BHP Base Metals Inc. (a wholly-owned subsidiary
of BHP Billion) to assess the establishment of a joint venture to mine the
Carlota deposit and process the ore through leaching pads and an SX-EW plant
located at the adjacent BHP-owned Pinto Valley mine complex.
As at December 31, 2003, probable mineral
reserves at the Carlota Copper project were estimated at 78,830,000 tonnes
grading 0.47% Cu for a total of 371,000 contained tonnes Cu, calculated on a
long-term market price for copper of $0.90/lb of copper.More information regarding probable reserves is provided below in section 5
of Item IV.

Cambior is pursuing the
revitalization of this project with a budget of $1.2 million in 2004.
Expenditures include the completion of remaining studies as well as designs and
estimates required for the joint BHP/Cambior feasibility study. The joint
feasibility study should be completed in the second half of 2004. The deposit
would be mined by open pit and the plant would produce copper cathodes directly
saleable to market.

4.3 South America: Andes

> 4.3.1 Exploration and Development

In the Andes region of
South America, Cambior maintains an office in Lima, Peru and an international
exploration and development group employing 9 persons as at December 31, 2003,
all of whom were non-unionized employees. In 2003, this group pursued evaluation
of the Andes region with a focus on Peru.

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|possession for developing and extracting a mineral
      deposit. This right is subject to payment of an annual maintenance fee to
      maintain the claim in good standing. Valid unpatented mining claims are
      real property and the holder thereof has a valid marketable title for
      mining purposes, subject to the paramount title remaining with the United
      States Government until a patent is granted. This possessory title may be
      maintained as long as the appropriate laws are complied with.

---

46i) La Arena Project
The La Arena project is located in Northern
Peru, 480 kilometres north-northwest of Lima, near the town of Huamachuco and
covers 16,286 hectares. The geology of the La Arena deposit includes sandstones,
quartzite, and thick sequences of Jurassic-Cretaceous sedimentary rocks, the
latter being intersected by subvolcanic dacitic porphyry. Two different types of
mineralization were identified on the property, namely a copper-gold porphyry
and a gold-bearing brecciated zone. As of December 31, 2003, the indicated
resources at the La Arena project were 13.4 million tonnes at 1.0 g Au/t,
representing 0.4 million ounces of gold contained and calculated using a
long-term gold price of $350 per ounce.
Activity resumed at the La Arena project in
2003 after a number of years on care and maintenance. During 2003, drilling
programs were aimed at delineating possible extensions to the defined ore body,
and also investigating previously unexplored sectors of the property. Field
exploration works included 3,107 meters of drilling, 14 square kilometres of
detailed grid, mapping, 3,102 surface samples for geochemical analyses, 128
kilometres of ground magnetic and 66 kilometres of induced polarization.
Many high potential exploration targets remain untested and
are based on the integration of all 2003 and previous exploration results.
ii) Other Exploration Activities
In Peru, Cambior incurred exploration expenditures of
approximately $4.5 million in 2003, mainly on the La Arena and Incahuasi
properties.
In February 2003, the Company's letter of
intent with Codelco (Corporación
Nacional del Cobre), the world's largest copper producer wholly-owned by the
State of Chile, establishing the terms of a joint venture alliance to carry
exploration works in three areas of Northern Peru was cancelled.

In 2004, grassroots exploration will continue in the
Huamachuco region of Peru. The 2004 exploration and development budget is
estimated at $3.7 million for the Andes.

5. Mineral
Reserves and Resources

In this Annual Information Form, the following terms have the
meanings set forth below. Reference is made to the
Cautionary Note to US Investors at the beginning of this annual information
form.

Mineral Reserves

Mineral Reserves are sub-divided in order of
increasing confidence into Probable Mineral Reserves and Proven Mineral
Reserves. A Probable Mineral Reserve has a lower level of confidence than a
Proven Mineral Reserve.

---

47A Mineral Reserve is the economically mineable part of a
Measured or Indicated Mineral Resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate,
at the time of reporting, that economic extraction can be justified. A Mineral
Reserve includes diluting materials and allowances for losses that may occur
when the material is mined.Proven Mineral Reserve

A Proven Mineral Reserve is the economically
mineable part of a Measured Mineral Resource demonstrated by at least a
preliminary feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic, and other relevant factors that
demonstrate, at the time of reporting, that economic extraction is justified.
Probable Mineral Reserve

A Probable Mineral Reserve is the economically
mineable part of an Indicated and, in some circumstances, a Measured Mineral
Resource, demonstrated by at least a preliminary feasibility study. This study
must include adequate information on mining, processing, metallurgical,
economic, and other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified.
Mineral Resources

Mineral Resources are sub-divided, in order of
increasing geological confidence, into Inferred, Indicated and Measured
categories. An Inferred Mineral Resource has a lower level of confidence than
that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has
a higher level of confidence than an Inferred Mineral Resource but has a lower
level of confidence than a Measured Mineral Resource.
A Mineral Resource is a concentration or
occurrence of natural, solid, inorganic or fossilized organic material in or on
the Earth's crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral Resource are
known, estimated or interpreted from specific geological evidence and knowledge.
Measured Mineral Resource

A Measured Mineral Resource is that part of a
Mineral Resource for which quantity, grade or quality, densities, shape, and
physical characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and
economic parameters to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough to confirm both geological and
grade continuity.48Indicated Mineral ResourceAn Indicated Mineral Resource is that part of a Mineral
Resource for which quantity, grade or quality, densities, shape and physical
characteristics, can be estimated with a level of confidence sufficient to allow
the appropriate application of technical and economic parameters to support mine
planning and evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration and testing information gathered
through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed.Inferred Mineral Resource

An Inferred Mineral Resource is that part of a
Mineral Resource for which quantity and grade or quality can be estimated on the
basis of geological evidence and limited sampling and reasonably assumed, but
not verified, geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes.
Metallurgical Recovery and Cut-off Grade

In calculating mineral reserves, cut-off
grades are established using the Company's long-term gold price and foreign
exchange assumptions, the average metallurgical recovery rates and estimated
production costs over the life of the related operation. For an underground
operation, a cut-off grade is calculated for each mining method, as production
costs vary from one method to another. For a surface operation, production costs
are determined for each block included in the block model of the relevant
operation.
* * * * *
In the following table, reported mineral
reserves and resources have been estimated by the Company's technical personnel
for each property in accordance with definitions and guidelines adopted by the
Canadian Institute of Mining, Metallurgy and Petroleum in August 2000, and
available on their website at http://www.cim.org/mainEn.cfm. Mineral reserves
and resources were estimated using a long-term gold price assumption of $350/oz
and $325/oz in 2003 and 2002, respectively. Unlike proven and probable mineral
reserves, mineral resources (of all categories) do not have a demonstrated
economic viability.49(Cambior's share)
      December 31, 2003 @ $350/oz
      December 31, 2002 @ $325/ozTonnes
      Grade
      Ounces
      Tonnes
      Grade
      OuncesGOLD OPERATIONS
      (000)
      (g Au/t)
      contained
      (000)
      (g Au/t)
      containedRosebel (100%)Probable reserves
      47,165
      1.6
      2,382,000
      42,897
      1.6
      2,143,000Indicated resources
      23,429
      1.2
      901,300
      30,871
      1.2
      1,210,000Inferred resources
      19,100
      1.4
      858,100
      21,296
      1.3
      911,000Omai (100%)Proven reserves
      9,183
      1.2
      358,100
      14,730
      1.3
      626,300Probable reserves
      20
      1.5
      1,000
      69
      1.4
      3,000Doyon Division
      (100%)(1)Proven reserves
      3,135
      5.3
      537,200
      3,774
      5.2
      629,500Probable reserves
      3,622
      6.2
      721,300
      4,264
      5.4
      736,800Measured resources
      277
      3.5
      30,700
      228
      3.1
      23,000Indicated resources
      2,115
      3.7
      251,500
      1,669
      3.6
      195,300Inferred resources
      5,778
      5.2
      974,100
      6,316
      5.2
      1,053,000Sleeping Giant (50%)Proven reserves
      75
      11.2
      26,950
      89
      12.6
      35,900Probable reserves
      134
      12.1
      52,250
      100
      12.9
      41,500Inferred resources
      176
      9.8
      55,450
      159
      10.7
      54,600GOLD PROJECTSCamp Caiman (100%)Measured
      resources
      9,497
      2.7
      817,000
      -
      -
      -Indicated resources
      6,260
      1.9
      390,000
      -
      -
      -Inferred resources
      10,971
      2.0
      694,000
      -
      -
      -La Arena (100%)Indicated resources
      13,400
      1.0
      414,000
      13,400
      1.0
      414,000TOTAL GOLDProven and
      probablereserves
      
      
      4,078,800
      
      
      4,216,000Measured and indicatedresources
      
      
      2,804,500
      
      
      1,842,300Inferred resources
      
      
      2,581,650
      
      
      2,018,600Grade
      Contained
      
      Grade
      ContainedTonnes
      Nb2O5
      Tonnes
      Tonnes
      Nb2O5
      TonnesNb2O5
      
      
      Nb2O5NIOBIUM OPERATION
      (000)
      (%)
      (000)
      (000)
      (%)
      (000)Niobec (50%)Proven reserves
      8,655
      0.63
      55
      8,910
      0.63
      56Probable reserves
      2,658
      0.72
      19
      3,008
      0.70
      21Inferred resources
      4,135
      0.67
      28
      1,074
      0.63
      7
50Grade
      Contained
      
      Grade
      ContainedTonnes
      Cu
      Tonnes Cu
      Tonnes
      Cu
      Tonnes CuCOPPER PROJECTS
      (000)
      (%)
      (000)
      (000)
      (%)
      (000)Carlota
      (100%)(2)Probable
      reserves
      78,830
      0.47
      371
      78,830
      0.47
      371Includes mineral
        reserves and resources from the Doyon and Mouska mines.
        Probable reserves for the Carlota project were estimated using a
        long term copper price of $0.90/lb in 2003 and 2002 and include only the
        Carlota-Cactus pit.The Company's reserve estimate is comprised of
in-place material,i.e. contained ounces of gold
and contained tonnes of copper; metallurgical recovery factors (see the table
setting forth the average metallurgical recovery and the cut-off grades below)
must be taken into account in order to assess and quantify the recoverable
material.

Mineral reserve estimates have been calculated
by Cambior's technical personnel for each property in accordance with
definitions and guidelines adopted by the Canadian Institute of Mining,
Metallurgy, and Petroleum (CIM "Standards on Mineral Resources and Reserves") in
August 2000. There are numerous parameters inherent in estimating proven and
probable mineral reserves, including many factors beyond the Company's control.
The estimation of reserves is a complex and subjective process, and the accuracy
of any reserve estimate is a function of the quality of available data and of
engineering and geological interpretation and judgement. Results from drilling,
testing and production, as well as material changes in metal prices subsequent
to the date of an estimate, may justify revision of such estimates.

Cambior's qualified persons1 responsible for the
mineral reserve calculations for each mine or projects are as follows:

Mines
      Location
      Name
      TitleRosebel
      Suriname
      R. Sirois
      Geology
      SuperintendentA. Croal
      Engineering
      SuperintendentOmai
      Guyana
      Y. Michaud
      Technical Services
      SuperintendentR. Walish
      General ManagerDoyon
      Québec, Canada
      D. Doucet
      Chief Geology
      DepartmentA. Grenier
      Chief EngineerMouska
      Québec, Canada
      P. Lévesque
      Chief Geology
      DepartmentP. Sévigny
      Chief EngineerSleeping Giant
      Québec, Canada
      F. Blanchet
      Chief Geology
      DepartmentD. Vallières
      Chief EngineerGold ProjectsCamp Caiman
      French Guiana
      F. Viens
      Vice
      President-Business,Development and
      ExplorationM. Bardoux
      Manager Geology -
      Exploration-


|                                                                                                                                                                                                                                                                                                                                                                                                                             | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|Qualified
      person: an individual who is an engineer or geoscientist with at least
      five years of experience in mineral exploration, mine development or
      operation, mineral project assessment, or any combination of these, has
      experience relevant to the subject matter of the mineral project and the
      technical report, and is a member in good standing of a professional
      association.

---

51

Mines
      Location
      Name
      TitleFrench GuianaLa Arena
      Peru
      F. Clouston
      Project Assessment
      EngineerCopper ProjectCarlota
      Arizona, USA
      Independent MiningConsultants Inc.Industrial MineralsNiobec
      Québec, Canada
      D. Villeneuve
      Chief GeologistS. Thivierge
      Engineering and
      MaintenanceSuperintendent


Estimation Procedures

The Company has established rigorous methods
and procedures aimed at assuring reliable estimates of the mineral reserves and
resources at all its operations and projects. Quality control falls under the
responsibility of Elzéar Belzile, P. Eng., Cambior's Manager, Mining Geology,
who is also a qualified person (as defined above).

The following table indicates the cut-off
grade calculations and the average metallurgical recoveries at Cambior's gold
mining operations for the proven and probable mineral reserves.

Average MetallurgicalRecovery (1)
      Cut-off gradesMine
      (Gold %)
      (g Au /t))Rosebel
      91 to 93
      0.54 to 0.84Omai
      93
      0.70Doyon
      96
      3.2 to 4.4 (2)Mouska
      94
      9.2 to 10.3 (2)Sleeping Giant
      97
      8.5 to 9.3 (2)Recovery rates vary depending on the metallurgical properties of
        each deposit and the production process used.
        Varies depending on the mining method
        used.


The average drill spacing for each category of reserves
reported for each mining operation and project is as follows:

Average Drill SpacingMines
      Reserve CategoryProven
      ProbableRosebel
      
      50 m
      X 50 mOmai
      40 m
      x 40 m
      60 m
      x 60 m


---

52

Average Drill SpacingMines
      
      Reserve CategoryProven
      ProbableDoyon
      Main Area
      10 m
      x 30 m
      20 m
      x 30 mWest Area
      10 m
      x 15 m
      20 m
      x 30 mMouska
      
      14 m
      x 14 m
      20 m
      x 20 mSleeping Giant
      
      20 m
      x 20 m
      30 m
      x 30 mNiobec
      
      15 m
      x 23 m
      30 m
      x 46 mCopper ProjectCarlota
      
      45 m
      x 60 m
      45 m
      x 60 m


In calculating mineral reserves, cut-off
grades are established using the Company's long-term gold price and foreign
exchange assumptions, the average metallurgical recovery rates and estimated
production costs over the life of the related operation. For an underground
operation, a cut-off grade is calculated for each mining method, as production
costs vary from one method to another. For a surface operation, production costs
are determined for each block included in the block model of the relevant
operation.

The nature of mining activities is such that
the extraction of ore from a mine reduces reserves. In order to renew reserves
(at least partially) on most of its producing properties, the Company carries
out exploration drilling at depth and laterally.

To establish the 2003 and 2002 year-end
reserves, the Company used gold prices of $350 per ounce and $325 per ounce,
respectively. The copper price assumption was maintained, using a long-term
price of $0.90/lb of copper for 2003 and 2002. For the Canadian operations,
long-term exchange rates of Cdn $1.40 and Cdn $1.50 per US $1.00 were used for
2003 and 2002 respectively.

Proven and probable mineral reserves for the
current gold operations at December 31, 2003 were 4.1 million ounces compared to
4.2 million ounces at December 31, 2002. A sensitivity analysis using a gold
price of $325 per ounce indicates that mineral reserves would fall 5% to 3.9
million ounces.

6.

6.1 Marketing of Production

The gold market is relatively deep and liquid, with the price
of gold generally quoted in US dollars. The demand for gold is primarily for
jewellery fabrication purposes and bullion investment. Gold is traded on a
world-wide basis. Fabricated gold has a variety of uses, including jewellery
(which accounts for 85% of fabricated demand), electronics, dentistry,
decorations, medals and official coins. Central banks, financial institutions
and

---

53

private individuals buy, sell and hold gold bullion as an
investment and as a store of value.

The use of gold as a store of value (the
tendency of gold to retain its value in relative terms against basic goods and
in times of inflation and monetary crisis) and the large quantities of gold held
for this purpose in relation to annual mine production, has meant that
historically the potential total supply of gold has been far greater than
demand. Thus, while current supply and demand plays some part in determining the
price of gold, this does not occur to the same extent as for other commodities.
Gold prices have, in addition, been significantly affected by macro-economic
factors such as expectations of inflation, interest rates, exchange rates,
changes in reserve policy by central banks and global or regional political and
economic crises. In times of inflation and currency devaluation, gold was often
seen as a refuge, which increased purchases of gold and thereby supported its
market price.

However, changes in the reserve policies of
central banks have affected the gold market and gold price on two levels. On the
physical level, a decision by a central bank to decrease or to increase the
percentage of gold holdings in bank reserves leads to either sales or purchases
of gold, which in turn has a direct impact on the physical market for the metal.
In practice, sales by central banks have often involved substantial tonnages
within one period, and this selling can place downward pressure on the markets
at the time when it is transacted. More importantly, announcements or rumours of
changes in central bank policies which might lead to the sale of gold reserves
have in recent years had a powerful negative effect on market sentiment and
encouraged large speculative positions against gold in the futures market for
the metal.

Most of the Company's revenue and earnings
derive from the sale of gold through various instruments. The gold price
fluctuates continually due to factors over which Cambior has no control. Until
August 2003, the Company had maintained a mandatory hedging program in
compliance with the terms of the 2003 Credit Facility. In August 2003, the 2003
Financial Creditors agreed to eliminate their hedging requirement and the
Company adopted a policy that allows gold hedging only when required for project
financing.

The following table indicates fluctuations in the gold price
in US dollars per troy ounce on the London Bullion Market for the periods
indicated:

Year Ended December 31,2004 (1)
      2003
      2002
      2001
      2000
      1999High
      426
      416
      $349
      $293
      $313
      $326Low
      390
      320
      $278
      $256
      $264
      $253Average
      408
      363
      $310
      $271
      $279
      $279(1) Period ending as of
      March 31, 2004.


Also, since revenue from sales of gold and ferroniobium are received in US
dollars while a significant portion of operating and other expenses are incurred
in Canadian dollars,

---

54

the value of the Canadian dollar relative to the American
dollar has a direct impact on Cambior's profit margin.

Following the merger with Ariane in late 2003,
the Company began to incur expenditures in Euros. Its exposure to the Euro will
increase as the Company expands its activities in French Guiana. From time to
time, Cambior may reduce the volatility of its exposure through a currency
hedging program.

The following table illustrates fluctuations
in the exchange rates for United States dollars expressed in Canadian dollars
for the last five calendar years, as established for customs purposes by the
Bank of Canada.

Year Ended December 31,2004 (1)
      2003
      2002
      2001
      2000
      1999High
      1.3476
      1.5747
      $1.6132
      $1.6021
      $1.5593
      $1.5298Low
      1.2692
      1.2924
      $1.5110
      $1.4936
      $1.4341
      $1.4433Average
      1.3179
      1.4015
      $1.5704
      $1.5484
      $1.4854
      $1.4858End of Period
      1.3113
      1.2965
      $1.5776
      $1.5928
      $1.4995
      $1.4433(1) Period ending as of
      March 31, 2004.


The 2001 Agreement, as amended, contained
certain covenants, including a mandatory hedging program, which provided that
Cambior's commitments to deliver gold would not, at anytime, exceed 90% of its
total proven and probable mineral reserves and, would not exceed 100% of its
estimated production (net of royalties) during the loan period. It further
provided that Cambior was required to have hedges in place on a minimum of 35%
(reduced from an initial requirement of 70%) of the forecasted loan life
production at an average minimum gold price of $290/oz, including the impact of
the prepaid gold forward sale. The Company was required to implement this
program in a period of low prices in 2001.

Under the 2003 Credit Facility, Cambior was
required to maintain a revenue protection program covering 30% of its expected
production during the loan life period, which terminates on December 31, 2007,
at a minimum price of $290 per ounce. The hedging facility is not subject to
margin calls. Although the hedging covenant was reduced on two occasions, the
program prevented the Company from fully participating in the rise of the price
of gold during the past two years.

In line with its objective of providing
shareholders with increased exposure to higher gold price, the Company continued
in 2003 its efforts to reduce its commitments under its mandatory hedging
program.

In August 2003, the Company successfully
negotiated the elimination of the hedging covenant. Furthermore, Cambior has
established a policy whereby it will not hedge future gold production unless
required to do so for project financing. This will increase exposure to the
market price of gold and the volatility of the Company's revenues and
profitability. The Company intends to reduce its forward sales commitments to

---

55

52,000 ounces by the end of 2004
through a combination of delivery of production against outstanding contracts
and opportunistic buy-backs in the futures market.

FOR ADDITIONAL INFORMATION REGARDING CAMBIOR'S HEDGING
PROGRAMS, REFERENCE IS MADE TO NOTE 17 TO THE FINANCIAL STATEMENTS OF THE
COMPANY PRESENTED ON PAGES 63 TO 65 OF THE COMPANY'S ANNUAL REPORT FOR THE YEAR
2003.

During the first quarter of 2004, the Company reduced its
forwards sales delivery commitments from 746,000 ounces at December 31, 2003 to
498,000 ounces at March 31, 2004. Subsequent to the end of the quarter, the
Company further reduced the hedge book to 246,000 ounces as at May 7, 2004.

6.2 Government Regulation

Canadian and American mining industries have
evolved with federal and state or provincial legislation governing the
exploration, mining, processing and marketing of minerals. This legislation
governs the acquisition and ownership of mining rights, mining duties and income
taxes, labour, health and safety standards, exports and other related matters.

The North American mining industry is also
subject to federal and state or provincial environmental protection legislation.
This legislation imposes high standards in order to reduce or eliminate the
effects of waste generated by ore mining and processing operations.
Consequently, the construction and commercial operation of a mine necessarily
entails compliance with applicable environmental legislation and the obtaining
of permits for the use of land and water or other similar authorizations from
various government bodies. Each mining company is under a strict obligation to
comply with all applicable environmental laws.

Failure to comply with this legislation may
lead to the issuance of orders suspending or curtailing operations or requiring
the installation of additional equipment. Cambior could be required to indemnify
private parties suffering losses or damages arising from its mining activities
and could be assessed fines if found guilty of penal infractions under the terms
of such legislation.

In the United States, some of the mineral
rights consist of "unpatented" mining claims created and maintained in
accordance with the General Mining Law. Unpatented mining claims are generally
considered to be subject to greater title risk than other real property
interests because the validity of unpatented mining claims is often uncertain.
This uncertainty arises, in part, out of the complex federal and state laws and
regulations under the General Mining Law. Also, unpatented mining claims are
always subject to possible challenges by third parties or by the federal
government. The validity of an unpatented mining claim, in terms of both its
location and its maintenance, is dependent on strict compliance with a complex
body of federal and state statutory and decisional law. In addition, there are
few public records that definitively control the issues of validity and
ownership of unpatented mining claims.

---

56

In recent years, the U.S. Congress has
considered a number of proposed amendments to the General Mining Law. Although
no such legislation has been adopted to date, the Company cannot assure that
such legislation will not be adopted in the future. If ever adopted, such
legislation could, among other things, impose royalties on gold production from
currently unpatented mining claims located on federal lands. If such legislation
is ever adopted, it could have an adverse impact on earnings from operations, it
could reduce estimates of present mining reserves and it could reduce the amount
of future exploration and development activity on federal lands.

In the Guiana Shield, OGML and RGM must
comply, in the course of their operations, with a range of Guyanese and
Surinamese laws respectively, similar in their effects to legislation to which
Cambior is subject in Canada. However, with respect to the Omai mine, the
Mineral Agreement executed on August 16, 1991, provides exceptions to applicable
Guyanese legislation in favour of OGML and its shareholders in certain
instances, among which figure an alleviated tax system and, in certain cases,
provisions for legislative stability. The terms and conditions of the mineral
agreement in respect of the Rosebel mine are similar to those applicable to OGML.
Both mineral agreements provide a comprehensive legal framework that applies to
the specific activities of the Omai and Rosebel mines respectively.

The Company commissioned an environmental
impact study in 1991 as part of Omai's feasibility study, which was subsequently
ratified by the Guyanese Government. The study has been amended from time to
time, with the Government's approval, to take various changes in operations into
account. Pursuant to the Mineral Agreement, OGML has undertaken to apply the
environmental practices set forth in the environmental impact study. For its
part, the State of Guyana has undertaken, for the duration of OGML's operations,
not to impose on OGML any environmental standard which would be more severe than
that which is in force at the relevant time in the Province of Québec, Canada.
Finally, the agreement by which OGML resumed commercial production in February
1996, also contains environmental compliance obligations.

For the Rosebel mine, the Company also
commissioned an environmental impact assessment which was filed with, and
approved by, the Surinamese Government in 2002 along with a feasibility study.
RGM has undertaken to apply the environmental practices set forth in the
environmental impact assessment and to certify its environmental management
system under ISO 14001 by the end of 2004.

Elsewhere in South America, the Company must
comply with various mining and environmental laws in force in such countries,
which laws are generally similar in effect to comparable laws in North American
jurisdictions.

Cambior believes that it is in substantial compliance with all
material current legislation, regulations and administrative standards
applicable to its activities.

---

57

6.3 Environment

On November 6, 1992, the Company's Board of
Directors authorized the creation of a board committee responsible for the
supervision of activities related to environmental compliance and management and
formally ratified the environmental protection policy developed by the Mining
Association of Canada, which the Company had adopted on May 7, 1990.

In 1993, the Company developed environmental
guidelines for employees with a view to facilitating communication and
standardization of environmental protection procedures. The distribution of such
environmental guidelines and training to ensure their use in everyday activities
form part of Cambior's self-monitoring program. The Company, as well as its
partners managing the properties held in joint venture, periodically retain
independent consultants to assess compliance with standards and the suitability
of the established policies and procedures.

In 1995, the environmental policy and program
were modified in order to emphasize prevention and to harmonize policies with
the new policy of the Mining Association of Canada. Detailed closure and
restoration plans for all of Cambior's mines were completed and submitted to the
governmental authorities in 1995.

The closure and site restoration of the Valdez
Creek Placer were completed in 1996 and Cambior received the 1995 Governor's
Award for Restoration from the State of Alaska and, on September 15, 1997, the
Health of the Land Award from the US Bureau of Land Management, the US agency in
charge of land management.

In 1997, Cambior decided to submit its
environmental management system ("EMS") for ISO 14001 certification, a decision
in line with its 1995 revised corporate environmental policy. An important
element of the EMS is the development of a program with objectives and targets
to continually improve environmental performance. The EMS also includes the
management of tailing ponds and waste dumps. Each pond is subjected to a daily
visual inspection, a detailed monthly inspection and an annual inspection by an
external consultant. The data is submitted for review to a committee of external
experts. The Safety and Sustainability Committee of the Board of Directors
oversees the workings of the EMS through regular meetings and assures that it is
appropriate, sufficient and effective.

On February 10, 1999, the Company announced
that its environmental management system was awarded the ISO 14001
certification, and stated its belief to be the first mining company in Canada
and the first gold mining company in the world to achieve such certification.
Referred to as "the green standard", ISO 14001 was developed by environmental
experts from around the world under the auspices of the International
Organization for Standardization, based in Switzerland. The process was
completed at the Doyon mine in the last quarter of 2000 and at the Omai mine, in
January 2001. It is Cambior's objective to implement its EMS and certify it
under the ISO 14001 standards at the Rosebel mine and all future development
projects and operations.

---

58

In 2001 and 2002, monitoring of all the
effluents of Cambior, including those at Niobec mine, achieved 100% conformity
and only one of the annual toxicity samples was negative. Effluent compliance at
the Omai mine was also maintained at 100%. Periodic analysis of samples taken
from the Omai and Essequibo rivers indicates that the results are well within
the regulatory limits of the

In 2001, all of Cambior's operating and
administrative units renewed their ISO 14001 certification for a period of three
years as a result of the 2001 registrar's audit of the Company's EMS. The EMS of
the Niobec mine obtained ISO 14001 certification in 2002 thereby bringing all of
Cambior's operations at that time in compliance with this international
standard. In 2002 and 2003, maintenance audits were successfully performed at
all of the Company's operating and administrative units. At the Rosebel mine,
the environmental impact assessment prepared in 2002, was approved in 2003 by
the Government of Suriname. Cambior has undertaken to operate within World Bank
Guidelines thereat.

During 2002, all Canadian operations became
subject to the new Federal Metal Mining Effluent Regulations and the Canadian
operations with processing facilities (Doyon, Sleeping Giant and Niobec) became
subject to the Québec Industrial Wastes Reduction Program. In 2003, monitoring
of all the effluents of Cambior, including those at Niobec mine, achieved 99%,
including toxicity.

Environment-related expenses for operating
sites totalled more than $5.1 million in 2003. These expenses were mainly
related to infrastructures (55%), tailings ponds (8%), and reagent costs for
effluent treatment (16%).

Cambior is also active in environmental
research projects through partnerships with universities or members of the
mining industry. Recent research subjects include mine acid drainage, the
application of biotechnology to solve environmental problems, a study on the
fate of cyanide in mine tailings, the bio-availability of metals and the
toxicity of effluents.

None of the environmental measures taken by
Cambior should impact negatively on its competitive position, as the whole of
the North American mining industry is subject to substantially similar
regulatory standards. The medium- and long-term financial impact of these
standards lies in the cost of mine site restoration during mining and once
mining activities have ceased. The Company annually reviews its provision for
environmental obligations, and no material adverse effect on earnings is
expected in the future. Cambior believes that its operations are substantially
in compliance with all relevant and material laws and regulations, as well as
standards and guidelines issued from the relevant regulatory authorities.

---

59

6.4 Human Resources

The following table illustrates the evolution of the Company
human resources throughout the year 2003.

SECTOR
      20031Q
      2Q
      3Q
      4QMouska Mine
      130
      125
      119
      37Sleeping Giant Mine
      202
      216
      214
      213Doyon Mine
      338
      437
      439
      433Longueuil Executive Office
      36
      34
      35
      47Val-d'Or Office & Technical Services
      23
      25
      19
      21Camroc Division
      57
      59
      65
      91Construction Division
      6
      6
      5
      5Exploration Canada
      10
      10
      10
      11CANADA: Total
      802
      912
      906
      858Carlota Project
      1
      1
      1
      1UNITED STATES: Total
      1
      1
      1
      1International Exploration
      9
      9
      9
      9Omai Gold Mines Ltd.
      667
      613
      511
      507Omai Bauxite
      
      43
      57
      67Rosebel Gold Mines N.V.
      499
      1,134
      1,272
      1,104INTERNATIONAL: Total
      1,175
      1,799
      1,849
      1,687TOTAL CAMBIOR EMPLOYEES
      1,978
      2,712
      2,756
      2,546


The above table does not include the 226
employees working at the Niobec mine as these individuals are employees of a
wholly-owned subsidiary of Sequoia, the manager of mine operations. Information
regarding the Niobec mine workforce is provided in section 3.2 of Item IV.

Among the employees numbered in the above
table, 303 hourly workers at the Doyon mine, 13 hourly workers at the Mouska
mine, 158 hourly workers at the Sleeping Giant mine and 333 hourly workers at
the Omai mine are unionized.

Expiration dates of the collective
      agreementsOmai - Hourly employees
      February 28, 2007Doyon - Hourly employees
      November 30, 2006Mouska - Hourly employees
      October 17, 2007Sleeping Giant - Hourly employees
      July 31, 2007Niobec(1) - Hourly,
      clerical and technical employees
      April 30, 2004Niobec employees are under contract with the mine operator, a
        wholly-owned subsidiary of Sequoia, who is negotiating the renewal of
        their collective agreements.


---



Page 60

Employees at Rosebel and Cambior's other development projects
are not unionized. Overall, the management of Cambior as well as management of
the Niobec mine consider labour relations with their respective employees to be
satisfactory.

6.5 Research and Development

Cambior participates in several research projects on mining,
processing and the environment, which are conducted through universities,
private research centres and consortiums.

Cambior is a funding member of COREM (consortium of mineral
research) with 11 other mining companies. COREM carries out research and
technology transfer activities in the field of treatment and transformation of
mineral substances in conformity with the objectives of sustainable development.
The annual budget of COREM is Cdn $10 million and Cambior's contribution is Cdn
$300,000 per year.

Cambior is also a funding participant of the Natural Sciences
and Engineering Research Council of Canada (NSERC), Industrial Chair on Sites
Remediation and Management at University of Montreal's École Polytechnique. Its
committed contribution amounts to Cdn $75,000 per year over a five-year period
ending in 2004.

6.6 Taxes

Cambior currently earns taxable income almost exclusively
through its operations in Canada, Suriname and Guyana. Cambior's activities in
other countries are not currently revenue producing.

Canada

Cambior Inc. is subject to federal income tax in Canada on
its worldwide earnings, although earnings of the Company's foreign subsidiaries
are not generally subject to tax until repatriated to Canada. Some of the
foreign subsidiaries operate in countries which have concluded a tax treaty with
Canada and, in consequence, active business income earned in those countries
would be exempt from Canadian taxes when repatriated to Canada. However,
earnings of foreign subsidiaries operating in other countries such as Suriname
could attract Canadian taxes depending on the tax rate in the relevant foreign
country. The Company's Canadian operations are also subject to provincial income
tax. The statutory combined corporate tax rate is approximately 38%, reduced to
an effective tax rate of approximately 29% by the application of the resource
allowance. The Company is also subject to Québec mining duties at a statutory
rate of 12%.

United States

Cambior USA and its wholly-owned subsidiaries file their
United States Federal income tax return on a consolidated basis. The top
marginal rates are presently 35% for regular tax and 20% for alternative minimum
tax. At December 31, 2002, Cambior USA had approximately $78.2 million of
cumulative regular tax benefits that were derived from past net operating
losses, available to offset future income tax. These amounts are

---



Page 61

subject to adjustment upon a subsequent audit by the Internal
Revenue Service. Cambior USA and its wholly-owned subsidiaries are also subject
to state and local taxes in jurisdictions in which they are engaged in business
operations.

Guyana

From 1993 to 1999, the operations of OGML in Guyana were
subject to corporate income tax in Guyana at a rate of 33.75% per year. Since
2000, commercial production at the Omai mine is subject to the 35% prevailing
corporate income tax rate. Operating expenses, including interest expenses, are,
within limits, deductible from taxable income, and losses may be carried forward
indefinitely. Capital expenditures may be depreciated on a straight-line basis
over five years. Withholding taxes on dividends paid, if any, to foreign
shareholders are levied at a 6.25% rate; however, there is no withholding tax on
interest. Legislative stability of taxation rules and rates is guaranteed by the
Mineral Agreement referred to above in subsection 4.1.1 of Item IV.

Suriname

Under the 1994 Mineral Agreement in effect for the Rosebel
mine, as amended and referred to above in subsection 4.1.2 of Item IV, it
is provided that the corporate income tax rate applicable during the first 25
years of operation is the lesser of the year-to-year corporate tax rate
applicable and 45%. As a result, the operations of the Rosebel mine are
currently subject to income tax at a rate of 36% per year, the corporate tax
rate presently prevailing in Suriname. Operating expenses, including interest
expenses, are generally deductible from taxable income, and losses may be
carried forward indefinitely. Capital expenditures may be depreciated
immediately in the calculation of the annual net profit. Dividends and interest
may be paid without any withholding taxes. Legislative stability of taxation
rules and rates is guaranteed by the 1994 Mineral Agreement, as amended.

6.7 Mining Development and Construction

The Company formed, at the end of 1994, two in-house
divisions to support project implementation and operations. Their goal consists
of optimizing performance of said divisions' respective activities with a view
to achieving greater effectiveness in terms of costs and timetable compliance.

The objective of the Camroc Mining Development Division,
which grouped together a number of non-unionized employees that varied from 57
to 91 employees during the year 2003, is to form and manage specialized teams
performing mining development works at various mines or projects, in accordance
with the Company's priorities. This division provides in-house contract mining
services, and its services are charged to other companies on competitive terms.

The objective of the Projects and Construction Division,
which grouped together 5 non-unionized employees of Cambior as at December 31,
2003, is to form and manage teams of professionals and technicians specialized
in planning, implementing and supervising construction activities of mine
facilities and infrastructure. This division

---



Page 62

occasionally acted in the past as an independent building contractor for
third parties on arm's-length terms.

Since 2000, the Company has been providing contract mining
services to Guyanese bauxite mines, and started on August 1st, 2003
to assume, on a contractual basis, the operations as well as administration and
marketing activities for Linmine.

6.8 Intellectual Property

Operations of the Company are not dependent upon or subject to patents or
intellectual property licenses.

Item V Selected Consolidated Financial Information

1. For Each of the Last Five Fiscal Years

|                              | (in millions of dollars, except for per share amounts)
|----------------------------- | ------------------------------------------------------
|                              | 2003                                                  
|Total revenues (1)            | 195.7                                                 
|Net earnings (loss) (2)       | 0.6                                                   
|Net earnings (loss) per share | 0.00                                                  
|Total assets                  | 493                                                   
|Total debt                    | 64                                                    
|Deferred revenue              | 24                                                    
|Dividends per share (3)       | 0.00                                                  

> (1)
>       This data concerns
>       continuing operations only. The comparative data has been reclassified
>       accordingly.(2)
>       In 2000, the Company
>       changed its accounting policy for written call options and variable volume
>       forward contracts. Thischange in accounting policy
>       was applied retroactively.(3)
>       Under the terms of the 1999
>       and 2001 credit agreements, Cambior has committed not to pay dividends in
>       2000, 2001 and2002. Under the terms of
>       the 2003 Credit Facility, Cambior has committed not to pay any dividends
>       until CommercialCompletion (as defined in
>       the 2003 Credit Facility) of the Rosebel project. The right to pay
>       dividends thereafter is subject,however, to prior notice
>       and meeting certain financial ratios.

---



Page 63

Revenues

Despite a higher realized price on gold sales, revenues
declined in 2003 due to a planned decrease in production at the Omai mine
arising from the depletion of soft ore feed to the mill and reduced throughput.
The realized gold price per ounce averaged $320 in 2003 and $308 in 2002. In
2002, revenues improved over the previous year, with a higher realized price on
gold sales more than offsetting the decline in quantity sold ensuing from lower
Omai mine output. Higher niobium sales in 2002, following the completion of a
plant expansion in 2001, also contributed to improved 2002 revenues.

Investment and other income increased by $5.2 million in
2003, mainly due to gains on foreign exchange, gains on sales of marketable
securities and higher contract mining revenues.

Revenues for 2002 were $204.2 million. The increase in
revenues in 2002 was due to a higher realized price on gold sales offsetting the
decline in quantity sold due to lower output from the Omai mine, and higher
niobium sales following the successful commissioning of the plant extension in
2001.

Revenues for 2001 were $198.2 million, slightly lower than
the previous year due to a decrease of $32 per ounce in the realized price of
gold sold. The reduction in revenues is mainly due to a decrease in the realized
price of gold to $289 per ounce in 2001, compared to $321 per ounce in 2000. The
reduction in gold revenues was partially offset by higher niobium sales
following the successful plant expansion at Niobec in 2000 which represent 10%
of total revenues.

In 2000, revenues from continuing operations totalled $210.6
million, down 8.0% from 1999. The decrease in revenues in 2000 was due to a
lower average realized gold price than in 1999 ($321 compared to $356 per ounce
in 1999) and lower ferroniobium production from the Niobec mine, due to a lower
head grade and a longer than anticipated start-up phase following the completion
of the construction work required to increase the processing capacity. Higher
gold production at the Omai mine, resulting from higher processing throughput,
grade and gold recovery, partially offset the above factors.

The Company had revenues from continuing operations of $229.0
million in 1999, down 9.9% from 1998. The decrease in revenues in 1999 is mainly
due to a lower realized gold price than in 1998 ($356 per ounce compared to $389
per ounce) and a drop in production at the Omai mine resulting from lower
grades. The realized price for gold sales in the fourth quarter was negatively
affected by the terms of the standstill agreement with the banking syndicate.
For 1999 ferroniobium production represented 6% of these same revenues.

As a result of its revenue protection program, the Company
has realized, over the last fifteen years, with the exception of the years 2002
and 2003, a premium over the average market price for its gold production.

---



Page 64

|                                 | 2003 | 2002 | 2001 | 2000 | 1999
|-------------------------------- | ---- | ---- | ---- | ---- | ----
|Average realized price ($/oz)    | 320  | 308  | 289  | 321  | 356 
|Average market price ($/oz)      | 363  | 310  | 271  | 279  | 279 
|Premium discount ($/oz)          | (43) | (2)  | 18   | 42   | 77  
|Premium discount (in millions $) | (23) | (1)  | 11   | 25   | 49  

Earnings

During 2003, the Company realized net earnings of $0.6
million ($0.00 per share) compared to a net loss incurred in 2002 of $8.1
million ($0.06 per share). The decrease in mine operating profit in 2003 was due
to a decline in gold ounces sold resulting from lower gold output at Omai,
higher costs at the Canadian operations arising from the strength of the
Canadian dollar and a production hoist failure at the Doyon mine, and higher
energy costs. All of these factors were nonetheless partially compensated for by
a higher average realized gold price.

During 2002, the Company incurred a net loss of $8.1 million
($0.06 /share), compared to losses of $8.2 million ($0.09/share) and $81.6
million ($1.12/share) in 2001 and 2000, respectively. The improved operating
margin in 2002 is mainly attributable to an increase in revenues from a higher
realized gold price and increased niobium sales, and a decrease in depreciation
charges resulting from lower gold production and increasing reserves. The
Company realized an average gold price of $308 per ounce in 2002.

During 2001, the Company incurred a net loss of $8.2 million
($0.09/share) including a $5.4 million writedown of the Omai mine, a significant
reduction relative to the net loss of $81.6 million ($1.12/share) incurred in
2000 when writedowns of assets totalled $94.3 million, and to the net loss
incurred in 1999 of $373.6 million ($5.29/share) which included a writedown of
$156.5 million.

Lower realized gold price per ounce sold contributed to the
revenue decline in 2001. The gold hedging program allowed the Company to
generate a realized gold price of $289 per ounce in 2001, a premium of $18 per
ounce compared to the average market price.

In 2000, the net loss was $81.6 million, or $1.12 per share,
compared to a net loss of $373.6 million or $5.29 per share in 1999. Results of
2000 include a writedown of mining assets and investments of $94.3 million,
reflecting the reduction in the gold price assumption used by the Company to
calculate its reserves, and a non-hedge derivative gain of $41.8 million
resulting from the mark-to-market evaluation of the Company's derivative
instruments not accounted for as a hedge.

The net loss for 1999 was $373.6 million, or $5.29 per share.
The loss for 1999 is mainly attributable to a writedown of mining assets and
investments of $156.5 million, a restructuring charge of $49.3 million and a
loss from discontinued activities of $140.0 million.

The gold hedging program allowed the Company to generate a realized gold
price of $356 per ounce in 1999, a premium of $77 per ounce compared to the
market price.

---



Page 65

Assets and Liabilities

The Company's total assets amounted to $492.9 million at
December 31, 2003, compared to $279.4 million at the end of 2002. The $213.5
million increase is mainly attributable to the proceeds of the equity issues in
2003, the acquisition of the Camp Caiman project and the development of the Rosebel project, partially funded by bank borrowings.

Property, plant and equipment totalled $349.5 million
compared to $200.2 million in 2002. The 2003 figure includes $122.5 million or
35% for the total value of the Rosebel project ($30.8 million or 15% in 2002)
and $69.9 million or 20% for the total value of projects in the exploration and
development stage ($16.7 million or 8% in 2002). Construction and development of
these projects are subject to the securing of financing for their development,
favorable market conditions for commodities and positive feasibility studies.

Cash and short-term investments increased by $52.4 million
during the year to stand at $95.2 million at December 31, 2003. Working capital
totalled $59.3 million compared to $32.6 million at December 31, 2002.

Long-term debt, including the $16.9 million due within one year, amounted to
$64.2 million at year-end compared to $28.0 million at the beginning of 2003.

The cash position is as follows:

|(in millions of $)              | 2003   | 2002  
|------------------------------- | ------ | ------
|Cash and short-term investments | 95.2   | 42.8  
|Long-term debt                  | (64.2) | (28.0)
|Net cash                        | 31.0   | 14.8  

As a result of warrants issued in 2003, the Company has the
potential to increase its capital base by $57.9 million (Cdn $75.1 million)
through the issuance of 20.2 million shares pursuant to the exercise of warrants
expiring on August 12, 2008. The exercise of warrants is primarily dependent on
the share price at the date the warrants expire.

The Company is restricted under its credit facility with regard to dividends,
and does not anticipate a dividend payment to shareholders in the near term.

Deferred revenue of $24.4 million is related to the Company's
obligation, as of December 31, 2003, to deliver 103,839 ounces of gold under the
Prepaid Agreement. The value of these ounces was recorded at $235 per ounce,
representing the proceeds received under the Prepaid Agreement. The fair value
of the obligation was $41.3 million at the closing gold price of $417 per ounce
on December 31, 2003.

---



Page 66

The estimated fair value of the non-hedge derivative
instruments as at December 31, 2003, increased by $1.4 million from December 31,
2002 to $7.8 million due to an increase in the price of gold following the
expiry of call options.

The $173.6 million increase in shareholders' equity in 2003
resulted from the issuance of shares totalling $158.0 million, offset by the
$3.6 million increase in the deficit caused mainly by the share issue expenses
and the $19.1 million increase in cumulative translation adjustment resulting
from the strengthening of the Canadian dollar since the end of 2002.

The Company's total assets amounted to $279.4 million at
December 31, 2002, compared to $252 million at the end of 2001. Property, plant
and equipment totalled $200.2 million at December 31, 2002 compared to $194.7
million at the end of 2001. The 2002 amount includes $47.5 million for projects
at the exploration and development stage (including $30.8 million for the Rosebel project), compared to $28.3 million in 2001. The construction and
development of these projects are subject to the securing of financing for their
development and favourable market conditions for commodity prices.

Cash and short-term investments increased by $28.2 million
during the year 2002 to stand at $42.8 million at December 31, 2002. This
increase is mainly due to proceeds of equity issues less reimbursements made
pursuant to the 2001 Agreements. Working capital, excluding cash, short-term
investments and the current portion of the long-term financial obligations,
totalled $6.1 million compared to $10.2 million at December 31, 2001. The
long-term debt, including the portion due within one year of $1.1 million
amounts to $28.0 million at year-end compared to $51.1 million at the beginning
of 2002.

Deferred revenue of $36.7 million is related to the Company's
obligation as at December 31, 2002 to deliver 155,758 ounces of gold under the
Prepaid Agreement. The value of these ounces was recorded at $235 per ounce
representing the proceeds received under such prepaid agreement. The estimated
fair value of the obligation is $49.2 million on December 31, 2002.

The estimated mark-to-market value of the non-hedge
derivative instruments decreased by $11.7 million from December 31, 2001 to a
liability of $6.4 million at December 31, 2002, due to an increase in the price
of gold and the elimination of variable volume forward positions, in spite of a
major reduction in the number of non-hedge derivative instruments.

During 2002, the Company reduced its gold hedging commitments
by 600,000 ounces, representing 32% of commitments, through scheduled deliveries
and closure of contracts, buy-back of commitments and restructuring of the
variable volume forward sales into fixed forwards thereby eliminating 207,000
ounces of potential sales.

The $51.1 million increase in shareholders' equity in 2002
resulted from the issuance of shares totalling $61.2 million and the $1.5
million variation in cumulative translation adjustment resulting from the
strengthening of the Canadian dollar compared to its

---



Page 67

value at the end of 2001 partially offset by the $8.1 million
loss for the year. The shareholders also approved the transfer of the
contributed surplus balance to the deficit. Benefiting from improved capital
market conditions for gold companies, Cambior strengthened its balance sheet
through the addition of $57.6 million in permanent capital as a result of the
issuance of 55.3 million common shares in 2002. The additional capital was used
to reduce the 2001 Credit Facility by $27.8 million and added to cash resources
to fund the development of the Rosebel project.

At the beginning of 2001, the Company's main priority was the
reimbursement of the 1999 credit facility and the reduction of its financial
obligations. On January 12, 2001, Cambior concluded the 2001 Agreements with a
syndicate of four banks and the Prepaid Agreement arranged by a major financial
institution. Drawdowns of $118.6 million proceeds from these agreements were
used to reimburse the 1999 credit facility of $115.6 million and a $3.0 million
mortgage loan. During the year, the Company further reduced its debt with the
conversion of Jipangu $10 million mortgage loan into common shares through two
private placements:

- 



The Company also reduced its financial obligations with the
repayment of $13.3 million of the 2001 Credit Facility from the sale proceeds of
the El Pachón project and with the delivery of 25,960 ounces under the Prepaid
Agreement.

The 2001 Credit Facility consisted of a $55.0 million
five-year non-revolving term loan and a $10.0 million revolving loan both due on
December 31, 2005. Such facility bore interest at LIBOR rate plus 3% until
December 31, 2001 and, thereafter, the interest spread varied from 2% to 3%
based on the results of the quarterly loan life protection ratio ("LLPR")
calculation.

The Company also had to comply with various other covenants
and financial ratios, including annual limits as to the net senior debt to
EBITDA ratio, a minimum interest coverage ratio and an LLPR of over 1:1 at all
times (ratio of the net present value of projected cash flows to the senior net
senior debt outstanding). The 2001 Credit Facility was secured by a
first-ranking fixed charge hypothec on the Doyon and Mouska mines and the
Company's 50% interest in the Sleeping Giant and Niobec mines, a specific pledge
on shares of OGML held by Cambior and on shares of the Company's US
subsidiaries, and a general security interest on all other assets of the
Company.

On October 26, 2001, in connection with the Company's acquisition of Golden
Star's 50% interest in the Rosebel property located in Suriname, the Company
concluded an

---

Page 68
agreement with Jipangu for a Cdn $5.8 million private
placement and the exercise by Jipangu on October 31, 2001, of 2.1 million
previously issued common share purchase warrants for Cdn $3.4 million. This
subscription agreement provided for the issue of 4,950,000 units at a price of
Cdn $1.17 per unit, each unit consisting of one common share and one warrant,
each warrant entitling its holder to purchase one additional common share at an
exercise price of $0.83 until November 30, 2002. This private placement closed
on December 12, 2001.
At December 31, 2000, the Company's total assets amounted to
$282.7 million compared to $521.7 million at December 31, 1999. The decrease was
attributable to the sale of the aforementioned assets and a $94.3 million asset writedown taken in 2000. Net property, plant and equipment therefore declined
from $456.7 million at December 31, 1999 to $235.9 million at December 31, 2000.
Cash decreased from $5.9 million at December 31, 1999 to stand at $3.5 million
at December 31, 2000. Working capital, excluding cash and the current portion of
the long-term debt, totalled $10.8 million compared to $12.6 million at December
31, 1999. Lower settlements receivable, production inventories and supplies
inventory, attributable to the sale of the zinc mines, were offset by a decrease
in current liabilities resulting from the payment of the 1999 unpaid portion of
the restructuring expenses and the sale of the zinc mines. Prior to giving
effect to the final phase of the financial restructuring, which transactions
were completed on January 12, 2001, long-term debt totalled $129.5 million at
the end of 2000, including the current portion of $118.5 million.
Deferred gains of $8.1 million at December 31, 2000,
correspond to unamortized realized gains resulting from the conversion of gold
loans into dollar loans in preceding years and gains deferred in 2000 resulting
from the anticipated delivery of gold against contracts with expiry dates
subsequent to December 31, 2000. The $13.7 million decrease in 2000 is mainly
due to the year's depreciation.
On May 5, 2000 Cambior completed a private placement whereby
Jipangu subscribed 5,000,000 Units at a price of $1.00 (approximately Cdn $1.47)
per unit, such placement ultimately resulted in the holding by Jipangu of
5,000,000 common shares of Cambior and 5,000,000 common share purchase warrants.
Each warrant entitled Jipangu to subscribe one additional common share at a
price of Cdn $1.60 per share (approximately $1.01 per share) until October 31,
2001. Some 2,100,000 warrants were exercised on October 31, 2001 and the
remainder expired without being exercised.
At their annual general and special meeting held on May 7,
2002 and June 22, 2000, the Company's shareholders adopted resolutions to apply
amounts available from the contributed surplus account of $23,047,000 in 2002 to
reduce the Company's accumulated deficit, and to eliminate the Company's
accumulated deficit of $338,620,000 as at December 31, 1999.
On December 22, 1999, in accordance with the restructuring of
its gold hedging program, the Company entered into the 1999 credit agreements
whereby the maximum credit available was then limited to the amount due at that
date, being $212 million, and the possibility of conversion of the loan into a
gold loan was eliminated. As well, all of

---



Page 69

the loan obligations matured on December 31, 2000 and no additional loans
were permitted.

Bonds secured by a hypothec for a maximum amount of Cdn $600
million have been pledged as security for obligations under the 1999 credit
agreements, gold hedging and base metals commitments and foreign exchange
contracts. This hypothec consisted of a first-ranking fixed charge on the Doyon,
Mouska, Bouchard-Hébert and Langlois mines, and a charge on all of the other
assets of the Company for a maximum amount of Cdn $700 million.

At December 31, 1999, the Company's total assets amounted to
$522 million compared to $809 million at December 31, 1998. The decrease was
primarily attributable to the $296 million asset writedown (including
discontinued operations assets) taken on December 31, 1999. Cash decreased by
$16 million, mainly in the fourth quarter, due to the restrictions imposed by
the financial creditors on hedging operations and to related financial expenses.

2. For the Quarters of the Last Two Fiscal Years

|                   | (in millions of dollars, except for per share amounts)
|------------------ | ------------------------------------------------------
|                   |                                                       
|                   | 1Q                                                    
|Total revenues     | 45.6                                                  
|Earning (loss)     |                                                       
|before items in    |                                                       
|note 1 below       | (3.9)                                                 
|Net earnings       |                                                       
|(loss)             | (2.3)                                                 
|Basic net earnings |                                                       
|(loss) per share   | (0.01)                                                

(1) Earning (loss) before non-hedge derivative gain (loss), loss on foreign
exchange from reduction in net investment and income and mining taxes.

Revenues totalled $45.6 million in the first quarter of 2003
as compared to $49.5 million for the same quarter last year. Gold sales totalled
128,300 ounces compared to 155,700 ounces sold during the same period in 2002
due to lower production and increase in production inventories. Direct mining
costs for the first quarter of 2003 were $252 per ounce, an increase over the
unit cost of the corresponding quarter in 2002 ($207 per ounce).

The realized gold price was $306 per ounce compared to $289
per ounce in the corresponding quarter of 2002. During the quarter, the gold
market showed a significant improvement in the gold price with an average price
of $352 per ounce compared to $290 per ounce in 2002.

The gold price at March 31, 2003 was $8 per ounce lower than
at December 31, 2002 resulting in a positive adjustment of $1.7 million to the
mark-to-market value for non-hedge derivative instruments which include call
options and the variable volume

---



Page 70

forwards. The non-cash gain was attributable to the valuation
of the derivative instruments included in the revenue protection program of the
Company, which are not considered as hedges under accounting standards. The fair
value of these derivatives was a negative $4.7 million, compared to $6.4 million
at December 31, 2002.

The net loss was $2.3 million (1¢ per share) for the first
quarter of 2003 compared to a net loss of $10.4 million (10 ¢ per share), for
the corresponding quarter in 2002. The loss before the non-hedge derivative gain
(loss), loss on foreign exchange from reduction in net investment and income and
mining taxes was $3.9 million in 2003 compared to earnings of $1.5 million in
2002.

Revenues totalled $43.2 million in the second quarter of 2003
compared to $48.8 million for the same quarter last year. The realized gold
price was $312 per ounce during the second quarter of 2003 compared to $311 per
ounce in 2002.

Loss before the non-hedge derivative gain (loss), loss on
foreign exchange from reduction in net investment and income and mining taxes,
was $3.6 million compared to earnings of $0.8 million for the corresponding
quarter of 2002. The non-hedge derivative gain of $0.8 million for the second
quarter of 2003 was due to the increase in the price of gold from $335 per ounce
on March 31, 2003 to $346 per ounce on June 30, 2003 and to gains resulting from
lease rate swap contracts. Direct mining costs for the second quarter of 2003
were $244 per ounce compared to $233 per ounce in 2002.

Revenues totalled $47.2 million in the third quarter of 2003
compared to $52.6 million for the same quarter last year. Lower revenues in 2003
were mainly attributable to lower gold sales due to lower production from the
Omai mine as a result of the depletion of soft rock reserves.

During the third quarter, the Company realized a price of
$341 per ounce compared to an average market price of $ 315 per ounce. The
average market price of gold was $363 per ounce for the quarter, versus $314 per
ounce in 2002. The lower realized price compared to the market price is due to
Cambior delivering a substantial portion of its production against forward sales
contracts outstanding.

Until August 12, 2003, the Company was required to maintain a
revenue protection program under the terms of its bank loan agreement and
prepaid forward sales agreement. Benefiting from an improved financial position
following the Cdn $100 million financing in early August, Cambior successfully
negotiated the elimination of the gold hedging covenant under its financing
agreements. Accordingly, the Company intends to eliminate its gold sales
commitment, except for the residual 52,000 ounces under the prepaid gold forward
sales agreement, by the end of 2004 through accelerated deliveries and
opportunistic buy-backs.

Due to an increase in the closing price of gold from $346 per
ounce on June 30, 2003 to $388 per ounce on September 30, 2003, the
mark-to-market value of the non-hedge derivatives was adversely affected by $2.4
million during the third quarter of 2003. The non-hedge derivative loss was
partially offset by gains resulting from lease rate swap

---



Page 71

contracts of $1.5 million. Direct mining costs for the third quarter of 2003
were $238 per ounce compared to $216 per ounce in 2002.

Revenues totalled $59.7 million in the fourth quarter of 2003
compared to $53.3 million for the same quarter last year mainly due to higher
sales of gold. Due to an increase in the closing price of gold from $388 per
ounce at the end of September 2003 to $417 per ounce at the end of December
2003, a negative adjustment of $0.4 million to the mark-to-market value of the
non-hedge derivative instruments was necessary. In addition, a loss of $1.0
million related to the exercise of call options sold partially offset by gains
of $0.4 million resulting from lease rate swap contracts.

The net earnings were $4.3 million (2¢ per share) for the
fourth quarter of 2003 compared to net earnings of $1.4 million (1¢ per share),
for the corresponding period in 2002. The net earnings before the non-hedge
derivative gain (loss), loss on foreign exchange from reduction in net
investment and income and mining taxes were $5.3 million for the fourth quarter
of 2003 compared to earnings of $4.0 million in 2002. Direct mining costs for
the fourth quarter of 2003 were $230 per ounce compared to $240 per ounce in
2002.

3. Dividends

The Company has not paid any dividends since 1999. Pursuant
to the 1999 credit agreements, Cambior had committed not to pay dividends or
make other like distributions, and this commitment was maintained under the 2001
and 2003 Agreements; as regards the latter agreement, it has to be maintained
until commercial completion (as defined in the 2003 Credit Facility) of the
Rosebel project. The payment of dividends thereafter is subject, however, to the
obligation to give prior notice thereof to the 2003 Financial Creditors and
meeting certain financial ratios.

Item VI Management's Discussion and Analysis

All information required for this section can be found in the
section entitled "Management's Discussion and Analysis" on pages 13 through 33
of the Company's Annual Report for the year ended December 31, 2003.

Item VII Market for Securities

From the closing of the Company's initial public offering on
August 13, 1986 until December 7, 1999, Cambior's common shares traded on the
Montreal and Toronto stock exchanges under the symbol CBJ. Due to the
restructuring of all Canadian stock exchanges, Cambior's shares no longer trade
on the Montreal Exchange and continue to trade on the Toronto Stock Exchange.
Cambior's common shares also trade on the American Stock Exchange (AMEX) since
June 27, 1994.

---



Page 72

Item VIII Directors and Officers

As of May 12, 2004, the list of Cambior's directors is as follows:

|                           |                                        |          | Number of         
|-------------------------- | -------------------------------------- | -------- | ------------------
|                           |                                        |          | Common Shares     
|                           |                                        |          | Over Which Control
|Name and Municipality of   |                                        | Director | was Exercised as  
|Residence                  | Principal Occupation                   | since    | at March 29, 2004 
|                           |                                        |          |                   
|                           |                                        |          |                   
|ALEXANDER G. BALOGH(1) (2) | Corporate Director                     | 1997     | 16,412            
|Oakville, Ontario          |                                        |          |                   
|                           |                                        |          |                   
|GUY G. DUFRESNE (1)(3)     | President and Chief Executive Officer  | 1995     | 30,000            
|Outremont, Québec          | Québec Cartier Mining Company          |          |                   
|                           | (iron ore extraction and manufacturing |          |                   
|                           | company)                               |          |                   
|                           |                                        |          |                   
|GRAHAM FARQUHARSON         | President                              | 1993     | 52,002            
|(1)(2)                     | Strathcona Mineral Services Limited    |          |                   
|Toronto, Ontario           | (mining consultant and project         |          |                   
|                           | management firm)                       |          |                   
|                           |                                        |          |                   
|MICHEL GAUCHER (2)(3)      | Chairman of the Board                  | 1988     | 41,412            
|Montreal, Québec           | Dynamis Group, Inc.                    |          |                   
|                           | (cogeneration and recycling projects   |          |                   
|                           | construction and management firm)      |          |                   
|                           |                                        |          |                   
|LOUIS P. GIGNAC            | President and Chief Executive Officer  | 1986     | 419,258           
|Brossard, Québec           | Cambior Inc.                           |          |                   
|                           |                                        |          |                   
|JOHN W.W. HICK (3)         | President and Chief Executive Officer  | 2000     | 20,000            
|Toronto, Ontario           | Defiance Mining Corporation            |          |                   
|                           | (mining company)                       |          |                   
|                           |                                        |          |                   
|ROBERT NORMAND(3)          | Corporate Director                     | 2000     | 33,000            
|Rosemère, Québec           |                                        |          |                   
|                           |                                        |          |                   
|KAZUO SHUTO(2)             | Director                               | 2004(4)  | 10,000(5)         
|Tokyo, Japan               | Jipangu Inc.                           |          |                   
|                           | (gold investment private company)      |          |                   

> (1)
>       Member of the Corporate Governance and
>       Human Resources Committee(2)
>       Member of the Safety and Sustainability
>       Committee(3)
>       Member of the Audit Committee(4)
>       Director since his election at the May
>       12, 2004 Annual General Meeting of Shareholders. Mr. Shuto had already
>       been elected as directorof the Company at the May 2003
>       shareholders' meeting.(5)
>       Jipangu Inc. controls an aggregate of
>       23,000,000 Common Shares.





Each director provided the Company with the information regarding the number
of common shares over which he exercises control or direction.

---



Page 73

All of the above-mentioned directors have held their current
positions or another position with their current employer or a company related
thereto during the last five years, with the following exceptions. Mr. Hick has
held the abovementioned occupation since August 2003. Prior thereto, he was
President and Chief Executive Officer of Geomaque Explorations Ltd. since
September 2001. Also, Mr. Hick is the President of John W.W. Hick Consultants
Inc. since 1997.

Each director shall, unless he resigns or his office becomes
vacant for any reason, hold office until the close of the next annual meeting of
shareholders or until his successor is elected or appointed.

The current list of Company officers is as follows:

|                           |                               |               | Number of       
|-------------------------- | ----------------------------- | ------------- | ----------------
|                           |                               |               | Common Shares   
|                           |                               |               | Over Which      
|                           |                               |               | Control was     
|Name and Municipality      |                               |               | Exercised as at 
|of Residence               | Occupation                    | Officer since | March 29th, 2004
|                           |                               |               |                 
|GUY G. DUFRESNE            | Chairman of the Board         | 1998          | 30,000          
|Outremont, Québec          |                               |               |                 
|                           |                               |               |                 
|LOUIS P. GIGNAC            | President and Chief           | 1986          | 419,258         
|Brossard, Québec           | Executive Officer             |               |                 
|                           |                               |               |                 
|RÉJEAN GOURDE              | Senior Vice President,        | 1995          | 79,033          
|Port of Spain, Trinidad WI | Guiana Shield                 |               |                 
|                           |                               |               |                 
|RAYNALD VÉZINA(1)          | Senior Vice President,        | 1988          | 64,592          
|Val-d'Or, Québec           | Canada                        |               |                 
|                           |                               |               |                 
|NORMAND BÉDARD             | Vice President, Human         | 1995          | 11,192          
|Beloeil, Québec            | Resources                     |               |                 
|                           |                               |               |                 
|BRYAN A. COATES            | Vice President, Finance and   | 2001          | 98,041          
|Candiac, Québec            | Chief Financial Officer       |               |                 
|                           |                               |               |                 
|MARC DAGENAIS              | Vice President, Legal Affairs | 1997          | 14,863          
|St. Bruno, Québec          | and Assistant Corporate       |               |                 
|                           | Secretary                     |               |                 
|ROBERT MÉNARD              | Vice President, Projects and  | 1994          | 53,982          
|Boucherville, Québec       | Construction                  |               |                 
|                           |                               |               |                 
|JACQUES PERRON (1)         | Vice President, Canada        | 2004          | ---             
|Saskatoon,                 |                               |               |                 
|Saskatchewan               |                               |               |                 

---

Page 74

|                          |                             |               | Number of       
|------------------------- | --------------------------- | ------------- | ----------------
|                          |                             |               | Common Shares   
|                          |                             |               | Over Which      
|                          |                             |               | Control was     
|Name and Municipality     |                             |               | Exercised as at 
|of Residence              | Occupation                  | Officer since | March 29th, 2004
|SERGE VÉZINA              | Vice President, Industrial  | 2001          | 11,393          
|St. Bruno, Québec         | Engineering and Environment |               |                 
|                          |                             |               |                 
|FRANçOIS VIENS            | Vice President, Business    | 2004          | 46,364          
|Diego Martin, Trinidad WI | Development and Exploration |               |                 
|                          |                             |               |                 
|PIERRE BÉLIVEAU           | Corporate Controller        | 2001          | 11,477          
|Boisbriand, Québec        |                             |               |                 
|                          |                             |               |                 
|LUCIE DESJARDINS          | Corporate Secretary and     | 2002          | 4,375           
|Blainville, Québec        | Senior Legal Counsel,       |               |                 
|                          |                             |               |                 
|ANDRÉ LE BEL              | Assistant Corporate         | 2000          | 6,641           
|Rosemère, Québec          | Secretary and Senior Legal  |               |                 
|                          | Counsel                     |               |                 

(1) Mr. Vézina will retire, effective in July 2004, and be replaced as head
of Canadian activities by Mr. Perron, who will take up office effective in mid
June 2004.

Each officer provided the Company with the information regarding the common
shares over which he or she exercises control or direction.

The position of Chairman of the Board is held by an outside
and unrelated director. All of the above-mentioned officers have held their
current positions or another management position with the Company or one of its
affiliates during the last five years, with the following exceptions. Prior to
July 2001, Mr. Bryan A. Coates was Vice President, Finance and Administration at
Compania Minera Antamina S.A. where he participated in the development of
one of the world's largest base metals mine. Mr. Jacques Perron is, since March
2004 and until the taking up of his office with Cambior Inc., Project Director
with Cameco Corporation. Mr. Perron was General Manager, KeyLake/McArthur River,
at Cameco Corporation from April 2002 to March 2004, Mine General Manager,
Campbell mine, at Placer Dome Inc. from February 2001 to April 2002, General
Manager, Quebec Operations, at Breakwater Resources Ltd. from May 2000 to
February 2001, and prior thereto, he was Manager, Mine Bouchard-Hébert, at
Cambior Inc. since July 1999. Mr. François Viens was Vice President -
Exploration with Ariane Gold Corp., from 2002 to 2003, and Hope Bay Gold
Corporation Inc., from 2000 to 2002. Prior thereto he was General Manager,
Mining Geology with Cambior Inc. Mrs. Lucie Desjardins is a member of the Québec
Bar since 1986. Prior to November 2002, she practiced law with major law firms
in the City of Montreal, Province of Québec, Canada, mainly in the fields of
corporate, commercial and securities law.

As at March 29, 2004, directors and senior officers of Cambior as a group
beneficially own, directly or indirectly, or exercise control or direction over,
approximately

---



Page 75

1,014,037 common shares or 0.42% of all issued and outstanding common shares
of Cambior.

Interest of management and others in material transactions

In 2003, the Company completed a public equity offering by
means of a prospectus and a flow-through share private placement, and in
connection therewith, the Company paid fees aggregating $625,000 to Dundee
Securities Corporation, an investment dealer to which a former director of the
Company, Mr. Jonathan C. Goodman, is related.

Fees in the amount of $23,147 were paid to Strathcona Mineral
Services Limited, a mining consultant and project management firm of which Mr.
Graham Farquharson, a member of the Board of Directors of the Company, is
President, for an independent review of mineral reserves.

Item IX Additional Information

In connection with the filing of this Annual Information Form
("AIF") dated May 17, 2004 Cambior hereby undertakes to provide to any person or
company, upon request to the Corporate Secretary of the Company:

> (a)
>       when the securities of the Company are
>       in the course of a distributionpursuant to a short form prospectus or a
>       preliminary short formprospectus has been filed with respect
>       to a distribution of its securities,(i) one copy of the AIF of the Company, together with one
>   copy of any document, or the pertinent pages of any document, incorporated by
>   reference in the AIF,
>   (ii) one copy of the comparative financial statements of
>   the Company for its most recently completed financial year together with the
>   accompanying report of the auditor and one copy of any interim financial
>   statements of the Company subsequent to the financial statements for its most
>   recently completed financial year,
>   (iii) one copy of the information circular of the Company
>   with respect to its most recent annual meeting of shareholders that involved
>   the election of directors or one copy of any annual filing prepared in lieu of
>   that information circular, as appropriate, 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 the Company
>       may require the payment of a

---



Page 76

> reasonable charge if the request is made by a person who is not a security
> holder of the Company.

Other information, including information on directors' and
officers' remuneration and indebtedness, principal holders of the Company's
securities, options to purchase securities and the interests of insiders in
material transactions, where applicable, is set forth in the information
circular of the Company dated April 1st, 2004, for the annual general meeting of
shareholders held on May 12, 2004 and which involved the election of directors
(the "Circular"). Additional financial information is given in the comparative
financial statements to the end of the last fiscal year presented on pages 35 to
73 of the Company's Annual Report for the year ended December 31, 2003. The
Circular and the Annual Report are available to the public as provided for by
Section 87 of the Securities Act (Québec).



---