---

March 31, 2006

ANNUAL INFORMATION FORM

For the year ended 
December 31, 2005

CAMBIOR INC.



---

Table of Contents
ITEM I
    NAME AND INCORPORATION
    7ITEM II
    INTERCORPORATE RELATIONSHIPS
    7ITEM III
    GENERAL DEVELOPMENT OF THE BUSINESS
    111.
    THREE-YEAR HISTORY
    112.
    SIGNIFICANT ACQUISITIONS
    133.
    RISK FACTORS
    13ITEM IV
    NARRATIVE DESCRIPTION OF THE BUSINESS
    141.
    MINING ACTIVITIES  PROCESS
    142.
    MINING ACTIVITIES  PRODUCTS
    152.1
    Gold
    152.2
    Niobium
    172.3
    Bauxite
    173.
    MINING ACTIVITIES  CANADA
    183.1
    Gold Production
    183.2
    Ferroniobium Production
    244.
    MINING ACTIVITIES  INTERNATIONAL
    254.1
    South America: Guiana Shield
    265.
    EXPLORATION AND BUSINESS
    DEVELOPMENT
    375.1
    General
    375.2
    Business Development
    385.3
    Exploration  Canada
    385.4
    Exploration  Andes
    395.5
    Exploration  French Guiana
    395.6
    Exploration  Guyana
    405.7
    Exploration  Suriname
    405.8
    Outlook
    406.
    MINERAL RESERVES AND RESOURCES
    417.
    OTHER ASPECTS OF THE BUSINESS
    467.1
    Marketing of Production
    467.2
    Government Regulation
    497.3
    Environment
    507.4
    Community Relations
    527.5
    Taxes
    527.6
    Mining Development and Construction
    547.7
    Intellectual Property
    547.8
    Competition
    547.9
    Sale of Production
    557.10
    Employee Relations
    568.
    DIVIDENDS
    579.
    LITIGATION
    57ITEM V
    DESCRIPTION OF CAPITAL STRUCTURE
    57ITEM VI
    MARKET FOR SECURITIES
    58ITEM VII
    DIRECTORS AND OFFICERS
    611.
    DIRECTORS
    612.
    EXECUTIVE OFFICERS
    623.
    SHAREHOLDINGS OF DIRECTORS AND
    OFFICERS
    644.
    CORPORATE CEASE TRADE ORDERS OR
    BANKRUPTCIES
    64

---



|                                         |                                                                                |   
|---------------------------------------- | ------------------------------------------------------------------------------ | --
|ITEM VIII                                | AUDIT COMMITTEE                                                                | 65
|1.                                       | COMPOSITION AND RELEVANT EDUCATION AND
    EXPERIENCE OF MEMBERS               | 65
|2.                                       | MANDATE OF THE AUDIT COMMITTEE                                                 | 67
|3.                                       | POLICIES AND PROCEDURES FOR THE ENGAGEMENT OF
    AUDIT AND NON-AUDIT SERVICES | 67
|4.                                       | EXTERNAL AUDITOR SERVICE FEES                                                  | 68
|ITEM IX                                  | INTEREST OF MANAGEMENT AND OTHERS IN
    MATERIAL TRANSACTIONS                 | 69
|ITEM X                                   | TRANSFER AGENT AND REGISTRAR                                                   | 69
|ITEM XI                                  | MATERIAL CONTRACTS                                                             | 69
|ITEM XII                                 | INTERESTS OF EXPERTS                                                           | 69
|1.                                       | NAMES OF EXPERTS                                                               | 69
|2.                                       | INTERESTS OF EXPERTS                                                           | 70
|ITEM XIII                                | ADDITIONAL INFORMATION                                                         | 70
|                                         |                                                                                |   
|SCHEDULE A  Audit Committee
    Charter |                                                                               

---



List of Maps and Tables

|                                        |   
|--------------------------------------- | --
|Cambior's Corporate Structure           | 9 
|Cambior's Mines and Projects - Location | 10



Explanatory Notes: 1.All dollar amounts presented in this Annual
    Information Form are expressed 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 of Cambior Inc. carry on business in
    Canada and elsewhere. In this Annual Information Form, the words "Company"
    and "Cambior" are used interchangeably and in each case refer, as the
    context may require, to all or any of Cambior Inc. and its subsidiaries.
    4.Unless otherwise
    specified, reference herein to the 2005 Annual Report are references to
    Cambior's Annual Report for the year ended December 31, 2005. All such
    references are incorporated herein.
    5.The information in
    this Annual Information Form is complemented by the Company's Audited
    Consolidated Annual Financial Statements for the year ended December 31,
    2005 and the management's discussion and analysis thereon.
    6. The 2005 Annual Report, the Company's Annual
    Financial Statements for the year ended December 31, 2005 and the
    management's discussion and analysis thereon, are available on SEDAR at
    www.sedar.comand the Company's website atwww.cambior.com.


Cautionary Note to US Investors

The United States Securities and Exchange
Commission (the "SEC") allows mining companies, in their filings with the SEC,
to disclose only those mineral deposits they can economically and legally
extract or produce. The Company uses 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 6 of Item IV
hereof.

---

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 which are
reporting and commenting results as well as statements of historical fact set
forth herein, are forward-looking statements that may involve a number of known
and unknown risks, uncertainties and other factors; forward-looking statements
include, without limitation, statements regarding strategic plans, future
production, sales targets (including market share evolution as regards bauxite
and niobium), cost estimates and anticipated financial results; potential
mineralization and evaluation and evolution of mineral reserves and resources (Rosebel's
potential for further increases in particular); expected exploration results,
future work programs and objectives, evolution of development projects and
exploration budgets and targets, particularly as regards the Westwood and La
Arena projects; construction and production targets and timetables, as well as
anticipated timing of grant of permits and governmental incentives, particularly
as regards the Camp Caiman project; expected continuity of a favorable gold
market and planned reduction of hedging and off-balance sheet transactions;
contractual commitments, litigation matters and measures of mitigating financial
and operational risks; anticipated liabilities regarding site closure and
employee benefits; continuous availability of required manpower; possible
exercise of outstanding warrants and, more generally, continuous access to
capital markets; and Cambior's global outlook and that of each of its mines.
These statements relate to analysis and other information that are based on
forecasts of future results, estimates of amounts not yet determinable and
assumptions of management.

Statements concerning actual mineral reserves
and resources estimates are also deemed to constitute forward-looking statements
to the extent that they involve estimates of the mineralization that will be
encountered if the relevant project or property is developed, and in the case of
mineral reserves, such statements reflect the conclusion based on certain
assumptions that the mineral deposit can be economically exploited.

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.



---

Page 2

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 as to estimation of mineral reserves and resources; competition
for qualified manpower and mining properties with
Canadian and foreign companies that may have substantially greater financial and
other resources; requirement of additional financing; risk related to hedging
and non-hedge derivative instruments; fluctuations in the market price of gold,
niobium, bauxite and fuel and in foreign currencies relative to the Canadian
currency; labour strikes; community relations; risks involved with investments
in emerging countries including stability of legislation and policy, unilateral
revocation of mining or property rights and political instability; obtaining
permits; federal, state and provincial legislation governing the acquisition and
ownership of mining and property rights; mining duties; income taxes; labor,
health, safety standards; exports and other related matters. Although the
Company has attempted to identify important factors that could cause actual
results to differ materially from expectations, intentions, estimates or
forecasts, there may be other factors that cause results to differ from what is
anticipated, estimated or intended.

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.Readers are
cautioned not to place undue reliance on forward-looking statements.

---

Page 3

Glossary

Mining Terms

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

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 development: development of underground infrastructure to be
used over an extended period. Costs related to this activity are capitalized.

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.

ISO 9001: a standard established by the International Organization for
Standardization setting forth the guidelines for a quality management system.

---

Page 4
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 6 of Item
IV.

Mineral resources:mineral resources are divided into three categories; measured, indicated and
inferred, which are more particularly defined herein under section 6 of Item
IV.

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.

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

2001 Financial Creditors:means the
banking syndicate party to the 2001 Agreements.

2001 Agreements: means the amended and restated
restructuring agreement, the second amended and restated $65 million credit
facility agreement and the $55 million prepaid gold forward sale agreement,
simultaneously closed on January 12, 2001, with the 2001 Financial Creditors.

2003 Credit Facility: means the amended and restated $65
million credit facility agreement entered into with a syndicate of international
financial institutions on February 7, 2003.

---

Page 5
2003 Financial Creditors: means the syndicate of
international financial institutions party to the 2003 Credit Facility,
including the counter party to the Prepaid Gold Forward Sales Agreement.
AMEX: American Stock Exchange.
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.
Margin: money or securities deposited with a broker as security against
possible negative price fluctuations.
Mine operating cost: the average cost of producing an
ounce of gold. Includes deferred stripping costs, refining and transportation
costs and by-product credits, but excluding royalties, depreciation and
restoration.
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.

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

---

Page 6
Conversion Table

|                         |   |                         
|------------------------ | - | ------------------------
|METRIC SYSTEM            |   | IMPERIAL SYSTEM         
|                         |   |                         
|1 metre (m)              | = | 3.2808 feet (ft)        
|                         |   |                         
|1 kilometre (km)         | = | 0.6214 mile (mi)        
|                         |   |                         
|1 square kilometre (km2) | = | 0.3861 square mile (mi2)
|                         |   |                         
|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 |  
|             |   |                               
|             |   |                               
|Ag           | = | silver                        
|             |   |                               
|Au           | = | gold                          
|             |   |                               
|Cu           | = | copper                        
|             |   |                               
|FeNb         | = | ferroniobium                  
|             |   |                               
|Nb           | = | niobium                       
|             |   |                               
|Nb2O5        | = | niobium pentoxide (pyrochlore)
|             |   |                               
|SiO2         | = | Silica                        
|             |   |                               

---

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. currently owns all of its
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 9. 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.

Rosebel Gold Mines N.V. ("RGM"), a 95%-owned1
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
4.1.1 of Item IV below. RGM's registered office is at Heerenstraat NR8,
Paramaribo, P.O. Box 2973, Suriname.

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 gold
mine, and the gold production of which was terminated as of September 2005. More detailed information on this subsidiary and the Omai gold mine is given in
subsection 4.1.2 of Item IV below.OGML's registered office is at 176-D,
Middle Street, Cummingsburg, P.O. Box 12249, Georgetown, Guyana.

__________________________

1

---

Page 8

OMAI Bauxite Mining Inc. ("OBMI"), a 70%-owned
subsidiary of Cambior, was incorporated on June 25, 2004 pursuant to the Companies Act 1991(Guyana). OBMI holds the rights and assets comprising the
Omai bauxite mine complex and manages operations thereat. More detailed
information on this subsidiary and the Omai bauxite mine is given in subsection
4.1.3 of Item IV below. OBMI's registered office is at 176-D, Middle Street,
Cummingsburg, P.O. Box 12249, Georgetown, Guyana.

CBJ Caiman S.A.S. ("CBJ Caiman") is an
indirect wholly-owned subsidiary of Cambior and the sole holder of the mineral
rights and related assets comprising the Camp Caiman project in French Guiana.
Originally, this project was owned by Asarco Guyane Française S.A.R.L., which
became an indirect wholly-owned subsidiary of Cambior in December 2003. This
entity was thereafter transformed into a simplified joint stock Company and
renamed to its actual name on January 1, 2005. More detailed information on
the Camp Caiman project is given in subsection 4.1.4 of Item IV below.CBJ Caiman's registered office is at PK 6, 5 Route de Montjoly, Chemin
Poupon, 97354 Rémire-Montjoly, French Guiana.

Cambior also holds interests and options to
earn direct or indirect interests in several exploration and development
properties located in Peru, the most important project being known as La Arena.
More detailed information on Peruvian activities is given in section 5.4 of
Item IV below. Cambior holds its Peruvian interests primarily through its
wholly-owned subsidiary, Sociedad Minera Cambior Peru S.A., which has its
registered office at Ave. José Casimiro Ulloa No. 312, Urb. San Antonio,
Miraflores, Lima 18, Peru.

---

Page 9

Cambior's Corporate Structure



(1)

(2)

(3) 100%
since July 2, 2004. Prior to that, the Company held a 50% interest in the mine
on a joint venture basis.

(4) RGM is
owned 5% by the Republic of Suriname.

(5) OGML is
owned 5% by the Republic of Guyana.

(6) The
Omai gold mine ceased its operations in September 2005. The Company is however
evaluating the potential of an underground operation on the depth extension of
the Fennell deposit.

(7) OBMI is
owned 30% by the Republic of Guyana.

(8) CBJ
Caiman is owned by Cambior through wholly-owned subsidiaries.

---

Page 10

Cambior's Mines and Principal Projects  Location



(1)

---

Page 11Item III     General Development of the Business

1.Three-Year History

The Company is principally an international
gold producer with operations, development projects and exploration activities
throughout the Americas. To a lesser extent, the Company is also involved in
mining and exploring for other metals and minerals from deposits and properties
also located in the Americas.

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

On August 1, 2003, Cambior began assuming, on
a contractual basis, the management of the bauxite mine operations and marketing
activities of State-owned Linden Mining Enterprise, Limited ("Linmine"). Cambior
had performed contract mining for Linmine since 2000, at its deposits located in
and around the town of Linden, approximately 100 kilometres south of Georgetown.
These mining and management contracts terminated in December 2004, as a result
of the privatization of Linmine's bauxite mining and processing operations, as
described below.

On August 12, 2003, the Company completed a
public equity offering of 40 million units for gross proceeds to the Company of
$72.2 million (C $100 million). Each unit consisted of one common share and
one-half of one Series C common share purchase warrant. Each whole warrant is
exercisable at a price of C $3.75 until August 12, 2008.

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.

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 November 29, 2003, the Company acquired
Ariane Gold Corp. ("Ariane") through a merger transaction, thereby acquiring
Ariane's interest in the Camp Caiman gold project located in French Guiana. Additional information on this transaction and this project is provided herein
under subsection 4.1.4 of Item IV.

During the year 2003, the Company issued 24,754,000 Common
Shares pursuant to the exercise of previously issued warrants for aggregate
proceeds of $44 million.

On February 11, 2004, the Rosebel mine in
Suriname achieved commercial production, as scheduled. In accordance with the
Mineral Agreement between the Company and the Government of Suriname, the latter
then received 5% of the participating capital stock of RGM, the subsidiary
operating the mine, and 2,000,000 non-participating shares redeemable at $2,000,000. During the year 2004, the
Rosebel mine surpassed its 2004 budgeted gold production.

---

Page 12

On July 2, 2004, after having owned 50% of the
Niobec mine since 1986, the Company acquired Sequoia Minerals Inc. ("Sequoia"),
then owner of the other 50% interest, through a merger transaction.

On September 3, 2004, the Company announced
its agreement with a group of private shareholders to acquire a majority
interest in the private Peruvian mining company Compañia Minera Poderosa S.A. ("Poderosa").
This transaction was not completed due to title issues.

On October 14, 2004, the Company completed a
public offering of 29.3 million units for gross proceeds to the Company of C
$110 million. Each unit consisted of one common share and one-half of one Series
D common share purchase warrant. Each whole warrant is exercisable at a price of
C $4.35 prior to October 16, 2006.

On December 8, 2004, Cambior closed a
transaction with the Government of Guyana for the privatization of certain
assets of State-owned Linmine. Additional information on this privatization
is provided herein under subsection 4.1.3 of Item IV.

During the fourth quarter of 2004, the French Government
granted to Cambior a 30 km2 mining concession for the Camp Caiman
project for a period of 25 years.

During 2004, the Company made major progress
towards its objective of becoming hedge-free for its gold operations, by
reducing its hedging commitments by 73% or 541,000 ounces to a residual amount
of 205,000 ounces committed at year-end.

Pursuing its strategy of concentrating on its
current assets for future growth and its objective of increasing its reserve
base, the Company purchased, effective as of April 30, 2005, from Aurizon Mines
Ltd. ("Aurizon"), the residual 50% interest in the mine for a cash consideration
of $4.1 million and thus became its exclusive owner.

In line with its objective of focusing on the
development of gold properties, the Company announced, on April 19, 2005, that
its Board of Directors had approved the divestiture of the Carlota Copper
project ("Carlota") located in the Miami  Globe area of Arizona.

On August 8, 2005, the Company announced the
completion of a feasibility study for the Camp Caiman open pit gold project
located in French Guiana, with estimated gold contained of 1.1 million ounces.
Additional information on the Camp Caiman project and its feasibility study
is provided herein under subsection 4.1.4 of Item IV.

On October 5, 2005 the Company announced its
agreement with Quadra Mining Ltd. ("Quadra") to sell Carlota for an estimated
consideration of $37.5 million as follows: (i) $15 million in cash at closing
and (ii) eight quarterly payments of 6,250 ounces of gold each, commencing on
March 31, 2006, representing an aggregate cash equivalent of $22.5 million based
on a reference gold price of $450 per ounce. Pursuant to the aforesaid
agreement, the four last quarterly payments may be differed, albeit not later than June 30, 2010, if Quadra is unable to
commence construction by the first quarter of 2007. Also, following an
agreed-upon drilling program of approximately 3,000 metres, the Company may
receive up to an additional $4.0 million in cash based on the estimated copper
contained in defined areas. The transaction closed on December 21, 2005.

---

Page 13

In October 2005, Cambior concluded an
amendment to its 2003 Credit Facility to increase the revolving credit facility
from $10,000,000 to $15,000,000, and to change the basis for calculating
interest rates and fees. The 2003 Credit Facility is secured by the Company's
interests in the Doyon, Mouska, Omai gold, Sleeping Giant, Niobec and Rosebel
mines, and is subject to various covenants, financial ratios and prepayments in
the event of future financings.

On November 3, 2005, Cambior's Board of
Directors adopted a Shareholders' Rights Plan (the "Plan") to encourage the fair
treatment of shareholders should a take-over bid be made for Cambior. Although
the Plan became effective on November 4, 2005, shareholders will vote on a
resolution to ratify its adoption at the Annual and Special Meeting of
Shareholders scheduled for May 3, 2006. The Plan is intended to discourage
coercive or unfair take-over bids and gives the Board of Directors time to
pursue alternatives to maximize shareholder value, if appropriate, in the event
of an unsolicited takeover bid. If the resolution is not approved by a majority
of votes cast by shareholders, the Plan and the rights issued under the Plan
will terminate and cease to be effective. Additional information on the Plan
is provided herein under Item V.

During 2005, the Company reduced its hedging
commitments by 20% or 40,000 ounces to a residual amount of 165,000 ounces of
gold committed at year-end. In addition, as part of the consideration paid by
Quadra for the sale of Carlota, Cambior gained exposure to an additional 50,000
ounces to be received over the next 24 months.

Further information regarding the development
of the Company over the past three fiscal years can be found on pages 4 to 37 of
the Company's 2005 Annual Report, on pages 12 to 32 of the Company's 2004 Annual
Report and on pages 2 to 27 of the Company's 2003 Annual Report, which are
available on SEDAR at www.sedar.com and incorporated herein by reference.

2.Significant Acquisitions

During the year 2005, the Company did not complete any
significant acquisition or disposal within the meaning of National Instrument
51-102.

3.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. For information
on the Company's major risk factors, reference is made to the discussion on
Risks and Uncertainties on pages 34 to 36 of the Company's 2005 Annual Report.
READERS SHOULD CAREFULLY CONSIDER THE RISK FACTORS SET FORTH THEREIN.

---

Page 14
Item 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 industry 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 multi-stage
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
stimuli 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

---

Page 15

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

__________________

1

---

Page 16

From ancient times, gold has been known and
prized for its beauty, lustre, 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 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.



---

Page 17
The following table outlines the gold production from
Cambior's operating units.

|                    | 2005    | 2004      
|------------------- | ------- | ----------
|Cambior's share     |         | % of total
|                    | Ounces  | production
|                    |         |           
|Rosebel mine (1)    | 341,400 | 53.4      
|Omai gold mine      | 99,500  | 15.6      
|Doyon Division (2)  | 157,500 | 24.7      
|Sleeping Giant mine |         |           
|(100%)(3)           | 40,000  | 6.3       
|Total               | 638,400 | 100.0     

> (1)

(2) Comprised of the
  Doyon and Mouska mines

(3)

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 used in
pipelines, the automobile industry and structures, 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.

2.3 Bauxite

Bauxite is a naturally occurring,
heterogeneous material composed primarily of one or more aluminum hydroxide
minerals, plus various mixtures of silica, iron oxide, titania, aluminosilicate,
and other impurities in minor or trace amounts.

The principal aluminum hydroxide minerals
found in varying proportions with bauxites are gibbsite and the polymorphs
boehmite and diaspore. Gibbsite is the mineral component of OBMI's East
Montgomery deposits. Bauxites are typically classified according to their
intended commercial application: abrasive, cement, chemical, metallurgical,
refractory, etc. The bulk of world bauxite production (approximately 80%) is
used as feed for the manufacture of alumina.

OBMI markets three non-metallurgical products:
calcined bauxite named Refractory "A" Grade Super Calcined (RASC), a chemical
grade bauxite (CGB) and a cement grade bauxite (CeGB), the last two being non-calcined
products.

---

Page 18

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 2-year termfrom 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 20-year term and are
renewable up to three times, each for a 10-year duration.

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 and electric power supply
sources.

3.1 Gold Production

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

> 3.1.1 Doyon Division

The Doyon Division is comprised of Cambior's
wholly-owned Doyon and Mouska underground mines, located approximately 40
kilometres east of Rouyn-Noranda, in the Province of Québec, Canada. The Doyon
Division covers an area of approximately 2,870 hectares and is situated on the
prolific Cadillac-Bousquet gold belt in the Abitibi region.

i) Doyon Mine

Effective January 1, 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 revenues from the Doyon mine, under which it
receives an annual payment equal to 24.75% of (i) the surplus, if any, of the
average market price (as defined in the 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 2.6 million ounces of gold as from January 1, 1998, up to a
maximum cumulative payment to Barrick of $30 million. In 2005, Barrick received
$1.7 million ($1.2 million in 2004), and 1.3 million ounces remains subject to
Barrick's participation right; no payment was made from 1998 to 2003.

---

Page 19

The Doyon mine was discovered in 1974 by
Soquem Inc. Commercial open-pit mining began in March 1980, and underground
mining in 1985. The transition to full-scale underground mining was completed on
March 31, 1989. The Doyon mine currently consists of 116 claims and a mining
lease that was renewed for a 10-year period until July 2, 2010. The Doyon mine
has been a significant producer of gold for the past 26 years. In January 2006,
it produced its 5,000,000th ounce of gold.

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. A paste backfill plant was installed at the Doyon site
and commissioned at the end of September 1998.

The Doyon mine deposit is divided in 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.

ii) Mouska Mine

The Mouska property is adjacent to the western
border of the Doyon property. Cambior acquired the Mouska property in 1986, in
connection with the privatization of most of Soquem Inc.'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 0.2% royalty on gold produced, payable to the estate of an
individual. The Company paid $0.5 million in 2005 ($0.1 million in 2004 and $0.5
million in 2003) in respect of these two royalties.

Cambior owns this 876-hectare property through
22 claims and two mining leases, one expiring in 2011 and the second in 2018.
The principal facilities include a headframe, a service building housing
electrical and mechanical shops and an administrative office. All of the ore
mined is processed at the Doyon milling facilities. Access to underground is via
a main shaft of 485 metres and an internal shaft of 555 metres, which was
deepened by 215 metres in 2004. The internal shaft (winze) is located 1.2 km
from the main shaft.

Underground exploration at Mouska began in October 1987,
pre-production development followed in May 1990, and commercial production
commenced in July 1991. Production was suspended at the Mouska mine from
December 2003 to October 2004 to allow for the deepening of the internal shaft
to gain access to lower levels.

---

Page 20

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.

iii) Operating information

In 2005, capital expenditures were $8.6
million and consisted mainly of underground infrastructure and development.
During 2005, 59,520 metres of development drilling and 24,013 metres of
definition drilling were conducted at the Doyon-Mouska properties from
underground drifts.

All drill collars are surveyed and downhole
surveys conducted in exploration holes. The logging and sampling of drill holes
is done in accordance with industry standards. Exploration core is split and
mineralized zones sampled on 0.5 to 1.5 metres lengths. In definition drilling
core is usually whole sampled. In unmineralized areas, sample lengths may be up
to 3.0 metres. Most core is assayed at the Doyon Division laboratory. Samples
from mineralized areas are assayed by fire assay method while unmineralized
samples are assayed by atomic absorption ("A.A."). All values greater than 3.0 g
Au/t with the A.A. method are redone by fire assay.

The quality assurance procedures and assay
protocols followed at the Doyon Division mines conform to industry-accepted
quality control methods. The quality-assurance and quality control ("QA-QC")
program at the Doyon Division includes assaying of renumbered pulps and rejects,
addition of standards and blanks by geology department and pulps and rejects are
routinely submitted to a commercial laboratory for external check assays.

As at December 31, 2005, proven and probable
reserves at the Doyon Division stand at 2.8 million tonnes grading 6.4 g Au/t,
representing 573,000 ounces of gold contained, being a decrease of 34.1%
compared to 2004. More detailed information regarding mineral reserves and
resources is provided below in section 6 of Item IV. The Company reviewed
the carrying value of the Doyon Division reserve as at December 31, 2005 based
on its long-term plan and related ore reserves. Mineral reserves were reduced in
2004 and 2005 by approximately 245,500 ounces and 187,000 ounces, respectively,
due to geological continuity issues in some areas, higher unit mining cost and
allocation for permanent pillars.

All ore extracted from the Doyon Division is
currently processed on site. In 2005, the Doyon Division produced 157,500 ounces
of gold, at a mine operating cost of $358 per ounce, an increase in production
of 7.5% in comparison to 2004 due to the full year of production at the Mouska
mine following the completion of the shaft deepening project and operational
improvements following the reorganization of the Doyon mine in late 2004 further to ground control issues. Mine
operating costs were affected in 2005 by inflationary pressures driven by energy
costs and the strengthening of the Canadian dollar against the US dollar.

---

Page 21

The following table indicates operating information of the
Doyon Division for the last two years.

|DOYON DIVISION              | 2005    | 2004     
|--------------------------- | ------- | ---------
|Ounces (Au)                 | 157,500 | 146,500  
|Tonnage milled (tonnes)     | 806,000 | 1,172,000
|Grade milled (g Au/t)       | 6.3     | 4.1      
|Recovery (%)                | 96      | 96       
|Mine operating costs ($/oz) | 358     | 374      

Cambior believes that its land holdings in the
prolific Cadillac gold belt have the potential for further discoveries as
demonstrated by the results on the Westwood orebody. In 2004 the Company
initiated the excavation of an exploration drift to gain access to the Westwood
orebody discovered in 2003. The Company intends to fully pursue said work.

The 2006 mining plan for the Doyon Division
anticipates the extraction of 821,000 tonnes of ore to be milled at an average
grade of 5.9 g Au/t for 150,000 ounces of gold production at an estimated mine
operating cost of $381 per ounce.

Capital expenditures for 2006 are estimated at
$8.5 million, mainly for underground infrastructure and exploration in the
Mouska area. The 2006 exploration program (surface and underground) and mineral
reserve development program will include more than 47,870 metres of diamond
drilling. Drilling will focus on the search for new mineral reserves and
resources at depth and on the extensions of known ore zones.

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

> 3.1.2 Sleeping Giant Mine

Prior to April 30, 2005, the property was held
equally by Cambior and Aurizon pursuant to a joint venture agreement dated
January 29, 1991. Cambior acted as operator under the guidance of a management
committee consisting of two representatives of each party. During the late
1980s, Aurizon was the sole owner and operator of the mine, but a temporary
reserve depletion in 1991 entailed 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 and related assets. Commercial gold production resumed on July 15,
1993. Effective April 30, 2005, Cambior acquired the remaining 50% undivided
interest in the property and assets from Aurizon for a cash purchase price of
$4.1 million.

---

Page 22

The Sleeping Giant property covers an area of
2,908 hectares comprised of 71 claims and three mining leases, one expiring in
2008 and the others in 2018, and is located 80 kilometres north of Amos, Québec.
The property is subject to two royalties: the first being a 2% royalty on gross
operating earnings (as defined in the relevant agreement) held by Central Asia
Goldfields Corporation; and the second being a 15% net profits interest (as
defined in the relevant agreement) held by Mattagami Lake Exploration Ltd. on
the greater part of the mine property. No payment has been required pursuant to
these royalties thusfar, and none is expected in 2006. 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 (100 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.

During the year, the Company's aggregate
capital expenditures totaled $4.0 million mainly for underground exploration and
deferred development. In 2005, 45,559 metres of diamond drilling were completed
at the mine. From this total, exploration and reserve development drilling
represented 35,293 metres while definition drilling totaled 10,266 metres. All
drilling is from underground drifts. Reserve development drilling (31,063 metres)
mainly established reserves in the lower extension of zones 8, 18, 30 (levels
855-975).

All drill collars are surveyed and downhole
surveys conducted in exploration holes. The logging and sampling of drill holes
is done in accordance with industry standards. Exploration core (BQ size, 35,1
mm) is split and mineralized zones sampled on 0.5 to 1.0 metres lengths. In
definition drilling, core (ATW size, 30.2 mm) is usually whole sampled. In
unmineralized areas, sample lengths are usually 1.0 metre. All assays are
performed on site at the Sleeping Giant mine laboratory. All samples are assayed
by fire assay method.

The quality assurance procedures and assay
protocols followed at the Sleeping Giant mine conform to industry-accepted
quality control methods. The QA-QC program at Sleeping Giant includes assaying
of re-numbered pulps and rejects, addition of standards and blanks by geology
department and pulps and rejects are routinely submitted to a commercial
laboratory for external check assays.

As of December 31, 2005, mineral reserves of
the Sleeping Giant mine stand at 376,000 tonnes at 11.4 g Au/t, representing
137,800 ounces of gold contained. More detailed information regarding mineral
reserves and resources is provided below in section 6 of Item IV.

---

Page 23

Cambior's share of gold production from the
Sleeping Giant mine amounted to 40,000 ounces of gold in 2005 at a mine
operating cost of $449 per ounce compared to 33,500 ounces at a mine operating
cost of $291 per ounce in 2004. The increase in unit operating cost is mainly
related to the large quantities of development, the strengthening of the
Canadian dollar against the US dollar, the increase in the cost of oil and other
consumables, and productivity shortfall resulting from manpower issues.
Production was seriously impaired from May to September due to the loss of
experienced miners as the mine is a labour intensive operation. The Company
faces challenges in recruiting qualified manpower due to travelling distances
from the surrounding towns and competition from other mining operations and
projects. Facing these challenges, the Company has instituted training programs
for inexperienced miners. Following the implementation thereof, gold production
increased 42% in the fourth quarter to 13,900 ounces from 9,800 in the third
quarter. Along with an increase in the grade milled, the higher production
lowered the mine operating cost in the last quarter of 2005.

The following table indicates operating information for the
Sleeping Giant mine for the last two years.

|SLEEPING GIANT MINE         |         |        
|--------------------------- | ------- | -------
|                            | 2005(1) | 2004(2)
|Ounces (Au)                 | 40,000  | 33,500 
|Tonnage milled (tonnes)     | 121,000 | 96,500 
|Grade milled (g Au/t)       | 10.6    | 11.1   
|Recovery (%)                | 97      | 97     
|Mine operating costs ($/oz) | 449     | 291    

> (1) Aggregate of Cambior's 50%
>   interest from January 1st until April 30, 2005 and its 100% holding
>   thereafter.
>   (2) Cambior's 50% interest.

The 2006 production is estimated at 44,000
ounces of gold at an estimated mine operating cost of $408 per ounce. Operating
costs are expected to decrease as a result of higher productivity. A 18,700
metre reserve development drilling program will continue in 2006 in order to
extend the reserves and resources at depth and laterally. Capital expenditures
for 2006 is estimated at $2.0 million mainly for 867 metres of deferred
development and 18,700 metres of diamond drilling for reserve development.

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

---

Page 24

3.2 Ferroniobium Production

> 3.2.1 Niobec Mine

The Niobec mine is the only North American source of
pyrochlore (the primary niobium ore) in operation and one of three major
producers of niobium. The Niobec mine first produces a niobium pentoxide (Nb2O5)
concentrate which is thereafter converted on site into standard grade
ferroniobium (FeNb).

Prior to July 2, 2004, Cambior held a 50%
interest in the mine on a joint venture basis with Sequoia, which held the other
50%. Under the joint venture arrangement, Cambior managed the marketing and
sales of all commercial production from the mine and Sequoia managed mining
operations, each at cost plus a nominal fee under the direction of a management
committee. Mazarin Inc., Sequoia's predecessor in interest, had purchased its
50% interest in the Niobec mine from Teck Corporation (now Teck Cominco Limited)
on March 2001. On July 2, 2004, Cambior acquired Sequoia through a merger
transaction, for a total consideration of $48.6 million, thereby consolidating
the ownership of the Niobec mine.

Commercial production of concentrates at the
Niobec mine began in 1976 and ferroniobium production followed from December
1994 on. The Niobec mine has had an excellent history of mineral reserve renewal
over 30 years of operation. It is currently producing approximately 10% of world
consumption.

The mine is located on a 2,455-hectare
property, comprised of two mining leases which have been renewed until 2015 and
61 claims, 15 kilometres northwest of Chicoutimi, in Simard Township, Québec.
The facilities include a headframe, a pyrochlore-to-niobium pentoxide (Nb2O5)
concentrator, a concentrate-to-ferroniobium converter and ancillary surface
installations.

The initial tailing ponds closed in 2005 and
the second started operating in 2003. Both ponds are located close to
infrastructures and cover 1.5 square kilometres. An ore stockpile is also
located on the plant site covering between 15 and 25 operation days. The mining
method used is blasthole stoping.

Niobec maintains the ISO 9001 and ISO 14001
certifications for its production processes and its Environmental Management
System, since December 1995 and June 2002, respectively.

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 two niobium-bearing minerals are
dispersed in the rock finely grained and rarely visible to the naked eye.
Diamond drilling is the only way to evaluate the economic content of the
mineralized zones. The average grade is 0.67% Nb2O5. The
mineral reserves are located in the three first mining blocks between 90 and 440
metres in depth, and the mineral resources mainly in the fourth and fifth
blocks, below the 440 metres level. Mine workings are concentrated between levels 90 and 440 metres,
operating simultaneously on three mining blocks.

---

Page 25

An amount of $6.1 million was invested at the
Niobec mine in 2005 for an expansion and optimization program aimed at
increasing the mine's capacity by 20%. Additional amounts were allocated to
sustaining capital and underground infrastructure development. In 2005, 8,874
metres of diamond drilling were completed at the Niobec mine. All drilling is
from underground drifts.

All drill collars are surveyed and logging and
sampling of drill holes is done in accordance with industry standards.
Mineralization is well disseminated and a majority of holes are sampled
continuously from top to bottom of the hole, and samples are normally 3 metres
in length. All assays are performed on site at the Niobec mine laboratory and
are assayed by fluorescence-X. Procedures and quality control at the laboratory
are integrated with the mine's ISO system. External assay checks are performed
every year even if not at the same level than for gold mines. Grade is very
regular at Niobec and the results from external labs confirm that the assays are
highly reproducible.

In 2005, the Company did not perform any
reserve development drilling campaign at the mine and, as a result, year-end
mineral reserves decreased to 21.5 million tonnes at 0.67% Nb2O5
from 24.3 million tonnes at 0.67% Nb2O5 the previous year,
for approximately 13 remaining years of production at the current mining rate.
As at December 31, 2005, the milling capacity of the Niobec mine is 4,200 tonnes
per day. It is expected to increase to 4,500 tonnes per day starting in the
second quarter of 2006. The pyrochlore concentrate produced at Niobec is
transformed into ferroniobium grading 66% niobium using an aluminothermic
process.

For 2005, the Company's niobium sales from the Niobec mine totaled $51.4 million compared to sales of $37.9 million in 2004.
Sales were higher in 2005 due to the aforesaid Sequoia acquisition and the
completion of the expansion and optimization program in September 2005. In 2005,
profitability was affected by increased reagent costs, a stronger Canadian
dollar relative to the US dollar, and certain operational difficulties related
to implementing the expansion and optimization program while maintaining
production.

For 2006, Niobium revenues are expected to be
approximately $60 million and capital expenditures are estimated at $6.2 million
of which $2.8 million will be invested to increase the mine's capacity by a
further 10% and upgrade the mine's power line and other equipment.

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

4.Mining Activities  International

In 2005, the Company held rights or interests in three
producing mines outside of Canada: (i) the Rosebel mine located in Suriname
which began commercial production in February 2004; (ii) the Omai gold mine located in Guyana
which terminated commercial production in September 2005; and (iii) the Omai
bauxite mine also located in Guyana and acquired in December 2004. Moreover, in
November 2003, the Company acquired the Camp Caiman gold project located in
French Guiana.

---

Page 26

4.1 South America: Guiana Shield

> 4.1.1 Gold Production: Rosebel Mine

The Rosebel property is located in Suriname,
South America, approximately 100 kilometres south of the city of Paramaribo, the
capital of Suriname. Suriname is a former Dutch colony located on the
northeastern coast of South America. The property is accessible by plane or by
road from Paramaribo. The Rosebel property 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 mine began commercial production
on February 11, 2004. Its facilities and equipment include a processing plant,
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. RGM concluded two long-term power supply agreements with
the Government, one being indexed to the price of gold and one indexed to the
oil price, both of which provide for the supply of 15 mega watts of average
power and 19 mega watts for peak power to the mine and mill facilities.

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 (the "Rosebel Transaction")
in consideration of $8 million in cash and a gold price participation right
equal to 10% of the excess gold market 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. Golden Star subsequently sold its price participation
right to Euro Ressources Inc.

Production from the Rosebel mine is subject to
a fixed royalty of 2% of production and, a price participation of 6.5% on the
amount exceeding a market price of $425 per ounce of gold, when applicable, both
payable to Grassalco, and a fixed royalty of 0.25% of production payable to a
foundation to be established by RGM to promote the local development of natural
resources. The foundation's board should be composed of two representatives from RGM, two from Grassalco and one from the Government of Suriname.

_______________________

1

---

Page 27

In 2005, RGM paid $3.8 million ($2.5 million
in 2004) in royalties to Grassalco and the foundation and Cambior paid $4.7
million ($2.9 million in 2004) in gold price participations to Grassalco and
Euro Ressources Inc.

A 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. An updated 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 updated feasibility
study and 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 include, among other things, the
relinquishing of Grassalco's options to purchase up to a 40% interest in the
Rosebel project in return for the State holding a 5% carried participation in
the share capital of RGM (the Class A shares) and 2 million redeemable shares
for $2 million (the Class B shares). The capital structure of RGM provides for
the full redemption of Class B shares and the reimbursement of all capital
invested by Cambior prior to distribution of dividends to its shareholders.

The 1994 Mineral Agreement, as amended,
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 (currently 36%) and 45%, an international dispute
resolution mechanism and a debt-to-equity capital structure of 4 to 1.

Following the acceptance of the 2002 updated
feasibility study and environmental impact assessment, the granting of the
25-year renewable Right of Exploitation, the securing of satisfactory business
conditions, the completion of financing and implementation of political risk
insurance coverage, the Company, through its subsidiary RGM, officially
commenced construction of the Rosebel mine in December 2002 and commercial
production began on February 11, 2004. The capital cost of the Rosebel mine
amounted to $95 million over the 14-month construction period.

The Rosebel mine's general environment and its
tropical climate is very similar to that of the Omai gold mine in Guyana, thus
enabling the Company to draw on its more than 15 years of development and
operating experience in the Guiana Shield.

The Rosebel concession lies within the Lower
Proterozoic Guiana Shield. The property covers the sediment-dominated Rosebel
formation and the older Armina formation made up of volcanic flows,
volcaniclastics and graywackes. The known gold-bearing ore deposits in the
Rosebel concession have varying geological characteristics but all show the
typical characteristics of highly weathered, quartz vein-hosted gold
mineralization.

---

Page 28

Early veins are usually deformed and are often
cut by later veins. Primary gold mineralization mostly occurs in quartz and
quartz-carbonite veins that are generally restricted to lithological contacts,
fold closure and sub-vertical shear corridors. Veins vary from a few centimeters
up to two metres in thickness. In general, gold mineralization is included in
sub-vertical zones near the contact between the sedimentary and volcanic rocks.
The mineralization shows good continuity and thickness.

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.

Since the commencement of commercial
production in February 2004, improvements and circuit expansions have allowed
the mill to process at a tonnage above design capacity. As a result of the mill
optimization program, daily throughput averaged 19,700 tonnes in 2005, a 30%
increase from the 15,200 tonnes averaged in 2004. The higher 2005 throughput
forced the modification of the original mining plan, which called for selective
processing of higher-grade ore at first and the stockpiling of low-grade
material for milling later in the mine's life. Consequently, all available ore
is now fed to the processing plant. The increase in the mining operating costs
is mainly attributable to processing lower grade ore, increased stripping ratio
and increased energy and blasting costs.

Capital expenditures for 2005 were $27.9
million, mainly to complete Phase 2 construction of the plant, add to the mining
fleet and conduct exploration and development drilling.

A total of 54,854 metres of diamond drilling
were completed in 2005 in a program totalling 867 holes and covering mainly
three deposits: Pay Caro, Royal Hill and Rosebel. The new information was used
to update 3D geological models of the three deposits, resulting in an increase
in resources and reserves. The core is HQ size in soft rock and reduced to NQ
size in solid rock. The majority of holes are sampled continuously from top to
bottom of the hole and are normally 1.0 metre in length. The core is split. All
drill collars are surveyed and downhole surveys conducted in exploration holes.
The logging and sampling of drill holes is done in accordance with industry
standards. Assays are performed on site at the Rosebel mine laboratory. All
samples are assayed by fire assay method.

Industry standard quality assurance and
quality control procedures, including standards, duplicates and check assays,
are employed. In 2005, 18% of the coarse rejects and 6% of the pulps were
internally re-assayed while 4% of the pulps were re-assayed by two external
laboratories.

As of December 31, 2005, the mineral reserves
at Rosebel stood at 73 million tonnes at 1.4 g Au/t, representing 3.2 million
ounces of gold contained, calculated by using a long-term gold price of $425 per
ounce, for an expected mine life of 11 years.More
detailed information regarding mineral reserves and resources is
provided below in section 6 of Item IV.

---

Page 29

The following table indicates operating information for the
Rosebel mine for the last two years.

|ROSEBEL                    | 2005      | 2004(1)  
|-------------------------- | --------- | ---------
|Ounces (Au)                | 341,400   | 273,700  
|Tonnage milled (tonnes)    | 7,196,000 | 5,067,000
|Grade milled (g Au/t)      | 1.56      | 1.84     
|Recovery (%)               | 94        | 94       
|Mine operating cost ($/oz) | 208       | 170      

> (1)

The Rosebel mine is expected to produce
335,000 ounces in 2006 at an estimated mine operating cost of $240 per ounce.
The higher operating costs are due to a rising hard rock component of mill feed
and a higher stripping ratio. Continued exploration and development drilling
remains a primary objective. A total of 42,300 metres of diamond drilling is
planned to expand the six known deposits and discover new ones.

Capital expenditures for 2006 are estimated at
$14.8 million. An amount of $6.5 million will be allocated to exploration and
development drilling. The sustaining capital budget is $8.3 million, and covers
mainly mine equipment purchases and expansion of the tailings dam capacity.

In 2003, RGM established a community relations
team with the responsibility for maintaining good relations with surrounding
communities. Since then, this team has held numerous meetings with these
communities to address issues of concern to them including employment, training,
development of skills, and to minimize negative impacts, to the communities, of
RGM's activities. The Company has also taken measures to prevent illegal miners
from working on its property. While such measures cannot totally and permanently
eliminate such illegal activities, they have minimized the impact thereof in a
satisfactory manner thusfar.

All of Cambior's shares of RGM remain pledged
in favor of the 2003 Financial Creditors under the 2003 Credit Facility subject,
until March 31, 2013, to a first ranking pledge and hypothec granted by Cambior
to Golden Star, in respect of 50% of RGM shares, under an hypothec and pledge
agreement executed by and between Golden Star and Cambior on April 1, 2003, in
connection with the Rosebel Transaction. Golden Star's first ranking pledge and
hypothec has since been assigned to Euro Ressources (Canada) Inc.

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.
Insurance was obtained from a syndicate of insurers including Export Development
Canada (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.

---

Page 30
4.1.2 Gold Production: Omai Gold Mine

The Omai gold 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 northeastern coast of South America
covering an area of 214,970 square kilometres and hosting a population of
approximately 700,000 people. The Omai gold 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 Cooperative Republic 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 the OGML
shares then held by Golden Star. Cambior has pledged all of its OGML shares in
favor of the 2003 Financial Creditors.

The relationship among Cambior, OGML and the
Republic 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 Republic of Guyana2. The Mineral Agreement
provides the main legal framework and business conditions for activities at the
Omai gold mine; among other things, it allows for the exportation and sale of
gold production as well as capital and profit repatriation, and stipulates that
any disagreement between the parties thereto shall be submitted to international
arbitration.

The Omai gold property consisted, until April
2002, of two distinct deposits: the Fennell and Wenot deposits. The Wenot
deposit was depleted in April 2002 and the last blast in the Fennell deposit
took place in October 2004. Thereafter, the mill exclusively processed low-grade
hard rock from the stockpiles accumulated during the initial years of
production.

Cambior provided full financing for the
construction of the Omai gold mine in return for full reimbursement on a
priority basis of its investment plus a competitive return thereon. This
aforementioned financing was totally reimbursed as at December 31, 2005. The
Company had obtained foreign investment insurance coverage for its investment in
OGML. The eventual proceeds of this insurance policy were assigned pursuant to
the terms of the 2003 Credit Facility in favour of the 2003 Financial Creditors.

After 13 years of operation, the Omai gold
mine ceased its operations in September 2005. During its operating period, Omai
gold produced over 3.7 million ounces of gold at an average grade of 1.50 g
Au/t. The final year was mostly devoted to processing the low grade ore
stockpiled in the early years of operations. Consequently, a total of 3.7
million tonnes of ore were processed for production of 99,500 ounces of gold in
2005, compared to 5.5 million tonnes at an average
grade of 1.46 g Au/t for production of 240,400 ounces in 2004. Mine operating
costs were impacted by high fuel prices as power at the mine is generated by
diesel power generating units.

___________________

1

2

---

Page 31

The following table indicates operating information as regards
the Omai gold mine for the last two years.

|OMAI GOLD MINE1             | 2005(2)   | 2004     
|--------------------------- | --------- | ---------
|Ounces (Au)                 | 99,500    | 240,400  
|Tonnage milled (tonnes)     | 3,703,000 | 5,545,000
|Grade milled (g Au/t)       | 0.9       | 1.5      
|Recovery (%)                | 90        | 93       
|Mine operating costs ($/oz) | 366       | 244      

> (1) Notwithstanding minority
>   interests in OGML, Cambior takes 100% of the Omai gold mine production into
>   account, given the capital structure and cash flow distribution of OGML.
>   (2) The Omai gold mine ceased
>   production as of September, 2005.

The dismantling of the Omai gold mine
facilities began in 2003, with the transfer of a significant portion of the
processing facilities and mobile equipment to the Rosebel mine. Also, certain
assets were redeployed to Linden to support OBMI's operations. Some of the
remaining facilities are earmarked for use at other operations, including the
Camp Caiman project. The government-approved closure plan is currently being
executed. Prior to final closure, however, the Company intends to evaluate the
potential for an underground operation on the depth extension of the Fennell
deposit. Should an adequate level of reserves be identified, the economics of
such an operation could be enhanced by utilizing the remaining processing
facilities. The Company budgeted $3.5 million to assess the depth potential of
an underground operation under the Fennel deposit.

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 actions without success both in Québec and Guyana.
Cambior and OGML consider this action as unfounded and frivolous and OGML is
contesting same vigorously.

> 4.1.3 Bauxite Production: Omai Bauxite Mine

The Omai bauxite property is located near the
town of Linden, Guyana. The processing facilities are situated on the banks of
the Demerara River, approximately 100 kilometres from the Atlantic Ocean. The
property is accessible by paved roads from Georgetown and the Demerara River.
The climate is tropical and equatorial and is characterized by seasonal rainfall
from May to August and November to January. On-site equipment includes trucks,
shovels, bulldozers, gradersand drainage pumps. There are mine maintenance
facilities near the Montgomery pit and several workshops at the plant site.

---

Page 32

Cambior became involved with bauxite mining in
1999 when Linmine, a State-owned entity, hired OGML to perform contract mining.
In June 2002, Cambior, the Republic of Guyana and Linmine agreed on the
principal terms for an eventual privatization of most of Linmine assets. Then,
OGML undertook the overall management of the Linmine business on a contractual
basis in August 2003. On December 8, 2004, the privatization was completed with
OBMI being the sole owner and operator of most of the former Linmine bauxite
assets and facilities, OBMI being held as to 70% by Cambior and as to 30% by
National Industrial and Commercial Investments Limited, a Government entity.
Environmental liabilities associated with the bauxite operation prior to the
privatization remain with Linmine and the Government of Guyana.

The relationship among Cambior, OBMI and the
Republic of Guyana is governed by a Mineral Agreement executed on December 8,
2004 and providing for a 1.5% royalty on the value of bauxite shipments from
Linden after the five first years of production following privatization. The
Mineral Agreement also provides that any amount of corporate tax paid by the
Company shall reduce correspondingly the amount of royalty to be paid by the
Company.

In connection with the aforesaid
privatization, Cambior has established, through its wholly-owned subsidiary OMAI
Services Inc., a fuel power generation plant to supply electricity to OBMI's
facilities (33% of anticipated demand) and to a State-owned entity which
distributes electricity to the town of Linden and surroundings (67% of
anticipated demand).

On February 25, 2005, OBMI secured a ten-year
$10 million non-recourse project loan facility bearing interest at a rate of
10.5% per annum, from a Caribbean financial institution. All of OBMI's
assets and rights are mortgaged in favor of such institution.

OSI also entered into a non-recourse financing
agreement with the same Caribbean institution and under similar terms, to
finance the establishment of its power plant near OBMI's facilities.

OBMI's refractory grade "A" super calcine ("RASC")
production represents approximately 90% of its total revenues. As part of the
privatization agreement, Cambior and the Government agreed to reinvest all free
cash flow during the initial five years of operation following privatization to
expand the operation into other non-metallurgical products, as well as into MAZ
products (for aluminum production) based on market conditions.

As part of Cambior's investment in OBMI, a
total of $10.3 million was invested in 2004 as the result of the transfer of
available equipment from the Omai gold mine, the rehabilitation of the
processing plant and improvements to the existing infrastructure.

Bauxite is mined via an open pit truck-shovel
method and is transported to the process plant located in Linden, Guyana, 12.5
kilometres from the pit. At the process plant, RASC is produced by calcining the
bauxite in rotary kilns. Prior to calcination, some of the bauxite ore is
processed in a wash plant to remove silica or kaolin contamination.

---

Page 33

Chemical grade bauxite ("CGB") is produced from the same
bauxite ore, however, there is normally no washing and the bauxite is dried
rather than calcined.

The bauxite mineralogy is mainly gibbsite with
minor amounts of boehmite, kaolinite, quartz, hematite, siderite, pyrite,
goethite and anatase. As is typical in the Linden district, the Montgomery
bauxite layer has the shape of a broad dome, with dips of 2° to 8° in the broad
central portion of the deposit and steeper dips along the fringes, where the
bauxite layer thins rapidly. The dome as a whole tilts to the east, so that
overburden thicknesses generally increase to the east.

The overburden at the Montgomery bauxite
deposit consists of the unlithified and variably indurated Berbice sands, silts
and clays that total almost 70 metres in thickness. Thin layers of lignite are
minor constituents of the package. Discontinuous lenses of iron oxide-cemented
sandy units, called "catchcow", are also found intermittently throughout the
section.

A distinctive, reddish-colored Quaternary sand unit is locally
present in the East Montgomery area. A layer of a relatively hard, stiff clay
unit, up to a few metres in thickness, often lies at the base of the sedimentary
package. This unit is referred to as "flint clay". Nodules of gibbsite are
common within this unit but never predominate over the clay content. SiO2
contents of the flint clay typically range from 15 to 40%. The bauxite is
typically pink to reddish or light gray to cream-colored, porous, and massive to
nodular in texture. The gibbsite ore mineral often imparts the pinkish
coloration, especially when it occurs as nodules. The upper portion of the
bauxite layer is often relatively hard / indurated and may have higher silica
(clay) concentrations than the softer, more porous lower portion.

The resources at the Montgomery bauxite
deposit are entirely defined by diamond drill holes performed by Linmine and
Cambior. All of the holes were drilled vertically, in order to properly outline
the sub-horizontal bauxite mineralization. Linmine provided the historic drill
hole data in the form of digital files, as well as the original typed drill log
forms. The original logs were compared to the digital data on a hole-by-hole
basis and any discrepancies or missing data in the digital files were corrected.
The final database consists of 530 drill holes (43,614 metres) performed by
Alcan Inc. (a predecessor owner) and Linmine and 25 drill holes (1,490 metres)
performed by Cambior with lengths ranging from 13.5 to 153.0 metres. During
2005, no exploration activity was carried out.

Capital expenditures for 2005 totaled $19.9
million for the completion of Phase 1 investment, which included the
rehabilitation of kiln #14, the purchase of the mine fleet and the construction
of mine maintenance facilities, for the beginning of Phase 2 investment and for
sustaining capital, mostly related to acquisition of service mobile equipment
for the mine and the plant.

Once the rehabilitation of Kiln #14 was completed, the monthly
production of Kiln #13 and #14 reached 28,300 tonnes of calcined bauxite in
December 2005. The enhanced mining fleet and stabilized operations resulted in the production of 212,000
tonnes of RASC in 2005.

---

Page 34
Proven and probable reserves stand at 61.8 million tonnes at a grade of 60%
Al2O3 as at December 31, 2005, which correspond to at
least 70 years of mine life at the expected 2006 production rate. More
detailed information regarding reserves and resources is provided below in
section 6 of Item IV.

In 2006, OBMI is scheduled to process approximately 874,000
tonnes of raw bauxite with an overall process yield of 34.6% for production of
approximately 300,000 tonnes of RASC at an average grade of 88% Al2O3.
Also, OBMI expects to process approximately 28,000 tonnes of raw bauxite at an
estimated grade of 5.5% SiO2 with an overall process recovery of 87%
for production of 24,000 tonnes of CGB. It is anticipated that this mine will
generate sales of approximately $64 million in 2006. Capital expenditures for
2006 are estimated at $17.6 million for the completion of Phase 2 investment,
and $2.9 million in sustaining capital.

However, as fuel price is a significant
component of direct production and transportation costs, RASC sales volume may
be adversely affected by high fuel prices. OBMI is currently working on
developing new products from the bauxite deposit that would complement the RASC
product and contribute to the profitability of its bauxite operation.

> 4.1.4 Development Project: Camp Caiman

The Camp Caiman project is located about 45
kilometres (directly by air) 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 approximately 200,000 people.

Over 95% of French Guiana is covered by
rainforest with no infrastructure. Access to the Camp Caiman project area from
Cayenne is by road, with approximately 65 kilometres of paved highway and 5
kilometres of all-weather unpaved road. There are presently no major
infrastructures at Camp Caiman.

Gold mining has been carried out in French
Guiana since 1857 and a total of approximately 6.5 million ounces of gold has
been declared, essentially from alluvial and eluvial deposits. Systematic
regional exploration funded by the French government and carried out by the Bureau de Recherches Géologiques et Minières ("BRGM") between 1975 and 1995,
identified a number of primary gold targets that were auctioned to the private
industry. BRGM identified a 7-kilometres long gold-in-soil geochemical anomaly
at Camp Caiman and the project was auctioned in 1994 to Asarco Guyane Française
S.A.R.L.

The property is held by CBJ Caiman, an
indirect 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 a 30 km2 mining concession obtained in November 2004 for
a period of 25 years and two adjacent exploration permits: Trésor (20 km2) to the West and Patawa (21
km2) to the East. The two exploration permits expire on July 31,
2009. The mineral rights held by the Company are subject to the French mining
laws applicable in French Guiana.

---

Page 35

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. Intensive exploration drilling resumed
in September 2002 when Ariane took over Camp Caiman.

A significant amount of exploration drilling
has been carried out at Camp Caiman since 1996, with a total of 135,545 metres
of drilling in 1,790 holes as at December 31, 2005: 82,530 metres of diamond
drilling in 713 holes and 53,015 metres of reverse circulation ("RC") drilling
in 1,077 holes.

A 10,880-metre drilling program was completed
on the property in 2005 of which about 62% were core holes, with the remainder
drilled by reverse circulation methods. The geological model was updated with an
estimated measured and indicated resource base of 20.4 million tonnes at an
average grade of 2.46 g Au/t, representing 1.615 million ounces of gold
contained, of which 59% are in saprolite material. Resource calculations are
calculated using 80% of the mining cutoffs: 0.66 g/t for saprolite, 0.88 g/t for
transition and 1.40 g/t for hard rock. Exploration expenses totaled $3.1 million
in 2005.

The core is HQ size in soft rock and reduced
to NQ size in solid rock. Majority of holes are sampled continuously from top to
bottom of the hole and are normally 1.0 metre in length and the core is split.
Sample lengths are 1.524 metre for reverse circulation drilling. All drill
collars are surveyed and downhole surveys conducted in exploration holes. The
logging and sampling of drill holes is done in accordance with industry
standards. Assays are performed in Cayenne by SGS-Cayenne (Filab) laboratory.
All samples are assayed by fire assay method.

The quality assurance procedures and assay
protocols followed for the Camp Caiman project conform to industry-accepted
quality control methods. The QA-QC program includes assaying of field
duplicates, re-numbered pulps and rejects, addition of standards and blanks by
geology department and pulps and rejects are routinely submitted to a second
commercial laboratory for external check assays.

The regional geology is dominated by
northwest-trending belts of clastic, metasedimentary and metavolcanic rocks cut
by a prominent east-west striking deformation zone. All premineral host rocks
are cut by a zone of strong shearing and related deformation features.
Post-mineral north-striking dolerite dikes of late Paleozoic age cut across the
mineralized zone. All 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 transition zone from saprolite to unweathered rock averages less
than 5 metres thick, though, locally, it may be up to 20 metres thick. The depth
to the base of weathered rock varies from 30 to 120 metres.

---

Page 36

In the Scout Zone, mineralization appears to
be structurally confined to numerous narrow and elongated zones averaging about
8 metres true thickness at a 1 g Au/t gold cutoff. Strike lengths vary up to a
maximum of 250 metres 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 Au/t cutoff, the mineral deposit varies from 25 to 85 metres thick. Zone
CC-88 plunges 35o to the southeast, where it has been intersected to a depth of
260 metres. 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.

In August 2005, Cambior released a Feasibility
Study for the Camp Caiman project which estimated probable ore reserves at 12.3
million tonnes at an average grade of 2.8 g Au/t representing some 1.1 million
ounces of gold in situ. A gold price of $425/oz was used to
calculate the cut off grades and pit design. The Camp Caiman ore body, located
in a 30 km2 mining concession, will have two open pits. The Scout
pit, comprised primarily of saprolite, represents 35% of the project's probable
reserves. Adjacent, to the east of the Scout pit, Pit 88 is composed of saprolite and fresh rock in equal proportions, and represents 65% of the
project's probable reserves. The deposits identified are open at depth in the
north extension of Pit 88 and the western extension of the Scout pit.

Although the Company is currently working on
fulfilling the conditions set by its Board of Directors to allow the beginning
of construction, namely obtaining all operating permits, government grants under
Loi Girardin and relief from certain regional fuel tax, there is no
guaranty that the Company will fulfill said conditions.

The capital cost for the construction of the
open pit mining project is estimated at $114.7 million, of which $62 million are
planned for 2006. The capital cost could change depending on the timing of
construction release, prices of commodities such as steel, and the availability
of equipment and construction manpower. The capital cost allows for the transfer
of certain equipment from the Omai gold mine. Construction is scheduled over a
18-month period following completion of the financing arrangements and the issue
of operating permits. The open pit mining operations will be performed with a
fleet of 40-tonne articulated trucks and excavators to maintain production in
rainy conditions. Processing will consist of a crushing and grinding circuit
followed by a leach and carbon-in-pulp (CIP) circuit. Power is expected to be
supplied by the national utility company.

In addition to the Loi Girardin
funding, the Company intends to finance the development of the project with a
renewed corporate credit facility and internally generated cash flows. Project
development is subject to final approval from Cambior's Board of Directors.

The Camp Caiman project is expected to produce an average of
150,000 ounces of gold per year in its first three years of operations at an
average production cost of $228 per ounce. Total production from currently identified reserves
will be 866,700 ounces at an average operating cost of $268 per ounce over a
seven-year mine life.

---

Page 37

5.Exploration and Business Development

5.1 General

The Company continues to focus its efforts on
acquiring and discovering new deposits and increasing the size of known
deposits. Its exploration and business development strategy is as follows:

- 

In 2005, Cambior pursued an aggressive
exploration and business development program with total expenditures of $37
million. The program included completion of a feasibility study at the Camp
Caiman project as well as exploration programs at the Westwood and La Arena
projects. Drilling results at the La Arena property in Peru have been positive
and the Company has plans to aggressively pursue additional drilling programs
and complete a pre-feasibility study in 2006. Additionally, Cambior is
accelerating its exploration of the Westwood deposit following positive surface
drilling results.

Cambior has increased its gold exploration and
business development activities during the recent years, with a focus on the
Americas, while also considering opportunities in other regions of the world.
Expenditures during the past two years were:

|(in millions of $)              | 2005 | 2004
|------------------------------- | ---- | ----
|Canada                          | 2.1  | 2.1 
|Guyana                          | 0.2  | 0.6 
|Peru                            | 1.7  | 4.6 
|Suriname                        | 0.4  | 0.5 
|French Guiana                   | 0.4  | 1.3 
|Corporate & others              | 1.2  | 1.1 
|Total Expensed                  | 6.0  | 10.2
|Advanced projects  capitalized | 27.7 | 17.8
|Total Expenditures              | 33.7 | 28.0

---

Page 38

5.2 Business Development

Business development activities (outside of
mines and advanced projects) have been integrated since 2003. Expenses related
to business development activities in 2005 totaled $1.2 million. Numerous
projects and potential acquisitions were evaluated in a number of countries
around the world.

5.3 Exploration  Canada

During 2005, Canadian exploration activities
focused entirely on gold projects in Québec with net expenditures of C $2.5
million. All field activities were financed by flow-through share issues
realized in 2003 and 2004. Total costs were reduced by C $1.5 million in
government tax credits. Surface exploration expenses undertaken on capitalized
projects are included in each project's capital expenditures.

The exploration property portfolio has again
increased compared to the preceding year. Some claims were acquired by staking,
or through the negotiation of option agreements to acquire projects. At the end
of 2005, the portfolio was comprised of 4,486 mining titles covering 146,458
hectares (1,465 km2).

Net expenses on the Mooshla and the Westwood
deposits located 2.5 kilometres east of the Doyon mine were $3.2 million. The
surface exploration drilling program and the development of the underground
exploration drift were reduced by C $0.9 million in Government tax credits. The
exploration drift development totaled 930 metres and was partly financed by a
flow-through share funding realized in previous years while 9,316 metres of
surface drilling was covered by surface exploration funding. In addition, some
underground drilling was completed. The style of mineralization encountered in
the Westwood deep area was very similar to drilling results in 2004. The
mineralization intersected in the Westwood and North Corridor horizons is
clustered in felsic volcanics containing disseminated to semi-massive sulphides.

A preliminary evaluation of all drilling
results of the Westwood project indicates inferred resources of 8.6 million
tonnes at an average grade of 5.2 g Au/t diluted at 20%, representing 1.45
million ounces of gold contained in the Westwood and North Corridor mineralized
horizons.

The quality assurance procedures and assay
protocols followed for Canadian exploration conform to industry-accepted quality
control methods. The QA-QC program includes assaying of field duplicates,
re-numbered pulps and rejects, addition of standards and blanks by geology
department and pulps and rejects are routinely submitted to a second commercial
laboratory for external check assays. The program is supervised by a certified
qualified person.

The net exploration budget in 2006 is
estimated at $970,000, net of tax credits of $300,000. The exploration programs
will follow up on results obtained in 2005 in various areas in Québec as well as
reconnaissance work in northern Québec.

---

Page 39

5.4 Exploration  Andes

Cambior holds exploration properties in Peru
covering areas aggregating 137,326 hectares. In 2005, regional exploration
expenditures for the Andes region of South America totalled $6.2 million and
were dedicated almost entirely to Peru and more specifically to the La Arena
project. The region benefits from excellent road and power infrastructure which
are located at close proximity to the La Arena project.

An amount of $4.5 million was spent in 2004
for drilling, geological mapping and tunnel sampling, as well as a
4,200-kilometre airborne geophysics survey (MAG and EM) which was completed over
the Huamachuco region, in northeastern Peru. On the La Arena gold property, a
1,000-metre diamond drilling program was completed, following extensive surface
mapping, and the results confirmed mineralization presence and grade. The
drilling campaign in 2005 was aimed at confirming resources on the La Arena gold
heap leachable deposit and at defining the adjacent La Arena gold-copper
porphyry deposit. Encouraged by the drilling results to date, the Company is
pursuing an aggressive plan to:

- 

Peru is a country with a rich mining history
and with an increasing gold and silver production profile. The 2006 drilling
program should focus on completing a reserve estimate and extending the
resources on the extensions of the known deposits.

The quality assurance procedures and assay
protocols followed for Peruvian exploration conform to industry-accepted quality
control methods. The QA-QC program includes assaying of field duplicates,
re-numbered pulps and rejects, addition of standards and blanks by geology
department and pulps and rejects are routinely submitted to a second commercial
laboratory for external check assays.

The Andean regional development budget for
2006 is $6.2 million and is dedicated mainly to Peru. Cambior is allocating its
entire budget on gold exploration. On La Arena, Cambior is planning
approximately 6,000 metres of diamond drilling.

5.5 Exploration  French Guiana

Total 2006 budget is estimated at $1.1
million. Some 2,000 metres of diamond drilling will be implemented and will
focus on the Sainte-Marie, Maripa, Crique Véoux and Changement exploration
permits.

---

Page 40

5.6 Exploration  Guyana

The 2006 budget is estimated at $748,000 and will focus on
Eagle Mountain, located some 30 kilometres from the Omai gold mine, and various
other opportunities.

5.7 Exploration  Suriname

The 2005 exploration expenses in Suriname
totaled $405,000 and focused on Headley's Reef and Thunder Mountain properties,
and the acquisition and initiation of work on the Sara Kreek project, where camp
and access were organized. Capitalized expenses totalling $7.7 million on the
Rosebel concession, related to three mineralized trends: North (J Zone and
Spin), Central (Rosebel deposit trend) and South (Roma and Monsanto Hill) where
some 13,279 metres of drilling was completed on the North trend, the Central and
the Mayo-Roma targets of the Rosebel property. In addition, exploration and
definition drilling programs completed by the Rosebel mine geology department
are also part of the capitalized expenses.

A $2.7 million budget is planned in 2006.
Regional exploration programs should be conducted on the Rosebel mining
concession as well as the adjacent Headley's Reef and Thunder Mountain
exploration permits, and the Sara Creek project located some 80 kilometres to
the South.

5.8 Outlook

The Company intends to pursue the discovery of
new deposits in 2006. The 2006 overall exploration and development budget is
estimated at $28.6 million. While approximately $5.7 million should be incurred
for early stage projects in Peru and both the Canadian and Guiana shields, some
$23 million should be capitalized and incurred at the Company's mines and
advanced projects. Capitalized expenditures should include development drilling
to increase reserves mainly at the Rosebel mine and advanced exploration and
development work on the Doyon property.

The Company intends to pursue its work program
to evaluate the potential for an underground operation under Omai gold's Fennell
deposit. Drilling should continue on the La Arena deposit and plans also include
the preparation of a pre-feasibility study if results are positive.

The Company finances exploration expenditures
from internal cash resources and, in the case of its Canadian exploration
activities, by the issuance, from time to time, of flow-through shares.
Flow-through shares are usually issued at a premium to market, as they transfer
the deduction for tax purposes to the subscribers of shares. The Company also
benefits from financial assistance from the Québec government for some of its
exploration programs in Québec.

---

Page 41

6.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.

A 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.

---

Page 42

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.

Indicated Mineral Resource

An 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 metal or mineral prices 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 (CIM "Standard on Mineral
Resources and Reserves"), and available on its website at http://www.cim.org/mainEn.cfm.
Mineral reserves and resources were estimated using a long-term gold price assumption of $425/oz in 2005. Unlike
proven and probable mineral reserves, mineral resources (of all categories) do
not have a demonstrated economic viability.

---

Page 43

|MINERAL RESERVES AND RESOURCES (1) (2)
|--------------------------------------
|CAMBIOR'S SHARE                       
|                                      
|                                      
|                                      
|                                      
|GOLD OPERATIONS                       
|Rosebel (100%)                        
|Proven Reserves                       
|Probable Reserves                     
|Subtotal                              
|Indicated Resources                   
|Inferred Resources                    
|Doyon Division (100%)(3)              
|Proven Reserves                       
|Probable Reserves                     
|Subtotal                              
|Measured Resources                    
|Indicated Resources                   
|Inferred Resources                    
|Sleeping Giant(4)                     
|Proven Reserves                       
|Probable Reserves                     
|Subtotal                              
|Inferred Resources                    
|Omai Gold (100%)                      
|Proven Reserves                       
|Camp Caiman (100%)                    
|Probable Reserves                     
|Measured Resources                    
|Indicated Resources                   
|Inferred Resources                    
|La Arena (100%)                       
|Indicated Resources                   
|Inferred Resources                    
|Westwood (100%)                       
|Inferred Resources                    
|Grand Duc (100%)                      
|Indicated Resources                   
|Inferred Resources                    
|TOTAL GOLD                            
|Proven and Probable Reserves          
|Measured and Indicated Resources      
|Inferred Resources                    

(1)

(2)

(3)
Includes mineral reserves and resources from the Doyon and Mouska mines.

(4)
Effective April 30, 2005, Cambior owns 100% of Sleeping Giant following the
acquisition of the remaining 50% undivided interest held by Aurizon. Before that
date, Cambior held its 50% through a joint venture with Aurizon.

---

Page 44

|MINERAL RESERVES AND RESOURCES
|------------------------------
|Non-Gold Operations           
|                              
|                              
|                              
|                              
|                              
|NIOBIUM OPERATION             
|                              
|Niobec (100%)                 
|Proven Reserves               
|Probable Reserves             
|Inferred Resources            
|                              
|BAUXITE OPERATION             
|                              
|Omai Bauxite (100%)           
|Proven Reserves               
|Probable Reserves             

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.

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 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 judgment. Results from
drilling, testing and production, as well as material changes in metal prices
subsequent to the date of an estimate, may justify a revision of such estimates.

Cambior's qualified persons responsible for the mineral
reserve and resource calculations for each mine or project are as follows:

|Mines          | Location       | Name         | Title                            
|-------------- | -------------- | ------------ | ---------------------------------
|               |                |              |                                  
|Rosebel        | Suriname       | R. Sirois    | Geology Superintendent           
|               |                | A. Croal     | Engineering Superintendent       
|               |                |              |                                  
|Doyon          | Québec, Canada | F. Blanchet  | Chief of the Geology Department  
|               |                | F. Girard    | Chief Engineer                   
|               |                |              |                                  
|Mouska         | Québec, Canada | P. Lévesque  | Chief of the Geology Department  
|               |                | P. Sévigny   | Chief Engineer                   
|               |                |              |                                  
|Sleeping Giant | Québec, Canada | D. Vallières | Technical Services Superintendent
|               |                | R. Asselin   | Responsible, Mining geology      

---

Page 45

|Mines               | Location       | Name          | Title                              
|------------------- | -------------- | ------------- | -----------------------------------
|                    |                |               |                                    
|                    |                |               |                                    
|Gold Projects       |                |               |                                    
|                    |                |               |                                    
|Camp Caiman         | French Guiana  | P. Godin      | Project General Manager            
|                    |                | F. Clouston   | Manager, Project Evaluation        
|                    |                | E. Belzile    | Manager, Mining Geology            
|                    |                |               |                                    
|La Arena            | Peru           | F. Clouston   | Manager, Project Evaluation        
|                    |                |               |                                    
|Westwood            | Québec, Canada | D. Doucet     | Exploration Manager, Doyon Division
|                    |                |               |                                    
|Grand Duc           | Québec, Canada | D. Doucet     | Exploration Manager, Doyon Division
|                    |                |               |                                    
|Industrial Minerals |                |               |                                    
|                    |                |               |                                    
|Niobec              | Québec, Canada | D. Villeneuve | Chief of the Geology Department    
|                    |                | S. Thivierge  | Engineering Superintendent         
|                    |                |               |                                    
|Omai Bauxite        | Guyana         | R. Walish     | General Manager                    

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. For each mine and project of the
Company, the relevant qualified persons verified the data disclosed, including
samplings, analytical and test data underlying the information contained herein.
Quality control falls under the responsibility of Elzéar Belzile, P. Eng.,
Cambior's Manager, Mining Geology, who is also a qualified person (as defined in
the Glossary).

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 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 Metallurgical Recovery (1) | Cut-off Grades
|------------------- | ---------------------------------- | --------------
|Mine/Project        | (Gold %)                           | (g Au /t)     
|Rosebel Mine        | 92 to 94                           | 0.4 to 0.6    
|Camp Caiman Project | 58 to 93                           | 0.8 to 1.8    
|Doyon Mine          | 97                                 | 3.0 to 5.0(2) 

---

Page 46

|                    | Average Metallurgical Recovery
    (1) | Cut-off Grades 
|------------------- | -------------------------------------- | ---------------
|Mouska Mine         | 94.7                                   | 10.4(2)        
|Sleeping Giant Mine | 97.2                                   | 10.0 to 10.5(2)

(1)

(2)
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 Spacing
|------------------- | --------- | -------------------------
|Mines/Projects      |           | Reserve
    Category     
|                    |           | Proven                   
|                    |           |                          
|Rosebel Mine        |           | 25 m x 50 m              
|                    |           |                          
|Camp Caiman Project |           | 25 m x 25 m              
|                    |           |                          
|Doyon Mine          | Main Area | 8 m x 10 m               
|                    | West Area | 10 m x 15 m              
|                    |           |                          
|Mouska Mine         |           | 14 m x 14 m              
|                    |           |                          
|Sleeping Giant Mine |           | 20 m x 20 m              
|                    |           |                          
|Niobec Mine         |           | 15 m x 23 m              

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 2005 year-end mineral
reserves, the Company used gold prices of $425 per ounce. For the Canadian
operations, long-term exchange rates of C $1.35 per US $1.00 were used for 2005.

Proven and probable mineral reserves for the
current gold operations at December 31, 2005 were 5.0 million ounces compared to
3.5 million ounces at December 31, 2004. A sensitivity analysis using a gold
price of $400 per ounce indicates that mineral reserves would fall 2% to 4.9
million ounces. Mineral reserves increase by 5% when calculated at a gold price
of $450 per ounce.

7.

7.1 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 80% of fabricated demand), electronics, dentistry,
decorations, medals and official coins. Central banks, financial institutions
and private individuals buy, sell and hold gold
bullion as an investment and as a store of value.

---

Page 47The 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 are
derived from the sale of gold. 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,
|-----------------------
|                       
|High                   
|Low                    
|Average                

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

---



Page 48

The following table illustrates fluctuations
in the exchange rates for United States dollars

|Year Ended
    December 31,
|---------------------------
|$C/US$                     
|High                       
|Low                        
|Average                    
|End of Period              

The 2001 Agreement, as amended, contained
certain covenants, including a mandatory hedging program, which required,

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. 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 since 2001.

In line with its objective of providing
shareholders with increased exposure to higher gold prices, the Company pursue,
in 2003, its efforts to reduce its commitments under its mandatory hedging
program. In August 2003, the Company obtained the elimination of the hedging
covenant and implemented a new policy whereby it will not hedge future gold
production unless required to do so for project financing.

Since 2002, the Company has reduced its gold
hedging commitments through opportunistic buy-back programs and delivery against
commitments by 1.7 million ounces. The Company eliminated all call option
obligations and lease rate swaps during 2004. The buy-back of gold commitments
impacts the revenue of the Company, as the losses incurred must be recorded as a
reduction in sales, thereby partially offsetting the impact of sales made at
market. During 2005, the Company's average realized price was $421 per ounce
compared to an average market price of $444 per ounce. For 2004 and 2003, the
average realized price was respectively, $39/oz and $43/oz below market price.

The Company expects its profitability to be
adversely affected as the reduction in these commitments will be recognized at
the original designation date of the various hedge instruments in the operations
statement. However, the Company has positioned itself to deliver 79% of its 2006
targeted gold production at market price and remains committed to opportunistic
buy-back of the remaining 2006-2007 positions on gold price weaknesses.

---

Page 49The hedging counterparties are all
participants in the 2003 Credit Facility and have agreed to allow the Company to
reschedule gold deliveries as long as the gold is delivered during the term of
the loan and no margin calls are applicable.FOR ADDITIONAL INFORMATION REGARDING CAMBIOR'S HEDGING,
REFERENCE IS MADE TO NOTE 21 TO THE FINANCIAL STATEMENTS OF THE COMPANY
PRESENTED ON PAGES 72 AND 73 OF THE COMPANY'S ANNUAL REPORT FOR THE YEAR 2005.
7.2 Government RegulationThe Canadian mining industries has 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 Guiana Shield, OBMI, 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.

---

Page 50The Company commissioned an environmental
impact assessment for the Rosebel mine which was filed with, and approved by,
the Surinamese Government in 2002 along with an updated feasibility study.
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.7.3 EnvironmentIn 1992, Cambior's Board of Directors created
an Environmental Committee and assigned a senior officer to the development and
implementation of a formal Environmental Management System ("EMS"). Roles and
responsibilities were defined, a manual of procedures was developed and internal
as well as independent environmental audits were initiated.
In 1996, the Mining Association of Canada
("MAC") issued an Environmental Policy and a Management Framework, and the ISO
14001 standard applicable to EMS was published. Cambior enhanced its
Environmental Policy in line with the MAC's framework and consistent with the
basic requirements of ISO 14001 to compliance, prevention of pollution and
continuous improvement of its environmental performance. In 1998, Cambior was
the first gold mining company to obtain ISO 14001 certification for its EMS,
which certification has been maintained since then.
The system is built on a database describing
operational activities and their impacts or risks on the environment.
Operational procedures aim at controlling said activities to minimize said
impacts. Continuous improvement of environmental performance is obtained through
programs with objectives and targets. Emergency response plans and closure plans
for reclamation are also prepared. Since 1998, a total of nearly $12 million has
been spent to reclaim Cambior's inactive sites. In 1997, Cambior received the US
Bureau of Land Management "Health of the Land" Award for the reclamation of the
Valdez Creek project in Alaska. In Québec, the reclaimed Solbec mine site
located in the municipality of Stratford was converted into an ecotourism
attraction in partnership withDucks Unlimited Canada.

Cambior's expansion in Guyana presented new
challenges as Guyana had no legislation regulating mining activities or
environmental protection. As a result, the Company applied North American
standards and complied with the regulatory requirements for environmental
protection of the Province of Québec, Canada. The lack of authorized waste
depositories, the absence of local experts and certified laboratories as well as
lack of governmental expertise for monitoring were addressed and training
programs and technology transfers were done. Cambior's EMS was implemented at
the Omai mine and received the ISO 14001 certification in January 2001. The
Rosebel mine, which came into production in February 2004, received the ISO
14001 certification in December 2005.

---

Page 51In 2005, the Company's mining operations
achieved overall 99.8% conformity with all applicable regulations. In addition,
the Company adhered to MAC's guidelines for the management of tailings and water
facilities and is involved in various initiatives. Cambior is also active in
environmental research projects through partnerships with universities or
members of the mining industry. The Company's challenge is to integrate its
economic activities with environmental integrity, social concerns and effective
governance, the four pillars of sustainable mining.
Environment-related expenses for Canadian
operating sites totalled more than C $6.1 million in 2005. These expenses were
mainly related to infrastructures (39%), tailings ponds (8%), and reagent costs
for effluent treatment (17%).
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.
The estimates for restoration and closure
costs are prepared by knowledgeable individuals and are subject to review and
approval by government authorities. Site closure costs are charged against a
provision accumulated during the production phase. These obligations are
currently estimated as follows:

|                    | (in millions of $)
|------------------- | ------------------
|Doyon Division      | 30.3              
|Omai gold mine      | 1.8               
|Rosebel mine        | 3.0               
|Omai bauxite mine   | 2.6               
|Niobec mine         | 2.3               
|Sleeping Giant mine | 2.6               
|Other sites         | 1.4               
|                    | 44.0              

The Company expects to fund these expenditures from operating
cash flows and accumulated deposits made with the Government authorities. The
planned disbursements for these outlays are as follows:

---

Page 52

|(in millions of $) | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Total
|------------------ | ---- | ---- | ---- | ---- | ---- | ---- | -----
|Outlays/year       | 8.4  | 5.3  | 12.0 | 5.0  | 6.7  | 6.1  | 43.5 

All of the Company's mining operations except OBMI are
currently certified under the ISO 14001 standard for environmental management.

7.4 Community Relations

As part of its strategy, the Company plays an active role in
the communities in which it operates. The economic impacts of mining operations
are often more noticeable in emerging countries. Therefore, in such countries,
the Company implements development programs, which can be sustained beyond the
mine life, to assist in improving the quality of life for those residents
neighbouring the mines. Cambior has also established community outreach programs
to interact with stakeholders with respect to its activities and their impact on
the local communities. Community support for mining operations is viewed as a
key ingredient for a successful mining venture.

7.5 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 36%, 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

In 2005, Cambior sold all its shares of
Cambior USA, Inc., which owns 100% of Carlota Copper Company, through a new
company, Cambior Holdings (USA) Inc. ("Holdings"), created for the transaction.
At the end of 2005, Holdings and its wholly-owned subsidiaries are the only
companies in the group with activities in the United States.

Holdings files its 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. As at December 31,
2005, Holdings has approximately $11.8 million of cumulative
regular tax benefits that were derived from past
net operating losses, available to offset future income tax. These amounts are
subject to adjustment upon a subsequent audit by the Internal Revenue Service.
Holdings is also subject to state and local taxes in jurisdictions in which it
is engaged in business operations.

---

Page 53
GuyanaFrom 1993 to 1999, OGML's operations were
subject to corporate income tax in Guyana at a rate of 33.75% per year. Since
2000, production at the Omai mine is subject to the 35% prevailing corporate
income tax rate. OBMI's operations are subject to a corporate tax rate equal to
the lesser of 35% and of the prevailing tax rate from year to year (currently
35%). Operating expenses, including interest expenses, are, within limits,
deductible from taxable income; as regards OGML, losses may be carried forward
indefinitely; as regards OBMI, losses may be carried forward indefinitely but,
in a given year, cannot eliminate more than 50% of the taxable income of that
year. Capital expenditures may be depreciated on a straight-line basis over five
years. For OGML, 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. For OBMI, there are no withholding taxes on payment of interest or
dividends. Legislative stability of taxation rules and rates is guaranteed by
the OBMI Mineral Agreementreferred to above in subsection 4.1.3 of Item IV.

Suriname

Under the 1994 Mineral Agreement in effect for
the Rosebel mine, as amended and

---

Page 54
French GuianaFrench Guiana being an overseas department of
France, the general French system of tax applies, subject to some
particularities such as the possibility of obtaining a tax exemption and the
possibility of reducing capital expenditures through tax credits (Loi
Girardin). The Camp Caiman project benefits from a ten-year income tax
exemption and the Company expects the construction of the mine to qualify under
the Loi Girardin. The Company
also benefits of a ten-year exemption on property tax. A royalty tax applies on
gold production and there are significant indirect taxes, such as l'Octroi de
mer, the fuel tax, that may apply to the project.

The France-Canada tax treaty provides for a
withholding tax rate of 10% on interest payments from France to Canada and of 5%
on dividend payments to shareholders holding 10% or more of a local entity.

7.6 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 their respective activities with a view to
achieving greater effectiveness in terms of costs and schedule.

The objective of the Camroc Mining Development
Division is to form and manage specialized teams performing mining development
works at various mines or projects, in accordance with the Company's priorities.

The objective of the Projects and Construction
Division is to form and manage teams of professionals and technicians
specialized in planning, implementing and supervising construction activities of
mine facilities and infrastructure.

7.7 Intellectual Property

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

7.8 Competition

> 7.8.1 Gold Market

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.

---

Page 55
7.8.2 Niobium MarketOn July 2, 2004, Cambior acquired its
joint-venture partner in the Niobec mine and, as a result, is currently the only
niobium producer in North America. The Company competes on a worldwide basis
against two major producers of ferroniobium, both located in Brazil, for the
sale of the mine's production. Companhia Brasilera de Metalurgia e Mineraçâo ("CBMM")
is the world's largest producer of ferroniobium with an estimated market share
in the range of 70% to 80%. Mineraçâo Catalâo, a member of the Anglo-American
plc group, holds a market share similar to the Company's, which is estimated at
approximately 10% to 15% of worldwide supply.
Niobium demand has increased significantly
over the past three years due to a general increase in the use of niobium, high
steel demand in China and the additional use of niobium as a substitute for
other higher-priced specialty alloys. Its price has however remained constant
over the past five years, although it rose somewhat in the latter part of 2005.
Cambior's competitiveness in certain markets may be impacted by tariffs and
duties imposed by governments. Nevertheless, steady market growth has enabled
Cambior to expand production and increase sales. It is anticipated that increase
in intensity of the use of niobium will continue.7.8.3 Bauxite MarketOn December 8, 2004, the Company acquired a
70% participation in OBMI, a bauxite mining and processing company. High-Alumina
Refractory "A" Grade Super Calcined Bauxite (RASC) is used for the production of
refractory products, abrasive products and welding products. The worldwide
market for RASC is approximately 1.3 million tonnes per year. The bauxite
produced by the Company is only designed to meet the needs of the refractory
market. The characteristics of Guyanese bauxite have made it the preferred
material for many refractory companies and customers around the world.
Nevertheless, because of its lower prices, China is the major supplier of the
refractory grade calcined bauxite accounting for an estimated 80% of the
high-alumina refractory bauxite supply worldwide.
Cambior expects to produce over 300,000 tonnes
of RASC in 2006, accounting for approximately 25% of worldwide market. However,
as fuel price is a significant component of direct production and transportation
costs, RASC sales volume may be adversely affected by high fuel prices. OBMI is
currently working on developing new products from the bauxite deposit that would
complement the RASC product and contribute to the profitability of its bauxite
operation.7.9 Sale of Production

The Company's revenues are generated predominately from the
sale of gold, with the remaining portion from the sale of ferroniobium and
calcined bauxite. 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 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"). In 2004, the group of 15
signatories to the Washington Agreement renewed this agreement for a period of
five years, with additional participants joining the original group of
signatories. The renewal should provide for continued stability in the
marketplace.

---

Page 56As 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 under section 7.1 of Item IV.

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,
directly or through a distributor or an agent, mainly in North America, Europe
and Asia.

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.

During its management arrangement with the
Government of Guyana and following the privatization of the Linmine bauxite
operations in December 2004, Cambior became a reliable supplier of RASC to
Europe, North America, South America, Asia and Australia. The RASC production is
distributed either directly or through a distributor or an agent, and is sold
under purchase orders from third parties which are not bound to continuously
purchase the Company's bauxite production. There can be no assurance that
additional purchase orders will come from such parties or others.

7.10 Employee Relations

All of Cambior's current operations are unionized. The
Company's operations may be affected by legal and illegal work stoppages.
However, during the past three years, the Company did not experience any
significant work stoppages.

---

Page 57In 2004, the Company negotiated the renewal of
the labour contract at the Niobec mine and in 2003, the Company negotiated a new
labour contract at OGML and a contract extension at Mouska.
The Company considers that it has good
relations with its employees and unions. It offers a competitive compensation
program, a secure and challenging working environment, and an open dialogue.
The expiry dates of the collective agreements are as follows:

|Omai gold  Hourly employees                          | February 28, 2007
|----------------------------------------------------- | -----------------
|Doyon  Hourly employees                              | November 30, 2006
|Mouska  Hourly employees                             | October 17, 2007 
|Sleeping Giant  Hourly
    employees                 | July 31, 2007    
|Niobec  Hourly, clerical and
    technical employees | April 30, 2008   

At year end, the Company employed
approximately 2,700 individuals (same as 2004). Reference is made to page 33 of
the Company's 2005 Annual Report for additional discussion on human resources.

8.

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 Agreements and 2003 Credit Facility; as regards the latter
agreement, it had to be maintained until commercial completion (as defined
therein) of the Rosebel project, which latter condition was satisfied in 2004.
The payment of dividends is subject, however, to the obligation to give prior
notice thereof to the 2003 Financial Creditors and meeting certain financial
ratios under the 2003 Credit Facility.

9.

Reference is made to page 33 of the Company's 2005 Annual Report for
information on this matter.

Item V     Description of Capital Structure

The authorized share capital of the Company consists of an
unlimited number of common shares without par value of which, as at December 31,
2005, some 274,598,470 common shares are issued and outstanding. The holders of
common shares are entitled to vote at all meetings of shareholders on the basis
of one vote per common share, to receive dividends if, as and when declared by
the board of directors, and to participate in the distribution of the remaining
assets of the Company in the event of its liquidation or dissolution. The
authorized share capital of the Company also includes non-voting Class I and Class II preferred shares, none of which is
currently outstanding.

---

Page 58For greater certainty, there is no agreement
or arrangement of any nature whatsoever conferring upon any shareholder
different voting rights. Further, there is currently no arrangement known to the
Company, the operation of which may, at a subsequent date, result in a change of
control of the Company.Shareholders' Rights PlanTo encourage the fair treatment of
shareholders should a take-over bid be made for Cambior, the Board of Directors
adopted on November 3, 2005, a Shareholder Rights Plan (the "Plan"). The Plan is
effective as of November 4, 2005 and will provide the Board of Directors and the
shareholders more time to fully consider any unsolicited take-over bid for
Cambior. The Plan is intended to discourage coercive or unfair takeover bids and
gives the Board of Directors time to pursue alternatives to maximize shareholder
value, if appropriate, in the event of an unsolicited takeover bid.
The Plan has not been adopted in response to,
or in contemplation of, any specific proposal to acquire control of Cambior. The
Plan must be ratified by shareholders within six months of the effective date of
the Plan and it will be so submitted for ratification at the Annual and Special
Shareholders Meeting to be held on May 3, 2006. Unless otherwise terminated in
accordance with its terms, the Plan will terminate at the close of the third
annual meeting of Cambior shareholders following the meeting at which the Plan
is ratified by shareholders, unless the Plan is reconfirmed and extended at such
meeting.
The rights issued under the Plan will become
exercisable only when a person, including any party related to it, acquires or
announces its intention to acquire 20 percent or more of the outstanding shares
of Cambior without complying with the "Permitted Bid" provisions of the Plan or
without approval of the Board of Directors. Should such an acquisition occur,
each right would, upon exercise, entitle a rights holder, other that the
acquiring persons, to purchase shares of Cambior at a substantial discount to
the market price at the time.
Under the Plan, a "Permitted Bid" is a bid
made to all shareholders of Cambior and is open for acceptance for not less than
60 days. If, at the end of such 60-day period, at least 50 percent of the
outstanding shares, other than those owned by the offer or and certain related
parties, have been tendered, the offeror may take up and pay for the shares but
must extend the bid for a further 10 days to allow other shareholders to tender.
The Plan is similar to other shareholder rights plans recently adopted by
several other Canadian companies and approved by their respective shareholders.
A complete copy of the rights plan is filed on SEDAR at
www.sedar.com.

Item VI     Market for Securities

Cambior's common shares trade on the Toronto Stock Exchange ("TSX") since
August 13, 1986 and on the American Stock Exchange ("AMEX") since June 27, 1994,
under the symbol "CBJ". Cambior's warrants series
C ("CBJ.WT.C"), having an exercise price of C $3.75 per common share and
expiring on August 12, 2008, and Cambior's warrants series D ("CBJ.WT.D"),
having an exercise price of C $4.35 per common share and expiring on October 16,
2006, trade on the TSX.

---

Page 59The following tables set forth the market
price range and trading volume of the Company's Common Shares on the TSX, in
Canadian dollars, and AMEX for each month of the year ended December 31, 2005.

|Common Shares  TSX  | C $ per Share 
|-------------------- | --------------
|Month                | Volume        
|January              | 18,384,494    
|February             | 16,937,552    
|March                | 28,678,031    
|April                | 30,419,679    
|May                  | 23,556,714    
|June                 | 19,208,228    
|July                 | 22,276,432    
|August               | 47,369,713    
|September            | 29,760,068    
|October              | 24,013,976    
|November             | 24,020,003    
|December             | 31,724,501    
|Year                 | 316,349,391   
|                     |               
|                     |               
|Common Shares  AMEX | US $ per Share
|Month                | Volume        
|January              | 10,198,600    
|February             | 10,366,000    
|March                | 11,485,100    
|April                | 11,102,300    
|May                  | 5,706,600     
|June                 | 7,439,700     
|July                 | 3,932,100     
|August               | 10,790,500    
|September            | 11,627,400    
|October              | 12,010,000    
|November             | 10,929,700    
|December             | 14,855,700    
|Year                 | 120,443,700   

---

Page 60
The following tables set forth the market price range, in
Canadian dollars, and trading volume of the Company's series C and D warrants on
the TSX, for each month of the year ended December 31, 2005.

|Series C Warrants  TSX | C $ per Warrant
|----------------------- | ---------------
|Month                   | Volume         
|January                 | 132,832        
|February                | 442,500        
|March                   | 774,050        
|April                   | 634,200        
|May                     | 613,500        
|June                    | 338,900        
|July                    | 632,245        
|August                  | 395,100        
|September               | 776,200        
|October                 | 1,630,783      
|November                | 526,782        
|December                | 662,700        
|Year                    | 7,559,792      
|                        |                
|                        |                
|                        |                
|Series D Warrants  TSX | C $ per Warrant
|Month                   | Volume         
|January                 | 1,215,889      
|February                | 371,650        
|March                   | 455,775        
|April                   | 1,183,700      
|May                     | 929,900        
|June                    | 412,850        
|July                    | 324,800        
|August                  | 996,350        
|September               | 805,000        
|October                 | 689,882        
|November                | 1,122,150      
|December                | 554,300        
|Year                    | 9,062,246      

---

Page 61Item VII         Directors and
Officers1.Directors

As of the date hereof, the list of Cambior's
directors is as follows:

|Name, Province and          |                                       | Director
|--------------------------- | ------------------------------------- | --------
|Country of Residence        | Principal Occupation                  | Since   
|                            |                                       |         
|ALEXANDER G. BALOGH (1) (2) | Corporate Director                    | 1997    
|Ontario, Canada             |                                       |         
|                            |                                       |         
|GUY G. DUFRESNE (1)(3)      | President and Chief Executive Officer | 1995    
|Québec, Canada              | Québec Cartier Mining Company         |         
|                            | (iron ore extraction and              |         
|                            | manufacturing company)                |         
|                            |                                       |         
|JEAN-ANDRÉ ÉLIE(3)          | Corporate Director                    | 2004    
|Québec, Canada              |                                       |         
|                            |                                       |         
|GRAHAM FARQUHARSON (1)(2)   | President                             | 1993    
|Ontario, Canada             | Strathcona Mineral Services Limited   |         
|                            | (mining consultant and project        |         
|                            | management firm)                      |         
|                            |                                       |         
|MICHEL H. GAUCHER (2)(3)    | Chairman of the Board                 | 1988    
|Québec, Canada              | Dynamis Group, Inc.                   |         
|                            | (cogeneration and recycling projects  |         
|                            | construction and management firm)     |         
|                            |                                       |         
|LOUIS GIGNAC(4)             | President and Chief Executive Officer | 1986    
|Québec, Canada              | Cambior Inc.                          |         
|                            |                                       |         
|JOHN W. W. HICK(5)          | Corporate Director                    | 2006    
|Ontario, Canada             |                                       |         
|                            |                                       |         
|HUBERT T. LACROIX(1)        | Special Advisor                       | 2005    
|Québec, Canada              | Stikeman Elliott LLP (law firm)       |         
|                            |                                       |         
|ROBERT NORMAND(3)           | Corporate Director                    | 2000    
|Québec, Canada              |                                       |         

|    |                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) | Mr. Gignac is not a member of any
    committee of the Board of Directors, but he attends all meetings at the
    committee members' request.                         
|(5) | Mr. Hick was a director of the Company
    from 2000 to December 2004. As at the date hereof, Mr. Hick is not a member
    of any committee of the Board of Directors.

---

Page 62All 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. Élie was, from 1998 to 2002, a managing director of a Canadian
bank wholly-owned by Société Générale (France). Since 2002, he serves as
director of public and private companies as well as non-profit organizations.
Mr. Hick was, from December 2001 to June 2003, President and Chief Executive
Officer of Geomaque Explorations Inc.; from February 2003 to September 2004,
President and Chief Executive Officer of Defiance Mining Corporation; from
September 2004 to December 2004, Vice Chairman of Rio Narcea Gold Mines Ltd.
("Rio Narcea")(mining Company); and from December 2004 to December 2005,
President and Chief Executive Office of Rio Narcea. Mr. Hubert T. Lacroix is
Special Advisor to Stikeman Elliott LLP (a Canadian law firm) since June 2003.
He also teaches at the Law Faculty of the University of Montreal, holding the
position of guest professor. From January 1, 2000 to June 1, 2003, he was
Executive Chairman of the Board of Directors of Télémédia Corporation Inc. (a
private communications and telecommunications corporation).
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.
2.Executive Officers

The current list of Company officers is as
follows:

|Name, Province and   |                             |              
|-------------------- | --------------------------- | -------------
|Country of Residence | Occupation                  | Officer since
|                     |                             |              
|GUY G. DUFRESNE      | Chairman of the Board       | 1998         
|Québec, Canada       |                             |              
|                     |                             |              
|LOUIS GIGNAC         | President and Chief         | 1986         
|Québec, Canada       | Executive Officer           |              
|                     |                             |              
|RÉJEAN GOURDE        | Senior Vice President,      | 1995         
|Trinidad & Tobago    | Guiana Shield               |              
|                     |                             |              
|JACQUES PERRON       | Vice President, Canada      | 2004         
|Québec, Canada       |                             |              
|                     |                             |              
|BRYAN A. COATES      | Vice President, Finance and | 2001         
|Québec, Canada       | Chief Financial Officer     |              
|                     |                             |              
|GASTON CÔTÉ          | Vice President,             | 2005         
|Québec, Canada       | Organizational Development  |              

---

Page 63

|Name, Province and   |                               |              
|-------------------- | ----------------------------- | -------------
|Country of Residence | Occupation                    | Officer since
|                     |                               |              
|MARC DAGENAIS        | Vice President, Legal Affairs | 1997         
|Québec, Canada       |                               |              
|                     |                               |              
|ROBERT MÉNARD        | Vice President, Projects and  | 1994         
|Québec, Canada       | Construction                  |              
|                     |                               |              
|SERGE VÉZINA         | Vice President, Environment   | 2001         
|Québec, Canada       | and Sustainable               |              
|                     | Development                   |              
|FRANÇOIS VIENS       | Vice President, Exploration   | 2004         
|Québec, Canada       | and Business Development      |              
|                     |                               |              
|PIERRE BÉLIVEAU      | Corporate Controller          | 2001         
|Québec, Canada       |                               |              
|                     |                               |              
|LUCIE DESJARDINS     | Corporate Secretary and       | 2002         
|Québec, Canada       | Senior Legal Counsel          |              
|LUCIE GAGNON         | Treasurer                     | 2004         
|Québec, Canada       |                               |              
|                     |                               |              
|ANDRÉ LE BEL         | Assistant Corporate           | 2000         
|Québec, Canada       | Secretary and Senior Legal    |              
|                     | Counsel                       |              

All of the executive officers of the Company 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. Coates was Vice President, Finance and Administration at Compañia
Minera Antamina S.A. Prior to September 2005, Mr. Côté was with the National
Defence; from 2003 to 2005, Mr. Côté was Commander, Land Forces-Québec Area, and
he was, from 2000 to 2003, Director of Peacekeeping Policy. Prior to June 2004,
Mr. Perron was Project Director with Cameco Corporation; he 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, Québec Operations, at Breakwater Resources Ltd.
from May 2000 to February 2001, and prior thereto, Manager, Bouchard-Hébert
Mine, at Cambior. Mr. Viens was Vice President  Exploration with Ariane Gold
Corp., from 2002 to 2003, and with Hope Bay Gold Corporation Inc., from 2000 to
2002. Prior thereto, he was General Manager, Mining Geology with Cambior. Prior
to November 2002, Ms. Desjardins practiced law with major law firms in Montreal,
Québec.

---

Page 643.
Shareholdings of Directors and Officers

As at March 15, 2006, directors and executive officers of
Cambior as a group beneficially own, directly or indirectly, or exercise control
or direction over, approximately 1,093,818 common shares or 0.39% of all issued
and outstanding common shares of Cambior.

4.

To the knowledge of the Company, no director
or officer of the Company is, or has been in the last ten years, a director or
executive officer of an issuer that, while acting in such capacity, (a) was the
subject of a cease trade order or similar order or an order that denied the
issuer access to any exemptions under Canadian securities legislation, for a
period of more than 30 consecutive days, (b) was subject to an event that
resulted, after that person ceased to be a director or executive officer, in the
issuer being the subject of a cease trade or similar order or an order that
denied the issuer access to any exemption under Canadian securities legislation,
for a period of more than 30 consecutive days, or (c) within a year of that
person ceasing to act in that capacity, became bankrupt, made a proposal under
any legislation relating to bankruptcy or insolvency or was subject to or
instituted any proceedings, arrangement or compromise with creditors or had a
receiver, receiver manager or trustee appointed to hold its assets, except for
the following: (i) Mr. Normand served as director of Concert Industries Ltd.
when it announced on August 5, 2003 that it and its Canadian operating
subsidiaries had filed for protection under the

Personal Bankruptcies

To the knowledge of the Company, no director or officer of
the Company has, within the 10 years before the date of this Annual Information
Form, become bankrupt, made a proposal under any legislation relating to
bankruptcy or insolvency, or become subject to or instituted any proceedings,
arrangement or compromise with creditors, or had a receiver, receiver manager or
trustee appointed to hold his or her assets.

---

Page 65
Penalties and Sanctions

To the best of management's knowledge, no penalties or
sanctions have been imposed on a director or executive officer of the Company in
relation to securities legislation or by a securities regulatory authority or
has entered into a settlement agreement with a securities regulatory authority
or any other penalties or sanctions imposed by a court or regulatory body that
would likely be considered important to a reasonable investor in making an
investment decision.
Conflict of Interest

To the best of management's knowledge, there is no existing
or potential material conflict of interest between the Company or one of its
subsidiaries and any director or officer of the Company or a subsidiary of the
Company.Item VIII     Audit Committee1.
Composition and
Relevant Education and Experience of Members

The Company has an Audit Committee which
consists of Messrs. Robert Normand (Chairman), Guy G. Dufresne, Jean-André Élie
and Michel H. Gaucher. The Board of Directors of the Company has determined that
all members of the Audit Committee are "independent" and "financially literate"
within the meaning of Multilateral Instrument 52-110
Audit Committees and the US Sarbanes-Oxley Act of 2002. The Board of Directors has also determined that
Messrs. Normand and Élie are "Audit Committee Financial Experts" within the
meaning of the US Sarbanes-Oxley Act of 2002.

The following is a brief summary of the
education and experience of each member of the Audit Committee that is relevant
to the performance of his responsibilities as a member of the Audit Committee.

|Name                          | Relevant Education and
    Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Robert Normand
    (Chairman) | Mr. Normand is
    a Chartered Accountant. He holds a commercial science degree from the
    École des Hautes Études Commerciales.
    He has been auditor with large audit firms for six years. As a Chartered
    Accountant, Mr. Normand has experience in preparing, auditing, analyzing and
    evaluating financial statements, understands internal controls and
    procedures for financial reporting, and understands the accounting
    principles used by the Company to prepare its financial statements as well
    as the implications of said accounting principles on the Company's results.
    Mr. Normand has also obtained
    significant financial experience and exposure to accounting and financial
    matters as Chief Financial Officer of Gaz Métropolitain Inc. for 25 years.
    Mr. Normand was a member and Chairman, Canada and Vice Chairman, U.S. of the
    Financial Executive Institute. Since his retirement in 1997, he has been
    involved on the board and audit committee of several large public companies,
    some of which are Canadian and US registrants.
    Mr. Normand is a
    member of the Financial Executive Institute and executive member of the
    Institute of Corporate Directors.

---

Page 66

|Name            | Relevant Education and
    Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Guy G. Dufresne | Mr. Dufresne
    holds a master's degree of engineering (M. Eng.) from the Massachusetts
    Institute of Technology and earned an MBA at Harvard University. Mr.
    Dufresne has acquired significant financial experience and exposure to
    accounting and financial matters as President and Chief Operating Officer of
    Kruger Inc. for three years, as President and Chief Executive Officer of
    Québec Cartier Mining since 1992, and as director and audit committee member
    of several public and private companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Jean-André Élie | Mr. Élie holds a law degree from McGill University and an MBA from the
    University of Western Ontario. He has over 35 years experience as senior
    executive in the pulp and paper and energy industries as well as with
    securities and accounting firms. Mr. Élie has acquired through his education
    and experience, an understanding of the accounting principles used by the
    Company to prepare its financial statements and the implications of said
    accounting principles on the Company's results, as well as an understanding
    of internal controls and procedures for financial reporting.
    Mr. Élie has obtained significant experience in analyzing and evaluating
    financial statements as well as exposure to accounting and financial matters
    as a managing director of a Canadian bank wholly-owned by Société Générale
    (France), as Vice President, Corporate Finance of a large Canadian
    investment bank, as Chairman of the audit committee of Hydro Québec and as
    director and audit committee member of public and private companies. Since
    his retirement in 2002, he serves on the boards and audit committees of
    public and private companies, as well as non for-profit organizations. Mr.
    Élie is a member of the Institute of Internal Auditors.



---

Page 67

|Name              | Relevant Education and
    Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|----------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Michel H. Gaucher | Mr. Gaucher earned a bachelor's degree in engineering from
    École Polytechniqueof Montréal, an MBA from McGill University and a law degree from the
    University of Montreal. Mr. Gaucher, an entrepreneur since 1978, has
    obtained significant financial experience and exposure to accounting and
    financial matters and gained an understanding of the accounting principles
    used to prepare financial statements, and procedures for financial
    reporting. Mr. Gaucher is Chairman and Chief Executive Officer of Dynamis
    Group Inc., a cogeneration and recycling projects construction and
    management firm, and a partner and chairman of the Audit Committee of Palos
    Capital Corp., an investment fund.

2.Mandate of the Audit Committee

The general mandate of the Audit Committee is
to review and, if deemed appropriate, recommend the approval of the Company's
annual and quarterly financial statements to the Board of Directors, and more
particularly (i) to consider and evaluate all aspects of the Company's financial
reporting process, internal control, hedging operations and insurance coverage;
(ii) to recommend to the Board of Directors the measures to be taken in
connection with these four (4) areas; and (iii) to monitor the implementation
and administration of corporate policies and guidelines adopted by regulatory
authorities and the Board of Directors with respect to financial reporting and
internal control. Finally, the committee ensures that the external auditors are
independent vis-à-vis management of the Company and makes its
recommendations regarding their nomination for the ensuing year.

This committee reviews the general policies
submitted by the Company's management in connection with financial reporting and
internal control; it deals with all matters relating thereto, including, without
restriction, reviewing and evaluating, periodically and at least once a year,
the work of outside auditors, the structure of the accounting and internal
control department and the efficiency of the records and systems used. Based on
its review, this committee makes recommendations to the Board of Directors. The
charter of the Audit Committee is attached hereto as Schedule A.

3.Policies and Procedures for the Engagement of Audit and Non-Audit Services

The Audit Committee of the Board of Directors
has adopted a policy to pre-approve permitted non-audit services to be performed
by the Company's external auditors. This policy authorizes management to retain
the services of its external auditors for consultations (i) on the accounting
treatment and application of new accounting standards; (ii) with respect to
requests from regulatory authorities; (iii) on the application of the U.S.Sarbanes-Oxley Act of 2002 and other legislation and regulation; and (iv) ontaxation matters, subject however to such
services being in consideration of fees not exceeding C $30,000 per quarter.

---

Page 68
This policy also delegates to the Audit Committee chairman
the authority to authorize, upon request from management, the external auditors
to perform services that are different in nature and scope from the ones
described above, or in respect of which the fees will exceed the permitted
amount. Management must report to the Audit Committee on a quarterly basis on
the non-auditing services performed by the external auditors, at which time the
Audit Committee ensures that the provision of such work is compatible with
maintaining the external auditors' independence.4.
External Auditor
Service Fees

The following table shows fees billed by Raymond Chabot Grant
Thornton, LLP, Chartered Accountants, in Canadian dollars in the past two fiscal
years for various services provided to the Company and its subsidiaries:

|                   | Year ended        | Year ended       
|------------------ | ----------------- | -----------------
|                   | December 31, 2005 | December 31, 2004
|                   | C $               | C $              
|Audit Fees         | 485,261           | 454,358          
|Audit-Related Fees | 64,213            | 33,340           
|Tax Fees           | Nil               | Nil              
|Other Fees         | Nil               | Nil              
|TOTAL              | 549,474           | 487,698          

Audit Fees

Audit fees include the professional services rendered for the
audit of the consolidated annual financial statements of the Company, the review
of the Company's quarterly financial statements and the accounting consultations
arising during the audit.

Audit-Related Fees

These fees include professional services that reasonably
relate to the performance of the audit or review of the Company's financial
statements, including audit of the employees' retirement plans and assistance
related to the Company's SOX 404 Certification Program.

---

Page 69Tax Fees and All Other Fees

No such fees were billed in 2005 and 2004.
Item IX     Interest of Management and Others in Material
Transactions

Within the three most recently completed financial years and
during the current 2006 fiscal year to date, none of the directors or executive
officers of the Company or associates or affiliates of any of such persons has,
to the best of the Company's knowledge, any material interest, direct or
indirect, in any transaction that has materially affected or will materially
affect the Company and its subsidiaries.
Item X     Transfer Agent and Registrar

The Company's transfer agent and registrar is: CIBC Mellon Trust Company
2001, University Street 16th Floor Montreal, Québec H3A 2A6
Item XI     Material Contracts

There are no other contracts, other than those herein
disclosed in this Annual Information Form and other than those entered into in
the ordinary course of the Company's business, that is material to the Company
and which was entered into in the most recently completed fiscal year or before
the most recently completed financial year but is still in effect as of the date
of this Annual Information Form.Item XII     Interests of Experts

1.Names of Experts

Raymond Chabot Grant Thornton, LLP, Chartered Accountants ("RCGT"),
external auditors of the Company, reported on the audited consolidated financial
statements of the Company for the year ended December 31, 2004 which were filed
with the Canadian securities regulators on March 31, 2005. RCGT's report on the
Company's audited consolidated financial statements for the year ended December
31, 2005 will also be filed with the securities regulators.

---

Page 702.
Interests of
Experts

To the best of management's knowledge, the experts named
above did not have any registered or beneficial interest, direct or indirect, in
any securities or other property of the Company when the experts prepared their
respective reports.

Item XIII     Additional Information

Additional information relating to the Company
may be found on SEDAR at





---



|Schedule A | Page 71
|---------- | -------

SCHEDULE A  Audit Committee Charter

CAMBIOR INC.

AUDIT COMMITTEE CHARTER

I.     PURPOSES OF THE AUDIT COMMITTEE

The purposes of the Audit Committee
are to assist the Board of Directors:

1. in its oversight
of the Company's accounting and financial reporting principles and policies and
internal audit controls and procedures;

2. in its oversight
of the Company's financial statements and the independent audit thereof;

3. in selecting,
evaluating and, where deemed appropriate, replacing the external auditors;

4. in evaluating
the independence of the external auditors;

5. in its oversight
of the Company's risk identification, assessment and management program; and

6. in the Company's
compliance with legal and regulatory requirements in respect of the above.

The function of the Audit Committee
is oversight. The management of the Company is responsible for the preparation,
presentation and integrity of the Company's financial statements. Management is
responsible for maintaining appropriate accounting and financial reporting
principles and policies and internal controls and procedures that provide for
compliance with accounting standards and applicable laws and regulations. The
external auditors are responsible for planning and carrying out a proper audit
of the Company's annual financial statements and other procedures. In fulfilling
their responsibilities hereunder, it is recognized that members of the Audit
Committee are not full-time employees of the Company and are not, and do not
represent themselves to be, accountants or auditors by profession or experts in
the fields of accounting or auditing including in respect of auditor
independence. As such, it is not the duty or responsibility of the Audit
Committee or its members to conduct "field work" or other types of auditing or
accounting reviews or procedures or to set auditor independence standards, and
each member of the Audit Committee shall be entitled to rely on (i) the
integrity of those persons and organizations within and external to the Company
from which it receives information, (ii) the accuracy of the financial and other
information provided to the Audit Committee by such persons or organizations
absent actual knowledge to the contrary (which shall be
promptly reported to the Board of Directors) and
(iii) representations made by management as to non-audit services provided by
the auditors to the Company.

---



|Schedule A | Page 72
|---------- | -------

The external auditors
are ultimately accountable to the Board of Directors and the Audit Committee as
representatives of shareholders. The Board of Directors, with the assistance of
the Audit Committee, has the ultimate authority and responsibility to select,
evaluate and, where appropriate, replace the external auditors.

The external auditors
shall submit annually to the Company and the Audit Committee, as representatives
of the shareholders of the Company, a formal written statement delineating all
relationships between the external auditors and the Company ("Statement as to
Independence").

The external auditors
shall submit annually to the Company and the Audit Committee a formal written
statement of the fees billed in compliance with the disclosure requirements of
Form 52-110F1 of Multilateral Instrument 52-110.

II.     COMPOSITION OF THE AUDIT COMMITTEE

The Audit Committee
shall be comprised of three or more independent directors as defined under
applicable legislation and stock exchange rules and guidelines. Determination as
to whether a particular director satisfies the requirements for membership on
the Audit Committee shall be made by the Board of Directors.

All members of the
Committee shall be financially literate (able to read and understand a set of
financial statements that present a breadth and level of complexity of
accounting issues that are generally comparable to the breadth and complexity of
the issues that can reasonably be expected to be raised by the Company's
financial statements), and at least one member of the Committee shall have
accounting or related financial expertise or sophistication as such
qualifications are interpreted by the Board of Directors in light of applicable
laws and stock exchange rules. The later criteria may be satisfied by past
employment experience in finance or accounting, requisite professional
certification in accounting, or any other comparable experience or background
which results in the individual's financial sophistication, including being or
having been a chief executive officer, chief financial officer or other senior
officer of an entity with financial oversight responsibilities.

III.     MEETINGS,
STRUCTURE AND OPERATIONS OF THE AUDIT COMMITTEE

The Audit Committee shall meet four
times annually or more frequently if circumstances dictate, to discuss with
management the annual audited financial statements and quarterly financial
statements, and all other related matters. The Audit Committee may request any
officer or employee of the Company or the Company's external counsel or external auditors to attend a meeting of the Audit
Committee or to meet with any members of, or consultants to, the Audit
Committee.

---



|Schedule A | Page 73
|---------- | -------

Proceedings and
meetings of the Audit Committee are governed by the provisions of General By-law
no. 17 relating to the regulation of the meetings and proceedings of the Board
of Directors as they are applicable and not inconsistent with this Charter and
the other provisions adopted by the Board of Directors in regards to committee
composition and organization.

IV.   DUTIES AND POWERS OF THE AUDIT COMMITTEE

To carry out its
purposes, the Audit Committee shall have the following duties and powers:

1. with respect to the
external auditor,

> (i)  
>   to review and assess, annually, the performance of the external auditors, and
>   recommend to the Board of Directors the nomination of the external auditors
>   for appointment by the shareholders, or if required, the revocation of
>   appointment of the external auditors;
>   (ii)   to review and approve the fees charged by the external
>   auditors for audit services;
>   (iii) to review and pre-approve all services other than audit services to be
>   provided by the Company's external auditors to the Company or to its
>   subsidiaries, and associated fees. The Audit Committee may delegate such
>   authority to one or more of its members, which member(s) shall report thereon
>   to the committee;
>   (iv) to ensure that the external auditors prepare and deliver annually a
>   Statement as to Independence (it being understood that the external auditors
>   are responsible for the accuracy and completeness of such statement), to
>   discuss with the external auditors any relationships or services disclosed in
>   the Statement as to Independence that may impact the objectivity and
>   independence of the Company's external auditors and to recommend that the
>   Board of Directors take appropriate action in response to the Statement as to
>   Independence to satisfy itself of the external auditors' independence;
>   (v) to instruct the external auditors that the external auditors are
>   ultimately accountable to the Audit Committee and the Board of Directors, as
>   representatives of the shareholders; and
>   (vi) to obtain from the external auditors confirmation that they are
>   participants in good standing in the Canadian Public Accountability Board
>   oversight program and in compliance with the provisions of the

---



|Schedule A | Page 74
|---------- | -------

2. with respect to
financial reporting principles and policies and internal controls,

(i)   to
advise management that they are expected to provide to the Audit Committee a
timely analysis of significant financial reporting issues and practices;

(ii)  to
ensure that the external auditors prepare and deliver annually a detailed report
covering 1) critical accounting policies and practices to be used; 2) material
alternative treatments of financial information within generally accepted
accounting principles that have been discussed with management, ramifications of
the use of such alternative disclosures and treatments, and the treatment
preferred by the external auditors; 3) other material written communications
between the external auditors and management such as any management letter or
schedule of unadjusted differences; and 4) such other aspects as may be required
by the Audit Committee or legal or regulatory requirements;

(iii)  to
consider any reports or communications (and management's responses thereto)
submitted to the Audit Committee by the external auditors, including reports and
communications related to:

> deficiencies noted following the audit of the design and
>     operation of internal controls;
>     consideration of fraud in the audit of the financial
>     statement;
>     detection of illegal acts;
>     the external auditors' responsibilities under generally
>     accepted auditing standards;
>     significant accounting policies;
>     management judgements and accounting estimates;
>     adjustments arising from the audit;
>     the responsibility of the external auditors for other
>     information in documents containing audited financial statements;
>     disagreements with management;
>     consultation by management with other accountants;
>     major issues discussed with management prior to retention
>     of the external auditors;
>     difficulties encountered with management in performing
>     the audit;
>     the external auditors judgements about the quality of the
>     entity's accounting principles;
>     and reviews of interim financial information conducted by
>     the external auditors;

---



|Schedule A | Page 75
|---------- | -------

(iv)  to meet
with management and external auditors:

> to discuss the scope of the annual audit;
>     to discuss the audited financial statements, including
>     the accompanying management's discussion and analysis;
>     to discuss the unaudited interim quarterly financial
>     statements, including the accompanying management's discussion and analysis;
>     to discuss the appropriateness and quality of the
>     Company's accounting principles as applied in its financial reporting;
>     to discuss any significant matters arising from any audit
>     or report or communication referred to in item 2 (iii) above, whether raised
>     by management or the external auditors, relating to the Company's financial
>     statements;
>     to resolve disagreements between management and the
>     external auditors regarding financial reporting;
>     to review the form of opinion the external auditors
>     propose to render to the Board of Directors and shareholders;
>     to discuss significant changes to the Company's auditing
>     and accounting principles, policies, controls, procedures and practices
>     proposed or contemplated by the external auditors or management, and the
>     financial impact thereof;
>     to review any non-routine correspondence with regulators
>     or governmental agencies and any employee complaints or published reports
>     that raise material issues regarding the Company's financial statements or
>     accounting policies;
>     to review, evaluate and monitor the Company's risk
>     management program including the revenue protection program. This function
>     should include:risk assessment;
>       quantification of exposure;
>       risk mitigation measures;
>       and risk reporting;
>     to review the adequacy of the resources of the finance
>     and accounting group, along with its development and succession plans;

(v) to discuss with
the Chief Financial Officer any matters related to the financial affairs of the
Company;

(vi) to discuss
with the Company's Vice President Legal Affairs or Corporate Secretary any
significant legal matters that may have a material effect on the financial
statements, the Company's compliance policies, including material notices to or
inquiries received from governmental agencies;

---



|Schedule A | Page 76
|---------- | -------

(vii) to review, and discuss with
the Company's Chief Executive Officer and Chief Financial Officer the procedure
with respect to the certification of the Company's financial statements pursuant
to Sections 302 and 906 of SOX, Multilateral Instrument 52-109
Certification of Disclosure in Isuuer'
Annual and interim Filingsand any other applicable
law or stock exchange rule.

3. with respect to
reporting and recommendations,

(i)   
to prepare/review any report or other disclosures to be included in the
Company's annual information form and management information circular;

(ii)   to
review and recommend to the Board of Directors for approval, the interim and
audited annual financial statements of the Company, management's discussion and
analysis of the financial conditions and results of operations (MD&A) and the
press releases related to those financial statements;

(iii)  to
review and recommend to the Board of Directors for approval, the annual report,
management's assessment on internal controls and any other like annual
disclosure filings to be made by the Company under the requirements of
securities laws or stock exchange rules applicable to the Company;

(iv)  to review
and reassess the adequacy of the procedures in place for the review of the
Company's public disclosure of financial information extracted or derived from
the Company's financial statements, other than the public disclosure referred to
in paragraph 3(ii) above;

(v)  to review
this Charter at least annually and recommend any changes to the Board of
Directors;

(vi)  to review
and reassess the adequacy of the Specific Code of Ethics governing Financial
Reporting Officers at least annually or otherwise, as it deems appropriate, and
propose recommended changes to the Board of Directors, and monitor compliance to
said Code; and

(vii) to report its
activities to the Board of Directors on a regular basis and to make such
recommendations with respect to the above and other matters as the Audit
Committee may deem necessary or appropriate;

4. to review,
discuss with management, and approve all related party transactions;

5. to establish and
reassess the adequacy of the procedures for the receipt and treatment of any
complaint regarding accounting, internal accounting controls or auditing
matters, including procedures for the confidential anonymous submissions by
employees of concerns regarding questionable accounting or auditing matters in
accordance with applicable laws and regulations; and

---



|Schedule A | Page 77
|---------- | -------

6. set clear hiring
policies regarding partners, employees and former partners and employees of the
present and, as the case may be, former external auditor of the Company.

V.     RESOURCES AND AUTHORITY OF THE AUDIT COMMITTEE

The Audit Committee
shall have the resources and authority appropriate to discharge its
responsibilities, as it shall determine, including the authority to engage
external auditors for special audits, reviews and other procedures and to retain
special counsel and other experts or consultants.

Revised last on: February 20, 2006









---