---

6         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS

Cambior's management discussion and analysis ("MD&A") should be read in
conjunction with the audited consolidated financial statements included in this
annual report. The consolidated financial statements have been prepared in
accordance with Canadian generally accepted accounting principles ("GAAP"). The
reporting currency for the Company is the US dollar and all amounts in the
following discussion are in US dollars unless otherwise noted.

Caution Concerning Forward-Looking Statements

This MD&A contains certain "forward-looking statements", including, but not
limited to, statements regarding the Company's strategic plans, future sales and
financial results, production, plans for reduction of hedging, timetables,
evaluation of mineral reserves and resources, mine operating costs, capital
expenditures, work programs, evolution of development projects, exploration
budgets and targets, litigation matters and the Company's outlook.
Forward-looking statements express, as at the date of this MD&A, the Company's
plans, estimates, forecasts, projections, expectations or beliefs as to future
events or results. Forward-looking statements involve a number of risks and
uncertainties, many of which are beyond the Company's control, and there can be
no assurance that such statements will prove to be accurate. Therefore, actual
results and future events could differ materially from those anticipated in such
statements. Risks and uncertainties that could cause results or future events to
differ materially from current expectations expressed or implied by the
forward-looking statements include, but are not limited to, factors associated
with fluctuations in the market price of precious metals, mining industry risks
and hazards, uncertainty as to estimation of mineral reserves and resources,
requirement of additional financing, risk related to hedging and non-hedge
derivative instruments, risks of delays in construction, production or obtaining
permits and other risks more fully described in the Risks and Uncertainties
section of this MD&A. The reader is cautioned not to place undue reliance on
these forward-looking statements. The Company does not undertake to update any
forward-looking statement that is contained in this MD&A.

CAMBIOR INC.

Cambior is engaged in exploration, development and mining of gold deposits in
North and South America and from time to time reviews the potential production
of other metals and minerals to complement its gold mining operations. The
Company holds interests in five gold mines and two non-gold mines.

Highlights for 2004 include:

- Successful start-up of the Rosebel mine both on time and on
  budget
- Record year of gold production of 694,100 ounces at a mine
  operating cost of $244 per ounce
- Revenues of $300.9 million, a 55% increase over last year
- Impairment charge of $73.2 million due to the devaluation
  of the Doyon mine
- Net loss of $73.8 million ($0.30 per share)
- 57% increase in cash flow from operating activities to
  $38.0 million
- Cash and short-term investments of $54.9 million at year
  end
- Reduction of the hedge book by 541,000 ounces
- Successful Cdn $110 million equity financing
- Successful merger with Sequoia Minerals Inc. to consolidate
  ownership of the Niobec mine
- Privatization of Linden Bauxite operations.

Since early 2003, the Company's activities were largely focused on completing
construction and starting commercial production at the Rosebel mine, which
occurred in the first quarter of 2004. Following the successful commencement of
the Rosebel operations, Cambior produced a record of 694,100 ounces of gold in
2004 and expects to produce 621,000 ounces in 2005. The decrease in the 2005
projected production compared to 2004 is the result of the scheduled shutdown of
the Omai mine in September 2005 and the reduced throughput at the Doyon mine.

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Cambior 2004 Annual Report        
7

OBJECTIVE AND STRATEGY

Cambior is focused on providing a superior rate of return to its shareholders
through the appreciation of its shares, which trade on the TSX and AMEX.

The Company believes that its share price is a reflection of its net asset
value, and aims to maximize this value by implementing the following strategies:

> 1. Maximize value of mining operations and projects
>   Successfully maximizing the output from its ore deposits in a cost
>     effective, safe and environmentally sound manner, while respecting the
>     communities where it operates.2. Grow reserve/resource base
>   Increasing the Company's reserves and resources through the discovery of
>     new deposits, delineation of further reserves at its current operating mines
>     and projects, and acquisition of new deposits and mining operations.3. Maintain a strong financial capacity
>   Ensuring that the Company has the cash reserves and access to financial
>     markets required to support its capability of finding, developing and
>     expanding mining projects.4. Maintain an active investor relations program
>   Communicating the Company's activities and financial and operating
>     performance to its shareholders and the financial markets in a timely and
>     transparent manner to enable them to accurately assess Cambior's value.

Key performance indicators

|                                                     | 2004    | 2003    | 2002   
|---------------------------------------------------- | ------- | ------- | -------
|Gold ($/oz)                                          |         |         |        
|- Average market price                               | 409     | 363     | 310    
|- Average realized price                             | 370     | 320     | 308    
|Gold production (oz)                                 | 694,100 | 521,500 | 568,800
|Exchange rate (Cdn $/US $)                           | 1.3015  | 1.4015  | 1.5704 
|Mine operating costs ($/oz)                          | 244     | 241     | 223    
|Revenues ($ millions)                                |         |         |        
|- Gold                                               | 255.2   | 165.9   | 178.6  
|- Non-gold                                           | 44.8    | 25.0    | 23.7   
|Net earnings (loss) ($ millions)                     | (73.8)  | 0.8     | (7.8)  
|Cash flow from operating activities ($
    millions) | 38.0    | 24.2    | 30.8   
|Capital investments ($ millions)                     | 133.0   | 107.2   | 30.2   
|Cash and short-term investments ($ millions)         | 54.9    | 95.2    | 42.8   
|Total debt ($ millions)                              | 65.2    | 64.2    | 28.0   
|Deferred revenue ($ millions)                        | 12.2    | 24.4    | 36.6   
|Shareholders' equity ($ millions)                    | 375.0   | 338.3   | 162.6  
|Proven and probable reserves (oz millions)           | 3.5     | 4.1     | 4.2    
|Measured and indicated resources (oz
    millions)   | 3.5     | 2.8     | 1.8    
|Inferred resources (oz millions)                     | 3.7     | 2.6     | 2.0    
|Share price (closing price)                          |         |         |        
|- US $                                               | 2.67    | 3.10    | 1.43   
|- Cdn $                                              | 3.21    | 3.99    | 2.25   

GOLD, NIOBIUM AND BAUXITE MARKETS

The Company's revenues are generated predominately from the sale of gold,
with the remaining portion from the sale of ferroniobium and calcined bauxite.

---

8         Cambior 2004 Annual ReportMANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Gold market

The gold market is relatively small in comparison to other major commodities
and is influenced by:

1. US dollar relative value; 
2. World economic growth; 
3. The cyclical financial market and the corresponding money supply; 
4. Demand from the jewellery market; 
5. Investment demand and sales; 
6. Mine supply and producer hedging and de-hedging transactions; 
7. Central bank gold sales; and 
8. The geopolitical environment and its impact on the economy.

The gold market is characterized by substantial above-ground reserves that
can dramatically affect the price should a portion of these reserves be brought
to market. The significant holders of these gold reserves are central banks. In
September 1999, several of the large European central banks, indicating a desire
to convert some of their reserves into cash, entered into an agreement ("the
Washington Agreement") to ensure an orderly disposition. That agreement has
negated the impact of the sudden supply to the marketplace that had depressed
the price of the commodity. As anticipated by the market, the Washington
Agreement was renewed in 2004 for a five-year term, with additional participants
joining the original group of 15 signatories. The renewal provides continued
stability in the marketplace, through an orderly reduction of the participants'
gold reserves.

The relatively small size of the gold market can result in significant
fluctuations based on major variations in demand and supply. The gold price
fluctuations for the past 20 years based on the London Bullion Market Price are
presented below:

Gold Price - London PM Fix (US$/oz)



During 2004, the gold price continued a steady upward trend to reach a
16-year high of $454/oz on December 2, 2004. Gold traded between $375 and $454
during 2004 and averaged $409 compared to $363 in 2003 and $310 in 2002. Major
factors affecting the gold price over the past three years were:

1. Continued devaluation of the US dollar against other currencies
  (particularly the Euro), due to trade, current account and budget deficits
  incurred by the United States of America;
2. Declining mine output;
3. Producer de-hedging activities;
4. Increased investment demand by speculators and investors;
5. New gold investment products aimed at facilitating the holding of gold as
  part of investment portfolios;
6. Low interest rates that reduced the opportunity cost of holding gold as an
  investment; and
7. Geopolitical tensions in the Middle East and the war on terrorism.

The favourable conditions for the maintenance of a positive gold price
environment should continue into 2005.

---

Cambior 2004 Annual Report        
9
In the past, the Company used various instruments to reduce the volatility of
its revenues and secure cash flows from its operating mines. The Company's
lenders imposed the establishment of a revenue protection program as part of its
financial restructuring arrangements in 2001, requiring that 70% of production
until 2005 be protected at a minimum price of $290 per ounce. The Company was
forced to implement this program in a low price environment during the first
nine months of 2001, during which time gold traded between $256 and $293 per
ounce. At the end of 2001, the Company had committed to deliver up to 1,887,000
ounces at an average price of $306 per ounce as per the following table:

|      | Number of ounces | Average price per ounce ($)
|----- | ---------------- | ---------------------------
|2002  | 608,000          | 304                        
|2003  | 475,000          | 295                        
|2004  | 327,000          | 305                        
|2005  | 266,000          | 308                        
|2006  | 155,000          | 331                        
|2007  | 56,000           | 350                        
|Total | 1,887,000        | 306                        

Benefiting from an improved financial position, the Company was able to
negotiate the elimination of the lenders' requirement to maintain a revenue
protection program in August 2003. Furthermore, the Company adopted a new policy
at that time, which provides full exposure to the market price for its gold
production. This new policy will increase the volatility of the Company's
revenues and profitability and requires that the Company reduce the level of
debt related to project development.

Since mid-2003, the Company has aggressively pursued the reduction of its
forward sales through opportunistic buy-back programs and delivery against
commitments. The Company has reduced its gold hedging commitments under the
revenue protection program, including the prepaid gold forward sales, by 1.7
million ounces (89.1%) as follows:

|                  | Ounces committed | Variation from previous year
|----------------- | ---------------- | ----------------------------
|December 31, 2001 | 1,887,000        | -6%                         
|December 31, 2002 | 1,286,000        | -32%                        
|December 31, 2003 | 746,000          | -42%                        
|December 31, 2004 | 205,000          | -73%                        

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.

The impact of gold hedging on both earnings and operating cash flow in recent
years and the estimated impact for future years based on a market gold price of
$425 per ounce are as follows:

|                                           | 2002   | 2003   | 2004    | 2005 (E) | 2006 (E) | 2007 (E)
|------------------------------------------ | ------ | ------ | ------- | -------- | -------- | --------
|Average market gold price ($/oz)           | 310    | 363    | 409     | 425      | 425      | 425     
|Impact on earnings ($ millions)            | (17.6) | (21.6) | (36.9)* | (14.9)   | (2.3)    | (0.2)   
|Impact on operating cash flow ($ millions) | (3.8)  | (21.7) | (36.0)  | (19.1)   | (12.7)   | (4.2)   

*

During 2004, the Company's average realized price was $370 per ounce compared
to an average market price of $409 per ounce. For 2003 and 2002, the average
realized price was, respectively, $43/oz and $2/oz below market price.

The Company expects its profitability to be adversely affected as the
reduction in these commitments will be deferred and recognized at the original
designation date of the various hedge instruments in the operations statement.
However, the Company has positioned itself to deliver 96% of its 2005 targeted
gold production at market price and remains committed to the opportunistic
buy-back of the remaining 2006-2007 positions on spot gold price weaknesses.

---



10         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Niobium market

Niobium is a strengthening element used in the manufacture of specialty steel
alloys. Small additions of niobium increase the strength and durability of steel
used in pipelines, the automobile industry and structures.

The market has been expanding at an average rate of 5% annually over the past
three years, mainly due to higher steel demand in China and increased
utilization in steel manufacturing.

Cambior is one of three producers and has a 12-14% market share. The industry
is marked by a significant Brazilian producer that dominates the marketplace and
strongly influences market conditions. During 2004, the Company saw a small
decrease in its market share, although it has managed to develop new client
bases, located mainly in China, which offset reduced market share in North
America. The market price has remained constant over the past three years.

Bauxite market

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 High-Alumina Refractory Grade Calcined Bauxite (RASC)
to Europe, North America, South America, Asia and Australia. Approximately 90%
of the expected 2005 revenues from the bauxite mine will be generated by the
RASC product.

Calcined bauxite products are used for the production of refractories,
abrasive products and welding products. However, RASC is only designed to meet
the needs of the refractory market. The worldwide market for RASC is
approximately one million tonnes per year. China is the major supplier of
refractory grade calcined bauxite, accounting for an estimated 80% of the
high-alumina refractory bauxite supply worldwide. It is expected that the OMAI
bauxite operations will produce over 200,000 tonnes of RASC in 2005, accounting
for approximately 20% of the worldwide market.

CONSOLIDATED OPERATIONS

During 2004, the Company incurred a loss of $73.8 million ($0.30/share)
compared to net earnings of $0.8 million ($0.00/share) and a loss of $7.8
million ($0.06/share) realized in 2003 and 2002, respectively.

The table below summarizes the operating profit (loss) from mining
operations:

|(in millions of $)                       | 2004   | 2003  | 2002 
|---------------------------------------- | ------ | ----- | -----
|Revenues                                 | 300.9  | 193.9 | 204.2
|Operating costs                          | 209.6  | 144.3 | 145.7
|Refining and transportation              | 3.4    | 2.1   | 2.3  
|Royalties                                | 11.5   | 5.4   | 5.4  
|Mining operations                        | 224.5  | 151.8 | 153.4
|Depreciation, depletion and amortization | 46.9   | 28.7  | 29.6 
|Impairment loss and restructuring costs  | 73.2   |      |     
|Total mine expenses                      | 344.6  | 180.5 | 183.0
|Operating profit (loss)                  | (43.7) | 13.4  | 21.2 

The $43.7 million loss from mining operations resulted primarily from the
poor operating performance and impairment charge at the Doyon Division, which
was affected by ground stability issues. These geotechnical problems led Cambior
to revise its long-term mining plan, reducing underground ore production from
1,000,000 tonnes to 700,000 tonnes of ore per annum and the workforce by
130 individuals. The lower throughput caused an increase in unit operating costs
and a reduction in mineral reserves. The new revised mining plan resulted in a
non-cash impairment charge of $71.3 million and restructuring costs of $1.9
million for employee severances. The operations were also affected by a stronger
Canadian dollar, and higher energy and consumable costs. These negative factors
overshadowed a very positive start-up year at Rosebel and an improved gold
market environment.

The 2003 operating margin declined in comparison to 2002 due to lower gold
output at Omai, higher costs at the Canadian operations resulting from a
production hoist failure at Doyon, and the strengthening of the Canadian dollar
against the US currency.

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Cambior 2004 Annual Report        
11

NET EARNINGS (LOSS)

Net earnings (loss) and per share data for the past three years were as
follows:

|                                 | 2004   | 2003 | 2002  
|-------------------------------- | ------ | ---- | ------
|Net earnings (loss) ($ millions) | (73.8) | 0.8  | (7.8) 
|Per share ($)                    |        |      |       
|- Basic                          | (0.30) | 0.00 | (0.06)
|- Diluted                        | (0.30) | 0.00 | (0.06)

REVENUES

Revenues during the past three years were as follows:

|                            | 2004    | 2003    | 2002   
|--------------------------- | ------- | ------- | -------
|Ounces of gold sold         | 687,800 | 516,800 | 578,500
|Revenues ($ millions)       |         |         |        
|Gold                        | 255.2   | 165.9   | 178.6  
|Non-gold                    | 44.8    | 25.0    | 23.7   
|Investment and other income | 0.9     | 3.0     | 1.9    
|Total                       | 300.9   | 193.9   | 204.2  

The increase in revenues in 2004 was due to:

- Increased gold sales, following record production. The
  Company sold 33.1% more ounces due to the start-up of Rosebel, which more than
  offset the planned reduction at Omai following depletion of the Fennell pit
  and the production shortfall at Doyon;
- Higher gold prices; and
- Increased niobium sales following the acquisition of the
  remaining 50% interest in the Niobec mine mid-year.

Gold production and unit mine operating costs were:

|                          | 2004    | 2003 | 2002   
|------------------------- | ------- | ---- | -------
|                          | Ounces  | $/oz | Ounces 
|Rosebel mine              | 273,700 | 170  |       
|Omai mine                 | 240,400 | 244  | 271,000
|Doyon Division            | 146,500 | 374  | 217,200
|Sleeping Giant mine (50%) | 33,500  | 291  | 33,300 
|Total                     | 694,100 | 244  | 521,500

The 2004 pressure on mine operating costs stemming from poor ground
conditions at Doyon, higher energy and consumable costs, as well as the
strengthening of the Canadian dollar in relation to the US currency was
partially offset by the new low cost Rosebel operation. The 2003 mine operating
costs rose mainly as a result of the strengthening of the Canadian currency.

---

12         Cambior 2004 Annual ReportMANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

The summary analysis and outlook for Cambior's operating units
are as follows:

ROSEBEL MINE

The Rosebel mine is located in Suriname, South America, some 100 kilometres
south of Paramaribo, the country's capital. Commercial production was achieved
successfully on February 11, 2004, after completing the $95 million investment
both on time and on budget. The Rosebel mine experienced the smoothest
operational start-up since the creation of the Company in 1986.

The Rosebel mine is currently the most important asset of the Company with
the lowest unit mine operating cost. The beginning of commercial production at
the Rosebel mine was the initial step in the Company's relaunching of its growth
strategy, allowing the Company to achieve record gold production of 694,100
ounces in 2004. Cambior has leveraged the knowledge and expertise it gained
through 13 years of experience at its Omai operations and will benefit from
synergies with other activities in the Guiana Shield to maximize the return to
its shareholders.

During the initial ten months of operations, the milling capacity gradually
increased to reach a constant milling rate above 17,000 tonnes per day, a 21%
improvement over the design capacity. Since the beginning of commercial
production, the mine has processed 5.1 million tonnes at an average grade of
1.84 g Au/t for production of 273,700 ounces, representing a 12% increase over
the initial mining plan. Mine operating costs were $170 per ounce, in line with
the initial budget. Record production of 93,300 ounces was achieved in the
fourth quarter, with an average throughput of 17,200 tonnes per day at an
average grade of 1.93 g Au/t, well in excess of the initial forecast. Mine
operating costs for the quarter were $158 per ounce, representing the Company's
lowest unit cost.

Mineral reserves at Rosebel increased over the year, as the mine added
380,000 ounces to reserves, well in excess of its annual production. Estimated
at $400 per ounce, the proven and probable mineral reserves stood at 2.5 million
ounces of gold contained at year-end 2004, with a substantial gain in measured
and indicated resources as well. The Company is confident that the entire
property has significant geological potential and excellent exploration targets,
which will allow further enhancement of the reserve and resource base.

Cambior Inc. holds 95% of the participating share capital of Rosebel Gold
Mines N.V., while the remaining 5% participation is held by the Government of
Suriname, through a state-owned company. A Mineral Agreement was signed with the
Republic of Suriname in 1994 and was amended in March 2003.

Rosebel's production is subject to royalties and a price participation right,
payable as follows:

- To Grassalco (a state-owned entity): 2% of gold produced,
  plus 6.5% of the market price in excess of $425 per ounce using the average
  market price for a given quarter.
- To a foundation encouraging the development of mining
  resources in Suriname, a royalty of 0.25% of gold produced.
- To Golden Star Resources Ltd. as consideration
  for the acquisition of the latter's 50% interest in Rosebel in May 2002, a
  price participation right of 10% of the average quarterly market price in
  excess of $300 per ounce on gold production from soft and transitional ore,
  and in excess of $350 per ounce from hard rock ore.

In 2004, Rosebel Gold Mines N.V. paid $2.5
million in royalties to Grassalco and the foundation and $2.9 million in gold
price participation to Golden Star Resources.

|Quarterly Statistics |              |          |             |                    
|-------------------- | ------------ | -------- | ----------- | -------------------
|                     | Throughput   | Grade    | Gold output | Mine operating cost
|                     | (tonnes/day) | (g Au/t) | (ounces)    | ($/ounce)          
|1st Quarter (1)      | 13,400       | 1.6      | 27,300      | 163                
|2nd Quarter          | 14,500       | 2.0      | 74,100      | 160                
|3rd Quarter          | 16,300       | 1.7      | 79,000      | 195                
|4th Quarter          | 17,200       | 1.9      | 93,300      | 158                
|Year 2004            | 15,200       | 1.8      | 273,700     | 170                

(1)

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Cambior 2004 Annual Report        
13

Rosebel Operating and Financial Statistics

|                                   | 2004 (1)  | Target 2005
|---------------------------------- | --------- | -----------
|Tonnage mined (000 t)              | 16,780    | 20,805     
|Tonnage milled (000 t)             | 5,067     | 6,205      
|Grade milled (g Au/t)              | 1.84      | 1.72       
|Gold recovery (%)                  | 94        | 94         
|Production (oz Au)                 | 273,700   | 320,000    
|Direct mining costs ($/oz)         | 168       | 190        
|Refining and transportation ($/oz) | 2         | 3          
|Mine operating costs ($/oz)        | 170       | 193        
|Royalties ($/oz)                   | 9         | 9          
|Total cash costs ($/oz)            | 179       | 202        
|Depreciation ($/oz)                | 78        | 76         
|Restoration ($/oz)                 |          | 1          
|Total production costs ($/oz)      | 257       | 279        
|Mineral reserves (oz Au)           | 2,459,000 |            

(1)

Capital expenditures for 2004 were $42 million, mainly for the completion of
Phase-1 construction and pre-production expenditures, the initiation of Phase-2
construction, and exploration and development drilling.

Outlook

Rosebel is expected to produce 320,000 ounces in 2005 at an estimated mine
operating cost of $193 per ounce. Continued exploration and development drilling
remain the primary objective. A total of 44,000 metres of diamond drilling is
planned to delineate the six known deposits and discover new ones.

Capital expenditures for 2005 are estimated at $25 million. An amount of $11
million will be allocated to complete the Phase-2 construction, including the
installation of a primary crusher, stacker, conveyor, effluent treatment plant
and related pipelines by July. Sustaining capital will be used to optimize the
milling circuit ($3 million) in order to maintain the current milling rate of
more than 17,000 tonnes per day, raise the tailings dams ($2.6 million), acquire
mine equipment ($1.8 million) and for exploration and development drilling ($6.5
million).

OMAI MINE

The Omai mine, an open-pit operation with a cyanidation and carbon-in-pulp
(CIP) processing plant, is located in Guyana, South America, some 160 kilometres
south of the capital city of Georgetown. Mine production has been decreasing
from a peak of 354,300 ounces in 2001 and the reserves are expected to be
depleted in the third quarter of 2005, after almost 13 years of production.
Cumulative production is expected to be close to 3.8 million ounces of gold,
almost twice as much as estimated in the initial feasibility study.

The Company has already begun the rehabilitation of the mine site and has
transferred some equipment to the newly acquired bauxite operations located 100
kilometres north of the mine, as well as to the Rosebel mine in neighbouring
Suriname.

Production at the Omai mine for 2004 was 240,400 ounces of gold, slightly
higher than the original 2004 plan, with a mine operating cost of $244 per
ounce. The mill processed 5.5 million tonnes of ore (15,200 tonnes per day) at
an average grade of 1.46 g Au/t. The last blast in the Fennell pit took place in
early October; since then, the mill has been exclusively processing low-grade
hard rock ore from the stockpiles accumulated during the initial years of
production. The fuel price impact was very significant at the Omai mine, which
generates its own electric power using diesel generators, with year-over-year
increased costs of $3.6 million.

---



14         Cambior
2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Cambior and the Government of Guyana respectively own 95% and
5% of the voting common shares of OMAI Gold Mines Limited (OGML). The
relationship among Cambior, OGML and the State of Guyana is governed by a
Mineral Agreement executed on August 16, 1991. This Agreement includes a 5%
in-kind royalty on Omai's mineral production payable to the Government of
Guyana.

Omai Operating and Financial Statistics

|                                   | 2002    | 2003    | 2004    | Target 2005(1)
|---------------------------------- | ------- | ------- | ------- | --------------
|Tonnage milled (000 t)             | 7,727   | 5,748   | 5,545   | 3,800         
|Grade milled (g Au/t)              | 1.4     | 1.6     | 1.46    | 0.98          
|Gold recovery (%)                  | 92      | 92      | 93      | 91            
|Production (oz Au)                 | 319,600 | 271,000 | 240,400 | 107,000       
|Direct mining costs ($/oz)         | 224     | 200     | 226     | 291           
|Deferred stripping ($/oz)          | (5)     | 18      | 17      |              
|Refining and transportation ($/oz) | 3       | 3       | 3       | 2             
|By-product credits ($/oz)          | (1)     | (1)     | (2)     |              
|Mine operating costs ($/oz)        | 221     | 220     | 244     | 293           
|Royalties ($/oz)                   | 15      | 18      | 20      | 21            
|Total cash costs ($/oz)            | 236     | 238     | 264     | 314           
|Depreciation ($/oz)                | 39      | 36      | 37      | 20            
|Restoration ($/oz)                 | 2       | 2       | 1       | 1             
|Total production costs ($/oz)      | 277     | 276     | 302     | 335           
|Mineral reserves (oz Au)           | 629,300 | 359,100 | 122,000 |               

(1)

Mineral reserves at Omai declined over the year 2004, despite exploration
work on the Omai River and Quartz Hill properties located adjacent to the Omai
concession. Estimated at $400 per ounce, proven mineral reserves, consisting
only of low-grade stockpiles of 3.8 million tonnes at 0.98 g Au/t, represented
122,000 ounces of gold contained.

In expectation of the total depletion of reserves, no further capital
expenditures were made or are anticipated to be made before the shutdown of the
mine in September 2005.

Outlook

For the first nine months of 2005, the Omai mill will process 3.8 million
tonnes of ore at an average grade of 0.98 g Au/t for production of 107,000
ounces of gold at an estimated mine operating cost of $293 per ounce. Starting
in September, all further activities will be associated with the restoration of
the site.

The Company has already initiated the restoration program and will step up
its efforts to maximize the work done during the operating period to reduce the
overall cost. The closure of the plant has been approved by the Government of
Guyana and costs, aligned with environmental provisions, are expected to be
approximately $4.5 million and will be funded from the Company's cash resources.

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Cambior 2004 Annual Report        
15

DOYON DIVISION

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

For 2004, the Doyon Division produced 146,500 ounces of gold at
a mine operating cost of $374 per ounce, a major shortfall in comparison to 2003
(217,200 ounces of gold produced at a mine operating cost of $267 per ounce) and
2002 (216,200 ounces of gold produced at a mine operating cost of $228 per
ounce). The unfavourable variance is attributable to:

> (a)
>       The
>       suspension of operations at the high grade Mouska mine for 10 months to
>       allow for the deepening of theinternal shaft to provide access to reserves located at lower levels;(b)
>       The
>       production shortfall caused by ground stability issues at the Doyon mine
>       that resulted in a revision of thelong-term mining plan. The new plan called for a 30% reduction in annual
>       underground production, which thereby resulted in a reduction in manpower
>       of 130 individuals and an impairment charge of $73.2 million;(c)
>       The
>       cost to rehabilitate the main ramp infrastructure following the ground
>       stability issues;(d)
>       The
>       strengthening of the Canadian dollar by 7% compared to 2003 and 11%
>       compared to 2002; and(e)
>       The
>       processing of lower grade open pit ore to compensate for the Doyon
>       underground production shortfall.

As the current mine's reserves are more difficult and more
costly to extract, and are subject to ground stability concerns, its favourable
impact on the Company's results will be less significant in the future.

Cambior is the sole owner of the Doyon mine following the
acquisition of Barrick Gold's 50% interest in the Doyon mine in 1998. As part of
the transaction, Cambior granted Barrick a price participation interest of
24.75% of the surplus of the average annual market gold price over $375 on the
first 2.6 million ounces of gold production following the closing of the
purchase. As of December 31, 2004, a payment of $1.2 million had been made and
1.4 million ounces remained subject to the price participation interest. No
payment had been made from 1998 to 2003.

The Mouska mine was placed into production in 1992 and has, to
date, produced 506,000 ounces from the extraction of 1.4 million tonnes of ore
at an average grade of 12 g Au/t. Mouska is a high grade, low tonnage, shrinkage
stoping operation consisting of surface infrastructure providing access to
underground 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. The Mouska operations are located 4 km from the
Doyon mill and can therefore benefit from its infrastructure.

Production from the Mouska mine is subject to two royalties: 1)
2.0% on the value of gold recovered payable to Newmont Mining Corporation and 2)
0.2% on the amount of gold produced payable to the estate of an individual. The
Company paid $118,000 in 2004 with respect to these royalties.

---



16         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Doyon Divison Operating and Financial Statistics

|                                   | 2002      | 2003      | 2004    | Target 2005
|---------------------------------- | --------- | --------- | ------- | -----------
|Tonnage milled (000 t)             |           |           |         |            
|Underground mines                  | 1,248     | 1,123     | 964     | 834        
|Open pit and low grade stockpiles  | 39        | 155       | 208     |           
|Total                              | 1,287     | 1,278     | 1,172   | 834        
|Grade milled (g Au/t)              |           |           |         |            
|Underground mines                  | 5.6       | 6.2       | 4.6     | 6.5        
|Open pit and low grade stockpiles  | 1.0       | 1.0       | 1.5     |           
|Average                            | 5.5       | 5.6       | 4.1     | 6.5        
|Gold recovery (%)                  | 96        | 95        | 96      | 96         
|Production (oz Au)                 | 216,200   | 217,200   | 146,500 | 166,000    
|Direct mining costs ($/oz)         | 228       | 267       | 375     | 323        
|Refining and transportation ($/oz) | 1         | 1         | 1       | 1          
|By-product credits ($/oz)          | (1)       | (1)       | (2)     | (2)        
|Mine operating costs ($/oz)        | 228       | 267       | 374     | 322        
|Royalties ($/oz)                   | 2         | 2         | 9       | 11         
|Total cash costs ($/oz)            | 230       | 269       | 383     | 333        
|Depreciation ($/oz)                | 63        | 71        | 97      | 82         
|Restoration ($/oz)                 | 5         | 5         | 6       | 7          
|Total production costs ($/oz)      | 298       | 345       | 486     | 422        
|Mineral reserves (oz Au)           | 1,366,300 | 1,258,500 | 868,600 |            

The Doyon mine has been a solid producer of gold for the past 25 years, with
cumulative output of 5 million ounces. Cambior believes that its land holdings
in the prolific Doyon-Bousquet-LaRonde gold camp have the potential for further
discoveries as demonstrated by its initial successes on the Westwood deposit.
The Company intends to fully pursue an aggressive exploration program,
particularly at depth on Westwood, which can benefit from the existing
infrastructure.

In 2004, capital expenditures were $10.4 million and $6.8 million on the
Doyon and Mouska mines, respectively. The Company reviewed the carrying value of
the Doyon mine at year end based on its long-term plan and related ore reserves.
Mineral reserves were reduced due to higher unit mining costs and lower mining
recovery. Current proven and probable reserves at the Doyon Division stand at
4.5 million tonnes grading 6.0 g Au/t, representing 868,000 ounces of gold
contained.

Outlook

Following the Doyon mine reorganization in 2004, the new mining plan for the
Doyon Division for 2005 anticipates 834,000 tonnes of ore milled at an average
grade of 6.5 g Au/t for production of 166,000 ounces of gold at an estimated
mine operating cost of $322 per ounce. The resumption of mining at the Mouska
mine will provide high-grade ore for processing at the Doyon mill.

Capital expenditures for 2005 are estimated at $4.4 million at Mouska and
$3.0 million at Doyon, mainly for underground exploration and reserve
development ($2 million), and deferred development ($4 million).

---



Cambior 2004 Annual Report        
17

SLEEPING GIANT DIVISION

The Sleeping Giant mine is located in northwestern Québec, approximately 80
kilometres north of Amos. It is a high-grade, vein-type, underground gold mine
50%-owned and managed by Cambior under a joint venture with Aurizon Mines Ltd.
(50%).

For 2004, Cambior's share of production from the Sleeping Giant mine totaled
33,500 ounces of gold, similar to its 2003 production and in line with the
budget. Mine operating costs for the year were $291 per ounce compared to $246
per ounce in the previous year. The increase in unit operating costs is related
to the strengthening of the Canadian dollar against the US dollar. In 2004, the
mine suffered from a lower broken ore tonnage and delays in lateral development
caused by manpower shortages. The Company faces challenges in recruiting
qualified manpower due to travelling distances from the surrounding towns and
competition from other mining operations and projects. To offset the shortages,
the Company has instituted development programs for inexperienced miners. The
mine includes a 900-tonne per day capacity mill, a headframe and ancillary
facilities, as well as a tailings pond.

Sleeping Giant Operating and Financial Statistics

|Cambior's share (50%)              | 2002   | 2003   | 2004   | Target 2005
|---------------------------------- | ------ | ------ | ------ | -----------
|Tonnage milled (000 t)             | 101    | 88     | 96     | 81         
|Grade milled (g Au/t)              | 10.5   | 12.1   | 11.1   | 11.0       
|Gold recovery (%)                  | 97     | 97     | 97     | 97         
|Production (oz Au)                 | 33,000 | 33,300 | 33,500 | 28,000     
|Direct mining costs ($/oz)         | 225    | 251    | 298    | 327        
|Refining and transportation ($/oz) | 2      | 2      | 2      | 2          
|By-product credits ($/oz)          | (7)    | (7)    | (9)    | (9)        
|Mine operating costs ($/oz)        | 220    | 246    | 291    | 320        
|Depreciation ($/oz)                | 46     | 53     | 63     | 121        
|Restoration ($/oz)                 | 1      | 5      | 6      | 6          
|Total production costs ($/oz)      | 267    | 304    | 360    | 447        
|Mineral reserves (oz Au)           | 77,400 | 79,200 | 91,600 |            

During the year, Cambior's share of capital expenditures at Sleeping Giant
totaled $3 million and were principally related to the completion of the mine
deepening program in early 2004, underground exploration and deferred
development.

Drilling at the mine resulted in a gain in mineral reserves at year end.
Cambior's 50% share of mineral reserves stands at 245,000 tonnes at 11.7 g Au/t,
representing 91,600 ounces of gold contained.

Outlook

Cambior's share of targeted 2005 production is 28,000 ounces of gold at an
estimated mine operating cost of $320 per ounce. The lower gold production is
attributable to shortages of developed ore tonnage in 2004. Unit costs are
expected to be higher than last year due to additional stope preparation and the
strength of the Canadian dollar relative to the US dollar. Higher depreciation
charges are anticipated in 2005 as ore will be extracted from new infrastructure
completed in 2004.

Cambior's share of capital expenditures for 2005 is estimated at $1.9
million, mainly for reserve and deferred development.

---



18         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

NIOBEC DIVISION

The Niobec mine is located 15 kilometres northwest of Chicoutimi, Québec. For
more than 25 years, Niobec has supplied approximately 12-14% of the world supply
of niobium, which is added to steel as a micro-alloy element to improve its
mechanical properties and corrosion resistance. At the current production rate,
the mine life is expected to be at least 18 years. Niobec is the only niobium
producer in North America and the third largest in the world with a steady cash
flow above $16 million per year and sales of niobium in the range of $45 to $50
million a year. The milling capacity of the Niobec mine is 3,500 tonnes per day.
The pyrochlore concentrate produced at Niobec is transformed into ferroniobium
grading 66% niobium using an aluminothermic process. Niobec has received the ISO
9001 and ISO 14001 certifications for its production processes and its
Environmental Management System, respectively.

For 2004, the Company's niobium sales from the Niobec mine totaled $37.9
million compared to sales of $22.5 million in 2003. Sales were higher due to the
acquisition of the remaining 50% interest in the Niobec mine following the
completion of the acquisition of Sequoia Minerals Inc. ("Sequoia") on July 2,
2004, for a total consideration of $48.6 million.

Niobium Sales Statistics

|(in millions of $)   | 2002 | 2003 | 2004* | Target 2005
|-------------------- | ---- | ---- | ----- | -----------
|Sales of niobium     | 23.5 | 22.5 | 37.9  | 47.0       
|Capital expenditures | 1.2  | 1.7  | 2.7   | 8.0        

* In July 2004, the Company achieved 100% ownership of the mine.

The 2004 investment at the Niobec Division, excluding the acquisition cost
for Sequoia, amounted to $2.7 million, used mainly on optimization projects.

A drilling campaign at the mine increased year-end mineral reserves to 24.3
million tonnes at 0.66% Nb2O5 from 22.6 million tonnes at 0.65% Nb2O5 in 2003, for
approximately 18 years of production at the current mining rate.

Outlook

Niobium revenues for 2005 are expected to be approximately
$47.0 million. Capital expenditures for 2005 are estimated at $8.0 million of
which $5.6 million will be invested on mill optimization work to be completed in
the second half of 2005. These expenditures will, in the coming years, enable
the Company to maintain market share of the world supply.

OMAI BAUXITE MINE

Located in Guyana, South America, OMAI Bauxite Mining Inc. (OBMI) is a new
initiative taken by Cambior utilizing its 13 years of operating experience in
the Guiana Shield. In December 2004, the Company and the Government of Guyana
completed the privatization of certain assets of Linden Mining Enterprises Ltd.
(Linmine), a bauxite mining and processing operation wholly-owned by the
Government of Guyana. A new company, OBMI, has been incorporated and is owned
70% by Cambior and 30% by the Government of Guyana. The Government of Guyana is
contributing the mineral deposits and the processing plant with its service
facilities, totaling $5.2 million. Cambior invested an amount of $12.2 million
to gain a 70% interest, including $5 million in cash and mine equipment
transfers from the Omai gold mine. The bauxite mine is a simple operation and
requires low investment at low risk. It is expected that this operation will
generate sizable cash flow and economic growth for the restructured operation
and its surrounding community. It will also allow the Company to continue its
search for gold projects in Guyana, where it can leverage its experience and
infrastructure in the Guiana Shield. Guyana has recently seen an increased level
of exploration activity in the gold sector.

---



Cambior 2004 Annual Report        
19

OBMI markets three non-metallurgical products: a trademarked high-alumina
calcined bauxite named Refractory "A" Grade Super Calcined (RASC), a chemical
grade bauxite (CGB) and a cement grade bauxite (CeB), the last two being non-calcined
products. The operation also has the capacity to produce a metallurgical grade
bauxite (MAZ), depending on market conditions. The RASC product represents
approximately 90% of the total revenues of the operation. Accordingly, as part
of the privatization agreement, both partners have agreed to reinvest all free
cash flow during the initial five years of operation to expand the operation
into other non-metallurgical products, as well as the supply of MAZ bauxite
based on market conditions.

Cambior has been involved with this project since 1999, providing contract
mining after the Government of Guyana solicited Cambior's assistance for its
bauxite extraction activities. This project not only exceeds Cambior's minimum
return on investment criteria, but also has significant reserves and resources
while offering many opportunities for expansion and value creation over time. In
addition, it is a tremendous demonstration of the Company's corporate policy of
sustainability as Cambior will remain an important employer and economic
contributor in Guyana well beyond the scheduled closure of the Omai gold mine.
Even though this venture is non-gold, the Company recognized that it was in a
unique position as the only international mining company with more than 13 years
of positive experience in Guyana, an excellent reputation as a corporate
citizen, a significantly experienced workforce and available equipment from the
Omai gold mine as its production winds down.

Proven and probable mineral reserves at the mine stand at 62.3 million tonnes
at a grade of 60% Al2O3 at year-end 2004, which
corresponds to at least 60 years of mine life at the expected 2006 production
rate.

As part of Cambior's financial commitments in the privatized enterprise (OBMI),
a total of $10.2 million was invested in 2004 as the result of the transfer of
available equipment from the Omai mine, the rehabilitation of the processing
plant and improvements to the existing infrastructure.

Outlook

In 2005, OMAI Bauxite will process approximately 658,000 tonnes of raw
bauxite with an overall process recovery of 33% for production of approximately
217,000 tonnes of RASC at an average grade of 88% Al2O3.
Also, OMAI Bauxite will process approximately 80,000 tonnes of raw bauxite at an
estimated grade of 5.5% SiO2 with an overall process recovery of 87%
for production of 70,000 tonnes of CGB.

It is anticipated that this mine will generate sales of approximately $42
million with $8 million in operating cash flow in 2005, a transition year as the
production facilities are being rehabilitated for full production in 2006.
Ninety percent of sales will come from RASC production.

Capital expenditures for 2005 are estimated at $18 million for the
refurbishing of the processing plant in order to increase its capacity by at
least 100%, improvement of storage and port infrastructure, construction of a
new mine mobile equipment shop, excavation of a direct haulage road and
expansion of the tailings pond, in addition to the expansion of the mine fleet.

OTHER EXPENSES

Exploration and business development

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

- Invest in exploration at or near its operating mines to
  benefit from available infrastructure;
- Fund grassroots exploration in areas with a strong
  potential for discovery;
- Monitor the activities of junior and emerging producers
  with potential to make acquisitions/joint ventures.

---

20         Cambior 2004 Annual Report
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

The capital invested in 2004 yielded good results at depth at the Westwood
deposit adjacent to the Doyon mine and favourable results at the Gemini-Turgeon
project in the Abitibi region of Québec, Canada.
Benefiting from improved financial conditions over the past three years,
Cambior has increased its exploration and business development activities and
established new regional offices in French Guiana and Suriname. The Company's
focus is on the Americas, but it also considers opportunities in other regions
of the world. Expenditures during the past three years were:
(in millions of $)
    2004
    2003
    2002Canada
    2.1
    1.9
    1.3Guyana
    0.6
    1.0
    0.5Peru
    4.6
    4.5
    1.8Suriname
    0.5
    
    French Guiana
    1.3
    
    Corporate & others
    1.1
    0.2
    0.6Expenses
    10.2
    7.6
    4.2Advanced projects  Capitalized
    17.8
    7.3
    5.0Grand total
    28.0
    14.9
    9.2A $1.4 million exploration program returned encouraging results at depth on
the Westwood project, located 2.5 kilometres east of the Doyon mine. A
preliminary evaluation of all drilling results 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.
In 2004, surface drilling (a total of 4,233 m) included the completion of
three wedges from the first main hole (1158-02) and a second main hole
(1159-03-04). The style of mineralization encountered in the Westwood deep area
was very similar to drilling results in 2003 and the known mineralized zone
extends approximately 350 metres laterally by 1.2 km down plunge. The
mineralization intersected in the Westwood and North Corridor horizons is
contained in felsic volcanics containing disseminated to semi-massive sulphides.
The exploration drift from the 14th level of the Doyon mine progressed
eastwards towards the Westwood sector with 722 metres of advancement. Two
exploration holes were completed during the fourth quarter from the first
drilling bay located approximately 2 km west of the previously drilled Westwood
sector to verify extensions of the Warrenmac-Westwood stratigraphic horizon
(3,064 m). Both holes intersected low-grade mineralization corresponding to the
targeted horizons. Both holes also displayed alteration zones of chlorite,
sericite and garnet, which are typical of the sulphide environment of the
Bousquet-LaRonde area. Furthermore, the second hole intersected a new
mineralized structure within the Mooshla intrusive and indicated a
pyrite-chalcopyrite breccia zone located to the east of the Doyon fault. Best
results returned include 2.5 g Au/t over 1.5 m and 1.4 g Au/t over 2.5 m and
deserve some follow-up.
Cambior holds exploration properties in Peru covering an area of 137,326
hectares. An amount of $4.6 million was spent in 2004 for drilling, geological
mapping and tunnel sampling, as well as a 4,200-km 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
on the main deposit to verify the new geological interpretation following
extensive surface mapping; the results confirmed mineralization presence and
grade. The 2005 drilling program should focus on completing a reserve estimate
and extending the resources of the known deposit.
On the El Toro property, surface geological mapping as well as mapping and
sampling of 54 tunnels have been completed. Geological interpretation confirms
the Company's initial model and sample results show a surface anomaly of 1.5 x
2.0 km using a cut-off grade of 0.3 g Au/t, which doubles the initial surface
gold anomalies. Tunnel sampling shows high-grade results (up to 18 g Au/t over 1
m) associated with narrow structures. Structural controls oriented north-south
and northwest-southeast are very significant and present everywhere in the
mineralized zone. Mineralization is associated with highly-fractured sediments
and intrusives. A total of 13 core holes totaling 2,269 metres have been
completed on the property. Drilling results to date have confirmed the
geological model and the mineralized gold-bearing zone. The gold-bearing zone
has an average grade varying between 0.5 to 1.0 g Au/t of oxidized and fractured
material and shows a style of mineralization similar to the La Arena property.
Cambior 2004 Annual Report        
21
The Company intends to aggressively pursue the discovery of new deposits in
2005. The 2005 exploration and development budget is estimated at $28 million,
the same as in 2004. Exploration will remain focused at or near the Company's
mine sites and advanced projects, but some $5 million will be spent on
grassroots projects in Peru and both the Canadian and Guiana shields.
Approximately $23 million will be spent at the Company's mines and advanced
projects and will therefore be capitalized; this capitalized budget includes
expenditures for mine exploration and development drilling to increase reserves
mainly at the Rosebel mine, development and feasibility work on the Camp Caiman
gold project in French Guiana, and advanced exploration and development work on
the Doyon property, excluding the known Mouska and Doyon deposits. In the
Huamachuco region of Peru, exploration and development drilling will continue on
the El Toro and La Arena deposits and plans include technical studies and a
pre-feasibility study.
The Company finances exploration expenditures from internal cash resources
and, in the case of its Canadian exploration activities, also from the issuance
of flow-through shares. Flow-through shares are usually issued at a premium to
market, as they allow the transfer of the tax deduction to the subscriber of the
shares. The Company also benefits from financial assistance from the Québec
government for some of its exploration programs in Québec.

General and Administrative

The Company's increasing level of activities and additional regulatory
compliance requirements have resulted in an increase in general and
administrative costs. The table below provides a comparison over the past three
years and expresses the cost as a percentage of revenues.

|                                                    | 2004   | 2003   | 2002  
|--------------------------------------------------- | ------ | ------ | ------
|General and administrative (G&A) (in millions of $) | 8.9    | 6.1    | 4.8   
|Revenues (in millions of $)                         | 300.9  | 193.9  | 204.2 
|G&A as % of revenues                                | 3.0%   | 3.1%   | 2.4%  
|Cdn $/US $ (yearly average)                         | 1.3015 | 1.4015 | 1.5704

The Company's general and administrative costs are mainly denominated in
Canadian dollars and are therefore affected by the strengthening of the Canadian
dollar in comparison to the US dollar. The increase in costs in 2004 was also
attributed to the initiation of the Sarbanes-Oxley 404 Internal Control
Certification Process, and higher stock exchange fees. General and
administrative costs for 2005 are expected to be approximately $10.2 million.

Financial Expenses

Financial expenses increased by $2.2 million to $4.1 million during 2004 as a
result of fully expensing the interest and political risk insurance coverage
premium. In 2003, a significant portion of the financing fees was capitalized as
part of the Rosebel construction project.

|                                                        | 2004 | 2003 | 2002
|------------------------------------------------------- | ---- | ---- | ----
|Long-term debt  December 31 (in millions of $)         | 65.2 | 64.2 | 28.0
|Financial expenses (in millions of $)                   | 4.1  | 1.9  | 2.4 
|Financial expenses  capitalized (in millions
    of $) | 0.5  | 1.4  |    
|Average LIBOR rate (%)                                  | 1.7  | 1.2  | 1.8 
|Average interest rate on credit facility (%)            | 4.1  | 4.3  | 4.0 

In 2005, financial expenses are expected to be similar to 2004 levels.

---



22         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Impairment of Assets

In accordance with its accounting policy, the Company reviews
the carrying value of its assets on an annual basis. In its evaluation, the
Company considers estimated future metal production from the deposit, estimated
future realized metal prices, operating, capital and site restoration expenses
and estimated future foreign exchange rates. Upon the determination that the
undiscounted cash flows are not sufficient to recover the carrying value, the
Company must evaluate an impairment charge. In the determination of the
impairment charge, it must:

(1) Calculate the present value of the future cash flows. The
  difference between this amount and the carrying value is charged to income.
  
  (2) Evaluate the recoverability of related hedge commitments and include any
  loss as part of the impairment charge.

As part of the annual review, it was determined that the
following impairment loss and restructuring costs related to the Doyon mine were
required in 2004:

|(in millions of $)                                                        |     
|------------------------------------------------------------------------- | ----
|Impairment loss                                                           | 52.7
|Write-off of previously recorded deferred
    losses on hedging contracts | 4.3 
|Hedge derivative loss associated with Doyon
    contracts                 | 14.3
|Restructuring costs                                                       | 1.9 
|                                                                          | 73.2

The impairment charge stems from:

> i)
>       Reduction in reserves due to rock mechanics constraints and increased
>       operating costs;ii)
>       Increased operating costs due to reduction in the economies of scale
>       following the reduction in the underground
> production rate from 1,000,000
>       tonnes per annum to 700,000 tonnes per annum and
>       strengthening of the Canadian dollar against the US dollar; andiii)
>       Reorganization expenses of $1.9 million ensuing from the reduction of 130
>       employees.

There were no impairment losses in 2003 and 2002.

Stock-Based Compensation Costs

In accordance with the newly adopted accounting policies for stock-based
compensation costs, the Company expensed the costs of options issued to
directors and key employees. The expense is calculated by the Company utilizing
the Black-Scholes option pricing model, which is used by a majority of other
companies in valuing stock-based compensation. In determining the valuation of
the option price, the Company took into account an expected life of five years
and the following assumptions:

|                                               | 2004   | 2003   | 2002  
|---------------------------------------------- | ------ | ------ | ------
|Semi-annual risk-free interest rate            | 3.95%  | 4.08%  | 5.07% 
|Volatility                                     | 75%    | 78%    | 85%   
|Dividend                                       |       |       |      
|Weighted average fair value of options granted | $ 1.44 | $ 0.93 | $ 1.00

In 2004, the total stock-based compensation costs determined under the fair
value-based method of accounting was $1,580,000. The fair value of options
exercised during 2004 totaled $202,000 and was transferred from contributed
surplus to common shares.

The Company had not recognized stock-based compensation costs before 2004 on
its statement of consolidated operations. The cumulative effect has been
recognized as a transfer of $15.7 million from the deficit to the contributed
surplus account.

---



Cambior 2004 Annual Report        
23

Non-Hedge Derivative Gain/Loss

The Company obtains a valuation of its portfolio of gold commitments from a
counterparty at each reporting period. This market valuation is based on the
forward rates and considers the market price, rate of interest, gold lease rate
and volatility. Forward transactions for which the quantity, price and timing of
delivery are fixed are accounted for under the hedge accounting method.

Transactions for which any key component (price, delivery date, quantity) is
uncertain do not meet the conditions of hedge accounting and are treated as
"non-hedge derivatives". Any variation in the mark-to-market valuations of such
transactions is included in the consolidated statement of operations. This
valuation can cause a significant variation in earnings for any given period.
Because the Company has decided to eliminate the use of optionalities, which are
accounted for as non-hedge derivatives, no significant accounting adjustments
caused by the mark-to-market fluctuations are expected to impact earnings after
2004.

The table below summarizes the mark-to-market valuations and their impact on
earnings in the various year-end periods.

|                                                                                               | Dec. 31 | Dec. 31 | Dec. 31
|---------------------------------------------------------------------------------------------- | ------- | ------- | -------
|                                                                                               | 2004    | 2003    | 2002   
|Estimated fair value of Cambior's gold forward sales,
    deliveries and purchase commitments: |         |         |        
|Forwards ($
    millions)                                                                      | (8.7)   | (59.7)  | (37.3) 
|Forwards - Doyon
    future gold production included in the impairment                         |         |         |        
|loss
    and recognized on the balance sheet ($ millions)                                      | (14.3)  |        |       
|                                                                                               | (23.0)  | (59.7)  | (37.3) 
|Non-hedge derivatives recognized on
    the balance sheet ($ millions)                         | 1.5     | (7.8)   | (6.4)  
|Estimated mark-to-market value 
    revenue protection program ($ millions)                   | (21.5)  | (67.5)  | (43.7) 
|                                                                                               |         |         |        
|                                                                                               | 2004    | 2003    | 2002   
|Impact on earnings of non-hedge derivative instruments ($
    millions):                       |         |         |        
|Mark-to-market value
    at the end of the year                                                | 1.5     | (7.8)   | (6.4)  
|Mark-to-market value at the
    beginning of the year                                          | (7.8)   | (6.4)   | 5.3    
|                                                                                               | 9.3     | (1.4)   | (11.7) 
|Loss arising from the exercise of call
    options sold and gold purchase commitments          | (8.3)   | (1.1)   |       
|Gain resulting from lease rate swap contracts                                                  | 1.5     | 3.1     |       
|Non-hedge derivative loss related to call
    options                                          |         |         |        
|and VVF converted into forward
    instruments                                                 |        |        | (5.1)  
|Non-hedge derivative gain (loss)                                                               | 2.5     | 0.6     | (16.8) 

---

24         Cambior 2004 Annual ReportMANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Income and Mining Taxes

The Company is subject to income and mining taxes in the jurisdictions where
it operates. The calculation of these taxes is based on profitability and may,
in some cases, include minimum taxes such as tax on large corporations in
Canada. It should be noted that taxes are calculated at the entity level and
cumulated for consolidated financial reporting purposes.

In 2004, due to the strong performance at Rosebel, the Company registered
future income taxes of $6.9 million, which were offset by $1.2 million in future
tax benefits recognized in Canada on the issuance of flow-through shares. In
addition, the Company recorded cash payable taxes of $0.5 million in 2004,
versus a recovery of $0.6 million in 2003 and taxes of $0.4 million in 2002.

The Company has significant cumulative tax losses and unrecognized tax
valuation allowances, which are described in Note 21. The realization of these
unrecorded tax benefits is subject to generating profit in the jurisdictions
and/or corporations in which these losses were incurred.

QUARTERLY REVIEW

The following table shows selected results by quarter for the last eight
quarters.

|                                       | First   | Second  | Third   | Fourth  |       | First   | Second  | Third   | Fourth  |       
|-------------------------------------- | ------- | ------- | ------- | ------- | ----- | ------- | ------- | ------- | ------- | ------
|                                       | quarter | quarter | quarter | quarter | Year  | quarter | quarter | quarter | quarter | Year  
|(unaudited)                            | 2003    | 2003    | 2003    | 2003    | 2003  | 2004    | 2004    | 2004    | 2004    | 2004  
|(in millions of $)                     |         |         |         |         |       |         |         |         |         |       
|Total revenues                         | 45.3    | 43.4    | 46.5    | 58.7    | 193.9 | 60.0    | 78.3    | 80.7    | 81.9    | 300.9 
|Cash flow from                         |         |         |         |         |       |         |         |         |         |       
|operating activities                   | 0.5     | 1.7     | 4.6     | 17.4    | 24.2  | 7.8     | 9.6     | 16.9    | 3.7     | 38.0  
|Net earnings (loss)                    | (2.3)   | (2.1)   | 0.6     | 4.6     | 0.8   | 7.3     | 1.7     | (6.1)   | (76.7)  | (73.8)
|Basic net earnings (loss)              |         |         |         |         |       |         |         |         |         |       
|per share ($)                          | (0.01)  | (0.01)  | 0.00    | 0.02    | 0.00  | 0.03    | 0.01    | (0.02)  | (0.28)  | (0.30)
|Diluted net earnings (loss)            |         |         |         |         |       |         |         |         |         |       
|per share ($)                          | (0.01)  | (0.01)  | 0.00    | 0.02    | 0.00  | 0.03    | 0.01    | (0.02)  | (0.28)  | (0.30)
|Basic weighted average number          |         |         |         |         |       |         |         |         |         |       
|of common shares
    outstanding       |         |         |         |         |       |         |         |         |         |       
|(millions)                             | 164.2   | 170.9   | 193.1   | 222.9   | 188.0 | 241.0   | 241.8   | 244.5   | 269.9   | 249.3 
|Effect of dilutive stock options       |         |         |         |         |       |         |         |         |         |       
|(millions)                             |        |        | 2.4     | 3.4     | 2.0   | 2.8     | 2.9     |        |        |      
|Effect of dilutive warrants (millions) |        |        | 0.1     | 1.4     | 0.6   | 0.1     | 0.1     |        |        |      
|Diluted weighted average number        |         |         |         |         |       |         |         |         |         |       
|of common shares
    outstanding       |         |         |         |         |       |         |         |         |         |       
|(millions)                             | 164.2   | 170.9   | 195.6   | 227.7   | 190.6 | 243.9   | 244.8   | 244.5   | 269.9   | 249.3 
|Number of ounces of gold               |         |         |         |         |       |         |         |         |         |       
|produced (000)                         | 134     | 121     | 124     | 143     | 522   | 152     | 193     | 174     | 175     | 694   
|Mine operating costs ($/oz)            | 252     | 244     | 238     | 231     | 241   | 240     | 226     | 263     | 251     | 244   

---

Cambior 2004 Annual Report        
25

CONSOLIDATED CASH FLOWS Operating Activities

Cash flow from operating activities increased by 57% to $38.0 million in 2004
as a result of the commencement of operations at Rosebel and improved realized
gold prices. The cash flow from operating activities is expected to continue to
increase due to the Company's increased activities in the non-gold sector and
with the reducing impact of gold forward sales commitments following the
buy-back of positions. In 2003, cash flow from operating activities decreased to
$24.2 million from $30.8 million in 2002 due to lower gold output at the Omai
mine.

It should be noted that the cash flow figures do not reflect the delivery of
51,920 ounces of gold per annum under the prepaid gold forward sales
agreement. The proceeds of $55 million from the transaction were received in
2001 and recorded as cash flow in that year. These ounces were effectively sold
at $235 per ounce and, therefore, if this value was pro-rated over the delivery
period, the cash flow would have increased by $12.2 million in each of the years
presented.

Investing Activities

In September 2001, the Company, with the announcement of the acquisition of
Golden Star Resources Ltd.'s 50% interest in the Rosebel project, embarked on an
aggressive investment program to rebuild its asset base, which had been affected
by a poor commodity price environment from 1996 to 2001 and a major financial
restructuring from the second half of 1999 to the beginning of 2001.

The Company's strategy is to:

i)            Accelerate the development of its projects; 
  ii)           Grow the reserve base through acquisition or discovery; and 
  iii)          Maximize the utilization of assets to increase cash flow.

The foundation of the rebuilding phase was the construction of the Rosebel
gold project, which reached commercial production in February 2004 and became
Cambior's largest cash flow generator.

A summary of investments in property, plant and equipment is as follows:

|(in millions of $)          | 2004  | 2003  | 2002
|--------------------------- | ----- | ----- | ----
|Canada                      |       |       |     
|Doyon Division              | 17.2  | 10.6  | 8.1 
|Sleeping Giant              | 3.1   | 4.4   | 1.8 
|Omai                        | (4.0) | (1.5) | 4.5 
|Rosebel                     | 41.9  | 87.1  | 12.7
|Niobec                      | 2.7   | 1.7   | 1.2 
|Sequoia acquisition         | 42.0  |      |    
|Bauxite                     | 10.3  | 0.8   |    
|French Guiana - Camp Caiman | 7.7   | (2.0) |    
|Carlota                     | 5.9   | 1.7   | 0.9 
|Projects and other          | 6.2   | 4.4   | 1.0 
|Total                       | 133.0 | 107.2 | 30.2

---

26         Cambior 2004 Annual Report
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

In May 2002, the Company completed the acquisition of the 50% interest in the
Rosebel gold project held by Golden Star Resources Ltd. As part of the
transaction, Cambior also acquired Golden Star's interest in two exploration
properties adjacent to Rosebel and its 30% common share participation in OMAI
Gold Mines Limited. Consideration paid by Cambior included:
$5 million at closing;
  Three installments of $1 million each payable
  in 2003, 2004 and 2005, discounted at an interest rate of 5%; and
  A price participation right of 10% of the
  portion of the gold price in excess of $300 per ounce for gold production from
  the soft and transitional ore reserves, and in excess of $350 per ounce for
  production from the hard rock reserves of the Rosebel property, less
  royalties.

The Company completed a revised feasibility study
and initiated construction in 2003 following the availability of bank financing
and political risk insurance. The construction period was completed in February
2004 in accordance with the original timetable and on budget. After a successful
start-up, the Company embarked on a second phase of construction in mid-2004 to
maintain a throughput rate of 17,000 tonnes per day once the hard rock portion
of the various deposits is attained. The expansion program is expected to cost
$19 million and be completed in mid-2005.

The Company has also initiated an aggressive
exploration program to increase the reserve base at Rosebel. The objective is to
replicate the results that were achieved at Omai, where the reserve base was
nearly doubled from the original feasibility study estimate.

In July 2004, Cambior completed the acquisition
of Sequoia Minerals Inc., whose principal asset was a 50% interest in the Niobec
mine. By way of the transaction, the Company increased its ownership to 100% in
Niobec, a niobium producer in operation since 1976 and with more than 18 years
of reserves. Following the acquisition, Cambior assumed the operatorship of the
mine and initiated an expansion and optimization project necessitating
investments of $5.6 million which should be completed in 2005.

The acquisition of Sequoia Minerals Inc. can be
summarized as follows:

|(in millions of $)                                                                     |     
|-------------------------------------------------------------------------------------- | ----
|Current assets                                                                         | 13.0
|Investments                                                                            | 0.1 
|Property, plant and equipment                                                          | 58.4
|Future income tax assets                                                               | 0.1 
|Total assets acquired                                                                  | 71.6
|Current liabilities                                                                    | 4.6 
|Assumption of long-term debt                                                           | 14.1
|Assumption of debenture                                                                | 1.0 
|Asset retirement obligations                                                           | 0.8 
|Accrued benefit liability                                                              | 1.4 
|Future mining tax liabilities                                                          | 1.1 
|Total liabilities assumed                                                              | 23.0
|Net assets acquired                                                                    | 48.6
|Consideration                                                                          |     
|Disbursement                                                                           | 42.0
|Issuance of Cambior
    shares                                                         | 6.3 
|Conversion option on
    convertible debenture                                         | 0.3 
|Fair value of Sequoia common share
    purchase options converted into Cambior options | 0.0 
|                                                                                       | 48.6

---

Cambior 2004 Annual Report        
27
The Company also embarked on two shaft deepening projects in Canada in 2003
to extend the mine life of the Mouska and Sleeping Giant mines. The deeper
infrastructure allows access for the extraction of reserves and provides
drilling bases to further explore these deposits at depth. The shaft deepening
at the Sleeping Giant mine was completed in the first quarter of 2004 and the
internal shaft deepening at the Mouska mine was completed in the fourth quarter
of 2004. Both mine deepening programs permitted the extension of each mine's
life by at least three years.

Camp Caiman Project

The Camp Caiman gold project is located about 45 kilometres southeast of
Cayenne, the principal city of French Guiana, an overseas department of France
located on the northeastern coast of South America between Brazil and Suriname.
This advanced project contains measured and indicated resources of 1.5 million
ounces of gold contained, of which 60% are in saprolite material. All the
environmental, geotechnical and metallurgical studies have been completed and
applications for the various operating permits are in final preparation.

The property is indirectly held by CBJ Caiman, a wholly-owned subsidiary of
Cambior that was acquired in November 2003 as a result of a merger transaction
with Ariane Gold Corp., a junior exploration company.

The value of Ariane's net assets acquired was established as follows:

|(in millions of $)                                                                        |      
|----------------------------------------------------------------------------------------- | -----
|Cash and cash equivalents                                                                 | 3.2  
|Current assets                                                                            | 0.2  
|Investment                                                                                | (0.4)
|Property, plant and equipment  mining projects                                           | 49.6 
|Total assets acquired                                                                     | 52.6 
|Current liabilities                                                                       | 2.3  
|Assumption of long-term debt                                                              | 9.7  
|Total liabilities assumed                                                                 | 12.0 
|Net assets acquired                                                                       | 40.6 
|Consideration                                                                             |      
|Issuance of Cambior
    shares                                                            | 39.2 
|Fair value of Ariane common share
    purchase options converted into Cambior options (1) | 1.4  
|                                                                                          | 40.6 

|    |                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The options granted pursuant to the merger
    agreement with Ariane were valued at their fair value using the Black-Scholes
    option-pricing model, taking into account an expected life of
    six months, a semi-annual risk-free interest rate of 3.11%, a volatility of
    54% and a nil dividend.

The acquisition of the Camp Caiman gold project is consistent with Cambior's
growth strategy. Cambior is in an excellent position to add value to the project
given its 13 years of experience in the Guiana Shield and the operating
synergies with Omai and Rosebel. This project, combined with the Rosebel gold
project in Suriname, should maintain a solid level of gold production for
Cambior in the Guiana Shield for many years.

In December 2004, the French Government, represented by Prime Minister
Jean-Pierre Raffarin, granted Cambior a 30 km2mining concession for
the project, valid for a period of 25 years. The granting of the mining
concession is the first regulatory step towards construction and production. The
second and final step will involve applications for numerous operating permits,
a review thereof by both the public and regulators, and the eventual issue of
said permits, which will define conditions for construction and operations. The
permit applications require advanced engineering on all aspects of the project
and should be completed in the second quarter of 2005. Discussions are also
ongoing with governmental authorities regarding government-imposed charges to
the project and available tax flow-through financing under Loi Girardin.
Capital and operating cost estimates will be compiled in the second quarter and
a feasibility study should be finalized by mid-2005 with anticipated production
for mid-2007.

---

28         Cambior 2004 Annual ReportMANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Carlota Copper Project

Located in the Globe-Miami mining district in the heart of Arizona's copper
belt, Carlota has mining reserves of 91.1 million tonnes grading 0.39% copper
representing 355,000 tonnes of contained copper. The Company acquired 100% of
this asset in 1991 and received all permits required for construction and mining
in 1999. The Company developed a feasibility study over the years. The project
development was postponed pending improved market conditions. Since 2003, the
Company has considered various scenarios to mine the Carlota deposit and process
the ore through leaching pads and an SX-EW (solvent extraction and
electrowinning) plant. The attractiveness of this asset has increased as a
result of rising copper prices and high physical demand, especially in Asia.
Cambior has spent $7.6 million over the last two years on studies, property
payments and to exercise options to acquire mining equipment.

A feasibility study was finalized on a stand-alone basis, as BHP Base Metals
Inc. abandoned the Joint Carlota-Pinto Valley development alternative. The
strategic review should be completed in the first half of 2005. Capital
expenditures for 2005 are estimated at $2.3 million. Project development costs
are estimated at approximately $100 million.

Short-Term Investments

As part of its cash management strategy, the Company invests its excess cash
resources in short-term deposits and commercial papers with a maturity in excess
of 120 days. In accordance with accounting pronouncements, these are classified
as short-term investments. During 2004, short-term investments were reduced by
$32.9 million due to a decrease in total available cash resources.

Investments

From time to time, the Company invests in marketable securities of other
mining and exploration companies, which have the potential to complement the
Company's current asset base. These may be sold upon reaching certain valuation
parameters or utilized as a toehold for acquisition, as in the Ariane
transaction.

The investment in marketable securities increased by $12.8 million in 2004.
The market value amounted to $18.9 million. In 2004, the Company advanced $2.0
million to suppliers to assist in the financing of improvements to power
generating facilities in Suriname. The advance will be recovered over the life
of the power contract.

Deferred Charges

Deferred charges totaling $1.9 million were incurred in 2003 in relation to
the 2003 Credit facility. Deferred financing charges, related to the financial
restructuring completed on January 12, 2001, were written off in 2003.

FINANCING ACTIVITIES

During the past three years, Cambior has improved its balance sheet to ensure
that it has the financial strength to develop its productive asset base. Mining
is a capital-intensive business that requires significant up front capital to
develop productive assets and generate cash flow. In order to be successful, the
Company must maintain a positive relationship with the financial community to be
able to access temporary capital through bank loans and permanent capital
through equity offerings.

---

Cambior 2004 Annual Report        
29

Issuance of Securities

In 2004, the Company continued to improve its financial position through the
issuance of 31,105,000 shares for gross proceeds of $91.8 million. These equity
issues include the exercise of previously-issued warrants and options. In 2003
and 2002, the Company issued shares for gross proceeds of $117.4 million and
$62.2 million, respectively. The table below outlines the proceeds from share
issues:

|                                |        | 2004         |        | 2003         |        | 2002        
|------------------------------- | ------ | ------------ | ------ | ------------ | ------ | ------------
|                                | No. of |              | No. of |              | No. of |             
|                                | shares | Proceeds     | shares | Proceeds     | shares | Proceeds    
|                                | (000)  | ($ millions) | (000)  | ($ millions) | (000)  | ($ millions)
|Private placement               |       |             |       |             | 21,346 | 17.3        
|Public offerings                | 29,333 | 87.8         | 40,000 | 72.2         | 27,273 | 38.6        
|Exercise and expiry of warrants | 150    | 0.1          | 24,754 | 43.2         | 6,515  | 6.1         
|Exercise of options             | 635    | 0.6          | 515    | 0.6          |       |            
|Flow-through shares             | 987    | 3.3          | 571    | 1.4          | 129    | 0.2         
|Total                           | 31,105 | 91.8         | 65,840 | 117.4        | 55,263 | 62.2        

Cambior has benefited from enhanced investor interest in the gold sector and
improved market conditions. In order to retain the interest of the capital
markets, the Company maintains an active investor relations program aimed at
institutional and individual investors. Access to capital markets is dependent
on the Company's historical performance and future prospects, as well as
investor interest in the precious metals sector.

2003 Credit Facility

In 2003, the Company entered into a credit facility agreement (the "2003
Credit facility") with a syndicate of international financial institutions. The
2003 Credit facility includes a $55.0 million non-revolving term loan and a
$10.0 million revolving credit facility, both of which expire on December 31,
2007. The term loan was fully drawn and had an outstanding balance of $50
million at December 31, 2004, following the repayment of $5 million in the first
quarter of 2003. The Company, in connection with the acquisition of Sequoia
Minerals Inc., obtained the extension of the term of the 2003 Credit facility by
nine months to September 2008.

The repayment schedule is as follows, based on quarterly payments commencing
on March 31, 2005:

|(in millions of $) |     
|------------------ | ----
|2005               | 18.0
|2006               | 14.0
|2007               | 14.0
|2008               | 4.0 
|                   | 50.0

The revolving credit facility remains available for future drawdowns. A
portion of the proceeds from the term loan was used to reimburse the 2001 Credit
facility, with the remaining amount used to fund the construction and
development of the Rosebel project.

The Company pledged its interests in the Rosebel, Doyon, Mouska, Sleeping
Giant, Niobec and Omai mines as security on the loan.

The Company paid fees of 2% on the loan in 2003 and will amortize these over
the life of the Rosebel project. Interest on the facility is based on the London
Interbank Offering Rate (LIBOR) plus a premium that varies between 1.5% and
2.25% based on the Loan Life Protection Ratio (LLPR). The LLPR is defined as the
ratio of the present value of projected cash flow available for debt service to
the total net senior debt outstanding. During the construction period up to
achievement of completion, the premium to LIBOR was deemed to be 2.5%. The
Company achieved completion in late 2004 and effective January 1, 2005, the
premium will be reduced accordingly.

---

30         Cambior 2004 Annual Report
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Under the terms of the agreement, Cambior must maintain a number of financial
and other covenants including:
(a) Maintenance of political risk insurance coverage on its main foreign
domiciled gold operations;
(b) A ratio of net debt to adjusted EBITDA of less than 3.5;
(c) A ratio of adjusted EBITDA to interest of greater than 2.25;
(d) A ratio of current assets to current liabilities of greater than 1.35;
and
(e) A minimum LLPR of 1.50 to 1.
As part of the facility agreement, the
syndicate had requested that the Company maintain a mandatory hedging program
covering 30% of its expected gold production until the end of 2007. Following
the Cdn $100 million equity financing in August 2003, the Company obtained the
elimination of such hedging covenant. In order to ensure that it had the
necessary funds to complete the Rosebel project, the Company agreed to maintain
a cash reserve account of $10 million that would be released upon the
achievement of commercial production. The funds were released in the first
quarter of 2004. The Company achieved completion at Rosebel under the terms of
the credit facility. Accordingly, the margins will be reduced on the interest by
approximately 1% in 2005.
As part of the acquisition of the Camp Caiman project in 2003, the Company
assumed additional debt of $9.7 million. An amount of $2.2 million was paid in
2004, with the remaining amount payable in two equal installments in 2006 and
120 days after commencement of commercial production.
2001 Credit Facility

As part of its financial restructuring, the Company concluded a credit
facility agreement on January 12, 2001 (the "2001 Credit facility") with a
syndicate of four banks, and a prepaid gold forward sales agreement arranged by
a major financial institution. The 2001 Credit facility consisted of a $55.0
million five-year non-revolving term loan and a $10.0 million revolving loan,
both of which expired on December 31, 2005. The facility bore interest at LIBOR
plus 2% to 3%. It was subject to an up-front fee of $1.3 million, and Cambior
issued 1.3 million warrants to the lenders to purchase common shares of Cambior
at $0.37 per share (Cdn $0.56 per share) on or before December 31, 2005. The
facility was fully reimbursed in 2003 and all warrants issued under this
facility were exercised.
Prepaid Gold Forward Sales Agreement - Deferred Revenue

Under the terms of the $55.0 million prepaid gold forward sales agreement
(the "Prepaid Agreement"), Cambior undertook to deliver 233,637 ounces of gold
in equal monthly installments from July 2001 to December 2005. The cash proceeds
from the Prepaid Agreement were received in full in 2001 and were accounted for
as deferred revenue and presented under operating activities in the consolidated
cash flows statement.
As per the terms of the Prepaid Agreement, the Company delivered 51,919
ounces of gold in each of the past three years valued at $235 per ounce. The
deliveries are presented as a deferred revenue deduction (non-cash item) in the
Company's consolidated cash flows statement.

CONSOLIDATED BALANCE SHEETS

The Company's total assets amounted to $589.9 million at December 31, 2004
compared to restated amounts of $498.4 million at the end of 2003 and $283.5
million at the end of 2002. The $91.5 million increase in 2004 is mainly
attributable to the proceeds of the equity issues in 2004 and to the acquisition
of Sequoia Minerals.

Property, plant and equipment totaled $421.8 million compared to $355.0
million in 2003, and includes $92.0 million or 21.8% for the total value of
projects in the exploration and development stage ($69.9 million or 20% in
2003). Construction and development of these projects are subject to the
securing of financing for their development, favourable market conditions for
commodities and positive feasibility studies.

Cash and short-term investments decreased by $40.3 million during the year to
stand at $54.9 million at December 31, 2004. Working capital totaled $49.9
million compared to $59.3 million at December 31, 2003.

Long-term debt, including the $20.8 million due within one year, amounted to
$65.2 million at year end compared to $64.2 million at the beginning of 2004.

---

Cambior 2004 Annual Report        
31
The cash (debt) position was as follows:

|(in millions of $)              | 2004   | 2003  
|------------------------------- | ------ | ------
|Cash and short-term investments | 54.9   | 95.2  
|Long-term debt                  | (65.2) | (64.2)
|Net cash (debt)                 | (10.3) | 31.0  

The following table outlines the major outflows related to debts or
contractual obligations. These will be met through available cash resources,
operating cash flows and new debt in the case of outlays for OBMI.

|(in millions of $)                  | Total | 2005 | 2006 | 2007 | 2008
|----------------------------------- | ----- | ---- | ---- | ---- | ----
|2003 Credit facility                | 50.0  | 18.0 | 14.0 | 14.0 | 4.0 
|Residual balances of purchase price | 11.0  | 1.7  | 4.7  | 4.6  |    
|Non-participating shares            | 1.9   | 0.5  | 0.5  | 0.5  | 0.4 
|Convertible debenture               | 1.2   |     | 1.2  |     |    
|Capital commitments                 | 12.1  | 12.1 |     |     |    
|Operating lease                     | 1.3   | 0.4  | 0.4  | 0.4  | 0.1 
|Other                               | 1.0   | 0.6  | 0.4  |     |    
|Total                               | 78.5  | 33.3 | 21.2 | 19.5 | 4.5 

Warrants issued in 2003 and 2004 give the Company the potential to increase
its capital base by $115 million (Cdn $139 million) through the issuance of 34.7
million shares pursuant to their exercise until their expiry in 2006 and 2008.
The exercise of warrants is primarily dependent on the share price at any given
time until the warrants expire.

The Company is restricted under its credit facility as regards dividends and
does not anticipate any dividend payment to shareholders in the near term.

Deferred revenue of $12.2 million is related to the Company's obligation, as
of December 31, 2004, to deliver 51,920 ounces of gold under the Prepaid
Agreement. The value of these ounces was recorded at $235 per ounce,
representing the proceeds received under the Prepaid Agreement. The fair value
of the obligation was $21.5 million at the closing gold price of $438 per ounce
on December 31, 2004.

The fair value of the non-hedge derivatives instruments as at December 31,
2004, was positive $1.5 million compared to a negative value of $7.8 million at
December 31, 2003. The fair value of hedge derivatives associated with Doyon,
which were marked to market as part of the impairment loss, amounts to $14.3
million.

The non-controlling interest relates to the minority partners' interests in OBMI and Rosebel Gold Mines N.V.

The $36.7 million increase in shareholders' equity in 2004 resulted from the
issuance of shares totaling $98.6 million, partially offset by the $73.8 million
loss incurred in 2004 and an increase in the cumulative translation adjustment
account of $16.4 million.

ENVIRONMENT

Cambior's activities are subject to various laws and regulations regarding
environmental protection, which are constantly evolving and generally tend to
impose increasing restrictions.

The Company has incurred, and expects to incur in the future, costs to ensure
compliance with these laws and regulations. The Company recognizes, when the
legal obligation associated with the retirement of long-lived assets is
incurred, the fair value of an estimated liability for the future cost of
restoring a mine site upon termination of the operation with a corresponding
increase to the carrying value of the related long-lived asset. The Company
amortizes the amount added to the asset and recognizes an accretion expense in
relation with the discounted liability over the remaining life of the mining
property. The liability is adjusted at the end of each period to reflect the
passage of time and changes in the estimated future cash flows underlying the
obligation. These provisions may be revised on the basis of changes to the laws
and regulations, and the availability of new information and technology. 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 these provisions.

---



32         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

The undiscounted value of these obligations is currently estimated as
follows:

|(in millions of $) |     
|------------------ | ----
|Doyon mine         | 26.1
|Omai mine          | 4.5 
|Rosebel mine       | 2.9 
|Niobec mine        | 2.5 
|Other mines        | 2.8 
|                   | 38.8

The Company expects to fund these expenditures from operating cash flows,
sale of residual equipment and accumulated deposits made with the government
authorities. The planned disbursements for these outlays are as follows:

|(in millions of $) | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 + | Total
|------------------ | ---- | ---- | ---- | ---- | ---- | ------ | -----
|Outlays/year       | 4.2  | 1.8  | 2.3  | 0.7  | 6.8  | 23.0   | 38.8 

All of the Company's mining operations, except for Rosebel,
are certified under the ISO 14001 standard for environmental management. The
Rosebel mine is expected to receive ISO certification in 2005.

COMMUNITY DEVELOPMENT

As part of its strategy, the Company plays an active role in
the communities in which it operates. The economic impact 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 dialogue 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.

PENSION OBLIGATIONS (EMPLOYEE FUTURE BENEFITS)

The Company maintains several post-retirement plans for its
employees. The Company's obligations under these plans, in certain cases, are
subject to estimates as described in Note 15 to the consolidated financial
statements. These estimates are compiled by professional advisors based on
market assumptions, in accordance with accepted practices. The total obligation
is subject to change as these assumptions are realized.

At December 31, 2004, the Company had a pension funding
deficit of $5.9 million, mainly related to a supplementary executive retirement
plan for its senior executives (SERP).

The Company's obligations to fund are dependent on various
factors, including return on investments. Under the legislation in Québec,
Canada, the Company's plans are supervised by a pension committee comprised of
representatives of the participants and the Company, as well as independent
members. The Company has increased funding of the registered pension plan to
eliminate the current shortfall over a five-year period. The SERP funding is
totally discretionary and is subject to ongoing review by the Board of
Directors.

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Cambior 2004 Annual Report        
33
MINERAL RESERVES

Cambior's proven and probable mineral reserves at December 31, 2004, are
outlined in this annual report. Mineral reserves were estimated by qualified
persons for each property in accordance with definitions and guidelines adopted
by the Canadian Institute of Mining, Metallurgy, and Petroleum (CIM "Standards
on Mineral Resources and Reserves") in August 2000.
Mineral reserve estimates are subject to change based on variations in the
price of gold and other commodities, further knowledge of the ore deposit,
mining conditions and methods of extraction.
A reduction in reserves can have a significant impact on the valuation of the
assets, which in most cases are amortized in accordance with the reserve base.
OFF BALANCE SHEET TRANSACTIONS
Hedging Program  Gold Sales

Under the terms of its 2001 and 2003 Credit facility agreements
and the Prepaid Agreement, the Company was required to maintain a revenue
protection program.
The 2001 Credit facility had required the Company to comply with
various covenants and financial ratios including a mandatory hedging program,
whereby it was required to ensure that:
(i)
      Total
      gold delivery commitments did not exceed 90% of proven and probable
      reserves;(ii)
      Total
      gold delivery commitments did not exceed 100% of its estimated production
      (net of royalties) during the loan period; and(iii)
      Sufficient hedges were in place to cover a minimum of 70% of its estimated
      net future gold production during the loan period at a minimum hedged gold
      price of $290 per ounce. This minimum hedging requirement was reduced to
      35% of estimated production in June 2002, and was further modified in
      February 2003 under the 2003 Credit facility to a minimum of 30% of
      production until the end of 2007.
On August 12, 2003, the Company successfully negotiated the
elimination of the hedging covenant. Furthermore, Cambior has established a
policy whereby it will not hedge future gold production unless required to do so
for project financing. Over the past years, the Company has been reducing the
commitments under its mandatory hedging program.
During 2004, the Company made major progress towards its
objective of becoming hedge-free for its gold operations. The Company did not
eliminate all of its forward commitments by year end due to a stronger gold
price in the fourth quarter. The Company did, however, position itself to be
exposed to the gold price in 2005 and remains committed to the opportunistic
buy-back of remaining positions on gold price weaknesses.
Progress on the gold hedge commitment over the past years is as
follows:

|                  | Ounces committed (1) | Variation from previous year
|----------------- | -------------------- | ----------------------------
|December 31, 2001 | 1,887,000            | -6%                         
|December 31, 2002 | 1,286,000            | -32%                        
|December 31, 2003 | 746,000              | -42%                        
|December 31, 2004 | 205,000              | -73%                        

(1)

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34         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

The Company also eliminated all call option obligations and lease rate swaps
during the year.

At December 31, 2004, the Company had delivery obligations of 205,000 ounces
of gold. The fair value of the total gold delivery commitments, excluding the
prepaid gold forward sales agreement, was negative $21.5 million. The details of
the hedging portfolio are included in Note 22 to the consolidated financial
statements.

The hedging counterparties are all participants in the 2003 Credit facility
and have agreed to allow the Company to reschedule gold delivery as long as the
gold is delivered during the term of the loan and no margin calls are
applicable.

Hedging Program  Foreign Exchange Contracts

All of the Company's production sales are in US dollars. The Company enters
into foreign exchange contracts from time to time to meet its Canadian dollar
requirements to fund its operating activities in Canada. During 2003, the
Company closed out a number of the contracts as one of the counterparties did
not participate in the 2003 Credit facility. The forward sales commitments of
$10 million for the purchase of Canadian dollars in 2005 are outlined in Note 22
to the consolidated financial statements.

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.

Hedging Program  Other

The Company is also exposed to fluctuations in oil prices and interest rates.
Cambior reviews this exposure on a regular basis and may enter into transactions
to fix the costs of these items. At December 31, 2004, no contracts were
outstanding for oil or interest rate coverage.

HUMAN RESOURCES

Cambior attributes much of its success today to having a passionate workforce
that cares about its reputation. Employees are proud of their history and their
contribution to the Company. Management invests a considerable amount of time up
front in recruiting competent and skilled people that fit demanding selection
criteria. Maintaining the skills of a professional workforce requires a
significant amount of time and energy, yet for Cambior, employee development is
an integral part of its continuous improvement program. Each year, the Company
invests close to 4% of its payroll on employee development to ensure that skills
are in line with new safety standards, changing technology and improved
processes.

To maintain a motivated workforce, the Company offers a challenging and
rewarding work environment as well as a competitive compensation program
comprised of salary and benefits. The Company also maintains a staff development
and succession program for its key executive and operational management
positions.

As part of its compensation program, the Company offers an employee share
purchase plan in which approximately 450 individuals participate. It is
estimated that approximately 1% of the outstanding shares of the Company are
held by directors, officers and employees. In addition, the Company has granted
8.0 million options to acquire common shares of the Company, as described in
Note 17 to the consolidated financial statements, to key employees to align
their interests with those of the shareholders. These options vest over a
three-year period and have a seven-year life, thereby encouraging these
employees to have a long-term view in the development of the Company.

In 2001, the Company reinforced its innovation and continuous improvement
management philosophy by implementing the Kaizen system at its operations. In
2004, more than 2,000 hours of Kaizen workshops were held to address
opportunities for improving operational practices and to provide insight into
the Company's objectives and management policies. The Company is committed to
the continued implementation of this program as it is convinced that it will
enhance the Company's productivity and cost competitiveness.

All of Cambior's current operations, except Rosebel and OMAI Bauxite, are
unionized. During the past three years, the Company did not experience any work
stoppages. In late 2004, applications for union certification were filed with
the Labour Boards for both Rosebel and OMAI Bauxite.

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Cambior 2004 Annual Report        
35

In 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 Omai
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  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 (2003 
2,500 individuals).

LITIGATION

On May 29, 2003, a writ of summons was served on OMAI Gold Mines Limited ("OGML")
in connection with a class action in Guyana claiming total compensation of
approximately $2 billion for damages allegedly caused by the Omai gold mine in
Guyana since 1995. The action was filed on behalf of the same group of people
that previously filed actions without success in both Québec and Guyana. Cambior
and OGML consider this action unfounded and frivolous and OGML is contesting it
vigorously. The net assets of OGML amount to $19.2 million.

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

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

RISKS AND UNCERTAINTIES

Cambior is subject to various financial, operational and political risks that
could have a significant impact on its profitability and levels of operating
cash flow, as described below.

Financial Risks

The following summarizes key financial risks:

Commodity Prices

The Company is affected by the market prices for its mine production. The
gold market is highly volatile and is subject to various factors including
political stability, general economic conditions, mine production, and intent of
governments who own significant above ground reserves.

The niobium marketplace is characterized by a dominant producer whose actions
may affect the price. New entrants may affect the stability of the marketplace
by engaging in a price discounting practice to gain initial market share.
General economic conditions, particularly in the steel industry, also affect the
marketplace.

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36         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Oil prices also affect the Company's costs, particularly at Omai and Rosebel
due to the oil cost components in power supply and fuel for the open-pit mining
fleet. Movement in other commodity prices may also affect the Company's market
position.

Currency

The Company's Canadian operations are affected by movement in the Canadian
dollar against the US dollar, which has a direct impact on the Canadian division
and executive office cost base. International operations have limited exposure
to currency as the cost base is mainly denominated in US dollars. Metal sales
are transacted in US dollars.

The Canadian currency rate may have an impact on the Company's access to
permanent capital, which has traditionally been raised in Canadian dollars
through transactions on Canadian equity markets.

Interest Rates

The Company, as a borrower, is subject to movement in US interest rates. The
Company has traditionally negotiated US dollar borrowings with interest rates
based on the LIBOR rate.

Counterparty Risk

The Company has a number of counterparty risks in its financial transactions
for gold sales and foreign exchange contracts. In order to minimize such risks,
the Company transacts within its lending group.

Access to Capital Markets

To fund its growth, the Company is often dependent on securing the necessary
capital through loans or permanent capital. The availability of this capital is
subject to general economic conditions and lender and investor interest in the
Company and its projects. To ensure the availability of capital, the Company
maintains a relationship with key financial participants and has implemented an
investor relations program to inform institutional and retail investors, as well
as other stakeholders.

Insurance

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

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

Operational Risks

Mining is subject to various operational risks and uncertainties, including:

Mineral Reserves and Extraction

Reserves are an estimate of mineral content based on limited information
acquired through drilling and other sampling methods. Successful extraction is
based on safe and efficient mining and processing. The Company's mines may
suffer rockbursts, groundfalls and other natural or man-provoked incidents that
could affect the mining of the ore. To minimize the risks, the Company estimates
its reserves in accordance with accepted guidelines and standards within the
mining industry, establishes quality control programs and ensures that competent
personnel are employed. The Company also employs experienced mining engineers
and a trained workforce to extract the ore from its deposits.

Safety and Other Hazards

The mining industry is characterized by significant risks. To minimize these
risks, the Company provides training programs for its employees and has joint
management-worker committees to review work practices and environment.

Energy

The Company's operations consume significant amounts of energy, and are
dependent on suppliers and/or producing capacity to meet these energy needs.

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Cambior 2004 Annual Report        
37

Labour and Strikes

The Company is dependent on its workforce to extract and process minerals.
Cambior has programs to recruit and train the necessary manpower for its
operations. While the Company endeavours to maintain good relations with its
workforce, its operations may nonetheless be affected by strikes, lockouts and
other stoppages at its work sites.

Communities

Surrounding communities may affect the mining operations
through the restriction of access of supplies and workforce to the mine site.
The Company maintains active community outreach and development programs to
mitigate the risk of blockades or other measures by the communities.

Environmental Hazard

The Company is subject to various environmental incidents that can have a
significant impact on its operations. To mitigate these risks, the Company has
implemented an environmental management system that is certified under ISO 14001
and covers all aspects of the mining cycle. In high-risk areas, such as the
design and operation of tailings dams, the Company contracts independent review
boards to oversee design and ongoing operating practices. The Company also
maintains emergency plans to deal with any incidents.

Political Risk

The Company's operations, particularly those located in emerging countries,
are subject to a number of political risks. In accordance with its lending
agreements, the Company has subscribed political risk insurance to cover certain
risks.

The Company's operations in Guyana and Suriname are governed by mineral
agreements that establish the terms and conditions under which the Company will
conduct its affairs. These agreements are subject to international arbitration
and cover a number of items, including:

1) Duration of mining licenses/operating permits; 
2) Right to export production; 
3) Labour matters; 
4) Right to hold funds in foreign bank accounts and foreign currencies; 
5) Taxation rates; and 
6) Right to repatriate capital and profits.

The Company maintains active communications programs with host governmental
authorities and the Canadian government.

Legislation

The Company is subject to continuously evolving legislation in the areas of
labour, the environment, land titles, mining practices and taxation. New
legislation may have a negative impact on the Company's operations. The Company
participates in a number of industry associations to monitor changing
legislation and maintain a good dialogue with governmental authorities in that
respect.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Cambior's accounting policies are outlined in Note 2 to the consolidated
financial statements, and the major variations between GAAP in Canada and the
United States are reconciled in Note 25 to the consolidated financial
statements.

In the preparation of the consolidated financial statements, management is
required to select accounting policies and make estimates. These estimates and
the selection of policies are made in accordance with guidelines and practices
within the mining industry and other businesses, as well as pronouncements from
regulatory bodies. These are reviewed and discussed with the Company's Audit
Committee on a regular basis.

Management believes the following are most critical to understanding
Cambior's financial statements and the uncertainties that could impact its
results of operations, cash flows and financial condition.

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38         Cambior 2004 Annual Report

MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)

Use of Estimates

The Company is required to make estimates that have a significant impact on
the financial statements. These include the estimation of mineral reserves,
carrying value of property, plant and equipment, outcome of litigation,
restoration costs following the completion of mining activities, pension
obligations, future production estimation for designation of hedging
relationships, and valuation of options. Actual amounts could differ from the
estimates and affect the results of operations.

Property, Plant and Equipment

Cambior begins to capitalize the cost of a mining property when it believes
it has mineral resources with the potential to be economically recoverable.
Construction and development costs incurred thereafter are capitalized and
amortized based on the useful life of the asset, which in most cases is based on
the ore reserves of the deposit. Ore reserves are estimated by professional
geologists and engineers in accordance with industry standards which require
input as to future metal prices, operating costs and technical parameters.
Annual asset impairment tests are carried out using these parameters and
estimated salvage value for equipment. Changes in any key input component could
result in a significant reduction in mineral reserves, which would have a
negative impact on the carrying value of the property, plant and equipment.

The key operating parameters to determine mineral reserves were:

|              | 2004 | 2003 | 2002
|------------- | ---- | ---- | ----
|Gold ($/oz)   | 400  | 350  | 325 
|Copper ($/lb) | 1.00 | 0.90 | 0.90
|Cdn $/US $    | 1.35 | 1.40 | 1.54

A decrease of $25 per ounce would have a negative impact on the valuation of
the carrying value of certain Canadian gold mines of $12 million, while a 5%
increase in the Canadian dollar would impact the valuation negatively by $11
million.

During 2004, the Company determined that the Westwood project has inferred
mineral resources that have the potential to be economically recoverable,
resulting in expenditures of $1.4 million being capitalized.

Litigation

The Company is subject to various litigation actions,
including the OMAI Gold Mines Ltd. lawsuit, whose outcome could have an impact
on the valuation of the Company should it be required to make payments to the
plaintiffs. In-house counsel and outside legal advisors assess the potential
outcome of the litigation and the Company establishes provisions for future
disbursements when required.

Site Restoration (Asset Retirement Obligations)

The Company establishes estimates for future restoration
costs following the depletion of ore reserves. These estimates are dependent on
labour costs, known environmental impacts and the effectiveness of remedial and
restoration measures. The Company has also estimated the timing of the outlays,
which are subject to change depending on continued exploitation of current or
newly discovered reserves.

Pension Plan Obligations (Employee Future Benefits)

The Company is required to make certain assumptions with respect to returns
on pension assets and its employees' future earnings and mortality rates. Any
variation could affect the requirements to discharge future compensation
payments.

Designation of Hedging Relationships

In the past, the Company was required, under its various credit facilities,
to establish a revenue protection program. As part of the program, the Company
applies hedge accounting to its future gold sales. To do this, it must estimate
the timing and quantity of future production and sales. Variations could impact
the hedging relationship.

Valuation of Consideration  Options

The Company may grant options as part of employee
remuneration or as part of consideration in the acquisition of assets. The
Company utilizes the recognized Black-Scholes model to value these options. The
model requires certain inputs that require management estimates.

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Cambior 2004 Annual Report        
39
CHANGES IN ACCOUNTING POLICIES

The changes in accounting policies and their impact are described in Note 3
to the consolidated financial statements.
In 2002, the Canadian Institute of Chartered Accountants (CICA) issued
Section 3063, "Impairment of Long-Lived Assets".
In February 2003, the CICA issued Accounting Guideline 14, "Disclosure of
Guarantees" ("AcG-14"). At adoption, AcG-14 did not have any impact on the
Company's consolidated financial statements.
In January 2003, the CICA issued AcG-15, "Consolidation of Variable Interest
Entities", which did not have any impact on the Company's consolidated financial
statements. In December 2003, EIC Abstract 141, "Revenue Recognition", was
issued. The Company currently follows such guidelines.
On January 1, 2004, the Company adopted new Canadian standards for
stock-based compensation and other stock-based payments and asset retirement
obligations, as well as EIC Abstract 146 for flow-through shares in March 2004.
OUTLOOK

During 2005, Cambior intends to maintain its focus on maximizing the returns
to its shareholders by:

- Meeting and exceeding its production
  objectives;
- Completing expansion projects of
  Rosebel, Niobec and OMAI Bauxite within time and budget targets;
- Maximizing the operating cash flows
  from its operating units;
- Reducing its gold commitments under
  the revenue protection program by at least 52,000 ounces; and
- Discovering new reserves and
  resources through the investment of $28 million in exploration and development
  activities. The program includes:

> Major exploration and development drilling on the Rosebel concession;
>     Additional drilling at Camp Caiman and completion of a feasibility
>     study;
>     Finalization of the Carlota feasibility study and implementation of a
>     plan to generate value from this asset; and
>     Development of underground access from the Doyon mine to the eastern
>     boundary of the property to provide drilling bases from which to explore the
>     Westwood deposit and the eastern portion of the property at depth.

The 2005 production target is 621,000 ounces at a mine operating
cost of $250 per ounce. The forecast decrease in production is mainly the result
of the planned shutdown of the Omai operations in September 2005 after complete
depletion of its ore reserves. Sales of ferroniobium from Niobec are expected to
be higher than in 2004 (impact of full ownership of Niobec). Sales of calcined
bauxite are expected to be approximately $42 million. The Company intends to
reinvest $80 million at its operating mines. Long-term debt is expected to
increase by approximately $2 million and the Company will eliminate its
obligations under the prepaid gold forward sales agreement through the delivery
of 52,000 ounces.

Additional Information and Continuous Disclosure

This MD&A has been prepared as of February 17, 2005. Additional information
on the Company is available through regular filings of press releases, quarterly
financial statements and its Annual Information Form on SEDAR (www.sedar.com).

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