---

p. 13     annual report
2003


Cambior Inc.

> 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 StatementsThis MD&A contains certain "forward-looking statements", including, but not
> limited to, the statements regarding the Company's strategic plans, use of
> hedging and non-hedge derivative instruments, future commercial production,
> production targets, timetables, mine operating costs, capital expenditures, work
> programs, exploration budgets, mineral reserve and resource estimates and
> 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
> Company's Annual Information Form filed with the Securities Commissions of all
> provinces in Canada, and with the United States Securities and Exchange
> Commission (under Form 40-F),as well as the Toronto Stock Exchange (TSX) and the
> American Stock Exchange (AMEX). 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. The Company holds a 50% interest in a niobium mine and
> from time to time reviews the potential production of other metals and minerals
> to complement its gold mining operations.
> Highlights for 2003 were:
> Production of 521,500 ounces of gold at a mine operating cost of $241 per
>   ounce;
>   Cash flow from operating activities of $24.2 million and a net profit of
>   $600,000;
>   Proceeds of $117 million through the issuance of shares;
>   Acquisition of the Camp Caiman gold project in French Guiana.The Company's activities were largely focused on the construction and
> development of the Rosebel project, which is scheduled to reach commercial
> production in the first quarter of 2004. Following the successful commissioning
> of the Rosebel project, Cambior expects to produce a record 705,000 ounces of
> gold in 2004.OBJECTIVE AND STRATEGYCambior 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 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 current operating mines and
>   projects, and acquisition of new deposits and mining operations.3.Maintain
> 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 active
> investor relations program
> Communicate the Company's activities and financial and operating
>   performance to the financial markets in a timely and transparent manner to
>   enable the markets to accurately assess the Company's value.

---

annual report 2003       p.14
     Cambior Inc.Management's Discussion and Analysis
(continued)

Key Performance Indicators

The Company measures its performance through key indicators that include the
following production and financial results:

|                                                     | 2003    | 2002    | 2001   
|---------------------------------------------------- | ------- | ------- | -------
|Gold ($/oz)                                          |         |         |        
|- Average
    market price                           | 363     | 310     | 271    
|- Average
    realized price                         | 320     | 308     | 289    
|Gold production (oz)                                 | 521,500 | 568,800 | 614,900
|Exchange rate (US $/Cdn
    $)                       | 1.4015  | 1.5704  | 1.5484 
|Mine operating costs
    ($/oz)                      | 241     | 223     | 212    
|Revenues ($ millions)                                |         |         |        
|- Gold                                               | 165.9   | 178.6   | 178.8  
|- Niobium                                            | 22.5    | 23.5    | 18.7   
|Net earnings (loss) ($
    millions)                 | 0.6     | (8.1)   | (8.2)  
|Cash flow from
    operating activities ($ millions) | 24.2    | 30.8    | 81.3   
|Adjusted cash flow(1)($ millions)                    | 36.4    | 43.0    | 32.4   
|Capital investments ($
    millions)                 | 107.2   | 30.2    | 19.7   
|Cash and short-term
    investments ($ millions)     | 95.2    | 42.8    | 14.6   
|Total debt ($ millions)                              | 64.2    | 28.0    | 51.1   
|Deferred revenue ($
    millions)                    | 24.4    | 36.6    | 48.9   
|Shareholders' equity ($
    millions)                | 336.2   | 162.6   | 111.5  
|Proven and probable
    reserves (oz millions)       | 4.1     | 4.2     | 3.8    
|Measured and indicated
    resources (oz millions)   | 2.8     | 1.8     | 0.5    
|Inferred resources (oz
    millions)                 | 2.6     | 2.0     | 1.0    
|Share price (closing
    price)                      |         |         |        
|- US $                                               | 3.10    | 1.43    | 0.44   
|- Cdn $                                              | 3.99    | 2.25    | 0.71   

(1) Cash flow from operations less deferred revenue. See reconciliation on
page 24 under Consolidated Cash Flows.

GOLD AND NIOBIUM MARKETS

The Company's revenues are generated predominantly from the
sale of gold, with the remaining portion from the sale of ferroniobium, a
strengthening additive used in the steel alloy industry.

Gold Market

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

1)

2)

3)

4)

5)

6)

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, some of the large European central banks that had indicated 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. The Washington Agreement is due to expire
in 2004, but consensus is that it will be renewed for a similar period, with
additional participants joining the current group of 15 signatories. The renewal
should provide for continued stability in the marketplace.

The relatively small size of the gold market can result in significant
fluctuations based on major changes in supply and demand. The gold price
fluctuations for the past 25 years based on the London Bullion Market Price are
shown below:

Gold Price  London PM Fix (US $/oz)



During 2003, the gold price continued a steady upward trend from a low of $255
reached in 2001. Gold traded between $320 and $416 during the year, and averaged
$363 compared to $310 in 2002 and $271 in 2001.

The major factors that affected the gold price favorably during the year
were:

- Continued devaluation of the US dollar against other currencies,
  particularly the Euro;
- Geopolitical tensions in the Middle East and the war on terrorism;
- Low interest rates that reduced the opportunity cost of holding gold as an
  investment;
- Producer de-hedging activities; and
- Increased investment demand by speculators and investors.

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p. 15     annual report
2003

Cambior Inc.The above factors outweighed the lower demand in the jewellery sector.
In the past, the Company has used various instruments to reduce the
volatility of its revenues and secure the cash flows from its operating mines.
The Company's lenders imposed the establishment of a revenue protection program
as part of the debt refinancing program in 2001, requiring that 70% of production
until 2005 be protected at a minimum price of $290 per ounce. The Company was
required to implement this program in a period of low prices in 2001. Although
the hedging covenant was reduced on two occasions, the program prevented the
Company from fully participating in the rise in the price of gold during the
past two years.
During 2003, the Company's average realized price was $320 per ounce compared
to an average market price of $363 per ounce. In prior years, the average
realized price was similar to the market price or higher. Benefiting from an
improved financial position following the Cdn $100 million share issue in August
2003, the Company was able to eliminate the lenders' requirement to maintain a
revenue protection program. Furthermore, the Company adopted a new policy in
August 2003 that will provide 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 require the Company to reduce its level of debt
related to project development. The production at the Rosebel project is
unhedged.
The Company has reduced its commitments under the revenue protection program
over the past three years, and expects to continue this process to arrive at net
commitments of only 52,000 ounces at the end of this year. During the next few
years, 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.



Gold Market Outlook

The Company's outlook for the gold price in the medium term remains positive.
The US dollar is expected to fall further during the year, affected by the
current account deficit, the Federal Reserve's policy to maintain interest
rates, growing budget deficits and national debt. The Company also expects the
gold price to continue to benefit from flat to declining supply resulting from
lower mine production and producer de-hedging.

Niobium Market

The Niobec Joint Venture's 15% share of the niobium market was impacted in
the past year by adverse market conditions in the North American steel industry.
The poor financial conditions of certain companies resulted in a highly
competitive pricing environment. Cambior is trying to offset the loss of North
American market share by developing new customers in Asia. The niobium market
price is strongly influenced by a large producer that has approximately 70% of
the global market.

CONSOLIDATED OPERATIONS

During 2003, the Company realized net earnings of $0.6 million ($0.00/share),
compared to losses of $8.1 million ($0.06/share) and $8.2 million ($0.09/share)
incurred in 2002 and 2001, respectively.

---

annual report 2003       p.16
     Cambior Inc.Management's Discussion and Analysis(continued)

The table below summarizes the operating profit from mining operations:

|(in millions of $)                           | 2003  | 2002  | 2001 
|-------------------------------------------- | ----- | ----- | -----
|Revenues                                     | 195.7 | 204.2 | 198.2
|Operating costs                              | 145.2 | 146.6 | 144.7
|Refining and
    transportation              | 2.1   | 2.3   | 2.1  
|Royalties                                    | 5.4   | 5.4   | 4.6  
|Mining operations                            | 152.7 | 154.3 | 151.4
|Depreciation, depletion and
    amortization | 28.0  | 28.8  | 34.9 
|Total mine expenses                          | 180.7 | 183.1 | 186.3
|Operating profit                             | 15.0  | 21.1  | 11.9 

The decrease in mine operating profit in 2003 was due to a decline in gold
ounces sold resulting from lower gold output at Omai, higher costs at the
Canadian operations arising from the strength of the Canadian dollar and a
production hoist failure at the Doyon mine, and higher energy costs. All of
these factors were nonetheless partially compensated for by a higher average
realized gold price.

NET EARNINGS (LOSS)

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

|                                 | 2003 | 2002   | 2001  
|-------------------------------- | ---- | ------ | ------
|Net earnings (loss) ($ millions) | 0.6  | (8.1)  | (8.2) 
|Per share ($)                    |      |        |       
|- Basic                          | 0.00 | (0.06) | (0.09)
|- Diluted                        | 0.00 | (0.06) | (0.09)

REVENUES

Revenues for the past three years were as follows:

|                      | 2003    | 2002    | 2001   
|--------------------- | ------- | ------- | -------
|Ounces of gold sold   | 516,800 | 578,500 | 626,800
|Revenues ($ millions) |         |         |        
|Gold                  | 165.9   | 178.6   | 178.8  
|Niobium               | 22.5    | 23.5    | 18.7   
|Investment and        |         |         |        
|other
    income      | 7.3     | 2.1     | 0.7    
|Total                 | 195.7   | 204.2   | 198.2  

Despite a higher realized price on gold sales, revenues declined in 2003 due
to a planned decrease in production at the Omai mine arising from the depletion
of soft ore feed to the mill and reduced throughput. The realized gold price per
ounce averaged $320 in 2003, $308 in 2002 and $289 in 2001. In 2002, revenues
improved over the previous year, with a higher realized price on gold sales more
than offsetting the decline in quantity sold ensuing from lower Omai mine
output. Higher niobium sales in 2002, following the completion of a plant
expansion in 2001, also contributed to improved 2002 revenues.

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

Gold production and unit mine operating costs were:

|                   | 2003    | 2002 | 2001   
|------------------ | ------- | ---- | -------
|                   | Ounces  | $/oz | Ounces 
|Omai mine          | 271,000 | 220  | 319,600
|Doyon              |         |      |        
|Division           | 217,200 | 267  | 216,200
|Sleeping
    Giant |         |      |        
|mine (50%)         | 33,300  | 246  | 33,000 
|Total              | 521,500 | 241  | 568,800

Summary analyses and outlooks for Cambior's operating units are as follows:

OMAI MINE

Located in Guyana, South America, the Omai mine is Cambior's largest gold
mine, representing 52% of the Company's consolidated gold production in 2003.
Mine production has been decreasing from a peak of 354,300 ounces in 2001, and
the reserves are expected to be fully depleted in late 2005.

The Omai mine is an open-pit operation with a cyanidation and
carbon-in-pulp (CIP) processing plant. The plant capacity was reduced as planned
in May 2003 from 21,000 to 15,500 tonnes per day following the depletion of soft
ore.

The mine operations are subject to a 5% royalty on gold production, payable
in kind to the Government of Guyana. In 2003, the Omai mine produced 271,000
ounces of gold, in line with the original 2003 mine plan. The mill processed 5.7
million tonnes of ore (15,750 tonnes per day) at an average grade of 1.61 g
Au/t. To date, the Omai mine has produced a total of 3.2 million ounces of gold.

---

p. 17     annual report
2003

Cambior Inc.Omai Operating and Financial Statistics
Target2001
    2002
    2003
    2004Tonnage mined (000 t)
    21,815
    17,811
    8,503
    5,154Tonnage milled (000 t)
    7,903
    7,727
    5,748
    5,719Grade milled (g Au/t)
    1.5
    1.4
    1.6
    1.4Gold recovery (%)
    93
    92
    92
    91Production (oz Au)
    354,300
    319,600
    271,000
    234,000Direct mining cost ($/oz)
    231
    224
    200
    202Deferred stripping
    ($/oz)
    (17)
    (5)
    18
    17Refining and
    transportation ($/oz)
    2
    3
    3
    3By-product credits ($/oz)
    (2)
    (1)
    (1)
    Mine operating cost
    ($/oz)
    214
    221
    220
    222Royalties ($/oz)
    12
    15
    18
    19Total cash costs ($/oz)
    226
    236
    238
    241Depreciation ($/oz)
    46
    39
    36
    37Restoration ($/oz)
    2
    2
    2
    2Total production cost ($/oz)
    274
    277
    276
    280Mineral reserves (oz Au)
    947,000
    629,300
    359,100The operating cost per tonne milled was $10.36 for 2003. Direct mining costs
declined to $200 per ounce as head grade improved, reflecting the direct feed
grade from the Fennell pit, with the low-grade soft rock stockpile supplying
only 3% of the mill feed. In 2003, a portion of the mill was dismantled and
transferred to the Rosebel project. The installation of additional secondary
crushing equipment allowed hard rock throughput at Omai to be maintained.
Mineral reserves at Omai declined over the year, as the mine was able to
replace only 9% of the gold produced in 2003. Estimated at $350 per ounce, the
mineral reserves stood at 359,100 ounces of gold contained at year-end 2003, with
about half located in the Fennell pit. Unless a new ore body is identified
through the ongoing exploration program, the mine will complete its activities
in the second half of 2005.Exploration work continued on the Omai River and Quartz Hill properties,
adjacent to the Omai mine concession. Exploration expenditures totalled $1.0
million in 2003 and consisted mainly of 32 diamond drill holes for a total of
7,900 metres. No significant results have been obtained to date.OutlookFor the next twenty months, the Omai mine will be a significant generator of
free cash flow. In 2004, the Omai millis scheduled to process 5.7 million tonnes
of ore grading 1.4 g Au/t at a recovery rate of 91%. The production target
for 2004 is 234,000 ounces of gold at an estimated mine operating cost of $222
per ounce, including a non-cash charge of $17 per ounce for deferred stripping
capitalized in previous years. The lower gold production for 2004 is mainly due
to a lower head grade following the depletion of the Fennell pit in the third
quarter. Subsequent mill feed in the fourth quarter will come from low-grade ore
stockpiles averaging 0.9 g Au/t accumulated during the initial years of
production. No capital expenditures are expected for the remainder of the mine
life.
The Company is scheduled to invest $1.0 million in exploration around the
Omai mine to find additional ore reserves. Efforts are also being deployed to
utilize the Company's assets and trained workforce to generate additional
revenues. Since 2000, the Company has been providing contract mining services to
Guyanese bauxite mines.
The Company has also initiated its restoration program, and will step up its
efforts to maximize the work done during the operating period to reduce the
overall cost. The closure plan has been approved by the Government of Guyana and
is expected to cost approximately $4.5 million, of which $3.3 million has been
provided for to date in the Company's balance sheet.
annual report 2003       p.18
     Cambior Inc.Management's Discussion and Analysis
(continued)

DOYON DIVISION

The Doyon Division is comprised of two adjacent underground mines, Doyon and
Mouska, located approximately 40 kilometres east of Rouyn-Noranda, in the
Province of Québec, Canada. The Doyon property alone covers an area of
approximately 2,870 hectares.

In 2003, the Doyon Division produced 217,200 ounces of gold, similar to 2002
production. Mine operating costs for 2003 were $267 per ounce. The mill
processed 1.3 million tonnes of ore (3,500 tonnes per day) at an average grade
of 5.6 g Au/t. The hoisting capacity of the Doyon mine was affected by a
mechanical failure of the main production hoist in late February. The incident
impacted operating costs and production for six weeks, as underground ore had to
be trucked to surface via the ramp access. The ore production shortfall was
partially offset by increased production from the Mouska mine, and the
processing of ore from the low-grade stockpile.

Doyon Division Operating and Financial Statistics

|                                       |           |           |           | Target 
|-------------------------------------- | --------- | --------- | --------- | -------
|                                       | 2001      | 2002      | 2003      | 2004   
|Tonnage milled (000 t)                 |           |           |           |        
|Underground mines                      | 1,178     | 1,248     | 1,123     | 1,139  
|Open pit                               |          |          |          | 48     
|Low grade stockpile                    | 161       | 39        | 155       | 133    
|Total                                  | 1,339     | 1,287     | 1,278     | 1,320  
|Grade milled (g Au/t)                  |           |           |           |        
|Underground mines                      | 6.2       | 5.6       | 6.2       | 5.3    
|Open pit                               |          |          |          | 1.9    
|Low grade stockpile                    | 1.0       | 1.0       | 1.0       | 1.0    
|Average                                | 5.6       | 5.5       | 5.6       | 4.7    
|Gold recovery (%)                      | 96        | 96        | 95        | 96     
|Production (oz Au)                     | 228,700   | 216,200   | 217,200   | 192,000
|Direct mining cost
    ($/oz)          | 209       | 228       | 267       | 264    
|Refining and
    transportation ($/oz) | 1         | 1         | 1         | 1      
|By-product credits ($/oz)              | (1)       | (1)       | (1)       | (2)    
|Mine operating cost
    ($/oz)         | 209       | 228       | 267       | 263    
|Royalties ($/oz)                       | 1         | 2         | 2         |       
|Total cash costs ($/oz)                | 210       | 230       | 269       | 263    
|Depreciation ($/oz)                    | 67        | 63        | 71        | 81     
|Restoration ($/oz)                     | 6         | 5         | 5         | 7      
|Total production cost ($/oz)           | 283       | 298       | 345       | 351    
|Mineral reserves (oz Au)               | 1,430,900 | 1,366,300 | 1,258,500 |        

Capital expenditures for the Doyon Division totalled $10.6 million in 2003.

As part of its consideration for the acquisition of the residual 50% interest
in the Doyon mine in 1998, Cambior granted Barrick Gold Corporation a price
participation interest of 24.75% of the surplus of the average annual gold price
over $375 on the first 2.6 million ounces of gold production. As of December 31,
2003, no payment had been made, and 1,513,000 ounces remained subject to the
agreement.

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

Outlook

The 2004 production target for the Doyon Division is 192,000 ounces of gold
at an estimated mine operating cost of $263 per ounce. The decline in production
and rise in operating costs are related to a planned 10-month shutdown of the
Mouska mine from January to October 2004 to allow for the deepening of the
internal shaft, as well as the strength of the Canadian dollar against the US
currency. The mill is expected to process 1.3 million tonnes at a grade of 4.7 g
Au/t.

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

---

p. 19     annual report
2003

Cambior Inc.SLEEPING GIANT DIVISIONThe Sleeping Giant mine in northwestern Québec, Canada, is a high-grade,
vein-type underground gold mine managed by Cambior under a joint venture with
Aurizon Mines Ltd.(50%).
For 2003, Cambior's share of production from the
Sleeping Giant mine totalled 33,300 ounces of gold, the same as in 2002 and 7%
more than forecast in the original 2003 mine plan, due to higher grades in the
Zone8 area of the mine. Mine operating costs for the year were $246 per ounce.
The increase in operating costs is mainly due to the strengthening of the
Canadian dollar against the US dollar.Sleeping Giant Operating and Financial Statistics

|                                       |        |        |        | Target
|-------------------------------------- | ------ | ------ | ------ | ------
|Cambior's 50% interest                 | 2001   | 2002   | 2003   | 2004  
|Tonnage milled (000 t)                 | 107    | 101    | 88     | 98    
|Grade milled (g Au/t)                  | 9.6    | 10.5   | 12.1   | 11.4  
|Gold recovery (%)                      | 97     | 97     | 97     | 97    
|Production (oz Au)                     | 31,900 | 33,000 | 33,300 | 34,000
|Direct mining cost
    ($/oz)          | 221    | 225    | 251    | 261   
|Refining and
    transportation ($/oz) | 1      | 2      | 2      | 2     
|By-product credits ($/oz)              | (5)    | (7)    | (7)    | (7)   
|Mine operating cost
    ($/oz)         | 217    | 220    | 246    | 256   
|Royalties ($/oz)                       |       |       |       |      
|Total cash costs ($/oz)                | 217    | 220    | 246    | 256   
|Depreciation ($/oz)                    | 44     | 46     | 53     | 71    
|Restoration ($/oz)                     | 1      | 1      | 5      | 5     
|Total production cost ($/oz)           | 262    | 267    | 304    | 332   
|Mineral reserves (oz Au)               | 79,100 | 77,400 | 79,200 |       

During the year, Cambior's share of capital expenditures totalled $4.4
million, principally related to the mine deepening program on three levels. The
shaft deepening was completed in late December, and related infrastructure will
be developed in the first quarter of 2004.

Cambior's 50% share of the mineral reserves stands at 209,000tonnes at 11.8 g
Au/t, representing 79,200 ounces of gold contained.

Outlook

Cambior's share of the target 2004 production is 34,800
ounces of gold at an estimated mine operating cost of $256 per ounce. Unit costs
are expected to be higher than last year due to additional stope preparation and
the strength of the Canadian dollar relative to the US currency.

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

NIOBEC DIVISION

The Niobec mine in northeastern Québec, Canada, is jointly owned by the mine
operator Sequoia Minerals Inc.(50%) and Cambior (50%),which is responsible for
the worldwide marketing of the ferroniobium. Niobec is the only niobium producer
in North America and the third largest in the world. 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 converter. Ferroniobium is added to steel as a micro-alloy
element to improve its mechanical properties and corrosion resistance.

Cambior's share of 2003 niobium sales from the Niobec mine totalled $22.2
million with an operating cash flow of $8.2 million. Sales were slightly lower
in 2003 due to a difficult steel market in North America and a lower niobium
price on world markets.

During the year, Cambior's share of capital expenditures totalled $1.7
million, mainly for a new tailings pond, underground mobile equipment and
underground infrastructure development.

---

annual report 2003       p.20
     Cambior Inc.Management's Discussion and Analysis(continued)

Cambior's share of proven and probable mineral reserves at the Niobec mine
currently totals 11.3 million tonnes at an average grade of

Outlook

Niobium revenues and cash flow for 2004 are expected to be slightly higher
than in 2003 on the basis of higher sales forecasts. Cambior's share of
sustaining capital for the year is estimated at $1.2 million.

ROSEBEL PROJECT

The Rosebel project is located in Suriname, South America, some 100
kilometres south of Paramaribo, the country's capital city. Cambior has been
involved in the Rosebel project since 1994, earning a 50% interest through the
funding of exploration and development. The Company acquired the remaining 50%
interest from Golden Star Resources Ltd. in 2002 for $8 million and a 10% price
participation interest over a certain threshold as described in Note 17 to the
financial statements. Following a positive feasibility study completed in 2002,
Cambior, through its subsidiary Rosebel Gold Mines N.V., initiated the
construction and development of a 12,000 tonne-per-day mine in 2003. The project
included the construction of a processing plant similar to Cambior's existing
facilities at the Omai mine, maintenance and warehouse facilities, a camp, a
hydro-electric line to tap into the Afobaka power generating station owned by a
major bauxite producer, and related support infrastructure. The aggressive
construction program was completed in February 2004 and commercial production is
scheduled to begin in the first quarter of 2004. Approximately $87 million of the
$95 million construction and development budget was expended in 2003.

The Government of Suriname participates in the Rosebel project through:

- A 2% royalty payment on gold production;
- A 6.5% participation in the excess gold price over $425 per ounce; and
- 5% of the dividends paid by the operating company, after full repayment of
  the capital.

Rosebel Gold Mines will also contribute 0.25% of gold production to a
foundation to promote the development of natural resources in the country.

The development of the Rosebel project is a key milestone in Cambior's
history as it allows the Company to increase production to over 700,000 ounces
in 2004,and provides a replacement for the Omai mine. The open-pit operation is
very similar to Omai, with the deposits hosted in a comparable geological
context. Cambior can apply the knowledge and expertise gained from the Omai
operations and benefit from synergies with other activities in the Guiana Shield
to maximize the returns to its shareholders.

The Rosebel project has the following characteristics:

- Probable mineral reserves: 47 million tonnes at 1.6 g Au/t; 2.4 million
  ounces of gold contained;
- Planned average annual gold production: 220,000 ounces at approximately
  $215 per ounce;
- Current projected mine life: 10 years;
- Initial capital cost: $95 million;
- Commercial production: first quarter of 2004;
- Projected workforce: 600 people during production.

Cambior also believes that there is excellent potential to increase reserves
at the project and on the adjacent properties, Headley's Reef and Thunder
Mountain, acquired as part of the transaction with Golden Star Resources Ltd. in
2002.

---

p. 21     annual report
2003

Cambior Inc.Initially, ore throughput at the Rosebel processing plant is expected to be
14,000 tonnes per day as the plan is to process the upper portion of the
deposits, which do not require crushing capacity. The feasibility study provides
for the processing rate to decrease to 12,000 tonnes per day in the second year
of operations and thereafter as more transition and hard rock ore is processed.
The ore from the six identified deposits will be mined by open pit using trucks
and shovels.
The construction workforce reached a peak of 1,419 employees in 2003, mostly
nationals complemented by North American and Caribbean expatriates.OutlookRosebel is scheduled to process 4.6 million tonnes of ore in 2004 at an
average grade of 1.8 g Au/t and a gold process recovery of 93%,for production of
245,000 ounces of gold. It is anticipated that approximately 16.2 million tonnes
of ore and waste will be mined. The mine operating cost is expected to be $184
per ounce, higher than in the August 2002 feasibility study due to higher power
costs resulting from indexation to the gold price. Total production costs are
estimated at $275 per ounce, including $82 in depreciation. The 2004 production
figure excludes a permanent gold circuit inventory of 4,000 ounces that will be
retained in the carbon-in-leach (CIL) circuit for the duration of the
operations. The primary source of mill feed will be the Pay Caro and East Pay
Caro deposits, located in the north limb of the Rosebel property, and the Royal
Hill deposit, located in the south limb. The waste-to-ore ratio for 2004 is
estimated at 1.9:1.
Capital expenditures for 2004 are estimated at $18.8 million, and include
amounts to complete the construction program ($6.0 million), acquire mine
equipment ($4.3 million) and carry out exploration and development drilling
($4.0 million). A total of 34,000 metres of diamond drilling will be executed
between March and December 2004 to expand reserves at the known deposits and
find new deposits.OTHER EXPENSESExploration and Business DevelopmentWith ongoing improvements in its financial condition, Cambior can commit an
increasing amount of capital to the search for new mineral deposits and business
opportunities. Cambior believes these efforts will enhance shareholder value.
The Company is focused on areas near its current operating structures and on
highly prospective areas with extremely favorable geological contexts, such as
Peru. When it acquired the Camp Caiman project in French Guiana, the Company
also acquired a number of properties with excellent potential for discoveries
that could further enhance a future operation at Camp Caiman.
The capital invested in 2003 yielded a discovery at the Westwood project
adjacent to the Doyon mine and favorable results at the Gemini-Turgeon project
in the Abitibi region of Québec, Canada.
The Company intends to aggressively pursue the discovery of new deposits in
2004. The 2004 exploration and development budget is estimated at $25 million, of
which approximately $16.4 million will be capitalized. Exploration and
development will remain focused on or near the Company's mine sites and advanced
projects. On the Westwood property, Cambior will continue drilling to test the
Westwood mineralization at depth, and will initiate a major underground
exploration program on the eastern portion of the Doyon property, where a 2.6-km
exploration drift will be driven from the 14th level of the mine to the eastern
edge of the property, reaching the Westwood area by the end of 2006. A major
drilling program is planned to test the Warrenmac and Westwood areas to a
vertical depth of 2,000 metres, and will be carried out between mid-2004 and the
end of 2007. Cambior will continue exploring in the Abitibi area, near the Alto
Chicama gold discovery in the Huamachuco region of Peru, and on its exploration
properties in French Guiana and Guyana. It will also initiate exploration
programs on the properties adjacent to the Rosebel concession.
The Company is also continuing to evaluate various investment opportunities
in the Americas to build on its current operating base.The 2004 exploration and development budget is:

|(in millions of $)                       |     
|---------------------------------------- | ----
|Minesites                                |     
|- Rosebel                                | 4.0 
|- Other                                  | 4.5 
|                                         | 8.5 
|Advanced Projects                        |     
|- Camp
    Caiman                        | 5.2 
|- Westwood                               | 1.7 
|- Carlota                                | 1.2 
|                                         | 8.1 
|Off-site                                 |     
|- Canada
    (net of government funding) | 1.8 
|- Andes                                  | 3.7 
|- Guiana Shield                          | 2.9 
|                                         | 8.4 
|                                         | 25.0

---

annual report 2003       p.22
     Cambior Inc.Management's Discussion and Analysis
(continued)

The geographic breakdown of the exploration and business development costs is
as follows:

|(in millions of $) | 2003 | 2002 | 2001
|------------------ | ---- | ---- | ----
|Canada             | 1.9  | 1.3  | 0.7 
|Guyana             | 1.0  | 0.5  | 0.8 
|Peru               | 4.5  | 1.8  | 0.7 
|Suriname           |     |     | 0.4 
|Other              | 0.2  | 0.6  | 0.8 
|Total              | 7.6  | 4.2  | 3.4 

The Company finances exploration expenditures from internal
cash resources and, in the case of its Canadian exploration activities, from
the issuance of flow-through shares.

Flow-through shares are usually issued at a premium to
market, as they transfer the deduction for tax purposes to the purchaser 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

General and administrative costs amounted to $6.1 million in 2003, compared to
$4.8 million in 2002 and $3.9 million in 2001. The higher costs for 2003 and 2002
were mainly attributable to the increase in capital taxes following the issuance
of additional shares for financings, enhanced investor relations activities and
the implementation of a continuous improvement program. The 2003 costs were also
affected by the strengthening of the Canadian dollar against the US currency, as
the majority of the general and administrative costs are denominated in Canadian
currency. The 2004 costs are expected to be similar to 2003.

Financial Expenses

In accordance with the Company's accounting policies, interest charges of
$1.4 million related to the debt contracted to construct and develop the Rosebel
project were capitalized to the project. However, during 2003 the Company wrote
off previously deferred financing charges for the 2001 Credit facility following
its replacement by the 2003 Credit facility (see "2003 Credit Facility" below).

|                                                  | 2003 | 2002 | 2001
|------------------------------------------------- | ---- | ---- | ----
|Long-term debt ($ millions)                       | 64.2 | 28.0 | 51.1
|Financial expenses ($
    millions)               | 1.9  | 2.4  | 5.6 
|Financial expenses -
    capitalized ($ millions) | 1.4  |     |    
|Average LIBOR rate (%)                            | 1.2  | 1.8  | 3.6 
|Average interest rate on credit
    facility (%)  | 4.3  | 4.0  | 7.7 

In 2004, financial expenses are expected to amount to approximately $3.1
million and will be charged to operations.

Writedown of Assets

In accordance with its accounting policy, the Company reviews the carrying
value of its assets on an annual basis using the future undiscounted cash flow
method. In its evaluation, the Company considers estimated future production
from the deposit, metal prices expected to be realized based on long-term
forecasts along with the Company's commitments under its revenue protection
program, and the projected operating and capital costs in its long-term mine
plans.

There were no reductions in asset values in 2002 and 2003. The $5.4
million reduction in carrying value at Omai in 2001 was attributable to the
revenue protection program that was put in place to comply with the loan
covenant to hedge 70% of the Company's estimated net future gold production
during the loan period. The program was finalized in a market environment that
did not allow it to meet the $300 per ounce valuation target.

Non-Hedge Derivative Gain/Loss

The Company obtains an independent valuation of its portfolio of gold
commitments at each reporting period. The market valuation is based on 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 the 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 of optionalities 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
|-------------------------------------------- | ------- | ------ | ------
|                                             | 2003    | 2002   | 2001  
|Closing gold market
    price ($/oz)         | 417     | 343    | 277   
|Mark-to-market value of
    hedge derivative |         |        |       
|instruments ($ millions)                     | (59.7)  | (37.3) | 3.5   
|Mark-to-market value of
    non-hedge        |         |        |       
|derivative
    instruments recognized        |         |        |       
|on the balance sheet ($
    millions)        | (7.8)   | (6.4)  | 5.3   
|Estimated
    mark-to-market value - revenue |         |        |       
|protection program ($
    millions)          | (67.5)  | (43.7) | 8.8   

---



p. 23     annual report
2003

Cambior Inc.

2003
    2002
    2001Impact on earnings of non-hedge
    derivativeinstruments ($ millions)Mark-to-market value at the end of the year
    (7.8)
    (6.4)
    5.3Mark-to-market value at thebeginning of the year
    (6.4)
    5.3
    6.1(1.4)
    (11.7)
    (0.7)Realized loss arising
    from the exerciseof call
    options sold
    (1.1)
    
    Deferred non-hedge
    derivative loss relatedto the
    conversion of non-hedge derivativeinstruments into hedge derivative instruments
    
    (5.1)
    Realized gain resulting
    from the leaserate swap contracts
    3.1
    
    Non-hedge derivative gain (loss)
    0.6
    (16.8)
    (0.7)


> Income and Mining Taxes

As a result of higher asset values for tax purposes than accounting values
(higher undepreciated tax pools) and accumulated losses in Canada, Guyana and
the United States, the Company does not anticipate having to pay income tax in
the foreseeable future except for the tax on large corporations in Canada. The
value of the excess tax values over accounting book value and the accumulated
tax losses have not been recognized on the Company's balance sheet. Details of
tax pools available to offset future income taxes are outlined in Note 16 to the
Company's consolidated financial statements.

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)                                     | 2002    | 2002    | 2002    | 2002    | 2002   | 2003    | 2003    | 2003    | 2003    | 2003 
|(in millions of $)                              |         |         |         |         |        |         |         |         |         |      
|Total revenues (1)                              | 49.5    | 48.8    | 52.6    | 53.3    | 204.2  | 45.6    | 43.2    | 47.2    | 59.7    | 195.7
|Cash flow from
    operating activities         | 9.2     | 0.1     | 9.0     | 12.5    | 30.8   | 0.5     | 1.7     | 4.6     | 17.4    | 24.2 
|Adjusted cash flow (2)                          | 12.2    | 3.2     | 12.1    | 15.5    | 43.0   | 3.6     | 4.7     | 7.7     | 20.4    | 36.4 
|Adjusted earnings
    (loss) before non-hedge   |         |         |         |         |        |         |         |         |         |      
|derivative
    gain (loss), loss on foreign     |         |         |         |         |        |         |         |         |         |      
|exchange
    from reduction in net investment   |         |         |         |         |        |         |         |         |         |      
|and income
    and mining taxes (1)             | 1.5     | 0.8     | 3.3     | 4.0     | 9.6    | (3.9)   | (3.6)   | 1.7     | 5.3     | (0.5)
|Net earnings (loss)                             | (10.4)  | (3.1)   | 4.0     | 1.4     | (8.1)  | (2.3)   | (2.1)   | 0.7     | 4.3     | 0.6  
|Basic net earnings
    (loss) per share ($)     | (0.10)  | (0.02)  | 0.03    | 0.01    | (0.06) | (0.01)  | (0.02)  | 0.01    | 0.02    | 0.00 
|Diluted net earnings (loss) per share
    ($)   | (0.10)  | (0.02)  | 0.02    | 0.01    | (0.06) | (0.01)  | (0.01)  | 0.00    | 0.02    | 0.00 
|Basic weighted average
    number of common     |         |         |         |         |        |         |         |         |         |      
|shares
    outstanding (millions)               | 107.3   | 140.9   | 154.7   | 156.6   | 140.1  | 164.2   | 170.9   | 193.1   | 222.9   | 188.0
|Effect of dilutive
    stock options (millions) |        |        | 1.1     | 1.2     |       |        |        | 2.4     | 3.3     | 2.0  
|Effect of dilutive warrants (millions)          |        |        | 1.6     | 0.5     |       |        |        | 0.1     | 1.4     | 0.6  
|Diluted weighted
    average number of common   |         |         |         |         |        |         |         |         |         |      
|shares outstanding
    (millions)               | 107.3   | 140.9   | 157.4   | 158.3   | 140.1  | 164.2   | 170.9   | 195.6   | 227.6   | 190.6
|Number of ounces
    produced (000)             | 149     | 137     | 150     | 133     | 569    | 134     | 121     | 124     | 143     | 522  
|Mine operating cost ($/oz)                      | 207     | 233     | 216     | 240     | 223    | 252     | 244     | 238     | 230     | 241  

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In the fourth
          quarter of 2003, the Company decided to classify realized gains
          resulting from lease rate swap contracts in the "non-hedge derivative
          gain (loss)" caption of the statement of operations. For the second
          and third quarter, gains amounting to $1.1 million and $1.5 million
          respectively that had originally been classified in revenues were
          reclassified to conform to this presentation.
|(2) | Cash flow from
          operating activities less deferred revenue (see reconciliation under
          Consolidated Cash Flows on page 24 of this report).                                                                                                                                                                                                                                                                                                            

---

annual report 2003       p.24
     Cambior Inc.Management's Discussion and Analysis
(continued)

CONSOLIDATED CASH FLOWS

Operating Activities

Cash flow from operating activities declined in 2003 to $24.2 million from
$30.8 million in 2002. Cash flow of $81.3 million for 2001 included net proceeds
of $48.9 million collected under the prepaid gold forward sales agreement from
undelivered gold and accounted for as deferred revenue. This impacted on the
operating cash flows for 2001 to 2003 as the gold was delivered subsequent to
the receipt of the total proceeds of the prepaid gold forward sales agreement in
2001, without cash receipts. Consequently, to assist the reader in evaluating
the Company's performance for each of these years, the following table presents
cash flow from operating activities adjusted for the proceeds from the prepaid
gold forward sales agreement as the gold was delivered.

|(in millions of $)                      | 2003 | 2002 | 2001  
|--------------------------------------- | ---- | ---- | ------
|Cash flow from
    operating activities | 24.2 | 30.8 | 81.3  
|Deferred revenue                        |     |     | (55.0)
|Deferred revenue - as
    per delivery  |      |      |       
|of gold on the prepaid
    forward      | 12.2 | 12.2 | 6.1   
|Adjusted cash flow                      | 36.4 | 43.0 | 32.4  

In 2003, adjusted cash flow was affected by the reduction in gold production
arising from the planned decrease in gold production at the Omai mine, higher
operating and exploration costs, and the effect of the stronger Canadian dollar,
particularly on conversion of the investment in working capital.

The increase in adjusted cash flow from 2001 to 2002 was due to higher
revenues, lower financial charges, a reduction in working capital investment
resulting mainly from lower production inventories, and an increase in payables.

In determining cash flow from operating activities, the Company is required
to reflect the cash received from gold and foreign exchange contracts delivered
at dates different from the original designation date under its hedge accounting
policy. The statement of operations recognizes the gain at the original
designation date.

Investing Activities

In its effort to grow its reserve and resource base as well as develop and
exploit the ore from its deposits, the Company has embarked on an intensive
capital development program. The major highlights for 2003 included:

- $87.1 million development of the Rosebel project;
- New shaft deepening projects at the Sleeping Giant and Mouska mines; and
- Acquisition of the Camp Caiman project.

A summary of investments in property, plant and equipment and proceeds from
asset sales is as follows:

|(in millions of $)              | 2003  | 2002 | 2001  
|------------------------------- | ----- | ---- | ------
|Continuing operations           |       |      |       
|Canada                          |       |      |       
|Doyon
    Division              | 10.6  | 8.1  | 7.6   
|Sleeping
    Giant              | 4.4   | 1.8  | 1.0   
|Niobec                          | 1.7   | 1.2  | 1.0   
|Omai mine                       | (1.5) | 4.5  | 8.3   
|Rosebel project
    development | 87.1  | 12.7 |      
|Projects and other              | 4.9   | 1.9  | 1.8   
|Sub-total                       | 107.2 | 30.2 | 19.7  
|Discontinued operations         |      |     | (12.4)
|Total                           | 107.2 | 30.2 | 7.3   

The Rosebel project investment totalled $87.1 million in 2003 for the
construction and development of the deposit. The construction is scheduled for
completion in February 2004 and the project should reach commercial production
in the first quarter of 2004. The mine is expected to become the Company's most
significant contributor to cash flow over the next five years. The Company also
intends to carry out an aggressive drilling program to build on the current Rosebel reserve and resource base.

During  2002, the Company completed the acquisition of an additional 50%
interest in the Rosebel gold project from Golden Star Resources Ladas 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 payments of $1 million each to be paid 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 portions, and in excess of $350 per ounce for production from the hard rock
  reserve of the Rosebel property, less royalties totalling 2.25%.

Other project expenditures in 2003 and 2002 were related to investments and
property maintenance costs at the Carlota copper project.

---

p. 25     annual report
2003

Cambior Inc.Carlota Copper Project
Located in the Globe-Miami mining district in the heart of Arizona's copper
belt, Carlota has mining reserves of 79 million tonnes grading 0.47% copper
representing 371,000 tonnes of contained copper. The Company acquired 100% of
this asset in 1991. The Company developed a feasibility study over the years and
secured the necessary exploitation permits in 1999. The project development was
postponed pending improved market conditions. In 2003, the Company initiated a
joint feasibility study with BHP Base Metals Inc. to assess the establishment of
a joint venture to mine the Carlota deposit and process the ore through leaching
pads and an SX-EW (solvent extraction and electrowinning) plant located at the
adjacent BHP-owned Pinto Valley mine. The attractiveness of this asset has
increased as a result of rising copper prices and high physical demand,
especially in Asia. Cambior is pursuing the revitalization of this project with
a budget of $1.2 million in 2004. Expenditures include the completion of
remaining studies as well as designs and estimates required for the joint BHP/Cambior
feasibility study. The feasibility study should be completed in the second half
of 2004. The deposit would be mined by open pit and the plant would produce
copper cathodes saleable directly to market.Camp Caiman Project

The Camp Caiman gold project lies approximately 45 km southeast of the
capital city of Cayenne in French Guiana. A preliminary assessment study
performed in 2003 showed that the project contains 1.2 million ounces of
measured and indicated resources. The property is considered to have strong
potential for the discovery of additional resources.
Capital expenditures on the Camp Caiman project are estimated at $5.2 million
for 2004. These expenditures consist mainly of drilling (13,300 metres) to
upgrade the mineral resources and prepare a final feasibility study and an
environmental impact assessment by the end of the year. Assuming all permits
have been obtained from the relevant French authorities, the Camp Caiman gold
project is expected to enter the construction phase in 2005 and commence
production in 2007.
The Company acquired the Camp Caiman project, along with other assets and
liabilities, through a merger agreement with Ariane Gold Corp. ("Ariane"). Under
the terms of the agreement, Cambior issued 14,834,621 common shares to Ariane
shareholders valued at $2.64 (Cdn $3.58) each, based on the closing prices of
the companies' shares on the Toronto Stock Exchange on the date the transaction
was announced. The Company also entitled the holders of 1,265,989 options issued
under the Ariane employee stock option plan to obtain equivalent options of
Cambior and hold them until their original scheduled expiry.The value of the net assets acquired was established as follows:

|(in millions of $)                                  |     
|--------------------------------------------------- | ----
|Assets purchased                                    |     
|Cash and cash equivalents                           | 3.2 
|Property, plant and
    equipment - mining projects | 49.6
|                                                    | 52.8
|Consideration                                       |     
|Net working capital other than cash                 | 2.1 
|Cost of Ariane shares held prior to merger          | 0.4 
|Assumption of long-term debt                        | 9.7 
|Issuance of Cambior shares                          | 39.2
|Fair value of Ariane common share purchase          |     
|options
    converted into Cambior options (1)      | 1.4 
|                                                    | 52.8

|    |                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The options
          granted pursuant to the merger agreement with Ariane were valued at
          theirfair 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 12 years of expertise 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.

Discontinued Operations

In 2001, the El Pachón copper project was sold for a total consideration of
$15 million, with $13 million paid in September 2001 and $2 million due at the
time the purchaser makes a production decision, but no later than September
2005. The $2 million receivable was discounted at a rate of 6.125% and is
recorded in investments.

---

annual report 2003       p.26
     Cambior Inc.
Management's Discussion and Analysis
(continued)

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 of in excess of 120 days. In accordance with accounting pronouncements,
these are classified as short-term investments.

Investments

From time to time, the Company invests in marketable securities of other
mining and exploration companies with a potential for capital appreciation.
These may be sold upon reaching certain valuation parameters or utilized as a
toehold for acquisition, as in the Ariane transaction.

Financing Activities

During the past three years, Cambior has worked hard at improving 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
upfront 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.

Issuance of Securities

In 2003, the Company continued to improve its financial position through the
issuance of 65,840,000 shares for gross proceeds of $117.4 million. These equity
issues include the exercise of warrants from previous 2002 issues. In 2002 and
2001, the Company issued shares for gross proceeds of $62.2 million and $16.3
million respectively. The table below outlines the proceeds from share issues:

|             | 2003       | 2002             | 2001          
|------------ | ---------- | ---------------- | --------------
|             | No. of     | Proceeds         | No. of        
|             | shares (in | (in
    millions | shares
    (in
|             | thousands) | of $)            | thousands)    
|Private      |            |                  |               
|placements   |           |                 | 21,346        
|Public       |            |                  |               
|offerings    | 40,000     | 72.2             | 27,273        
|Exercise of  |            |                  |               
|warrants     | 24,754     | 43.2             | 6,515         
|Exercise of  |            |                  |               
|options      | 515        | 0.6              |              
|Flow-through |            |                  |               
|shares       | 571        | 1.4              | 129           
|Total        | 65,840     | 117.4            | 55,263        

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

During the year, the Company entered into a new credit
facility agreement (the "2003 Credit facility") with a syndicate of six
international financial institutions.

The 2003 Credit facility includes a $55 million non-revolving term loan and a
$10 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, 2003, following the repayment of $5 million in the first
quarter of 2003.

The repayment schedule is as follows, based on quarterly payments commencing
on June 30, 2004.

|(in millions of $) |     
|------------------ | ----
|2004               | 13.6
|2005               | 14.5
|2006               | 14.5
|2007               | 7.4 
|                   | 50.0

The revolving credit facility remains available for future draw-downs. 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 Doyon, Mouska, Sleeping Giant,
Niobec and Omai mines and the Rosebel project as security on the loan.

The Company paid fees of 2% of the facility, and interest is payable at the
LIBOR rate plus a premium based on the Loan Life Protection Ratio ("LLPR"). The
LLPR is defined as the ratio of the net present value of projected cash flow to
the net senior debt outstanding.

As part of the agreement, the syndicate had requested that the Company
maintain a mandatory hedging program covering 30% of its expected gold
production up to the end of 2007. Following the Cdn $100 million equity financing
in August 2003, the Company negotiated the elimination of the hedging covenant
under its credit facility. 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 will be released upon the achievement of commercial
production.

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p. 27     annual report
2003

Cambior Inc.
As part of the acquisition of the Camp Caiman project, the Company assumed
additional debt of $9.7 million, the terms and conditions of which are outlined
in Note 8 to the consolidated financial statements.2001 Credit Facility

As part of its restructuring program, 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 expire 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.
In 2001, the Company reduced its debt with the conversion of Jipangu Inc.'s
$10 million mortgage loan into common shares through two private placements, and
the repayment of $13.3 million from the proceeds of the sale of the El Pachón
project.Prepaid Gold Forward Sales Agreement

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 accounted for as deferred revenue and presented
under operating activities in the consolidated cash flow statement.
As per the terms of the Prepaid Agreement, the Company delivered 51,919
ounces of gold in 2003 and 2002 and 25,960 ounces in 2001,valued at $235 per
ounce. The deliveries are presented as a deferred revenue deduction (non-cash
item) in the Company's consolidated cash flow statement.Deferred Charges

Deferred financing charges totalling $1.8 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.CONSOLIDATED BALANCE SHEETSThe Company's total assets amounted to $492.9 million at December
31, 2003, compared to $279.4 million at the end of 2002,and to $251.7 million at
the end of 2001.The $213.5 million increase is mainly attributable to the
proceeds of the equity issues in 2003, the acquisition of the Camp Caiman project
and the development of the Rosebel project, partially funded by bank borrowings.
Property, plant and equipment totalled $349.5 million compared to $200.2
million in 2002. The 2003 figure includes $122.5 million or 35% for the total
value of the Rosebel project ($30.8 million or 15% in 2002) and $69.9 million or
20% for the total value of projects in the exploration and development stage
($16.7 million or 8% in 2002). Construction and development of these projects are
subject to the securing of financing for their development, favorable market
conditions for commodities and positive feasibility studies.
Cash and short-term investments increased by $52.4 million during the year to
stand at $95.2 million at December 31, 2003. Working capital totalled $59.3
million compared to $32.6 million at December 31, 2002.
Long-term debt, including the $16.9 million due within one
year, amounted to $64.2 million at year-end compared to $28.0 million at the
beginning of 2003.The cash position is as follows:

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

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

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

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

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annual report 2003       p.28
     Cambior Inc.Management's Discussion and Analysis
(continued)

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

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

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 with a view to ensuring compliance with these laws and
regulations. The Company estimates mine closure costs, including site
restoration, and charges these costs to operations over the expected operating
lives of the mines. 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 a provision accumulated
during the production phase.

These obligations are currently estimated as follows:

|(in millions of $) |     
|------------------ | ----
|Doyon Division     | 21.6
|Omai mine          | 4.5 
|Rosebel            | 5.0 
|Other mines        | 3.1 
|                   | 34.2

An amount of $16.4 million was provided for in the Company's balance sheet as
at December 31, 2003. Minimal cash resources have been set aside to meet these
future obligations, and the Company has also issued a letter of credit for $0.5
million to the Government of Guyana as a closure cost guarantee for the Omai
mine.

All of the Company's mine operations are certified under the
ISO 14001 standard for environmental management. The Rosebel project will aim
for this certification by the end of 2004.

COMMUNITY DEVELOPMENT

As part of its strategy, the Company plays an active role in the communities
in which it operates. The economic impacts of mining operations are often more
noticeable in emerging countries. Therefore, in such countries, the Company
implements development programs, which can be sustained beyond the mine life, to
assist in improving the quality of life of those residents neighbouring the
mines. Cambior has also established community outreach programs to dialogue with
stake-holders 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

The Company maintains several post-retirement plans for its employees. The
Company's obligation under these plans, in certain cases, is subject to
estimates as described in Note 11 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, 2003, the Company had a pension funding deficit of $3.0
million ($2.8 million as at December 31, 2002), 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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p. 29     annual report
2003

Cambior Inc.MINERAL RESERVESCambior's proven and probable mineral reserves at December 31, 2003, are
outlined in the annual report. Mineral reserves have been 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 TRANSACTIONSHedging Program  Gold SalesUnder the terms of its bank loan agreement and the Prepaid Agreement, the
Company was required to maintain a revenue protection program.
The 2001 Credit facility 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 June2002, 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.
At December 31, 2003, the Company had minimum delivery obligations of 642,000
ounces of gold at an average price of $306 per ounce. The Company's commitments
also included an additional 104,000 call options sold at an average price of
$301 per ounce. The fair value of the total gold delivery commitments,
calculated at the 2003 year-end gold price of $417 per ounce ($343 in 2002),was
a negative amount of $67.5 million. The details of the hedging portfolio are
included in Note 17 to the consolidated financial statements.
The hedging counterparties are all participants in the 2003 Credit facility
and have agreed that the Company is able to reschedule gold delivery as long as
the gold is delivered during the term of the loan and that no margin calls are
applicable.
The Company intends to reduce its forward sales commitments to 52,000 ounces
by the end of 2004 through a combination of delivery of production against
outstanding contracts and opportunistic buy-backs in the futures market.
In early 2004, the Company repurchased 135,000 ounces at an average price of
$401 per ounce.Hedging Program  Foreign Exchange ContractsAll 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 $9.0
million for the purchase of Canadian dollars in 2004 are outlined in Note 17 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  OtherThe 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, 2003, no contracts were
outstanding for oil or interest rate coverage.

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annual report 2003       p.30
     Cambior Inc.Management's Discussion and Analysis
(continued)

HUMAN RESOURCES

Cambior's success is in great part dependent on recruiting and maintaining a
competent professional workforce. To motivate and retain this 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
7.2 million options to acquire common shares of the Company, as described in
Note 12 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. By
the end of 2003,more than 1,800 employees had participated in two-day seminars
providing insight into the Company's objectives and management policy, as well
as the fundamentals of the mining business. In addition, 18 Kaizen workshops
were held to address opportunities for improving operational practices. The
Company believes that the continued implementation of this program will enhance
the Company's productivity and cost competitiveness.

All of Cambior's current operations except Rosebel are unionized. During 2003
and 2002, the Company did not experience any work stoppages, compared to
2001,when unionized employees at the Mouska and Niobec mines initiated labour
stoppages of 22 and 9 days respectively as part of the collective bargaining
process.

During 2003, the Company negotiated a new labour contract at Omai and a
contract extension at Mouska. In the upcoming year, Sequoia Minerals Inc., the
operator of the Niobec Joint Venture, will be negotiating the renewal of the
labour contract at the Niobec mine.

A legal or illegal work stoppage by employees could have an impact on the
Company's financial results and obligations.

The Company believes that it maintains good relations with its employees by
providing competitive compensation, a secure and efficient 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 (1)- Hourly,
    clerical and technical employees | April 30, 2004       

(1)

At year end, the Company employed 2,546 individuals (2002  1,698
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 as unfounded and frivolous and OGML will contest
it vigorously.

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.

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> 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.

Financial Risks

The following summarizes key financial risks:

Commodity Prices

The Company is affected by the price of 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.

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:

Ore Reserves

Ore 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 may face
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.

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annual report 2003       p.32
     Cambior Inc.Management's Discussion and Analysis
(continued)

Energy

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

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. The Company's output may be affected by strikes, lockouts and other
stoppages at its worksites.

Communities

Surrounding communities may affect the mining operations through the
restriction of access of supplies and the 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 which is certified under ISO
14001 and covers all aspects of the mining cycle. In high risk areas, such as
the design and operating 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 suscribed to 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)

2)

3)

4)

5)

6)

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, 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

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

Use of Estimates

The Company is required to make estimates that have a significant impact on
the financial statements. These include the estimation of ore 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.

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p. 33     annual report
2003

Cambior Inc.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 the ore
reserves of the deposit. Ore reserves are estimated by professional geologists
and engineers in accordance with industry standards, which requires input as to
future metal prices, operating costs and technical parameters. Changes in any
key input component could result in a significant reduction in ore reserves,
which would have a negative impact on the carrying value of the property, plant
and equipment.Litigation

The Company is subject to various litigation actions, including the Omai
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

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.Pension Plan Obligations

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 which require management estimates.CHANGES IN ACCOUNTING POLICIESThe Company's accounting policies are in accordance with Canadian GAAP and
mining industry practices.
In 2002, the Company adopted the new Canadian standard with respect to
"Stock-based Compensation and Stock Payments".
In February 2003, the Canadian
Institute of Chartered Accountants issued Accounting Guideline 14,"Guarantors
Accounting and Disclosure Requirements for Guarantees" ("AcG 14").At adoption,
AcG 14 did not have any impact on the Company's consolidated financial
statements.OUTLOOKDuring 2004, Cambior intends to maintain its focus on maximizing the returns
to its shareholders by:
      Completing construction and
  commissioning of the Rosebel project during the first quarter;
        Intensifying its
  search for new reserves and resources through the investment of $25 million in
  exploration and development activities. The program includes:
        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;
        Initiation of underground access from
  the Doyon mine to the Westwood property boundary to provide drilling bases
  from which to explore at depth the eastern portion of Cambior's land holding
  in the Doyon Camp;
        Reducing its gold commitments under
  the revenue protection program by approximately 700,000 ounces.The 2004 production target is 705,000 ounces at a mine operating cost of $221
per ounce. The forecast increase in production is the result of the commissioning
of the Rosebel project. Sales of ferroniobium from Niobec are expected to be
slightly higher than in 2003. The Company intends to reinvest $49 million at its
operating mines. Long-term debt is expected to decrease by approximately $17
million and the Company will continue to reduce its obligations through the
delivery of 51,919 ounces under the prepaid gold forward sales agreement.Additional Information and Continuous Disclosure

This MD&A has been prepared as of February 18, 2004. 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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