---

annual report 2003       p.34
     Cambior Inc.

> Responsibilities for Financial Statements

The Management of the Company is responsible for the
preparation of the consolidated financial statements and information contained
in the Annual Report. The accompanying consolidated financial statements of
Cambior Inc. have been prepared by management and approved by the Board of
Directors of the Company. Financial information contained elsewhere in this
report is consistent with the consolidated financial statements.

The consolidated financial statements have been prepared in accordance with
Canadian generally accepted accounting principles and where appropriate reflect
management's best estimates and judgments based on currently available
information.

Cambior maintains adequate accounting systems and administrative controls to
produce reliable financial statements and provide reasonable assurance that
assets are properly safeguarded.

Raymond Chabot Grant Thornton, Chartered Accountants, have been appointed by
the shareholders to conduct an independent audit of the Company's financial
statements. Their report outlines the nature of their audit and expresses their
opinion of the financial statements of the Company.

The Board of Directors of the Company is responsible for ensuring that
management fulfills its responsibilities for financial reporting. The Board of
Directors carries out this responsibility through its Audit Committee, which is
composed solely of independent directors. The Board of Directors has also
designated the Chairman of the Audit Committee as a financial expert. The Audit
Committee is also responsible for making recommendations with respect to the
appointment, the remuneration and the terms of engagement of the Company's
auditors. The Committee meets on a quarterly basis with the external auditors,
with and without management being present, to review the financial statements,
to discuss audit and internal control related matters and insure full
disclosure. The Audit Committee reports its findings to the Board of Directors
for its consideration when approving the financial statements for issuance to
shareholders.

|                                                              |                                                                                   
|------------------------------------------------------------- | ----------------------------------------------------------------------------------
|Louis P.
    GignacPresident 
    and Chief Executive Officer | Bryan A.
    Coates, C. A.Vice President, Finance 
    and Chief Financial Officer
|                                                              |                                                                                   
|Longueuil, Canada 
    February 18, 2004                      |                                                                                   

---

p. 35     annual report
2003
Cambior Inc.Auditors' ReportTO THE SHAREHOLDERS OF CAMBIOR INC.We have audited the consolidated balance sheets of Cambior Inc. as at
December 31, 2003 and 2002 and the consolidated statements of operations,
contributed surplus and deficit and cash flows for each of the years in the
three-year period ended December 31, 2003. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with Canadian generally accepted
auditing standards. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.
In our opinion, these consolidated financial statements present fairly, in
all material respects, the financial position of the Company as at December
31, 2003 and 2002 and the results of its operations and cash flows for each of
the years in the three-year period ended December 31, 2003 in accordance with
Canadian generally accepted accounting principles.



/S/

Montréal, Canada 
February 18, 2004

Comments by Auditors

FOR AMERICAN READERS ON CANADA-U.S. REPORTING DIFFERENCES

In the United States of America, reporting standards for auditors require the
addition of an explanatory paragraph (following the opinion paragraph) when
there is a change in accounting principles that has a material effect on the
comparability of the Company's financial statements, such as the changes in 2003
and 2001 described in Note 20A to the consolidated financial statements. Our
report to the shareholders dated February 18, 2004 is expressed in accordance
with Canadian reporting standards which does not require a reference to such
change in accounting principles in the auditors' report when the change is
properly accounted for and adequately disclosed in the consolidated financial
statements.



/S/

Montréal, Canada 
February 18, 2004

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annual report 2003       p.36
     Cambior Inc.Consolidated Operations

|         | Years ended December 31
    (in thousands of United States dollars,                           |      |         |          |        
|-------- | --------------------------------------------------------------------------------------------- | ---- | ------- | -------- | -------
|         | except for amounts per share)                                                                 | Note | 2003    | 2002     | 2001   
|         |                                                                                               |      | $       | $        | $      
|REVENUES | Mining operations                                                                             |      | 190,869 | 202,258  | 197,520
|         | Investment and other
    income                                                               |      | 2,997   | 1,945    | 727    
|         | Gain on foreign exchange                                                                      |      | 1,862   |         |       
|         |                                                                                               |      | 195,728 | 204,203  | 198,247
|         |                                                                                               |      |         |          |        
|         |                                                                                               |      |         |          |        
|EXPENSES | Mining operations                                                                             |      | 152,667 | 154,324  | 151,450
|         | Depreciation, depletion
    and amortization                                                  |      | 28,023  | 28,834   | 34,944 
|         | Exploration and
    business development                                                      |      | 7,572   | 4,190    | 3,409  
|         | General and
    administrative                                                                |      | 6,083   | 4,849    | 3,939  
|         | Financial expenses                                                                            |      | 1,923   | 2,399    | 5,565  
|         | Writedown of assets                                                                           | 7    |        |         | 5,419  
|         |                                                                                               |      | 196,268 | 194,596  | 204,726
|         | Earnings (Loss) before
    the undernoted items                                               |      | (540)   | 9,607    | (6,479)
|         |                                                                                               |      |         |          |        
|         | Non-hedge derivative
    gain (loss)                                                          | 17   | 635     | (16,765) | (731)  
|         | Loss on foreign
    exchange from reduction                                                   |      |         |          |        
|         | in net investment                                                                             | 15   |        | (541)    | (914)  
|         | Income and mining taxes                                                                       | 16   | 554     | (353)    | (115)  
|         | Net earnings (loss)                                                                           |      | 649     | (8,052)  | (8,239)
|         | Basic net earnings (loss) per share                                                           | 12   | 0.00    | (0.06)   | (0.09) 
|         | Diluted net earnings (loss) per share                                                         | 12   | 0.00    | (0.06)   | (0.09) 
|         | Basic weighted
    average number of common shares                                            |      |         |          |        
|         | outstanding (in
    thousands)                                                                |      | 187,953 | 140,055  | 92,834 
|         | Diluted weighted
    average number of common shares                                          |      |         |          |        
|         | outstanding (in
    thousands)                                                                | 12   | 190,577 | 140,055  | 92,834 
|         |                                                                                               |      |         |          |        
|         | The
    accompanying notes are an integral part of the consolidated financial
    statements. |     

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p. 37     annual report
2003
Cambior Inc.Consolidated Contributed Surplus and Deficit

|            | Years ended December 31 (in
    thousands of United States dollars)                       | Note | 2003      | 2002      | 2001     
|----------- | ----------------------------------------------------------------------------------------- | ---- | --------- | --------- | ---------
|            |                                                                                           |      | $         | $         | $        
|CONTRIBUTED | Balance,
    beginning of year                                                            |      |          | 23,047    | 23,047   
|SURPLUS     | Transfer to deficit                                                                       | 14   |          | (23,047)  |         
|            | Balance, end of year                                                                      |      |          |          | 23,047   
|            |                                                                                           |      |           |           |          
|            |                                                                                           |      |           |           |          
|DEFICIT     | Balance,
    beginning of year                                                            |      | (107,448) | (117,876) | (109,374)
|            | Net earnings
    (loss)                                                                   |      | 649       | (8,052)   | (8,239)  
|            | Share and
    warrants issue expenses, net of income taxes                                |      | (4,207)   | (4,567)   | (263)    
|            | Transfer from contributed
    surplus                                                     | 14   |          | 23,047    |         
|            | Balance, end of year                                                                      |      | (111,006) | (107,448) | (117,876)
|            |                                                                                           |      |           |           |          
|            | The accompanying notes are an integral part of the consolidated financial
    statements. |      |          

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annual report 2003       p.38
     Cambior Inc.Consolidated Cash Flows

|           | Years ended December 31 (in thousands
    of United States dollars)                           | Note | 2003      | 2002     | 2001     
|---------- | --------------------------------------------------------------------------------------------- | ---- | --------- | -------- | ---------
|           |                                                                                               |      | $         | $        | $        
|OPERATING  | Net earnings (loss)                                                                           |      | 649       | (8,052)  | (8,239)  
|ACTIVITIES | Deferred gains                                                                                |      | (680)     | (122)    | 4,159    
|           | Deferred revenue                                                                              |      |          |         | 55,000   
|           | Non-cash items                                                                                |      |           |          |          
|           | Deferred revenue
    -
    Delivery of gold on the prepaid forward                            | 9    | (12,222)  | (12,222) | (6,111)  
|           | Depreciation, depletion
    and amortization                                                  |      | 28,023    | 28,834   | 34,944   
|           | Amortization of
    deferred stripping costs                                                  |      | 5,741     | 2,290    |         
|           | Provision for
    environmental obligations                                                   |      | 1,922     | 1,679    | 1,749    
|           | Writedown of assets                                                                           |      |          |         | 5,419    
|           | Amortization of
    deferred gains                                                            |      | (865)     | (2,856)  | (8,108)  
|           | Unrealized non-hedge
    derivative loss                                                      | 17   | 1,428     | 16,765   | 731      
|           | Loss on foreign
    exchange from reduction                                                   |      |           |          |          
|           | in net investment                                                                             |      |          | 541      | 914      
|           | Others                                                                                        |      | 851       | 251      | 263      
|           |                                                                                               |      | 24,847    | 27,108   | 80,721   
|           | Changes in non-cash
    working capital items                                                 | 4(a) | (646)     | 3,716    | 611      
|           | Cash flow from
    operating activities                                                       |      | 24,201    | 30,824   | 81,332   
|           |                                                                                               |      |           |          |          
|           |                                                                                               |      |           |          |          
|INVESTING  | Short-term investments                                                                        |      | (41,562)  | (25,208) |         
|ACTIVITIES | Investments                                                                                   |      | (1,057)   | (2,251)  | 841      
|           | Rosebel project                                                                               |      | (87,055)  | (12,743) |         
|           | Acquisition of Camp
    Caiman                                                                | 7    | 3,230     |         |         
|           | Other property, plant
    and equipment                                                       |      | (23,349)  | (17,439) | (19,690) 
|           | Discontinued operations                                                                       |      |          |         | 12,386   
|           | Cash flow used in
    investing activities                                                    |      | (149,793) | (57,641) | (6,463)  
|           |                                                                                               |      |           |          |          
|           |                                                                                               |      |           |          |          
|FINANCING  | Long-term debt 
    Borrowings                                                               |      | 55,000    |         | 63,575   
|ACTIVITIES | Long-term debt 
    Repayments                                                               |      | (28,735)  | (27,976) | (132,043)
|           | Deferred charges                                                                              |      | (1,790)   |         | (2,085)  
|           | Common shares issued
    net of issue expenses                                                |      | 113,183   | 57,616   | 6,067    
|           | Cash flow from (used
    in) financing activities                                             |      | 137,658   | 29,640   | (64,486) 
|           | Effect of changes in
    the exchange rate                                                    |      |           |          |          
|           | on cash held in
    foreign currency                                                          |      | (1,211)   | 186      | 655      
|           | Net increase in cash
    and cash equivalents                                                 |      | 10,855    | 3,009    | 11,038   
|           | Cash and cash
    equivalents, beginning of year                                              |      | 17,595    | 14,586   | 3,548    
|           | Cash and cash
    equivalents, end of year                                                    | 5    | 28,450    | 17,595   | 14,586   
|           |                                                                                               |      |           |          |          
|           | The
    accompanying notes are an integral part of the consolidated financial
    statements. |      |          

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p. 39     annual report
2003
Cambior Inc.Consolidated Balance Sheets

|              | As at December
    31 (in thousands of United States dollars)                             | Note | 2003      | 2002     
|------------- | ----------------------------------------------------------------------------------------- | ---- | --------- | ---------
|              |                                                                                           |      | $         | $        
|ASSETS        | Current assets                                                                            |      |           |          
|              | Cash and
    short-term investments                                                       | 5    | 95,220    | 42,803   
|              | Receivables                                                                               |      | 6,488     | 4,078    
|              | Settlements
    receivable                                                                |      | 2,927     | 3,644    
|              | Production
    inventories                                                                |      | 7,081     | 4,414    
|              | Supplies inventory and prepaid
    expenses                                               |      | 24,615    | 18,294   
|              |                                                                                           |      | 136,331   | 73,233   
|              | Investments and
    deferred charges                                                      | 6    | 7,065     | 5,998    
|              | Property, plant and equipment                                                             | 7    | 349,528   | 200,175  
|              |                                                                                           |      | 492,924   | 279,406  
|              |                                                                                           |      |           |          
|              |                                                                                           |      |           |          
|LIABILITIES   | Current
    liabilities                                                                   |      |           |          
|              | Accounts payable
    and accrued liabilities                                              |      | 36,203    | 24,341   
|              | Current portion
    of long-term debt                                                     |      | 16,934    | 1,147    
|              | Current portion
    of deferred revenue                                                   |      | 12,222    | 12,222   
|              | Current portion
    of deferred gains                                                     |      | 3,852     | 2,949    
|              | Fair value of non-hedge
    derivatives                                                   |      | 7,790     |         
|              |                                                                                           |      | 77,001    | 40,659   
|              | Long-term debt                                                                            | 8    | 47,260    | 26,851   
|              | Deferred revenue                                                                          | 9    | 12,223    | 24,445   
|              | Deferred gains                                                                            | 10   | 755       | 3,304    
|              | Provision for
    environmental obligations and other                                     | 7,11 | 19,475    | 15,178   
|              | Fair-value of non-hedge
    derivatives                                                   | 17   |          | 6,362    
|              |                                                                                           |      | 156,714   | 116,799  
|              |                                                                                           |      |           |          
|              |                                                                                           |      |           |          
|SHAREHOLDERS' | Common shares,
    Warrants and Options                                                   | 12   | 446,948   | 288,910  
|EQUITY        | Deficit                                                                                   |      | (111,006) | (107,448)
|              | Cumulative translation
    adjustment                                                     | 15   | 268       | (18,855) 
|              |                                                                                           |      | 336,210   | 162,607  
|              |                                                                                           |      | 492,924   | 279,406  
|              | Commitments and Contingencies                                                             | 17   |           |          
|              |                                                                                           |      |           |          
|              | The accompanying notes are an integral part of the consolidated financial
    statements. |     

On behalf of the Board,

---

annual report 2003       p.40
     Cambior Inc.Notes to Consolidated Financial Statements(All amounts are expressed in United States dollars except where otherwise
indicated; amounts in tables are presented in thousands of US dollars.)

NOTE 1.           
INCORPORATION AND OPERATIONS

> Cambior Inc. ("Cambior" or the "Company"), continued and existing under Part
>   1A of the Companies Act(Québec), is engaged in the mining, exploration
>   and development of mining properties, principally gold, located in North
>   America and South America.

NOTE 2. ACCOUNTING POLICIES

> The consolidated financial statements are prepared in accordance with
>   Canadian generally accepted accounting principles ("Canadian GAAP"). As
>   described in Note 20,these principles differ in certain material respects from
>   principles and practices that the Company would have followed had its
>   consolidated financial statements been prepared in accordance with accounting
>   principles generally accepted in the United States of America ("United
>   States" or "US") ("US GAAP"). The principal accounting policies followed by the
>   Company are as follows:Principles of consolidationThe
>   consolidated financial statements include the accounts of Cambior and of its
>   subsidiaries. The Company's share in joint ventures is accounted for using the
>   proportionate consolidation method.Use of estimatesThe preparation of consolidated financial statements in conformity with
>   generally accepted accounting principles requires management to make estimates
>   and assumptions. These estimates and assumptions affect the amounts reported
>   in the consolidated financial statements and related notes.
>   The Company regularly reviews the estimates and assumptions that affect
>   consolidated financial statements and actual results could differ from these
>   estimates. Significant areas where management judgment is applied are asset
>   valuations, contingent liabilities, environmental obligations, employee future
>   benefit plans, fair value of hedge derivative and non-hedge derivative
>   instruments and mineral reserves.Foreign currency translationThe US
>   dollar is the reporting currency of the Company.
>   Assets and liabilities of Canadian mining activities are translated into US
>   dollars at the exchange rate in effect at the balance sheet date and revenues
>   and expenses are translated at the average rate in effect during the year. The
>   functional currency of Canadian mining activities is the Canadian dollar.
>   Translation adjustments arising from changes in exchange rates are deferred
>   and shown as a separate component of shareholders' equity.
>   The US dollar is the functional currency for the Company's
>   activities in Guyana, Suriname and French Guiana, inasmuch as all proceeds
>   from the sale of gold are in US dollars and substantially all of the
>   disbursements made for the Omai mine, Rosebel project and Camp Caiman project
>   are in US dollars.
>   Other monetary assets and liabilities in currencies other
>   than the respective functional currencies are translated at the exchange rate
>   in effect at the balance sheet date, whereas other non-monetary assets and
>   liabilities in such currencies are translated at the exchange rate in effect
>   at the transaction date. Revenues and expenses in such currencies are
>   translated at the average rate in effect during the year, with the exception
>   of depreciation, depletion and amortization which are translated at the
>   historical rate. Gains and losses are recorded in operations for the year.Cash and cash equivalentsCash and
>   cash equivalents include cash funds, bank balances and short-term investments
>   in money market instruments with an original term of less than three months
>   that are carried at the lower of cost and fair market value.

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p. 41     annual report
2003
Cambior Inc.
NOTE 2.ACCOUNTING POLICIES (continued)

> Short-term investmentsShort-term investments consist of investments in money market instruments with
>   an original term of more than three months, but no longer than one year, that
>   are carried at the lower of cost and fair market value.Production inventoriesProduction inventories are valued at the lower of average production cost and
>   net realizable value.Supplies inventorySupplies
>   inventory is valued at the lower of average cost and replacement cost.Property, plant and equipment(i) Property, plant and equipment Property, plant and
>   equipment are accounted for at cost. The depreciation, depletion and
>   amortization of mining properties, development expenses and buildings and
>   equipment related to mines are based on the units of production method over
>   the estimated economic life of the related deposit. However, if the
>   anticipated useful life of the assets is less than the life of the deposit,
>   depreciation is based on their anticipated useful life.
>   Other property, plant and equipment are depreciated under the straight-line
>   method according to their anticipated useful lives, which is ten years for
>   office furniture, five years for vehicles and office equipment and the
>   duration of the lease for leasehold improvements.
>   (ii) Capitalization of financial costsFinancial costs are capitalized when
>   related to indebtedness incurred to finance construction and development
>   activities, prior to the commencement of commercial production.
>   (iii) Deferred stripping costsMining costs associated with stripping
>   activities are deferred in the case of an open-pit mine if the actual ratio of
>   total tonnes of material mined relative to gold production, in a given year,
>   is higher than the estimated average ratio for the life of the mine. These
>   mining costs are subsequently charged to operations and included in mining
>   operations expenses in the periods during which said ratio is lower than the
>   estimated average ratio for the life of the mine.
>   (iv) Exploration propertiesExploration expenses incurred to the date of
>   establishing that a property has mineral resources which have the potential of
>   being economically recoverable are charged to operations; exploration and
>   development expenses incurred subsequent to this date are allocated to
>   property, plant and equipment under mining projects. Significant payments
>   related to the acquisition of land and mineral rights are capitalized.
>   (v) Property evaluations The Company periodically values the carrying
>   amount of its property, plant and equipment based on the future cash flow
>   method. Net estimated future cash flow, on an undiscounted basis, from each
>   mine and mining project is calculated based on future metal production,
>   estimated future realized metal prices and operating, capital and site
>   restoration expenses. If it is determined that the net recoverable amount of
>   the property, plant and equipment is less than the carrying value and the
>   impairment in value is permanent, a writedown to the net recoverable amount is
>   made with a corresponding charge to operations. Management's estimate of
>   future cash flow is subject to risks and uncertainties. Therefore, it is
>   reasonably possible that changes could occur which may affect the
>   recoverability of the Company's property, plant and equipment.Deferred chargesFinancing
>   charges and charges related to the prepaid gold forward sales agreement are
>   amortized following the scheduled payments of the credit facility and the
>   sales agreement.

---



annual report 2003       p. 42
     Cambior Inc.

> Notes to Consolidated Financial Statements

NOTE 2.

> Commodity contracts and financial instruments
>   The Company enters from time to time into
>   commodity contracts, prepaid forward sales agreement and foreign exchange
>   contracts to manage the price volatility of the commodities produced at its
>   operating mines and the foreign currency exposure for its Canadian operations.
>   i) Hedge derivative instruments    The Company has always identified the
>   quantity and the period of future ore production to be hedged based on the
>   mining plans for all its operating mines and identified the amounts of foreign
>   currencies to be hedged. Since January 1, 2001 for commodities contracts and
>   since July 1, 2002 for foreign currency contracts, the Company has formally
>   documented all relationships between hedging instruments and hedged items, as
>   well as its risk management objectives and strategies for undertaking various
>   hedge transactions as required by SFAS Statement No. 133 and Accounting
>   Guideline 13. This process includes linking all hedging derivatives to specific
>   forecast transactions. The Company also formally assesses, both at the hedge's
>   inception and on an ongoing basis, whether the derivatives that are used in
>   hedging transactions are highly effective in offsetting cash flows of hedged
>   items.
>   Gold fixed forward sales and spot deferred sales    The objective of these
>   instruments is to reduce the variability of the cash flows of the forecast
>   sales of gold production. Changes in the cash flows of the gold fixed forward
>   sales and spot deferred sales (forward transactions) are expected to be highly
>   effective at offsetting changes in the expected cash flows of the forecast
>   sales of gold production due to changes in its sale price. The forward
>   transactions, for which the quantity, price and timing of delivery are fixed,
>   are accounted for under the hedge accounting method. Where there is certainty
>   of delivery of gold production, the Company designates a timing of production
>   delivery. Hedge effectiveness is measured by comparing the changes in the
>   present value of the sales of gold production with the change in the fair
>   value of the forward contracts. Expected cash flows on the forecast sales are
>   based on forward prices. The fair value of gold hedge derivative instruments
>   is not included on the balance sheet except if the instrument does not meet
>   the hedge accounting method requirements. Proceeds from these contracts are
>   recognized in revenues in the same period as the corresponding hedged item.
>   When the Company delivers gold production against such contracts at a date
>   earlier than anticipated or liquidates the contract before that date, the
>   Company defers the recognition of the gain or the loss until the original
>   designation date by affecting deferred gains or losses on the balance sheet.
>   If the Company delivers gold production against such contracts at a date later
>   than anticipated, the Company recognizes the gain or the loss on the original
>   designation date by allocating revenues from mining operations and deferred
>   gains or losses to the balance sheet.
>   Foreign exchange fixed forwards and spot deferred contracts    The Company
>   also enters into foreign exchange fixed forwards and spot deferred contracts
>   (foreign exchange contracts) whereby it commits to deliver US currency in
>   exchange for Canadian dollars. Because all of the Company's revenues are
>   derived in US funds and expenditures incurred by the Company for its Canadian
>   operations are denominated in Canadian dollars, the Company enters into such
>   contracts to meet the Canadian operations' needs in Canadian dollars. The
>   objective of these instruments is to reduce the variability of the cash flows
>   of the forecast sales of gold production denominated in US dollars. Hedge
>   effectiveness is measured by comparing the changes in the present value of the
>   sales of gold production denominated in US dollars with the change in the fair
>   value of the foreign exchange contracts. Expected cash flows on the forecast
>   sales are based on forward prices.
>   The fair value of foreign exchange hedge derivative instruments is not
>   included on the balance sheet except if the instrument does not meet the hedge
>   accounting method requirements. The forward transactions, for which the
>   amount, price and timing of delivery are fixed, are accounted for under the
>   hedge accounting method where proceeds from these contracts are recognized in
>   revenues in the same period as the corresponding hedged item. If foreign
>   exchange contracts are repurchased before the original designation date, the
>   gain or loss is recognized as a deferred gain or loss on the balance sheet.
>   Subsequently this deferred gain or loss is included in revenues in the same
>   period as the corresponding hedged item.

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p. 43     annual report
2003
Cambior Inc.NOTE 2.
ACCOUNTING POLICIES
(continued)

> Commodity contracts and financial instruments

ii) Non-hedge derivative instruments
  In some cases, the Company utilizes instruments with
  optionalities (call options, variable volume forwards ("VVF") and lease rate
  swaps) as part of its revenue protection program. Transactions in which there
  is no certainty for one or more of its key components (price, delivery date,
  quantity) do not meet the conditions of hedge accounting and are treated as
  "non-hedge derivatives" and are marked-to-market. Gold purchase commitments
  used to offset optionalities are also marked-to-market. The Company obtains an
  independent valuation of its portfolio of gold commitments for each reporting
  period. This market valuation is based on the market price, rate of interest,
  gold lease rate and volatility. The fair value of the non-hedge transactions
  is included on the balance sheet and the change in market value from the
  previous reporting period is included on the operations statement as a
  non-hedge derivative gain or loss. The variation in these valuations can be
  significant and can impact earnings materially.

If non-hedge derivative instruments (call options and VVF)
  are converted into hedge derivative instruments (fixed forwards) and included
  in a hedging relationship, any change in the fair value of the instrument
  after the designation date is recognized in revenues from mining operations
  when the designated gold production is delivered.

iii) Prepaid gold forward sales contractSince the delivery of the gold production related to
  the prepaid gold forward sales contract is probable, the Company considers
  this contract as a normal sales contract. Initial proceeds from prepaid gold
  forward sales contracts have been accounted for as deferred revenue and are
  recognized in revenues from mining operations when the related ounces of gold
  are delivered.

Provision for environmental obligations

Employee future benefit plans

The cost of pensions and other retirement
  benefits earned by employees is actuarially determined using the projected
  benefit method pro rated on service and management's best estimate of expected
  plan investment performance, salary escalation, retirement ages of employees
  and expected health care costs.

For the purpose of calculating the expected return on plan
  assets, those assets are valued at fair value.

The excess of the net actuarial gain (loss) over 10% of the
  greater of the benefit obligation and the fair value of plan assets is
  amortized over the average remaining service period of active employees.

On January 1, 2000, the Company adopted the new accounting
  standard on employee future benefits using the prospective application method.
  The Company amortizes the transitional asset of the defined pension benefit
  plans and the Supplementary Executive Retirement Plan ("SERP") on a
  straight-line basis over 16 years and 12 years respectively, which were the
  average remaining service periods of employees expected to receive benefits
  under such plans as of January 1, 2000.

---

annual report 2003       p.44
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 2.
ACCOUNTING POLICIES (continued)

> Income and mining taxes

Common share purchase options

Revenue recognition

Earnings (Loss) per share

Reclassification

NOTE 3.

> Common share purchase options

Guarantor's accounting and disclosure requirements for guarantees

---

p. 45     annual report
2003
Cambior Inc.NOTE 4.FINANCIAL
INFORMATION INCLUDED IN THE CONSOLIDATED STATEMENT OF CASH FLOWS

> (a) Changes in non-cash
>       working capital items2003
>       2002
>       2001$
>       $
>       $Receivables
>       (1,428)
>       (944)
>       898Settlements
>       receivable
>       717
>       (1,173)
>       (929)Production
>       inventories
>       (2,667)
>       3,587
>       2,873Supplies inventory
>       and prepaid expenses
>       (1,312)
>       891
>       (177)Accounts payable and accrued
>       liabilities
>       4,044
>       1,355
>       (2,054)(646)
>       3,716
>       611Changes in non-cash working capital items for the Rosebel project totalling
>   $419,000 in 2003 are included in investing activities and represent a source
>   of cash. Such are considered as investing activities because they relate to the
>   construction of the project or the constitution of working capital prior to
>   the beginning of commercial production. Upon the achievement of commercial
>   production, changes in non-cash working capital items for Rosebel will be
>   presented under operating activities.
>   (b) Cash flows relating to interest and income and mining taxes
>   2003
>       2002
>       2001$
>       $
>       $Interest paid
>       1,343
>       1,440
>       5,173Income and mining taxes paid
>       (received)
>       (361)
>       274
>       237

NOTE 5.

> 2003
>       2002$
>       $Cash
>       5,036
>       2,575Short-term
>       investments with maturities of lessthan three months, bearing interest at ratesvarying from 0.87%
>       to 2.75% (1.20% to 2.65% in 2002)
>       23,414
>       15,020Cash and cash
>       equivalents
>       28,450
>       17,595Restricted cash
>       bearing interest at rates varying from 0.90% to 1.01% (1)
>       10,000
>       Short-term
>       investments with maturities of more than three months but lessthan six months, bearing interest at rates varying from 0.89% to 2.85%(1.05% to 2.75% in
>       2002)
>       56,770
>       25,20895,220
>       42,803(1) Amount of $10,000,000 being held until the achievement of commercial
>   production at the Rosebel project.

---

annual report 2003       p.46
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 6.
INVESTMENTS AND DEFERRED CHARGES

> 2003
>       2002$
>       $Shares of publicly
>       traded companies, at cost
>       3,023
>       2,466Residual proceeds
>       receivable from the saleof El Pachon project of
>       $2,000,000 discounted at 6.125%
>       1,803
>       1,6994,826
>       4,165Deferred charges
>       2,239
>       1,8337,065
>       5,998

NOTE 7.

> 2003Accumulateddepreciation,depletion andCost
>       amortization
>       Net$
>       $
>       $Mining properties
>       39,842
>       38,192
>       1,650Development expenses
>       367,703
>       304,366
>       63,337Land, buildings and
>       equipment relating to mines
>       337,991
>       247,788
>       90,203Other
>       14,345
>       12,384
>       1,961759,881
>       602,730
>       157,151Rosebel project (1)
>       146,029
>       23,543
>       122,486Mining projects
>       69,891
>       
>       69,891975,801
>       626,273
>       349,5282002Accumulateddepreciation,depletion andCost
>       amortization
>       Net$
>       $
>       $Mining properties
>       35,223
>       33,634
>       1,589Development expenses
>       309,838
>       252,610
>       57,228Land, buildings and
>       equipment relating to mines
>       330,228
>       238,334
>       91,894Other
>       14,056
>       12,111
>       1,945689,345
>       536,689
>       152,656Rosebel project (1)
>       35,250
>       4,435
>       30,815Mining projects
>       16,704
>       
>       16,704741,299
>       541,124
>       200,175(1) The costs of the Rosebel project include accumulated depreciation
>   related to transfer of equipment between subsidiaries.

---

p. 47     annual report
2003
Cambior Inc.          
NOTE 7.PROPERTY,
PLANT AND EQUIPMENT (continued)

> Writedown of assets

Government assistance

Environmental obligations

|               | 2003   | 2002  
|-------------- | ------ | ------
|               | $      | $     
|Doyon division | 21,643 | 17,787
|Omai           | 4,504  | 4,504 
|Rosebel        | 4,959  |      
|Other mines    | 3,119  | 2,464 
|               | 34,225 | 24,755

These estimates are based on current legislation and
  technology and are subject to revision. The future obligations are charged to
  expenses, using the units of production method over the estimated economic
  life of the related deposits. As at December 31, 2003, the carrying value of
  the provision for environmental obligations was $16,400,000 ($12,410,000 as at
  December 31, 2002).

Rosebel project

(a) $5,000,000 at closing; and

(b) three successive $1,000,000 annual payments commencing in 2003.

In accordance with a Mineral Agreement related to the Rosebel project, the
  Government of Suriname granted a 25-year renewable Right of Exploitation to
  Cambior's wholly-owned subsidiary, Rosebel Gold Mines N.V. ("RGM") in December
  2002. In addition, the Government of Suriname, through its state-owned mining
  company Grasshopper Aluminum Company N.V. ("Grassalco"), relinquished its two
  options to purchase up to a 40% participation in the Rosebel project in
  exchange for a 5% participation in the shares of RGM to be issued at
  commencement of commercial production.

The carrying value of the Rosebel project is as follows:

|                                            | 2003    | 2002  
|------------------------------------------- | ------- | ------
|                                            | $       | $     
|Construction and
      deferred development | 122,486 | 30,816
|Deferred financial charges                  | 1,790   |      
|                                            | 124,276 | 30,816

As at December 31, 2003, the Company had commitments of $2,065,000 to
  complete the construction and development of the project. Production is
  scheduled to begin in February 2004.

---

annual report 2003       p.48
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 7.
PROPERTY,
PLANT AND EQUIPMENT (continued)

> Camp Caiman project

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 allowed the holders of
  1,265,989 options, issued under the Ariane employee option plan, the right to
  obtain equivalent options of Cambior and to hold them until their original
  scheduled expiry.

In accordance with the guidelines of the Canadian Institute
  of Chartered Accountants  EIC-124,the transaction with Ariane is accounted as
  an acquisition of assets. The activities of Ariane have been accounted for in
  the results of Cambior since the closing date of the transaction.

The value of the net assets acquired has been established as follows:

|                                                      | $     
|----------------------------------------------------- | ------
|Assets acquired                                       |       
|Cash and
      cash equivalents                       | 3,230 
|Property, plant and
      equipment - mining projects | 49,615
|                                                      | 52,845
|                                                      |       
|Consideration                                         |       
|Net
      working capital other than cash             | 2,090 
|Investment (1)                                        | 396   
|Assumption of long-term debt                          | 9,711 
|Issuance
      of Cambior shares                      | 39,203
|Fair
      value of Ariane common share purchase      |       
|options converted into Cambior options (2)            | 1,445 
|                                                      | 52,845

Investing activities in the cash flows statement only include the cash
  impact of this transaction.

(1) Prior to the transaction, the Company held a minority investment in
  shares of Ariane.

|(2) | The options
          granted upon the merger agreement with Ariane were valued at their
          fair value using the Black-Scholes option-pricing model taking into
          account an expectedlife of six months, a semi-annual risk-free interest rate of 3.11%, a
          volatility of 54% and a nil dividend.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   

Discontinued operations

|                                    | $      
|----------------------------------- | -------
|Property,
      plant and equipment | (1,013)
|Sale of assets                      | 13,399 
|                                    | 12,386 

---

p. 49     annual report
2003
Cambior Inc.          
NOTE 8.LONG-TERM
DEBT

> Total
>       Scheduled payments
>       Total2003
>       2004
>       2005
>       2006
>       2007
>       2002$
>       $
>       $
>       $
>       $
>       $2003 Credit facility
>       (a)
>       50,000
>       13,636
>       14,545
>       14,545
>       7,274
>       2001 Credit facility
>       (b)
>       
>       
>       
>       
>       
>       22,440Balance of purchase
>       price - Camp Caiman (c)
>       9,711
>       2,139
>       
>       3,842
>       3,730
>       Balance of purchase
>       price - Rosebel (d)
>       1,952
>       1,000
>       952
>       
>       
>       2,860Other debt - Rosebel
>       (e)
>       1,962
>       
>       675
>       654
>       633
>       2,037Obligations under capital leases (f)
>       569
>       159
>       159
>       159
>       92
>       661Total
>       64,194
>       16,934
>       16,331
>       19,200
>       11,729
>       27,998Current portion
>       16,934
>       
>       
>       
>       
>       1,147Long-term portion
>       47,260
>       
>       
>       
>       
>       26,851(a) 2003 Credit facility
>   On February 7, 2003, Cambior entered into a new
>   Credit facility agreement ("2003 Credit facility") with a banking syndicate
>   for an amount of $65,000,000. The 2003 Credit facility consists of a
>   non-revolving term loan for an amount of $55,000,000 and a $10,000,000
>   revolving Credit facility, both maturing on December 31, 2007.
>   The 2003 Credit facility was used to repay the outstanding balance under
>   the 2001 Credit facility and to finance the construction and development of
>   the Rosebel project. The Company reduced the term loan by $5,000,000 using
>   proceeds from the exercise of warrants in February 2003.
>   Quarterly instalments on the 2003 Credit facility are scheduled to commence
>   on June 30, 2004.
>   The $10,000,000 revolving Credit facility is unutilized but a letter of
>   credit or $500,000 has been issued under this facility to guarantee a portion
>   of the Omai closure costs.
>   The 2003 Credit facility bears interest at LIBOR rate plus 2.50%, until
>   commercial completion of the Rosebel project as defined under the terms of the
>   Credit agreement. Thereafter, the interest margin above LIBOR will vary from
>   1.50% to 2.25% based on the Loan Life Protection Ratio ("LLPR").The LLPR is
>   defined as the ratio of the present value (discounted at a rate of 8% per
>   annum) of projected cash flow available for debt service to the total net
>   senior debt. Committed facilities carry a weighted average standby fee of 0.75%
>   per annum on the unutilized portion. As at December 31, 2003, the effective
>   interest rate was 3.68%.
>   Under the original terms of the 2003 Credit
>   facility, Cambior was required to maintain a Mandatory Hedging Program
>   ("Program") covering 30% of its expected gold production during the loan life
>   period at a minimum price of $290 per ounce. All the transactions under the
>   Program were to be conducted with counterparties that are members of the
>   banking syndicate, and Cambior had the right to roll forward the contracts up
>   to final maturity of the 2003 Credit facility and was not subject to margin
>   calls. On August 12, 2003, the lenders agreed to eliminate the requirement for
>   the Program minimum hedging covenant under the loan agreement.
>   The Company has granted security over its interests in the
>   Doyon, Mouska, Sleeping Giant, Niobec and Omai mines and the Rosebel project and
>   a $10,000,000 cash account until the achievement of commercial production at
>   the Rosebel project.
>   The 2003 Credit facility is subject to the maintenance of various
>   covenants, financial ratios, and prepayments in the event of future financings.

---

annual report 2003       p.50
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 8.           
LONG-TERM
DEBT (continued)

> (b) 2001 Credit facility

Under the 2001 Credit facility, the Company was required to
  establish a Mandatory Hedging Program to cover a minimum of 70% of estimated
  net future gold production during the loan period at a minimum average hedged
  gold price of $290 per ounce. Effective June 12, 2002, the amount of physical
  hedges required was reduced to 35% of estimated net future gold production.

The Company had also to comply with various other covenants and financial
  ratios.

The 2001 Credit facility was secured by a first-ranking
  fixed charge hypothec on the Doyon and Mouska mines and the Company's 50%
  interest in each of the Sleeping Giant and Niobec mines, a specific pledge on
  shares of OMAI Gold Mines Limited held by Cambior and shares in the Company's
  US subsidiaries, and a general security on all other assets of the Company.

(c) Balance of purchase price payable for Camp Caiman project

i) $2,171,000 on August 19, 2004; 
  ii) $4,136,800 on August 19, 2006; and 
  iii)
  $4,136,800 within 120 days of the commencement of commercial production.

The balance of purchase price is subject to prepayments in the case of a
  subsequent issuance of equity. The AGF shares are subject to an escrow
  agreement and any transfer of the AGF shares would be subject to that
  agreement. The AGF shares will be released from escrow to Cambior once the
  acquisition price has been paid in full.

(d) Balance of purchase price  Rosebel

(e) Other debt  Rosebel

(f) Obligations under capital leases

Interest

---

p. 51     annual report
2003
Cambior Inc.          
NOTE 9.DEFERRED
REVENUE

> On January 12, 2001, Cambior entered into a $55,000,000
>   prepaid gold forward sales agreement (the "agreement") with a financial
>   institution, whereby Cambior was committed to deliver an aggregate of 233,637
>   ounces of gold in equal monthly deliveries from July 2001 to December 2005.The
>   cash proceeds from this prepaid sale were accounted for as deferred revenue.
>   Under the prepaid gold forward sales agreement, the Company must comply
>   with various other covenants and financial ratios under the terms of the 2003
>   Credit facility (Note 8).
>   Gold deliveries remaining under the prepaid gold forward sales agreement
>   are as follows for the coming years:

|                         | Number of ounces | $     
|------------------------ | ---------------- | ------
|2004 - current portion   | 51,919           | 12,222
|2005 - long-term portion | 51,920           | 12,223
|                         | 103,839          | 24,445

At December 31, 2003, the estimated fair value of the prepaid gold forward
  sales agreement was $41,336,000 ($49,201,000 at December 31, 2002).

NOTE 10.

> Deferred gains on gold and US dollars are related to hedging transactions
>   described in Note 2. This account also includes non-hedge derivative losses
>   related to call options and VVF converted into hedging forward instruments.

|                                                                       | 2003  | 2002 
|---------------------------------------------------------------------- | ----- | -----
|                                                                       | $     | $    
|Deferred gains - gold                                                  | 1,330 | 3,923
|Deferred gains - US dollars                                            | 1,436 |     
|                                                                       | 2,766 | 3,923
|Fair value at the date
    of conversion of non-hedge                  |       |      
|derivative instruments
    converted into hedge derivative instruments | 1,841 | 2,330
|                                                                       | 4,607 | 6,253
|Current portion                                                        | 3,852 | 2,949
|Long-term portion                                                      | 755   | 3,304

Deferred gains and fair value of derivatives will be recognized in income
  as follows: $3,852,000 in 2004, $520,000 in 2005 and $235,000 in 2006.

NOTE 11.

> The Company contributes to various defined contribution and defined benefit
>   pension plans for its employees that are funded on the basis of actuarial
>   valuations. The defined benefit pension plans cover certain employees in
>   Canada, the United States, Guyana and Suriname and are subject to funding
>   based on actuarial valuation which is performed at least every three years.
>   The most recent actuarial valuation was prepared as at January 1, 2003.
>   As well, senior management of the Company specifically designated by the
>   Board of Directors participate in a SERP. The purpose of the SERP is to
>   provide these employees with a pension equal to that which would otherwise be
>   received if the Company's defined benefit pension plan reflected the full
>   amount of the base salary of such employees. The Company made an initial
>   contribution of $392,000 to the SERP in 2003. Annual contributions are assessed
>   by the Board of Directors based on the Company's financial position and other
>   factors.

Defined contribution plans

---

annual report 2003       p.52
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 11.
EMPLOYEE
FUTURE BENEFIT PLANS (continued)

> Defined pension
>       benefit plans2003
>       2002$
>       $Change in accrued
>       benefit obligationBalance, beginning of
>       year
>       6,109
>       5,995Current service
>       expense
>       415
>       387Interest expense
>       464
>       357Actuarial loss (gain)
>       105
>       (51)Benefits paid
>       (230)
>       (123)Foreign exchange variation
>       1,386
>       (456)2,140
>       114Balance, end of year
>       8,249
>       6,109Change in plan
>       assetsFair value, beginning
>       of year
>       3,438
>       3,726Actual return on plan
>       assets
>       392
>       (181)Employer
>       contributions
>       891
>       271Benefits paid
>       (178)
>       (77)Foreign exchange variation
>       834
>       (301)1,939
>       (288)Fair value, end of year
>       5,377
>       3,438Plan statusFunded status-deficit
>       (1)
>       (2,872)
>       (2,671)Unamortized
>       transitional asset
>       (1,437)
>       (1,280)Unamortized net actuarial loss
>       1,346
>       1,153Accrued benefit liability
>       (2,963)
>       (2,798)(1) For 2003, two of the three defined pension benefit plans show a deficit
>   totalling $3,040,000 ($2,727,000 in 2002).

---

p. 53     annual report
2003
Cambior Inc.          
NOTE 11.EMPLOYEE
FUTURE BENEFIT PLANS (continued)

> Defined pension benefit plans

The average remaining service period of the active employees covered by the
  defined pension plan is 16 years (16 years in 2002) and that of the active
  employees covered by the SERP is 11 years (11 years in 2002).

The significant actuarial assumptions adopted in measuring the Company's
  accrued benefit obligation are as follows:

|                                                       | 2003 | 2002
|------------------------------------------------------ | ---- | ----
|                                                       | %    | %   
|Expected long-term
      rate of return on plan assets | 7.0  | 7.0 
|Rate of compensation
      increase                    | 3.0  | 3.0 
|Discount rate                                          | 6.5  | 6.5 

There is no minimum liability as defined under US GAAP.

The total expense for the Company's defined benefit plans is as follows:

|                                         | 2003  | 2002  | 2001 
|---------------------------------------- | ----- | ----- | -----
|                                         | $     | $     | $    
|Current service
      expense            | 415   | 387   | 395  
|Interest expense                         | 464   | 357   | 353  
|Expected return on
      plan assets     | (284) | (247) | (248)
|Amortization of
      transitional asset | (111) | (99)  | (101)
|Amortization of net actuarial loss       | 50    | 26    | 8    
|Net benefit expense                      | 534   | 424   | 407  

---

annual report 2003       p.54
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 12.
COMMON
SHARES, WARRANTS AND OPTIONS

> Authorized
>   -

-

-

|                                                | 2003       | 2002    | 2001      
|----------------------------------------------- | ---------- | ------- | ----------
|                                                | Number of  |         | Number of 
|                                                | securities | Amount  | securities
|                                                | (000)      | $       | (000)     
|Common shares
      issued and fully paid:      |            |         |           
|Balance, beginning of year                      | 160,167    | 288,040 | 104,904   
|Issued:                                         |            |         |           
|Private
      placements                        |           |        | 21,346    
|Merger
      agreement (1)                      | 14,835     | 39,203  |          
|Public
      offering                           | 40,000     | 72,192  | 27,273    
|Exercise
      and expiry of warrants           | 24,754     | 44,018  | 6,515     
|Exercise
      of options (2)                   | 515        | 849     |          
|Flow-through common
      shares (3)            | 571        | 1,441   | 129       
|                                                | 80,675     | 157,703 | 55,263    
|Balance, end of year                            | 240,842    | 445,743 | 160,167   
|                                                |            |         |           
|                                                |            |         |           
|Common share
      purchase warrants:           |            |         |           
|Balance, beginning of
      year                | 2,216      | 870     | 1,300     
|Issued:                                         |            |         |           
|Public
      offering                           |           |        | 1,067     
|Private
      placement                         |           |        | 1,364     
|Exercised                                       | (702)      | (232)   | (1,515)   
|Expired                                         | (1,364)    | (588)   |          
|                                                | (2,066)    | (820)   | 916       
|Balance, end of year                            | 150        | 50      | 2,216     
|                                                |            |         |           
|                                                |            |         |           
|Common share
      purchase options granted     |            |         |           
|following the Ariane merger: (1) (2)            |            |         |           
|Balance, beginning of year                      |           |        |          
|Granted                                         | 1,266      | 1,445   |          
|Exercised                                       | (254)      | (290)   |          
|                                                | 1,012      | 1,155   |          
|Balance, end of year                            | 1,012      | 1,155   |          
|Total common shares, warrants and
      options |            | 446,948 |           

|    |                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Upon the merger agreement with Ariane (Note 7).                                                                                                                                         
|(2) | The options were exercised by employees of the Company under the Stock
          Option Plan for directors and key employees and pursuant to the merger
          agreement with Ariane.
|(3) | In 2002, 129,455 common shares were subscribed by Cambior officers and
          employees (300,000 common shares in 2001).                                                             

---

p. 55     annual report
2003
Cambior Inc.          
NOTE 12.COMMON
SHARES, WARRANTS AND OPTIONS (continued)

> Issuance of securities

2003:

| | Number
      of |                     | Total     
| | --------------- | ------------------- | ----------
| | common shares   | Exercise price      | proceeds  
| | (000)           | ($ per
      share) | $         
| | 10,417          | $1.14 (Cdn $1.70)   | 11,834    
| | 107             | $0.85 (Cdn $1.30)   | 123       
| | 596             | $0.41 (Cdn $0.56)   | 444       
| | 13,634          | $2.28 (Cdn $3.00)   | 31,617 (1)
| | 24,754          |                     | 44,018    

|    |                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | During the year, 1,364,000 warrants exercisable at a price of Cdn
          $2.20 each and 682,000 warrants exercisable at Cdn $3.00 each expired
          without being exercised.
|    | The value of warrants totalling $588,000 was transferred into common
          shares.                                                                                              

> On August 12, 2003, Cambior issued to a syndicate of underwriters 40,000,000
>   units at a price of $1.80 (Cdn $2.50) per unit for gross proceeds of
>   $72,192,000 (Cdn $100,000,000).Each unit consisted of one common share and
>   one-half of one Series C common share purchase warrant. Each whole Series C
>   warrant entitles its holder to purchase one additional common share at a price
>   of Cdn $3.75 prior to August 12, 2008.
>   On September 2, 2003, some 571,428 common shares were issued at a price of
>   $2.52 (Cdn $3.50) each following a flow-through financing for total proceeds
>   of $1,441,000 (Cdn $2,000,000) to incur Canadian Exploration Expenses.
>   2002:     On February 28, 2002, Cambior completed a private placement of
>   21,346,154 special warrants at $0.81 (Cdn $1.30) per special warrant for gross
>   proceeds of $17,293,000 (Cdn $27,750,000).The proceeds were added to the
>   working capital. Each special warrant was exercised into one common share and
>   one-half warrant, with each whole warrant entitling its holder to acquire one
>   common share of Cambior at a price of Cdn $1.70 until February 27, 2003. In
>   connection with the financing, the Company granted compensation warrants
>   valued at $319,000 to the underwriters to purchase 1,067,308 units (each
>   consisting of one share and one-half warrant) at Cdn $1.30 each.
>   On May 16, 2002, Cambior completed a public offering of 27,272,728 units at
>   $1.42 (Cdn $2.20) per unit for gross proceeds of $38,595,000 (Cdn
>   $60,000,000).50% of the proceeds was used to reduce the 2001 Credit facility
>   and 50% was added to the working capital. Each unit consisted of one common
>   share and one-half Series B common share purchase warrant. Each whole Series B
>   warrant entitles its holder to acquire one common share of Cambior at a price
>   of Cdn $3.00 at any time prior to November 24, 2003. In connection with the
>   offering, the Company granted compensation options valued at $588,000, to the
>   underwriters without payment of additional consideration, exercisable to
>   purchase up to an aggregate of 1,363,636 units at a price of Cdn $2.20 per
>   unit.
>   During 2002, some 6,514,577 additional common shares were issued to various
>   third parties pursuant to the exercise of warrants issued previously, for total
>   proceeds of $5,153,000.
>   On July 19, 2002, Cambior concluded a private placement of 129,455
>   flow-through shares at $1.81 (Cdn $2.79) per share, for proceeds of $235,000 (Cdn
>   $361,000) used to incur Canadian Exploration Expenses.

---

annual report 2003       p.56
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 12.
COMMON
SHARES, WARRANTS AND OPTIONS (continued)

> Issuance of securities

2001:     In 2001, Jipangu Inc., a significant shareholder, converted its
  $10,000,000 subordinated mortgage loan into equity pursuant to two private
  placements. The first private placement closed on January 18, 2001 whereby Jipangu Inc. subscribed for 15,000,000 common shares of the Company at a price
  of $0.42 per share for proceeds totalling $6,300,000.The second private
  placement totalling $3,700,000, consisting of 6,491,228 common shares at a
  price of $0.57 per share, was completed on September 25, 2001.

On July 25, 2001, Cambior completed private placements of 800,000
  flow-through shares at $0.65 (Cdn $1.00) per share, for proceeds of $520,000 (Cdn
  $800,000) used to incur Canadian Exploration Expenses.

On December 12, 2001, Jipangu Inc. subscribed for 4,950,000 units at a price
  of $0.75 (Cdn $1.17) per unit for proceeds totalling $3,692,000.Each unit
  consisted of one common share and one warrant entitling its holder to purchase
  one additional common share at an exercise price of $0.83 (Cdn $1.31) per
  share.

Flow-through common shares

As at December 31, 2003, the Company's remaining commitment with respect to
  unspent resource expenditures under flow-through common share agreements was
  $388,000.

Warrants

|                     |                   | Exercise        | Number | Number     
|-------------------- | ----------------- | --------------- | ------ | -----------
|Date of issue        | Expiry date       | price           | issued | exercisable
|                     |                   | $ per share     | (000)  | (000)      
|January 12, 2001 (1) | December 31, 2005 | Cdn
      $0.56 | 1,300  | 150        
|August 12, 2003      | August 12, 2008   | Cdn $3.75       | 20,000 | 20,000     
|                     |                   |                 |        | 20,150     

(1) These warrants were issued to lenders of the 2001 Credit facility and
  valued at $436,000.

Earnings per share

|                      | 2003  | 2002   | 2001  
|--------------------- | ----- | ------ | ------
|Number of instruments | (000) | (000)  | (000) 
|Options               | 1,625 | 5,668  | 4,855 
|Warrants              |      | 27,721 | 6,250 
|                      | 1,625 | 33,389 | 11,105

Reconciliation of the diluted weighted average number of common shares
  outstanding for 2003 is as follows:

|                                                                   | Number
      of
|------------------------------------------------------------------ | ---------------
|                                                                   | instruments    
|                                                                   | (000)          
|Basic weighted
      average number of common shares outstanding   | 187,953        
|Effect of dilutive
      stock options                             | 2,054          
|Effect of dilutive warrants                                        | 570            
|Diluted weighted average number of
      common shares outstanding | 190,577        

---

p. 57     annual report
2003
Cambior Inc.NOTE 12.COMMON
SHARES, WARRANTS AND OPTIONS (continued)

> Common share purchase options

The following table sets out the activity in options:

|                                             | 2003   | 2002            | 2001  
|-------------------------------------------- | ------ | --------------- | ------
|                                             |        | Weighted        |       
|                                             |        | average         |       
|                                             |        | price
      per |       
|                                             | Number | option          | Number
|                                             | (000)  | $/option        | (000) 
|Common shares reserved (1)                   | 9,000  |                 | 9,000 
|Options outstanding,
      beginning of year | 5,668  | 3.13            | 4,855 
|Granted                                      | 1,400  | 1.40            | 1,425 
|Granted following the
      merger (2)       | 1,266  | 1.69            |      
|Exercised                                    | (515)  | 1.08            | (30)  
|Forfeited or expired                         | (565)  | 11.25           | (582) 
|Options outstanding, end of year             | 7,254  | 2.54            | 5,668 
|Options exercisable, end of year             | 3,540  |                 | 2,354 

|    |                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | At their Annual General and
          Special Meeting, held on May 7, 2002, the shareholders approved an
          increase in the number of Common Shares issuable under the StockOption Plan, bringing the
          maximum of 5,500,000 Common Shares to a new maximum of 9,000,000
          Common Shares. As at December 31, 2003, 2,089,000 common shares were
          available for future options grants.
|   
|(2) | Upon the merger agreement with
          Ariane (Note 7), the Ariane options were converted into Cambior
          options using an exchange rate of 2.91.                                                                                                                                                                                                                                                           
|   

The stock options outstanding at December 31, 2003, including the options
  resulting from the merger agreement with Ariane, are detailed as follows:

|Exercise price |        | Options outstanding | Exercisable options
|-------------- | ------ | ------------------- | -------------------
|               |        |                     | Weighted           
|               |        | Weighted            | average            
|               |        | average             | exercisable        
|               |        | remaining           | price              
|               | Number | life                | per option         
|($ per option) | (000)  | (years)             | ($ per option)     
|0.39 to 0.63   | 1,417  | 4.5                 | 0.40               
|0.96 to 1.37   | 573    | 3.7                 | 1.15               
|1.50 to 2.11   | 3,639  | 5.5                 | 1.60               
|3.24 to 4.37   | 769    | 2.7                 | 4.29               
|6.02 to 8.79   | 581    | 1.5                 | 7.79               
|12.15 to 12.86 | 275    | 0.5                 | 12.85              
|               | 7,254  |                     | 2.54               

---

annual report 2003       p.58
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 12.
COMMON
SHARES, WARRANTS AND OPTIONS (continued)

> Accounting for compensation plans

|                                          | 2003 | 2002 | 2001
|----------------------------------------- | ---- | ---- | ----
|                                          | %    | %    | %   
|Semi-annual risk-free
      interest rate | 4.08 | 5.07 | 5.06
|Volatility                                | 78   | 85   | 95  
|Dividend                                  |     |     |    

A pro forma compensation charge is recognized over the vested period.
  Accordingly, the Company's net earnings (loss) and basic and diluted net
  earnings (loss) per share would have been reported on a pro forma basis as
  follows :

|                                                             | 2003    | 2002    | 2001   
|------------------------------------------------------------ | ------- | ------- | -------
|                                                             | $       | $       | $      
|Net earnings (loss),
      as reported                       | 649     | (8,052) | (8,239)
|Deduct: Total
      stock-based employee compensation        |         |         |        
|expense
      determined under fair value-based              |         |         |        
|method for all awards,
      net of related tax effects      | (1,065) | (814)   | (1,186)
|Pro forma net loss                                           | (416)   | (8,866) | (9,425)
|Basic net earnings
      (loss) per share, as reported ($)   | 0.00    | (0.06)  | (0.09) 
|Diluted net earnings
      (loss) per share, as reported ($) | 0.00    | (0.06)  | (0.09) 
|Basic net loss per
      share, pro forma ($)                | (0.00)  | (0.06)  | (0.10) 
|Diluted net loss per share, pro forma
      ($)              | (0.00)  | (0.06)  | (0.10) 

The weighted average fair value of options granted in 2003 was $0.93 ($1.00
  in 2002 and $0.25 in 2001).

Share Purchase Plan

---

p. 59     annual report
2003
Cambior Inc.          
NOTE 13.FAIR
VALUE OF FINANCIAL INSTRUMENTS

> The following table presents the carrying amounts and estimated fair values
>   of Cambior's financial instruments and commodities:

|                                                     | 2003     | 2002
|---------------------------------------------------- | -------- | ----
|                                                     | Carrying |     
|                                                     | value    |     
|                                                     | $        |     
|Financial assets                                     |          |     
|Cash and cash
      equivalents (1)                  | 28,450   |     
|Short-term
      investments (1)                     | 66,770   |     
|Receivables (1)                                      | 6,488    |     
|Settlements
      receivable (1)                     | 2,927    |     
|Investments -
      publicly traded companies (2)    | 3,023    |     
|Investments -
      residual proceeds receivable (3) | 1,803    |     
|Foreign exchange
      contracts (Note 17) (6)       |         |     
|                                                     |          |     
|                                                     |          |     
|Financial
      liabilities                          |          |     
|Accounts payable and
      accrued liabilities (1)   | 36,203   |     
|Long-term debt (4)                                   | 64,194   |     
|Non-hedge derivative
      instruments (Note 17) (5) | 7,790    |     
|Gold forwards (Note
      17) (5)                    |         |     
|Foreign exchange contracts (Note 17)
      (6)       |         |     

|    |                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The fair value of cash and
          cash equivalents, short-term investments, receivables, settlements
          receivable and accounts payable and accrued liabilities is equivalent
          to the carrying amount given the short maturity period.
|   
|(2) | The fair value of the shares
          of publicly-traded companies was based on the last quoted market
          price.                                                                                                                                 
|(3) | The fair value of the residual
          proceeds receivable from the sale of the El Pachon project is
          equivalent to the carrying amount since it is presented at its
          discounted value.                                              
|(4) | Since most of the long-term
          debt is variable rate debt, the fair value of the Company's long-term
          debt approximates the carrying amount as at December 31, 2003 and
          2002.                                                  
|   
|(5) | The Company obtains an
          independent valuation of its portfolio of gold commitments. This
          market valuation is based on the market price, rate of interest, gold
          lease rate and volatility.                                   
|   
|(6) | The fair value of the foreign
          exchange contracts is based on the market foreign exchange rate and
          the forward premium.                                                                                                               
|    |                                                                                                                                                                                                                                                          

NOTE 14.

> At their Annual General and Special Meeting, held on May 7, 2002, the
>   Company's shareholders adopted a resolution to apply $23,047,000 available
>   from the contributed surplus account to reduce the Company's accumulated
>   deficit.

---

annual report 2003       p.60
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 15.
CUMULATIVE TRANSLATION ADJUSTMENT

> This account reflects the difference in the net value of the assets of the
>   Canadian mining operations relative to the US exchange rate in effect at the
>   end of each reporting period.
>   The changes in this account are as follows:

|                                                     | 2003     | 2002     | 2001    
|---------------------------------------------------- | -------- | -------- | --------
|                                                     | $        | $        | $       
|Cumulative unrealized
      loss, beginning of year  | (18,855) | (20,365) | (15,421)
|Unrealized net gain
      (loss) for the year        |          |          |         
|on
      translation of net assets                   | 19,123   | 969      | (5,858) 
|Exchange loss charged
      to operations following  |          |          |         
|reduction in net investment in Canadian              |          |          |         
|mining operations                                    |         | 541      | 914     
|Cumulative unrealized gain (loss),
      end of year | 268      | (18,855) | (20,365)
|Exchange rate, end of year                           | 1.2965   | 1.5776   | 1.5928  

NOTE 16.

> The provision for income and mining taxes is different from the amount that
>   would have resulted from applying the combined Canadian statutory income tax
>   rate (federal and provincial: 37.2% in 2003, 38.2% in 2002 and 2001) as a
>   result of the following:

|                                                             | 2003    | 2002    | 2001   
|------------------------------------------------------------ | ------- | ------- | -------
|                                                             | $       | $       | $      
|Income taxes (Income
      tax benefit)                      |         |         |        
|at
      combined Canadian statutory rate                    |         |         |        
|(federal
      and provincial)                               | 35      | (2,941) | (3,103)
|Increase (Decrease)
      resulting from:                    |         |         |        
|Resource
      allowance and earned depletion                | (742)   | (1,084) | (817)  
|Unrecognized deductible temporary differences for the year   | 3,663   | 2,889   | 2,248  
|Unrecognized tax benefit on earnings in Canada               |        |        | 2,627  
|Unrecognized tax benefit on earnings of foreign subsidiaries | 1,495   | 1,954   |       
|Non-taxable portion of gain                                  | (425)   | (139)   | (357)  
|Income
      tax rate differential of foreign subsidiaries   | 302     | 243     | 115    
|Use of a
      tax benefit not previously recognized         | (1,892) | (720)   | (730)  
|Foreign
      exchange loss on Canadian currency             | (2,560) |        |       
|Non-deductible items and
      other elements                | 124     | (202)   | 17     
|                                                             |        |        |       
|Tax on large
      corporations                              | 293     | 353     | 115    
|Provincial mining
      taxes (recovery)                     | (712)   |        |       
|Other countries' current taxes
      (recovery)              | (135)   |        |       
|                                                             | (554)   | 353     | 115    

---

p. 61     annual report
2003
Cambior Inc.          
NOTE 16.INCOME
AND MINING TAXES (continued)

> The provision for current income and mining taxes is made up of the
>   following components:

|                                                                 | 2003  | 2002 | 2001
|---------------------------------------------------------------- | ----- | ---- | ----
|                                                                 | $     | $    | $   
|Current                                                          |       |      |     
|Federal
      income taxes - tax on large corporations in Canada | 293   | 353  | 115 
|Provincial mining taxes (recovery)                               | (712) |     |    
|Other countries' current
      taxes (recovery)                  | (135) |     |    
|                                                                 | (554) | 353  | 115 

The provision for future income and mining taxes has been provided on
  temporary timing differences which consist of the following:

|                                                                | 2003    | 2002    | 2001   
|--------------------------------------------------------------- | ------- | ------- | -------
|                                                                | $       | $       | $      
|Depreciation,
      depletion and amortization                  | (1,453) | 1,397   | (262)  
|Writedown of mining
      assets                                |        |        | (1,897)
|Mine closures,
      reclamation and other provisions           | (380)   | (841)   | (89)   
|Taxable deferred
      revenues                                 | (217)   | (341)   |       
|Unrecognized
      non-hedged derivative gain (loss)            | 947     | (3,013) |       
|Foreign exchange loss
      on Canadian currency                | (2,560) |        |       
|Unrecognized
      deductible temporary differences of the year | 3,663   | 2,889   | 2,248  
|Other                                                           |        | (91)    |       
|                                                                |        |        |       

As at December 31, 2003 and 2002, future tax assets are detailed as follows:

|                                        |          | 2003     |           |          | 2002     |          
|--------------------------------------- | -------- | -------- | --------- | -------- | -------- | ---------
|                                        |          | US and   |           |          | US and   |          
|                                        | Canada   | other    | Total     | Canada   | other    | Total    
|                                        | $        | $        | $         | $        | $        | $        
|Net operating loss
      carry-forwards | 933      | 64,790   | 65,723    |         | 59,969   | 59,969   
|Difference between
      book and tax   |          |          |           |          |          |          
|depreciation and depletion              | 80,424   | 10,254   | 90,678    | 64,970   | 13,181   | 78,151   
|Accrued liabilities                     | 7,017    | 1,255    | 8,272     | 5,775    | 735      | 6,510    
|Others                                  | 4,821    |         | 4,821     | 2,363    |         | 2,363    
|Total of future tax
      assets        |          |          |           |          |          |          
|before
      valuation allowance        | 93,195   | 76,299   | 169,494   | 73,108   | 73,885   | 146,993  
|Valuation allowance                     | (93,195) | (76,299) | (169,494) | (73,108) | (73,885) | (146,993)
|Total of future tax assets              |         |         |          |         |         |         

Cambior has approximately $104,910,000 ($92,790,000 in 2002) of cumulative
  Canadian exploration and cumulative Canadian development expenses and
  approximately $286,450,000 ($223,460,000 in 2002) in property, plant and
  equipment depreciation for tax purposes available indefinitely to reduce
  taxable income in future years. The Company also benefits from unclaimed
  investment tax credits totalling $1,000,000 which can be used anytime to be
  converted into other deductions.

In 2003, governmental assistance in the form of the Québec resources tax
  credit reduced exploration expenses by an amount of $1,202,000 ($608,000 in
  2002).

---

annual report 2003       p.62
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 16.
INCOME
AND MINING TAXES (continued)

> Losses carried forward as at December 31, 2003 will expire as follows:

|          | Canada | United     | Guyana
      (2) | Suriname (2)
|--------- | ------ | ---------- | ---------------- | ------------
|          |        | States (1) |                  |             
|          | $      | $          | $                | $           
|2004      |       |           |                 |            
|2005      |       |           |                 |            
|2006      |       | 13,603     |                 |            
|2007      |       | 6,804      |                 |            
|2008      | 1,079  | 19,971     |                 |            
|2009      | 1,835  | 15,164     |                 |            
|2010      | 94     | 8,099      |                 |            
|2011      |       | 6,111      |                 |            
|2012      |       | 347        |                 |            
|2018      |       | 4,291      |                 |            
|2019      |       | 2,631      |                 |            
|2020      |       | 136        |                 |            
|2021      |       | 85         |                 |            
|2022      |       | 66         |                 |            
|Unlimited |       |           | 94,407           | 6,291       
|          | 3,008  | 77,308     | 94,407           | 6,291       

(1) Cambior has no active subsidiary in the United States of America.
  (2) In accordance with the Mineral Agreement concluded with the government
  of the country.

According to fiscal legislation in Peru, losses can be carried forward
  until the end of the fourth year following the first year in which a fiscal
  profit is realized. Since no fiscal profit has been realized to date, the
  expiry date of the losses of $8,000,000 has not been determined.

The Company's French subsidiaries, CBJ-France and AGF, benefit from an
  income tax exemption plan for a term of ten years. Under those tax holiday
  plans, it is required that certain commitments made to the French Tax
  Administration must be met. The tax holidays are subject to re-assessment by
  the authorities.

---

p. 63     annual report
2003
Cambior Inc.          
NOTE 17.COMMITMENTS AND CONTINGENCIES

> Gold sales, deliveries and purchase commitments

|                                    | 2004 | 2005 | 2006 | 2007 | Total
|----------------------------------- | ---- | ---- | ---- | ---- | -----
|Forwards(3)                         |      |      |      |      |      
|Quantity
      (000 ozs)            | 252  | 155  | 130  | 56   | 593  
|Average
      price ($/oz)          | 315  | 327  | 326  | 350  | 324  
|Prepaid gold
      forwards(Note 9) |      |      |      |      |      
|Quantity
      (000 ozs)            | 52   | 52   |     |     | 104  
|Average
      price ($/oz)          | 235  | 235  |     |     | 235  
|Gold purchase                       |      |      |      |      |      
|Quantity
      (000 ozs)            | (55) |     |     |     | (55) 
|Average price ($/oz)                | 360  |     |     |     | 360  
|                                    |      |      |      |      |      
|Minimum delivery
      obligations  |      |      |      |      |      
|Quantity
      (000 ozs)            | 249  | 207  | 130  | 56   | 642  
|Average
      price ($/oz)          | 288  | 304  | 326  | 350  | 306  
|Call options sold(2) (3)            |      |      |      |      |      
|Quantity
      (000 ozs)            | 104  |     |     |     | 104  
|Average price ($/oz)                | 301  |     |     |     | 301  
|                                    |      |      |      |      |      
|Total delivery
      commitments    |      |      |      |      |      
|Quantity
      (000 ozs)            | 353  | 207  | 130  | 56   | 746  
|Average price ($/oz)                | 292  | 304  | 326  | 350  | 306  

|    |                                                                                                                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The designation dates for accounting purposes differ from commitment
          dates.                                                                                                                                                                                                                                                           
|(2) | The Company's contingent
          delivery obligations under the call options sold contracts will only
          take effect if the gold price is above the strike price of the
          relevant contract at itsmaturity date.                                                                                                               
|   
|(3) | Certain call options sold and
          forward positions, totalling 335,000 ounces, include a swap of the
          gold lease rate for the duration of the contracts. Pursuant to the
          swapagreements, the Company pays
          the floating gold lease rate and the counter-parties pay a fixed rate
          of 1.25% per annum.
|   

The estimated fair value of Cambior's gold forward sale, delivery and
  purchase commitments, excluding the prepaid gold forward, calculated at a spot
  price of $417 per ounce in 2003 ($343 per ounce in 2002) is as follows:

|                      | 2003     | 2002    
|--------------------- | -------- | --------
|                      | $        | $       
|Forwards              | (59,676) | (37,381)
|Non-hedge derivatives | (7,790)  | (6,362) 
|                      | (67,466) | (43,743)

The non-hedge derivative gain of $635,000 in 2003 (loss of
  $16,765,000 in 2002 and of $731,000 in 2001) represents the annual change of
  the fair value of the non-hedge derivatives combined with the realized gain of
  $3,105,000 in 2003 resulting from lease rate swap contracts for certain
  periods, the $1,042,000 realized loss in 2003 arising from the exercise of
  call options sold and the $5,073,000 deferred non-hedge derivative loss in
  2002 related to the conversion of call options and VVF into forward
  instruments.

Subsequent to year-end, the Company purchased 135,000 ounces of gold to be
  applied against its outstanding commitments at year-end.

---

annual report 2003       p.64
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 17.
COMMITMENTS AND CONTINGENCIES (continued)

> Foreign exchange contracts

During 2003, the Company converted 88,463 ounces of Canadian gold forward
  sales into US dollar gold forward sales, thereby increasing the future
  realized price from $321 an ounce to $359 an ounce.

The Company is exposed to currency risks as a result of revenues derived
  from its Canadian operations.

Risk of counter-parties

Royalties

|Mine        | Calculation                                    |       |       | Payment
|----------- | ---------------------------------------------- | ----- | ----- | -------
|            |                                                | 2003  | 2002  | 2001   
|            |                                                | $     | $     | $      
|Omai mine   | 5% in-kind royalty on
      mineral production |       |       |        
|            | payable to the Government of Guyana.           |       |       |        
|            | Reduction of 1% if the gold price is lower     |       |       |        
|            | than $280 per ounce                            | 4,945 | 4,934 | 4,288  
|            |                                                |       |       |        
|            |                                                |       |       |        
|Mouska mine | Two royalties
      totalling 1% and 2%        |       |       |        
|            | respectively of
      gold production (1)      | 460   | 435   | 319    
|Total       |                                                | 5,405 | 5,369 | 4,607  

(1) During 2002, the Company bought back 80% of the 1% royalty for an
  amount of $153,000 (Cdn $240,000).

The Company is also subject to other royalties for which no amount was paid
  during 2003, 2002 and 2001:

|Doyon mine:      | A royalty equivalent to
      24.75% of any excess of the annual average market price over $375 per
      ounce of gold produced on the next
      1,513,000 ounces of production.
|---------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                
|                 |                                                                                                                                                                                   
|Rosebel project: | 2% in-kind royalty per ounce
      of gold production;                                                                                                                            
|                 | 0.25% of all mineral produced
      at Rosebel payable to a charitable foundation for the purpose of promoting                                                                    
|                 | local development of natural
      resources within Suriname;                                                                                                                     
|                 | Price participation of 6.5%
      on the amount exceeding a market price of $425 per ounce when applicable,                                                                       
|                 | using for each calendar
      quarter the arithmetic average of the market prices determined by the
      London                                                                  
|                 | Bullion Market, P.M. Fixing;                                                                                                                                                      
|                 | 10% of the excess, if any, of
      the average quarterly market price above $300 per ounce for gold
      production from                                                        
|                 | the soft and transitional
      rock portions and above $350 per ounce from the hard rock portion of the
      Rosebel                                                            
|                 | property, after commencement
      of commercial production and up to a maximum of 7,000,000 ounces produced.                                                                     
|                 |                                                                                                                                                                                   
|Sleeping Giant:  | Two royalties representing 2%
      of gross operating profit for one and 15% of net operating profit for the
      other.                                                        
|Carlota project: | 5% net smelter royalty upon
      commencement of commercial production.                                                                                                          

---

p. 65     annual report
2003
Cambior Inc.          
NOTE 17.COMMITMENTS AND CONTINGENCIES (continued)

> Claims

Omai

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
  also ensure independent monitoring of OGML's compliance regarding the
  Essequibo River. Their findings confirm OGML's results.

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

Others The Company is also 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 some years. The Company does not believe that
  unfavourable decisions in any pending procedures or the threat of procedures
  related to any future assessment or any amount it might be required to pay
  will have a material adverse effect on the Company's financial condition.

NOTE 18.

> The following accounts represent the Company's proportionate interest in
>   the following joint ventures: Niobec mine (50%), Sleeping Giant mine (50%) and
>   El Pachon project (50%) which was sold in September 2001.

|                                    | 2003     | 2002     | 2001    
|----------------------------------- | -------- | -------- | --------
|                                    | $        | $        | $       
|Current assets                      | 9,462    | 8,281    | 7,796   
|Property, plant and
      equipment | 24,758   | 17,236   | 16,256  
|Current liabilities                 | (3,678)  | (3,026)  | (2,549) 
|Other liabilities                   | (2,152)  | (386)    | (319)   
|                                    | 28,390   | 22,105   | 21,184  
|Revenues                            | 33,443   | 33,975   | 29,437  
|Expenses                            | (26,386) | (24,882) | (22,713)
|Net earnings                        | 7,057    | 9,093    | 6,724   
|Cash flow from (used
      in):     |          |          |         
|Operating activities                | 10,447   | 10,830   | 7,354   
|Investing activities                | (6,156)  | (3,035)  | (2,070) 

---

annual report 2003       p.66
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 19.
SEGMENTED INFORMATION

> The Company operates four gold mines: Omai, located in Guyana; Doyon, which
>   includes the Mouska mine; and Sleeping Giant (50% ownership through a joint
>   venture), located in Québec, Canada. The Company is also a 50% owner, through
>   a joint venture, of the Niobec  mine, a niobium operation located in
>   Québec, Canada. Contracting services activities are grouped with Niobec. The
>   Rosebel gold project, located in Suriname, is in construction and the
>   achievement of commercial production is currently scheduled to begin in
>   February 2004. The Camp Caiman ("Ariane") property was acquired in November
>   2003 and is an advanced exploration project.

|                                       |         |         |          | Niobec |         |         | Corporate          |        
|-------------------------------------- | ------- | ------- | -------- | ------ | ------- | ------- | ------------------ | -------
|                                       |         |         | Sleeping | and    |         | Camp    | and                |        
|                                       | Omai    | Doyon   | Giant    | others | Rosebel | Caiman  | projects           | Total  
|                                       | $       | $       | $        | $      | $       | $       | $                  | $      
|2003                                   |         |         |          |        |         |         |                    |        
|Revenues - mining
      operations     | 83,062  | 71,392  | 11,235   | 24,935 |        |        | 245                | 190,869
|Financial expenses                     | 1,529   | 9       | (4)      |       |        |        | 389                | 1,923  
|Depreciation,
      depletion          |         |         |          |        |         |         |                    |        
|and
      amortization                 | 9,717   | 15,346  | 1,777    | 856    |        |        | 327                | 28,023 
|Divisional earnings
      (loss)       | 3,235   | (2,779) | 868      | 6,642  | (137)   | (8)     | (13,220)           | (5,399)
|Capital expenditures
      (disposals) | (1,535) | 10,617  | 4,438    | 2,820  | 91,083  | (2,043) | 2,851              | 108,231
|Property, plant and
      equipment    | 31,237  | 98,388  | 8,562    | 18,932 | 122,486 | 50,802  | 19,121             | 349,528
|Divisional assets                      | 50,970  | 103,455 | 9,645    | 28,812 | 138,271 | 55,840  | 105,931            | 492,924
|2002                                   |         |         |          |        |         |         |                    |        
|Revenues - mining
      operations     | 100,650 | 66,988  | 10,149   | 23,662 |        |        | 809                | 202,258
|Financial expenses                     | 2,629   | 44      | 3        |       | 989     |        | (1,266)            | 2,399  
|Depreciation,
      depletion          |         |         |          |        |         |         |                    |        
|and
      amortization                 | 12,330  | 13,619  | 1,505    | 792    |        |        | 588                | 28,834 
|Divisional earnings
      (loss)       | 5,676   | 1,830   | 1,107    | 8,023  | (989)   |        | (7,985)            | 7,662  
|Capital expenditures                   | 4,497   | 8,071   | 1,817    | 1,924  | 12,743  |        | 3,381              | 32,433 
|Property, plant and
      equipment    | 48,119  | 85,109  | 4,687    | 13,256 | 30,816  |        | 18,188             | 200,175
|Divisional assets                      | 74,830  | 89,012  | 5,024    | 21,200 | 31,347  |        | 57,993             | 279,406
|2001                                   |         |         |          |        |         |         |                    |        
|Revenues - mining
      operations     | 106,793 | 63,198  | 8,811    | 18,718 |        |        |                   | 197,520
|Financial expenses                     | 4,800   | (95)    |         |       |        |        | 860                | 5,565  
|Depreciation,
      depletion          |         |         |          |        |         |         |                    |        
|and
      amortization                 | 16,449  | 15,356  | 1,388    | 1,144  |        |        | 607                | 34,944 
|Writedown of assets                    | 5,419   |        |         |       |        |        |                   | 5,419  
|Divisional earnings
      (loss)       | (2,454) | (473)   | 353      | 5,183  | (381)   |        | (9,434)            | (7,206)
|Capital expenditures
      (disposals) | 8,303   | 7,553   | 1,032    | 1,038  |        |        | (11,463)
      (1) | 6,463  
|Property, plant and
      equipment    | 58,133  | 89,781  | 4,251    | 12,004 | 13,175  |        | 17,339             | 194,683
|Divisional assets                      | 77,969  | 93,449  | 4,827    | 19,156 | 13,183  |        | 43,188             | 251,772

(1) Includes capital disposal of $12,386,000 in 2001 related to
  discontinued operations.

---

p. 67     annual report
2003
Cambior Inc.          
NOTE 19.SEGMENTED INFORMATION (continued)

> Reconciliation of reportable operating divisional earnings to net earnings
>   (loss) for the year is as follows:

|                                                                | 2003     | 2002     | 2001   
|--------------------------------------------------------------- | -------- | -------- | -------
|                                                                | $        | $        | $      
|Divisional earnings                                             | 7,821    | 15,647   | 2,228  
|Corporate and projects loss                                     | (13,220) | (7,985)  | (9,434)
|                                                                | (5,399)  | 7,662    | (7,206)
|Investment and other
      income                               | 2,997    | 1,945    | 727    
|Gain on foreign
      exchange                                  | 1,862    |         |       
|Non-hedge derivative
      gain (loss)                          | 635      | (16,765) | (731)  
|Loss on foreign
      exchange from reduction in net investment |         | (541)    | (914)  
|Income and mining taxes                                         | 554      | (353)    | (115)  
|Net earnings (loss)                                             | 649      | (8,052)  | (8,239)

Geographic information

|                         |                              |         |               |         | Property, plant
|------------------------ | ---------------------------- | ------- | ------------- | ------- | ---------------
|                         | Revenues - mining operations |         | and equipment
|                         | 2003                         | 2002    | 2001          | 2003    | 2002           
|                         | $                            | $       | $             | $       | $              
|Canada                   | 105,341                      | 101,456 | 90,727        | 125,263 | 103,979        
|Guyana                   | 85,528                       | 100,802 | 106,793       | 32,685  | 48,826         
|French Guiana            |                             |        |              | 50,802  |               
|Suriname                 |                             |        |              | 122,486 | 30,816         
|United States and others |                             |        |              | 18,292  | 16,554         
|                         | 190,869                      | 202,258 | 197,520       | 349,528 | 200,175        

NOTE 20.

> The consolidated financial statements have been prepared in accordance with
>   Canadian GAAP, which differ in certain material respects from those principles
>   and practices that the Company would have followed had its consolidated
>   financial statements been prepared in accordance with US GAAP.

A. CONSOLIDATED FINANCIAL STATEMENTS

The adjustments to comply with US GAAP would be as follows:

Consolidated statement of operations

|                                                                     | 2003    | 2002    | 2001   
|-------------------------------------------------------------------- | ------- | ------- | -------
|                                                                     | $       | $       | $      
|Net earnings (loss)
      as per Canadian GAAP                       | 649     | (8,052) | (8,239)
|Writedown of assets
      (a)                                        |        |        | 5,419  
|Depreciation,
      depletion and amortization (b)                   | 4,528   | 4,430   | 7,270  
|Mining properties
      (c)                                          | (3,641) | (3,516) |       
|Unrealized gain
      (loss) on forward exchange contracts (d)       | (893)   | 6,367   | (174)  
|Exchange loss (e)                                                    |        | 541     | 914    
|Asset retirement
      obligations (f)                               | 2,117   |        |       
|Cumulative effect of
      change in accounting                      |         |         |        
|principle for asset
      retirement obligations                     | (34)    |        |       
|Net earnings (loss) as per US GAAP                                   | 2,726   | (230)   | 5,190  
|Basic and diluted net earnings
      (loss) per share as per US GAAP | 0.01    | 0.00    | 0.06   

---

annual report 2003       p.68
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 20.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CANADA AND THE UNITED STATES
(continued)

> A. CONSOLIDATED FINANCIAL STATEMENTS

The consolidated balance sheet items, adjusted to comply with US GAAP,
  would have been as follows:

|                                              |           | December 31, 2003 |           | December 31, 2002 |                  
|--------------------------------------------- | --------- | ----------------- | --------- | ----------------- | -----------------
|                                              | As per    |                   | As per    | As per            |                  
|                                              | GAAP in   |                   | US        | GAAP in           |                  
|                                              | Canada    | Adjustments       | GAAP      | Canada            | Adjustments      
|                                              | $         | $                 | $         | $                 | $                
|Assets                                        |           |                   |           |                   |                  
|Long-term investments                         | 4,826     | 4,068
      (g)   | 8,894     | 4,165             | 1,762
      (g)  
|Property, plant and
      equipment           | 349,528   | (41,883) (a)      | 316,793   | 200,175           | (41,883) (a)     
|                                              |           | 24,039
      (b)  |           |                   | 19,511
      (b) 
|                                              |           | (20,332) (c)      |           |                   | (16,691) (c)     
|                                              |           | 5,441
      (f)   |           |                   |                  
|Liabilities                                   |           |                   |           |                   |                  
|Current portion of
      deferred gains       | 3,852     | (3,852)
      (h) |          | 2,949             | (2,949)
      (h)
|Deferred gains                                | 755       | (755)
      (h)   |          | 3,304             | (3,304)
      (h)
|Provision for
      environmental obligations | 16,400    | 3,358
      (f)   | 19,758    | 12,410            |                 
|Fair Value of hedge
      derivatives         |          | 59,396
      (h)  | 59,396    |                  | 40,566
      (h) 
|                                              |           |                   |           |                   |                  
|                                              |           |                   |           |                   |                  
|Shareholders'
      equity                    |           |                   |           |                   |                  
|Common shares, warrants
      and option      | 446,948   | (29,050) (i)      | 424,651   | 288,910           | (24,843) (i)     
|                                              |           | 6,753
      (j)   |           |                   | 6,753
      (j)  
|Contributed surplus                           |          | 11,626
      (j)  | 373,293   |                  | 11,626
      (j) 
|                                              |           | 361,667
      (k) |           |                   | 361,667
      (k)
|Deficit                                       | (111,006) | (376,393)         | (487,399) | (107,448)         | (382,677)        
|Changes in market
      value of investments  |          | 4,068
      (g)   | 4,068     |                  | 1,762
      (g)  
|Loss on hedge
      derivatives               |          | (55,452) (h)      | (55,452)  |                  | (35,869) (h)     
|Cumulative
      translation adjustment       | 268       | 9,480
      (e)   | (9,765)   | (18,855)          | 9,480
      (e)  
|                                              |           | (19,513) (j)      |           |                   | (19,513) (j)     

---

p. 69     annual report
2003
Cambior Inc.NOTE 20.GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CANADA AND THE UNITED STATES
(continued)

> A. CONSOLIDATED FINANCIAL STATEMENTS

(a) Writedown of assets

(b) Depreciation, depletion and amortization

(c) Mining properties

(d) Unrealized gain (loss) on forward exchange contracts

(e) Exchange gain (loss)

(f) Asset retirement obligations

(g) Long-term investments

(h) Gain (Loss) on hedge derivatives

---

annual report 2003       p.70
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 20.        
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CANADA AND THE UNITED STATES
(continued)

> A. CONSOLIDATED FINANCIAL STATEMENTS

(i) Share issue expenses

(j) Change in functional currency

(k) Elimination of the deficit

Change in accounting policies under US GAAP

FASB Statement 143

As a result of applying SFAS 143, Provision for environmental
  obligations and otherincreased by $4,897,000, property, plant and
  equipmentincreased by $4,863,000 and a $34,000 loss was recorded in the
  Cumulative effect of a change in accounting principle.

The following is a reconciliation of the total liability for asset
  retirement obligations:

|                                     | $     
|------------------------------------ | ------
|Balance, December 31,
      2002     | 12,410
|Impact of adoption of
      SFAS 143 | 4,897 
|Additions to
      liabilities       | 1,328 
|Accretion expense                    | 1,123 
|Balance, December 31, 2003           | 19,758

There were no material assets that were legally restricted for purposes of
  settling asset retirement obligations at December 31, 2003.

On a pro forma basis, the liability for asset retirement obligations would
  have been $15,261,000 at January 1, 2001, $16,252,000 at December 31, 2001 and
  $17,307,000 at December 31, 2002, respectively, if SFAS 143 had been applied
  at the beginning of 2001.

---

p. 71     annual report
2003
Cambior Inc.          
NOTE 20.GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CANADA AND THE UNITED STATES
(continued)

> A. CONSOLIDATED FINANCIAL STATEMENTS

Change in accounting policies under US GAAP (continued)

FASB Statement 143 (continued)

The following table presents the pro forma net earnings (loss) and earnings
  per share for the years ended December 31, 2002 and 2001 as if the Company had
  adopted SFAS 143 on January 1, 2001:

|                                                         | 2002  | 2001 
|-------------------------------------------------------- | ----- | -----
|                                                         | $     | $    
|Net earnings (loss)
      as per US GAAP, as reported    | (230) | 5,190
|Change in accounting principle (SFAS
      143)          | (43)  | (200)
|Pro forma net earnings (loss) as per
      US GAAP       | (273) | 4,990
|                                                         |       |      
|Net earnings per
      share as per US GAAP, as reported | 0.00  | 0.06 
|Change in accounting principle (SFAS
      143)          | 0.00  | 0.00 
|Pro forma net earnings per share as
      per US GAAP    | 0.00  | 0.06 

FASB Statement 133 On January 1, 2001, the Company implemented FASB
  Statement No.133 (SFAS 133),"Accounting for Derivative Instruments and Hedging
  Activities", and Statement No. 138,"Accounting for Certain Derivative
  Instruments and Certain Hedging Activities" (SFAS 138). The Company has
  designated its prepaid gold forward as normal sales as defined by SFAS 138 and
  this contract is therefore excluded from the scope of SFAS 133. Gold forward
  contracts have been designated as cash flow hedges for US GAAP purposes and
  are marked-to-market, and related unrealized gains or losses on those
  instruments are charged to other comprehensive income. VVF contracts, written
  call options and foreign exchange spot deferred and fixed forwards contracts
  had not been designated as hedges for US GAAP purposes and are
  marked-to-market in current operations. On January 1, 2001, the Company
  charged an amount of $8,813,000 as a transition adjustment on adoption of SFAS
  133. Since July 1, 2002, the Company has applied hedge accounting for foreign
  exchange fixed forward contracts. See 20A.(d).

FASB Statement 144 In August 2001,the FASB issued SFAS
  No.144,"Accounting for the Impairment or Disposal of Long-Lived Assets" that
  established a single accounting model, based on the framework of SFAS No.121
  ("Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets
  to Be Disposed of"), for long-lived assets to be disposed of by sale. The
  statement is effective for fiscal years beginning after December 15, 2001. No
  significant impact has occurred for the Company since its adoption.

---

annual report 2003       p.72
     Cambior Inc.Notes to Consolidated Financial Statements
(continued)

NOTE 20.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CANADA AND THE UNITED STATES
(continued)

> B. CONSOLIDATED COMPREHENSIVE INCOME (LOSS)

The statement of consolidated comprehensive income (loss) is as follows:

|                                                                                | 2003             | 2002           | 2001    
|------------------------------------------------------------------------------- | ---------------- | -------------- | --------
|                                                                                | $                | $              | $       
|Net earnings (loss)
      as per US GAAP                                        | 2,726            | (230)          | 5,190   
|Other comprehensive
      income (loss)                                         |                  |                |         
|Translation adjustment                                                          | 19,123           | 969            | (5,858) 
|Unrealized gain (loss) on investments                                           | 2,306            | 1,047          | (726)   
|Transition adjustment on adoption of SFAS 133                                   |                 |               | 8,813   
|Loss on hedge
      derivatives                                                 | (19,583)         | (43,538)       | (1,144) 
|Consolidated comprehensive income
      (loss)                                  | 4,572            | (41,752)       | 6,275   
|                                                                                |                  |                |         
|Changes in items of the other
      comprehensive income (loss) are as follows: |                  |                |         
|                                                                                |                  | Changes        |         
|                                                                                | Balance
      at | during         | Balance 
|                                                                                | beginning        | the
      year | at end  
|                                                                                | $                | $              | $       
|2003                                                                            |                  |                |         
|Cumulative translation adjustment                                               | (28,888)         | 19,123         | (9,765) 
|Loss
      on hedge derivatives                                                 | (35,869)         | (19,583)       | (55,452)
|Unrealized gain on
      investments                                            | 1,762            | 2,306          | 4,068   
|Other cumulative
      comprehensive loss                                       | (62,995)         | 1,846          | (61,149)
|2002                                                                            |                  |                |         
|Cumulative translation adjustment                                               | (29,857)         | 969            | (28,888)
|Gain
      (Loss) on hedge derivatives                                          | 7,669            | (43,538)       | (35,869)
|Unrealized gain on
      investments                                            | 715              | 1,047          | 1,762   
|Other cumulative
      comprehensive loss                                       | (21,473)         | (41,522)       | (62,995)
|2001                                                                            |                  |                |         
|Cumulative translation adjustment                                               | (23,999)         | (5,858)        | (29,857)
|Gain on
      hedge derivatives                                                 |                 | 7,669          | 7,669   
|Unrealized gain (loss)
      on investments                                     | 1,441            | (726)          | 715     
|Other cumulative
      comprehensive loss                                       | (22,558)         | 1,085          | (21,473)

C. ACCOUNTING FOR COMPENSATION PLANS

The Company measures compensation costs related to awards of stock options
  using the intrinsic value-based method of accounting. If the fair value-based
  method of accounting had been applied, the Company's net earnings (loss) and
  net earnings (loss) per share for the years ended December 31, 2003, 2002 and
  2001 would have been as follows on a pro forma basis:

|                                                                       | 2003    | 2002    | 2001   
|---------------------------------------------------------------------- | ------- | ------- | -------
|                                                                       | $       | $       | $      
|Net earnings (loss)
      under US GAAP, as reported                   | 2,726   | (230)   | 5,190  
|Deduct: Total
      stock-based employee compensation                  |         |         |        
|expense
      determined under fair value-based method                 |         |         |        
|for all awards, net of
      related tax effects                       | (1,065) | (814)   | (1,186)
|Pro forma net earnings (loss)                                          | 1,661   | (1,044) | 4,004  
|Basic and diluted net
      earnings (loss) per share, as reported ($) | 0.01    | (0.00)  | 0.06   
|Basic and diluted net earnings (loss)
      per share, pro forma ($)   | 0.01    | (0.01)  | 0.04   

---

p. 73     annual report
2003
Cambior Inc.          
NOTE 20.GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CANADA AND THE UNITED STATES
(continued)

> D. ACCOUNTING PRONOUNCEMENTS NOT YET IMPLEMENTED
>   US GAAP

During April 2003, the FASB issued SFAS 149, "Amendment of Statement 133 on
  Derivative Instruments and Hedging Activities''. This Statement amends and
  clarifies financial accounting and reporting for derivative instruments and
  hedging activities, resulting primarily from decisions reached by the FASB
  Derivatives Implementation Group subsequent to the original issuance of SFAS
  133. This Statement is generally effective prospectively for contracts and
  hedging relationships entered into after June 30, 2003. The Company does not
  expect this pronouncement to have a material impact on its results of
  operations and financial condition.

In May 2003, the FASB issued SFAS 150,"Accounting for Certain Financial
  Instruments with Characteristics of both Liabilities and Equity''. SFAS 150
  clarifies the accounting for certain financial instruments with
  characteristics of both liabilities and equity and requires that those
  instruments be classified as liabilities in the balance sheets. The Company
  does not expect this pronouncement to have a material impact on its results of
  operations and financial condition.

Canadian GAAP

In January 2003, the CICA issued Accounting Guideline No.15,"Consolidation
  of Variable Interest Entities''("AcG-15''),which harmonizes Canadian GAAP with
  FASB Interpretation No.46, and provides guidance for applying the principles
  in Section 1590, "Subsidiaries'', to certain special purpose entities. The
  Company does not expect this pronouncement to have a material impact on its
  results of operations and financial condition.

In September and November 2003, the CICA made amendments to Handbook Section
  3870, "Stock-based Compensation and Other Stock-based Payments", to require that
  the fair value-based method be applied to awards granted to employees, which
  previously had not been accounted for at fair value. Thus, enterprises will be
  required to account for the effect of such awards in their financial
  statements for fiscal years beginning on or after January 1, 2004. The Company
  will be required to adopt a retroactive application, with or without restating
  prior periods.

In December 2003, the CICA Emerging Issues Committee ("EIC") issued EIC
  Abstract 141, "Revenue Recognition", which provides general interpretive
  guidance on the application of CICA Handbook Section 3400, "Revenue". The
  Company currently follows such guidelines and therefore does not anticipate
  that this pronouncement will have a material impact on its results of
  operations and financial condition.

In November 2002, the CICA issued Section 3063,''Impairment of Long-Lived
  Assets'', which addresses the recognition, measurement and disclosure of the
  impairment of long-lived assets. Section 3063 requires that an impairment loss
  be recognized if the carrying amount of a long-lived asset is not
  recoverable. The carrying amount of a long-lived asset is not recoverable if
  the carrying amount exceeds the sum of the undiscounted cash flows expected to
  result from its use and eventual disposition. The impairment loss to be
  recognized is measured as the amount by which the carrying amount of the
  long-lived asset exceeds its fair value. This pronouncement will be applicable
  to the Company commencing in 2004.



---