Conifex Timber Inc. announced that it has completed a $25 million secured term loan (the ?Term Loan?) with PenderFund Capital Management Ltd. A portion of the Term Loan was utilized to repay and retire Conifex's existing lumber segment credit facility with Wells Fargo Capital Finance Corporation Canada in the amount of approximately $11 million. The balance of the Term Loan will be available for working capital and general corporate purposes. The Term Loan has a term of 5 years, bears interest of 14% per annum and is substantially secured by Conifex's lumber segment assets.

Conifex has also agreed to issue 3.6 million common share purchase warrants to Pender having a 5 year term. Each warrant is exercisable into one common share for $0.75. Pursuant to applicable securities laws, the warrants are subject to a hold period of four months and one day from issuance.

Having completed the Term Loan, Conifex is now evaluating opportunities to secure a working capital facility to further help ensure sufficient liquidity to sustain operations through a period of below normal lumber prices. Across its lumber and power operations, Conifex's total long-term debt, including the PenderFund Term Loan is approximately $75.3 million having a weighted average interest rate of 9.29%.