1. Chain of Custody (CoC) Program SFI Chain of Custody Standard Web Site Posting Alberta Newsprint Company

2. 2  Customers want to purchase paper from sustainably managed forests  Increasing demand from customers  Provides a link from the forest to the end- product  Verifies that sources in supply chain are CoC certified Why Chain of Custody?

3. ANC Chain of Custody Commitment  ANC endorses the principles of sustainable forest management.  ANC will not purchase fiber from controversial sources, including illegal logging or fiber sources without effective social laws. 3

4. 4  ANC Timber is SFI certified  Some of our chip suppliers are SFI,CSA ForestCare certified SFI Chain of Custody

5. 5  Identify supplier & origin of certified wood  Accounting of fiber input / pulp output  Calculation of certified % paper  Procedures outlined in ANC CoC Manual  Roles / Responsibilities  SFI documentation  Internal Auditing  Record Keeping SFI CoC Requirements

6. 6  Certification by independent - KPMG  Certificate good for 3 years  KPMG audit annually  Notify customers of CoC claim  SFI labelling entitled to use: Off-product marks On-product labels SFI Certification

7. 7  Tracks inputs/outputs monthly  certified chips and logs received  certified tonnage paper produced  certified tonnage sold monthly  Unsold certified credits expire after 1 year SFI Spreadsheets

8. 8 Chain of Custody Processes FIBRE INPUT Chip & Log Receipts Chip Inventory TMP Pulping Process Paper Production Finishing Roll Preparation Shipment to Customer Rail & Truck

9. 9 Chain of Custody Processes SPREAD SHEET BALANCE

10. 10 Chain of Custody Processes SFI SALES FLOW SHEET