EACOM Timber Corporation
NEX BOARD : ETR.H

EACOM Timber Corporation

June 01, 2009 08:30 ET

EACOM Timber Corporation Signs Exclusive Option to Purchase Sawmill

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 1, 2009) - EACOM Timber Corporation (NEX:ETR.H) today reported that it has acquired from Domtar Corporation (TSX:UFS)(NYSE:UFS) an exclusive option to purchase an idled sawmill located in Big River, Saskatchewan.

The option term is for up to 180 days to allow time for EACOM to complete its due diligence and to pursue the best of several strategic opportunities available for this asset. EACOM's exercise of the option will be dependent on the satisfaction of certain conditions to EACOM's benefit. EACOM paid $100,000 upon signing of the agreement for the option and may pay an additional $40,000 to extend the option term from 120 to 180 days. Any amounts paid are non-refundable but will be credited against the purchase price, if the option is exercised.

Mr Rick Doman, President and CEO of EACOM, said, "The acquisition of this mill would be a significant step forward for EACOM and I am excited about the opportunity to combine our operational and marketing expertise to a state-of-the-art sawmill. We will work under this option agreement to further develop this opportunity."

The Big River sawmill has been idle since 2006 following the closure of the Prince Albert pulp and paper mill, even though the sawmill underwent a significant capital upgrade in 2000. Currently, the estimated maximum production capacity of this mill is 250 million board feet annually.

Statements in this news release other than historical information are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the availability of resources, the timing and effects of regulatory actions, the strength of competition, the outcome of litigation and the effectiveness of patent protection. Additional information regarding risks and uncertainties is set forth in the current MD&A for EACOM Timber Corporation on file with the Canadian Securities Commissions.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information