MERCER INTERNATIONAL INC

We own the Stendal, Rosenthal, Celgar, Peace River pulp mills, and their underlying properties and have a 50% joint venture interest in the Cariboo pulp mill. We also own the Friesau mill, Mercer Spokane facility, the Torgau facility, a timber processing and value-add pallet production facility in Torgau, Germany and a wood processing facility in Dahlen, Germany that produces garden products. We also acquired in June 2023, the Mercer Conway facility and Mercer Okanagan facility, which produce mass timber.

Stendal Mill. The Stendal mill is situated on a 335 acre site that is part of a larger 3,090 acre industrial park near the town of Arneburg in the state of Saxony-Anhalt, approximately 185 miles north of the Rosenthal mill and 80 miles west of Berlin. The mill is adjacent to the Elbe River and has access to harbor facilities for water transportation. The mill is a single line mill with a current annual design production capacity of approximately 740,000 ADMTs of kraft pulp. The Stendal mill is self-sufficient in steam and electrical power. Some excess electrical power which is constantly being generated is sold to the regional power grid. The facilities at the mill include:

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an approximately 740,000 square feet fiber and roundwood storage area;

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debarking and chipping facilities for pulp logs;

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a fiber line, which includes 12 SuperBatch™ digesters and bleaching facilities;

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a pulp machine, which includes a dryer, a cutter and two baling lines;

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an approximately 105,000 square feet finished goods storage area;

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a fresh water plant;

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a wastewater treatment plant; and

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a power station with two turbines capable of producing 148 MW of electrical power.

Rosenthal Mill. The Rosenthal mill is situated on a 230 acre site in the town of Rosenthal am Rennsteig in the state of Thuringia, approximately 185 miles south of Berlin. The Saale River flows through the site of the mill. In late 1999, we completed a major capital project which converted the Rosenthal mill to the production of kraft pulp. It is a single line mill with a current annual production capacity of approximately 360,000 ADMTs of kraft pulp. The mill is self-sufficient in steam and electrical power. Some excess electrical power which is constantly generated is sold to the regional power grid. The facilities at the mill include:

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an approximately 425,000 square feet fiber storage area;

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debarking and chipping facilities for pulp logs;

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an approximately 625,000 square feet roundwood yard;

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a fiber line, which includes a Kamyr continuous digester and bleaching facilities;

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a pulp machine, which includes a dryer, a cutter and a baling line;

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an approximately 60,000 square feet finished goods storage area;

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a fresh water plant;

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a wastewater treatment plant; and

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a power station with a turbine capable of producing 57 MW of electrical power from steam produced by the recovery boiler and a power boiler.

Celgar Mill. The Celgar mill is situated on a 400 acre site near the city of Castlegar, British Columbia. The mill is located on the south bank of the Columbia River, approximately 375 miles east of the port city of Vancouver, British Columbia, and approximately 20 miles north of the Canada-U.S. border. The city of Seattle, Washington is approximately 405 miles southwest of Castlegar. The Celgar mill is a single line mill with a current annual production capacity of approximately 520,000 ADMTs of kraft pulp. The mill is self-sufficient in steam and electrical power. Some excess electrical power which is constantly generated is sold to the regional power grid. The facilities at the Celgar mill include:

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an approximately 450,000 square feet fiber storage area and approximately 440,000 square feet log storage;

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a wood room containing debarking and chipping facilities for pulp logs;

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a fiber line, which includes a dual vessel hydraulic digester, a two stage oxygen delignification system and a four stage bleach plant;

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two pulp machines, which each include a dryer, a cutter and a baling line;

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an approximately 28,000 square feet on-site finished goods storage area and an approximately 29,000 square feet off-site finished goods storage area;

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a wastewater treatment system; and

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a power station with two turbines capable of producing approximately 100 MW of electrical power.

Peace River Mill. The Peace River mill is situated on a 791 acre site near the town of Peace River, Alberta, approximately 305 miles north of Edmonton, Alberta. The mill has an annual production capacity of approximately 475,000 ADMTs of kraft pulp. The mill is self-sufficient in steam and electrical power. Some excess electrical power which is constantly generated is sold to the regional power grid. The facilities at the Peace River mill include:

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an approximately 1,130,000 square feet fiber storage area and approximately 2,700,000 square feet log storage;

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an approximately 189 railcar siding/storage capacity;

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a fiber line which includes a dual vessel hydraulic digester, a single stage oxygen delignification system and a four stage bleach plant;

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a pulp machine which includes a dryer, cutter and two baling lines;

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an approximately 56,000 square feet on-site finished goods storage area;

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a chemical recovery line which includes a recovery boiler, evaporation plant, recausticizing plant and a lime kiln;

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a fresh water treatment plant;

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a wastewater treatment system; and

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two turbines capable of producing approximately 65 MW of electrical power.

Friesau Mill. The Friesau mill is situated on a 150 acre site in the town of Saalburg-Ebersdorf, Germany, approximately 185 miles south of Berlin and only 10 miles from the Rosenthal mill. It is a two line sawmill with an annual production capacity of approximately 550 MMfbm of lumber on a continuously operating

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basis. The mill also sells electrical power to the regional power grid. The mill is self-sufficient in thermal power. The facilities at the Friesau mill include:

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an approximately 1,000,000 square feet roundwood storage area;

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three log debarking and two sorting lines;

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two Linck sawlines;

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42 lumber kilns capable of matching sawmill production;

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three continuous kilns;

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two planer lines;

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an approximately 663,800 square feet finished goods storage area; and

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a biomass fueled cogeneration power plant capable of producing 13 MW of electrical power.

Torgau Facility. The Torgau site is situated on a 270 acre site in the town of Torgau, Germany, approximately 70 miles south of Berlin and approximately 95 miles north of the Friesau and Rosenthal mills. It is an integrated production site with two sawmills (with two lines each) with an annual lumber capacity of approximately 410 MMfbm and a pallet production capacity of 17 million pallets and two biofuel plants (wood pellets and briquettes) with a total capacity of 230,000 tonnes. The mill also sells electrical power to the regional power grid. The mill is self-sufficient in thermal power. The facilities at the Torgau mill include:

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four logyards totaling approximately 1,000,000 square feet with log debarking and sorting lines;

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four sawlines (one Linck, one EWD and two Hew sawlines with Kallfass sorting lines) and one milling line;

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EPAL pallet production with eight Coralli and one Storti line;

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two progressive kilns and nine drying kilns capable of matching pallet and sawmill production;

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one planer line;

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pellet production with six Münch presses as well as two Salmatec presses;

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briquette production with 12 lines (Nielsen);

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two storage silos for pellets with a total capacity of 5,000 cubic tonnes; and

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four biomass fueled cogeneration power plants capable of producing 15 MW of electrical power.

Mercer Torgau also owns a wood processing facility in Dahlen, Germany that produces garden products.

Mercer Spokane Facility. The Mercer Spokane facility is situated on approximately 54 acres of land near Spokane, Washington. The Mercer Spokane facility has an annual production capacity of approximately 140,000 m 3 or 13 million square feet of 5-ply CLT panels. Its facilities include:

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a Transverse High Grader sorting line;

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a Lineal High Grader Sorting Line;

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a finger jointing line;

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a continuous kiln;

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a pneumatic CLT press;

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three CNC machines; and

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three Gilbert planers.

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Mercer Conway Facility. The Mercer Conway facility is situated on approximately 124 acres of land near Conway, Arkansas. The Mercer Conway facility has an annual production capacity of approximately 75,000 m 3 of CLT and glulam. Its facilities include:

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a Transverse High Grader sorting line;

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an industry-first glulam press;

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a Lineal High Grader Sorting Line;

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a finger jointing line;

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a hydraulic CLT press;

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three CNC machines; and

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one planer.

Mercer Okanagan Facility. The Mercer Okanagan facility is located in Okanagan Falls, British Columbia, and is situated on approximately 20 acres of land. The Mercer Okanagan facility has an annual production capacity of approximately 40,000 m 3 of CLT and glulam. Its facilities include:

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large portal glulam CNC machine;

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glulam jigs, including an arch-line;

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a glulam beam planer and sander;

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two finger jointing lines; and

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a hydraulic CLT press.