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Acadian Timber Corp. Provides Update on Carbon Credit Project


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EDMUNDSTON, New Brunswick, Sept. 01, 2022 (GLOBE NEWSWIRE) — Acadian Timber Corp. (“Acadian” or the “Company”) (TSX:ADN) today provided an update on its ongoing carbon credit project.

“Although the carbon credit model is still subject to completion of third-party verification, we are pleased to have made significant progress and to be able to provide an update,” commented Adam Sheparski, President and Chief Executive Officer. “Pricing and the successful marketing of our credits will ultimately determine the impact to our financial results.”

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Project status update

During 2021, Acadian executed its first carbon development and marketing agreement to develop voluntary carbon credits on the portion of its Maine Timberlands that is subject to a working forest conservation easement. This project commits Acadian to balancing harvest and growth, and requires long term planning, annual reporting, periodic carbon inventory verification, and maintenance of the existing sustainable forestry certification.

The initial model for the project has been completed and estimates of carbon credit volumes for reporting periods (years) 1-10 are as provided below:

Reporting
period
Estimate of credits at
current harvest levels
 
1 713,000  
2 134,000  
3 134,000  
4 134,000  
5 92,000  
6 92,000  
7 92,000  
8 92,000  
9 92,000  
10 60,000  
TOTAL 1,635,000  

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Preliminary credit volumes have been submitted to third-party verifiers, who will audit the model. Accordingly, the final issued volumes could vary from the estimates presented. Under the current timeline, credits are expected to be registered on the American Carbon Registry in the fourth quarter of 2022, with the potential for sales to be realized immediately thereafter. The impact to Acadian’s financial results is subject to the successful marketing of the credits and to the timing of, and prices obtained from, contracts negotiated with third parties, which are not yet in place. After the share of proceeds allocated to the project developer and project related expenses, Acadian is expected to receive approximately 84% of gross revenues from any sale of the carbon credits.

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Acadian Timber Corp. is one of the largest timberland owners in Eastern Canada and the Northeastern U.S. and has a total of approximately 2.4 million acres of land under management. Acadian owns and manages approximately 761,000 acres of freehold timberlands in New Brunswick, approximately 300,000 acres of freehold timberlands in Maine and provides timber services relating to approximately 1.3 million acres of Crown licensed timberlands in New Brunswick. Acadian’s products include softwood and hardwood sawlogs, pulpwood and biomass by-products, sold to approximately 90 regional customers.

Acadian’s business strategy is to maximize cash flows from its existing timberland assets through sustainable forest management and other land use activities while growing its business by acquiring assets and actively managing these assets to drive improved performance.

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Acadian’s shares are listed for trading on the Toronto Stock Exchange under the symbol ADN.

For further information, please visit our website at www.acadiantimber.com or contact:

Susan Wood
Chief Financial Officer
Tel:  506-737-2345
Email:  ir@acadiantimber.com

Cautionary Statement Regarding Forward-Looking Information and Statements

This News Release contains forward-looking information and statements within the meaning of applicable Canadian securities laws that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Acadian Timber Corp. and its subsidiaries (collectively, “Acadian”), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking information is included in this News Release and includes without limitation statements regarding anticipated future events, results, achievements, circumstances, performance or expectations that are not historical facts. All forward-looking statements in this News Release are qualified by these cautionary statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Actual results may vary. These forward-looking statements include, but are not limited to:

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  • Expectations regarding carbon credit volumes expected to be verified, registered and available for sale. Carbon credit volumes are based on a preliminary model which is to be verified by an independent third party and then subject to registry approval, prior to being available for sale to third parties. Volumes may change based on the results of this process.
  • Expectations regarding the successful marketing and sale of carbon credits. No third-party sales agreements are yet in place and, therefore, there can be no guarantee that credits made available for sale will be sold, the timing, pricing or final percentage of net proceeds to Acadian of any sales, all of which may be impacted by the markets for such credits, third party negotiations and marketing efforts by Acadian’s third party service provider.

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Other risks and factors are discussed under the heading “Risk Factors” in the Annual Report dated February 9, 2022, and in each of the Annual Information Form dated March 25, 2022 and the Management Information Circular dated March 25, 2022 and other filings of Acadian made with securities regulatory authorities, which are available on SEDAR at www.sedar.com. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to Acadian. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive. Although the forward-looking statements contained in this News Release are based upon what management believes are reasonable assumptions, Acadian cannot assure readers that actual results will be consistent with these forward-looking statements. The forward-looking statements in this News Release are made as of the date of this News Release
based on information currently available to management and should not be relied upon as representing Acadian’s views as of any date subsequent to the date of this News Release. Acadian assumes no obligation to update or revise these forward-looking statements to reflect new information, events, circumstances or otherwise, except as may be required by applicable law.

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