Company Owned Land

Irving WoodlandsFort Kent

Dixfield Sawmill

Ashland Sawmill

IRVING WOODLANDSIN MAINE

VITAL STATISTICS

• Over60yearsofoperationsinMaine• 1.255millionacresinMaine(7%ofthe

forestedlandinMaine)• Ateamof30forestryprofessionalsworking

onthegroundinMaine• VoluntaryConservationProgram–214sites

andgrowing• Voluntaryinvestmentsinforestscience

withUMaine,Manomet,InlandFisheries&Wildlifeandotherpartners

• IrvingWoodlandsLLCplants70%oftheplantedtreesinMaine–over56Millionseedlingsinthelast35years

• Jobs:Over1800(direct,contractorandindirect)

• AnnualemploymentIncome:$67million(direct,contractor&indirect)

• NEWSawmillunderwayinAshland,63NEWfull-timejobs,$33millioninvestment

• Providingasustainablewoodsupplytoover20separatebusinessesinMaine

Sustainable Forest ManagementPlanning 80-100 Years Ahead

26%

10%

28%

36%

General Forest Stand Types

Softwood

Cedar

Mixed Wood

Hardwood

1

3 Million Trees

Planted in 2013

3

THIRDPARTY AUDIT

MAPPING

OPERATINGPLAN

RESOURCEANALYSIS

INVENTORY

MANAGEMENTPLAN

6

4

5 2

1

80-100Years ahead

SustainableForestry

inMainemeansLESS THAN 2%ofthelandbaseisharvested

everyyear

Irving Woodlands LLC Forest Composition

CONSERVATION & RESEARCH

0100002000030000400005000060000700008000090000

100000

Zoned DeerWintering Areas

Cooperative DeerWintering

Agreements

Unique Areas Mapped RiparianZones

LateSucessionalForest Recruited

to Date

Acres of Conservation Forest

OUTCOME-BASEDFORESTRY OVERVIEW

2

RESEARCH PARTNERS

Our(voluntary)ForestResearchAdvisoryCommitteeincludestwoUMainescientists:Dr.R.WagnerandDr.A.WeiskittelaswellasMr.A.WhitmanfromManomet.Dr.A.WeiskittelistheIrvingChairinForestEcosystemManagementatUMaine.IrvingWoodlands,LLChasbeenalongtermandactivememberoftheCooperativeForestryResearchUnit.

122,000 Acres of Deer Wintering Habitat

94,000 Acres of Watercourse Buffers

VOLUNTARY CONSERVATION EFFORTS IN THE NORTH MAINE WOODS

WatercourseBuffers

LateSuccessionalForestRecruited

ToDate

Unique Areas – Protected Sites by Category

7

214ToTAl # of SiTeSToTAl HeCTAreS: 7,972

ToTAl ACreS: 19,699

12 77 3830

399

1217

fish

Historicold-Growth &

High-Conservation forests

Geological & fossil

reptiles & invertebrates

Unique forest Stands

Birds & Mammals

Aesthetics

lakes & Wetlands Plants

# of SiteS # of SiteS

Category Category

in addition, the company has an objective to designate and maintain old forest habitats within the working forest landscape – to date more than 2,355 sites have been designated towards meeting this objective.

old forest Sites

2,355

OUTCOME-BASEDFORESTRY OVERVIEW

In 2013 we finalized a new management plan for the 1,255,000 acres that we own in Northern Maine.ThisforestmanagementplanalignswiththecriteriaandobjectivesoutlinedwithintheMaineForestService’s(MFS)OutcomeBasedForestry(OBF)law.WeareconfidentthatournewplancanbeimplementedtomeetthedesiredoutcomesoftheOBFagreementthatweenteredintowiththeMFSinMayof2012.Atabroadlevelthisagreementrequiresthatouroperationsbeimplementedinamannerthatisecologicallysustainable,economicallyviableandsociallyresponsible;whileachievingourobjectives.

Outcome Based Forestry is the only system that requires economic, social and environmental assessment.

http://www.maine.gov/dacf/mfs/policy_management/outcome_based_forestry.html

OurOBFagreementobligatesustomaintainindependentthirdpartycertificationsforourwoodlandsandrelievesusfromcertainprovisionsoftheMaineForestPracticesAct(FPA).Today,ourwoodland’sarecertifiedtomeetthestandardsoftheForestStewardshipCouncil®(FSC®C041515)andtheSustainableForestryInitiative(SFI)forestcertificationsystems.UnderthisagreementtheFSCUSForestManagementstandardshavebeenaligned(withadditionalindicators)withallfederalandstatelaws.

FinalOBFassessmentisdeterminedbyagovernorappointedpaneloftechnicalexpertswhoreporttothedirectoroftheMFS.TheaccompanyingtableprovidesaquickreferencecomparisonbetweenOBFandtheMaineFPAandthebenefitsthathavebeenachievedthusfar.AsummaryofourforestmanagementplanandourSFIandFSCcertificationreportsarebothpubliclypostedonourwebsite.

3

OBF FPA

State of Maine, Based Technical Experts Review Yes No

Independent 3rd Party Certification Required Yes No

Provisions to Improve Timber Supply and Quality Yes No

Provisions to Protect Forest Health Yes No

Provisions to Conserve Biological Diversity Yes No

Provisions to Consider Economic and Social Obligations Yes No

Reduced Administrative Work for Landowner and MFS Staff Yes No

Increased Reporting Transparency Yes No

Science Based Harvest Prescriptions Required for all harvests Only required for clearcuts

Regeneration of Clearcuts

Maximum Clearcut Size Allowable

Landowner can manage with scientifically based silviculture prescriptions

May only be harvested according to prescriptive

standards in rule

Buffering between clearcuts can utilize natural landscape

features

Minimum 250 foot separation zones with short

term 1:1 acreage requirement

**Required Compliance to All Local, State & Federal Regulations to Protect Water and Wildlife and Protected Resources (i.e. DEP, LUPC, MFS, AWW, Local

Ordinances etc.)

**The State of Maine has established laws that protect the wildlife, waters and unique natural resources in our State that are above and beyond the FPA. All of the laws protecting our natural resources remain intact and are still subject to compliance under OBF.

Required

250 acres

Yes

Comparison Between OBF agreement and FPA

Clearcut Separation Zone Requirements

http://www.jdirving.com/environment.aspx?id=5334&ekmensel=8_submenu_168_btnlink

x

x

x

x

x

x

x

x

P

P

P

P

P

P

P

P

BENEFITS OFOUTCOME BASED FORESTRY

P Lessroadbuilding(42mileslessin2013than2012)P Operateonlessofthelandbase–lessfragmentationof

theforestP Science-basedharvestprescriptions=bettermanagementP Salvagingmortalityduetowinddamageanddisease,

improvingforesthealthandreducingforestlossduetomortality

P LoweroperatingcostsP Improvedearningsandproductivityfor90+contractors

duetoreducedequipmentmovesandrelateddowntimeP AcompetitivewoodsupplyforourMainemillsandover

20othersininthestateP Growingjobsandinvestment–$33MinAshlandSawmill,

63newjobs,openingSummer2014P Noincreaseinpercentageofclearcutting

ScienceBasedHarvestPrescriptions

“Underoutcomebasedforestrymymachinesspendlesstimeonalow-bedandthishashelpedmeimprovemybottomline.”

Jeremy Fournier - Ironwood LoggingEagle Lake, ME (7 employees)

4

ACCOUNTABILITY

“TobesuccessfulintheStateofMaine,weneedtodomorethantopreservethestatusquo.Simplystated,weneedtogrowanddevelopopportunitiesforwork,reversetheoutmigrationofouryoungpeopleandcultivateaclimateconductivetofuturecapitalinvestment.

Maine’soutcomebasedforestrylawhascreatedanopportunitytodojustthatforoneofoursuppliers,IrvingWoodlandsLLC.UnderOut-comeBasedForestry,IrvinghasincreaseditslevelsofsilvicultureinvestmentstogrowmorewoodformillsintheStateofMaine.Asyouwouldexpect,animprovedandstablefibersupplyiscriticalforemploymentandgoodforMainemills.Aswellasbuildinganewmill,Irvinghasworkedhardtodevelopmorecontractorsandincreasedinvestmentsintrainingoperatorsforthelaborpoolintheregion.TheseeffortsalldemonstratelongtermcommitmenttotheState,theforestandthepeople.OutcomebasedforestryhasplayedamajorroleforhelpingIrvingdoitspart.”

Bert Martin, DirectorWoodlands Pulp LLC

“KPel IndustrialServices, Inc., isbased inFortFairfield,ME. We employ 26 people. In an area that has beenchallenged by out-migration and limited job creation,Irving’sdecisiontocreate63jobsbyinvesting$33millionin theAshland Sawmill was good news for the Countyand for our business in a particular. This investmentand the benefits we have received as a local businessandemployerare in largepart becauseoutcomebasedforestry ensures a sustainable, cost-efficient delivery ofwoodtotheAshlandSawmill.”

Scott ColtonCo-owner

Fort Fairfield, ME

ACCOUNTABILITY

Independent3rdpartyverificationofourforestmanagementisimportantforpubliccredibilityandconfidence.UndertheOBFagreementthatwesignedwiththeMFSin2012,wearerequiredtomaintainindependent3rdpartycertification(alignedwithallstateandfederallaws)forallofourMaineLandswithoversightandendorsementofauditingresultsbyagovernorappointedpanelofexperts.

In2013ouroperationswereauditedtothestandardsoftheSustainableForestryInitiative(SFI)andISO14001aswellastheprinciplesandcriteriaoftheForestStewardshipCouncil(FSC)–USForestManagementStandards.AuditorsfoundoursustainableforestmanagementsystemtobeinconformancetotheSFIprogramandthattheISO14001EnvironmentalManagementSystem(EMS)wasbeingeffectivelyimplementedandthatoverallconformancetotheapplicableFSCstandardswasachieved.Twoobservationsandcorrectiveactionrequestsfornon-conformitywereissuedbyauditorsfortwoFSCindicatorsundertheUSForestManagementStandards.Correctiveactionrequestsrequirefurthertrainingonlegacytreeidentificationtoimproveconsistencyinapplicationofpolicyandamorethoroughcrossreferencingofpolicydocumentswiththeforestmanagementplantoimproveunderstandingofdesiredfutureconditionsortimberandnon-timberresources.

Our FSC and SFI certifications require us to minimize and strive to reduce our use of chemical pesticides.

Expertpanelfindingsfor2013canbefoundontheMaineForestService’swebsiteforOutcomeBasedForestry.Thefollowinggraphsdepictfocalareasforauditorsin2013.

0

2

4

6

8

10

12

14

16

18

Harvesting Road Construction

and Maintenance

Sites (Including

Watercourse Crossings)

Silviculture Late Successional

Forest

Visual Deer Wintering

Areas

Unique Areas High Conservation Value Forest

Legacy Tree Sites

2013 FSC & SFI/ISO 14001 - # Field Sample Sites

5

2013 Forest Certification Field Samples

http://www.jdirving.com/environment.aspx?id=5334&ekmensel=8_submenu_168_btnlink

Sustainable Forestry 2013 Maine Data

Resource holdings (freehold - Maine) - Acres 1,255,000 acres in 2013

Land base harvested ( %) 2% in 2013

Trees planted - # of seedlings 3 million in 2013

Forest lost from disease 0 acres in 2013

Forest lost from windthrow 900 acres in 2013

Forest lost from fire 8 acres in 2013

Forest lost from all causes 908 acres in 2013

Mapped watercourse buffers (total) 94,000 acres in 2013

Watercourse distances sustainably managed (total) 3,000 miles in 2013

Forestry road building (new roads) 72 miles in 2013

First year planted tree survival rates 85-95% in 2013

Second year planted tree survival rates 84-95% in 2013

Pre-commercial thinning & plantation cleaning completed 3,346 acres in 2013

Tree planting completed 4,296 acres in 2013

Sustainable Forestry Initiative Certification (SFI) 100% of Maine holdings

Environmental Management System Registration (ISO 14001) 100% of Maine holdings

Forest Stewardship Council Certification (FSC) 100% off Maine holdings

Certification Non-Compliances (FSC, SFI & ISO 14001) 0 in 2013

Volunteer Conservation areas on JDI land # of unique areas set aside 214 sites / 19,699 acres

Maine Woodlands Detailed Scorecard

IRVING WOODLANDSDETAILED SCORECARD

6

MAINE WOODLANDS DETAILED SCORECARD

From the Auditor’s Report

“Numerous examples of effectively protected riparian areas and waterbodieswere observed during the field audit.” “A number of vernal pools were observed during the field audit to be well protected under the Company’s Vernal Pool Policy.” “JDI planners do an effective job of tailoring the silviculture system(s) being prescribed to the stand characteristics (species composition, structure, condition, age(s), etc.), site characteristics (fertility, trafficability) and broad management objectives pertaining to a particular stand. In addition to clearcut systems, a variety of partial cutting silviculture systems are prescribed and implemented by the Company.”

2013 Sustainable Forestry Initiative (SFI) Audit Report

2013OPERATIONS REPORT

0%

20%

40%

60%

80%

100%

120%

2009 2010 2011 2012 2013

M3 Harvested (Spruce/Fir, Cedar, Hardwood)

M3 Annual Allowable Harvest (Spruce/Fir, Cedar, Hardwood)

2013OPERATIONS REPORT

In 2013, our foresters implemented an operating plan that was designed tomeet our sustainable forestmanagementstrategyasoutlinedinourmanagementplanunderOBF.Operationswereconductedundercomplexenvironmental,marketandeconomicconditionsthispastseason.MajorwindeventsacrossnumerousownershipsintheCountycausedseveredamagetotheforestresource.TheflexibilityaffordedbyOBFtoproperlyplanandexecuteoperationstomeetthedailychallengesthatourpeoplefacewasatremendousassetinclosingasuccessfuloperatingyear.

7

8

900

0 00

200

400

600

800

1000

Acres w/CatastrophicDamage

AcresSalvaged

Forest Loss due to Wind, Fire, Insectsand Disease

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Spruce & Fir Cedar Other Softwood Hardwood

2013 Actual Harvest Volume (M3)

Less than 2% of the

land base is harvested each year

2013 Actual Harvest Level Volumes(cubic meters)

Harvesting by Species

Trees Planted 2009-2013

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

2009 2010 2011 2012 2013

Acres Planted Acres Precommercially Thinned

Over 11 million trees planted

Must balance over 10 year time period

FORESTMONITORING RESULTS

Aspartofourcommitmenttoimprovethehealth,growthandlongtermyieldfromourlands,wecontinuouslymonitorforesthealth,developmentandgrowthandyield(oftenincooperationwiththeMFS).Monitoringisachievedthroughstafftrainingandobservation,stakeholderconsultationandinput,regularaerialreconnaissance,andanintensivegroundsamplingprogram.Thefollowingprovidesasampleofour2013monitoringprogram.

1st Year Planted Stand Survival Plots 85%-95% Survival issues that are believed to be related to weather extremes in July.

2nd Year Planted Stand Survival Plots 84%-90% Survival issues that are believed to be related to weather extremes over last two years.

3rd Year Harvest Surveys - Not surveyed in 2013.

5th Year Planted Stand Survey 2478 acres Were surveyed and 98% were found to be free from significant competition.

10th Year Planted Stand Survey 3883 acres Were surveyed and 70% of the polygons had areas with significant natural competition that now required intermediate thinning treatments.

High Conservation Value Forest 7 areas No management activities occurred in (HCVF) Survey or adjacent to any HCVF. No significant changes have occured within the designated

areas. Old trees continue to show signs of decline.

Insect Monitoring - Irving foresters assisted MFS personel with insect monitoring, primarily looking for spruce budworm activity (see: MFS website for regional results of findings).

FOREST SURVEYS

Inadditiontomonitoringforesthealthandgrowth,weareobligatedandrequiredtomeasureourimpactontheenvironmentalandsocialaspectsofouroperations.Westrivetoprotectourenvironmentwithprogramstoimproveoperations,lessenourimpactsonwaterresourcesandimproveourhandlingofdangerousgoodssuchasfuel.Operationsimprovementisthefocusofourdailywork.Itcoversallofouroperationsfromplanningtoreforestationofharvestareas.Programstoimproveoperationsincludesustainabilityofwoodsupply,publiceducationandcommunicationinforestmanagementaffairs,soilconservationbycontrollingequipmentrutting,conservationofbiodiversitybyprotectionofhabitat,respectingforestcovertypedistributionandsitespecificandforestlevelhabitatprotection.

Waterprotectionprogramsincludemanagingouruseofdangerousgoodsnearwater,carefulplanningandmanagementofriparianareas,managementofsiltationfromharvestareas,properinstallationandmaintenanceofwatercoursecrossings,andstrictcontrolofactivitieswithinmunicipalwatersupplyareas.Theseprogramsallfollowexistinggovernmentregulationsandarepartofallstaffandcontractors’dailyroutines.

TheenvironmentalandsocialimpactofouroperationsismonitoredbyfollowinganEnvironmentalManagementSystem(EMS)thatallowsustorecord,monitorandrespondtoincidentsastheyarereported.OurEMSsystemisbasedona“toptobottom”communicationsystem.Corporateleadershiptoourregionalteamflowsthroughtheoperations.Staffmeetingsareregular,andoperationalissuesintheformofIncident’sandNon-conformancesarediscussedbetweenstaffandcontractorseveryweek.Allincidentsandnon-conformancesareenteredintoadatabasewherecorrectiveactionsarereported,prioritizedandtrackedtomonitortrendsfordeterminingwhereweareoffplanandwhereimprovementsneedtobemade.

8

STAKEHOLDER ENGAGEMENT

STAKEHOLDER ENGAGEMENT

9

Meetingwithandformallyaddressingstakeholderconcernsispartofour3rdpartycertificationrequirements.Wehavemetbothformallyandinformallywithindividualsandorganizationsinanefforttoincorporateresponsibleideas,guidance,suggestions,information/data,positivecomments,complaintsandconcernsintoourmanagementplanningprocess.

Organization Nature of BusinessMaineNaturalAreasProgram Gatheringspatialinformationonanyrecentfindsof

Maine’srareandinvasiveplantsaswellasprovidingthestatewithdetailsonstafffinds.Thisisdoneannually.

MaineInlandFisheries&Wildlife GatheringspatialinformationonrecentfindsofMaineendangered/threatenedfaunaspeciesandprovidedetailstotheStateonanyJDIstafffinds.Thisisdoneannually.SpenttimewithMIFWstaffinthefieldtoconfirmtheuseofanumberofGreatBlueHeroncolonies.Regulardiscussionsonissuessuchasdeerandmoosemanagement,heroncolonies,etc.

MaineHeritagePreservationCommission

Gatheringspatialinformationonanyrecentarcheologicalfinds.

UniversityofMaine(PresqueIsle)

Discussoperationalconstraintsonourharvestingequipmentthatwillbeinthevicinityofanhistoricnativesite.

NewEnglandWildflowerSociety(NEWFS)

NEWFSprovidesIrvingWoodlands,LLCwithdetailedinformationonthestatusofparticularrareplantsitesonourlandinnorthernMaine.

ManometCenterforConservationSciences

Adviceonrare/uncommonforestcommunitiesandlatesuccessionalforests.

PenobscotEnvironmentalConsulting

Adviceonretainingandrecordinglegacytrees.

SFIFisheriesImprovementNetwork(FIN)

MaineForestProductsCouncil/SFIledgroupconsistingofLandowners,StateandENGOgroupsdedicatedtoimprovingfishhabitatstate-wide.

MaineStreamConnectivityNetwork

Regulator,landownerENGOgroupformedtoimprovefishandaquaticconnectivityonMainewatercourses.

MFPCWildlifeTechnicalCommittee

Landownergroupwhodiscussfish&wildlifeissues,usuallywithstateregulatorsandusergroupslikeSAM.

CooperativeForestResearchUnit(CFRU)

UMaineresearcher-landownersponsoredbodywhichdevelopsandresearchesavarietyofforestryandwildlifeinteractionissues.

MaineDepartmentofEnvironmentalProtection

Issuesconcerninginvasiveforestplantspecies.

In 2013 we also met with the following:•NumerousIndividuals•LocalTownBoards•NativeGroups•SportsmenOrganizations•TechnicalSchools•OtherLandowners•NumerousForestryOrganizations•SportsmenForestLandownerAlliance•MaineSnowmobileAssociationClubs•ATVClubs•NorthMaineWoods•AllagashWildernessWaterway•MaineForestService•FishRiverLakesAssociation

050

100150200250300350400

Snowmobile ATV

Miles of Trail Managed in Cooperation with Clubs

IrvingWoodlandsLLCcontinuestoprovidehistoric,traditionalrecreationalopportunities.BothinsideandoutsidetheNorthMaineWoodsframeworkofAroostookCounty,thereisawelldevelopedculturethatprovidespublicaccesstoprivatelandforengagingintraditionalrecreationaluses.Theworkingrelationshipsdevelopedwithbothindividualsandgroupsfromthissectorhasbeenmutuallybeneficialtoall.Continuedsupportoftraditionalusessuchashunting,fishing,trappingandhikingonourlandsarewelcome.

RECREATIONAL USE INVESTING IN MAINE

10

INVESTING IN MAINE

WE ARE COMMITTED TO CONTINUOUSLY IMPROVING EVERY ASPECT OF OUR MANAGEMENT AND OPERATIONS.

Wewanttobepartnersandgoodneighborsandwecontinuetoactivelyworktosupportourstate,ourcommunities,workers,contractors,suppliersandcustomers.

0100200300400500600700

Recreational CampLeases

Bear Hunting Sites

2013

0

5

10

15

20

New Staff UniversityStudents

NewOperators

Trained

NewMachines

2013IrvingWoodlandsinMaine2013

P In 2013 we worked with 30 commercial outfitters offering outdoor experiences in our woodlands.

NEW SAWMILL AT ASHLANDP $30+millioninvestmentP 63newfulltimejobsP LocalcontractorsassistingwithconstructionP Stateofthearttechnology

LOCAL MAINE CONTRACTORS WORKING ON NEW SAWMILL AT ASHLANDP BuckConstructionP CianbroP K-PelP PNMConstructionP SoderbergConstructionP UnderwoodElectric

2013 INVESTMENTS IN GROWING HEALTHY FORESTSP 3,000,000treesplantedP 3300acre/forestthinningprogramP $3,000,000investedin2013

ADDITIONAL PROJECTS UNDERWAYP Revisedriparianbestmanagementpractices(BMP)for2014P FurtherdevelopmentofspecializedriparianharvestcrewsP ReviewingLiDARmappingcapabilitiesP Implementationofcommercialthinningoperations

11

Developing People

Top LeveL vaLue-added ManufacTuring

TransporT To MarkeT

secondary ManufacTuring

TransporT To furTher ManufacTuring operaTions

priMary ManufacTuring

TransporT To MiLLs

susTainabLe harvesTing (Less than 2% of land base per year)

growing and proTecTing The foresT

HEALTHY FORESTS • GROWING JOBS • VIBRANT COMMUNITIES

Outcome based forestry means a competitive wood supply to many non-Irving mills in the state, including:

B&AFortKentC&WKennedyFarmsCarrierChipPlantColumbiaForestProductsCostiganChipPlantGardnerChipmills

HuberKatahdinPaperLouisianaPacificLumbraHWSawmillUPM-Madison

MooseRiver-JackmanNewPage-RumfordOldTownPleasantRiverLumberRe-EnergyFortFairfield

SappiSkillsIncVersoBucksportVersoJayWoodlandPulp

OUTCOME BASED FORESTRY SUSTAINSA VALUE-CHAIN OF JOBS THROUGHOUT MAINE

12