Fraser Papers' Thurso Pulp Mill to Reduce Energy Costs and Improve Environmental Performance

Toronto, Ontario, Canada, 27 August 2007 -- (Marketwire) -- Fraser Papers Inc.(TSX:FPS) announced today it has signed an agreement with ForEverGreen Energy Inc. to install a heat exchange unit at its pulp mill in Thurso, Quebec.

Once installed on the mill's main heat stack, the heat exchange unit will produce thermal power that the Thurso operations will use to displace approximately 5% to 10% of the fossil fuel it currently consumes, at significant savings to the current cost of oil. In addition to lowering energy costs, the heat exchange unit will provide important environmental benefits, including reduced emissions of greenhouse gases, such as nitrous oxide and sulfur dioxide.

"This initiative will improve our energy efficiency and strengthens our environmental position at our pulp and paper facilities," noted Jean-Pierre Benoit, general manager at the Thurso pulp mill. "We are committed to improving environmental performance in all aspects of our operations."

The anticipated emission reductions are equivalent to permanently removing more than 2000 cars from the road, which is more than double the number of cars driven by the residents of the entire town of Thurso.

Work will begin during the scheduled maintenance outage in October 2007.

Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The company has operations in New Brunswick and Quebec in Canada and in Maine and New Hampshire in the United States. Fraser Papers is listed on the Toronto Stock Exchange under the symbol: FPS. For more information, visit the Fraser Papers Web site at www.fraserpapers.com.