Fraser Papers Inc. announced today that it has agreed to sell approximately 10,500 tons of specialty printing, packaging and groundwood papers to Brookfield Paper LLC ("BPLLC") for proceeds of approximately $11.7 million, which will be used to repay amounts outstanding under the Company's working capital facility. In addition, the Company has agreed to supply paper to BPLLC through July 31, 2009, at market prices. The net proceeds to Fraser Papers reflect a customary merchant's discount of 3.5% to end user selling prices. As part of the transaction, Fraser Papers will provide sales and administrative support to BPLLC. BPLLC is a wholly-owned subsidiary of Brookfield Asset Management Inc. ("Brookfield") , the Company's majority shareholder.