Canexus Corporation Announces Expansion of North American

Canexus Corporation Announces Expansion of North American Terminal
Operations Capabilities to include Pipeline Connected Unit Train
CALGARY, ALBERTA -- (Marketwire) -- 12/07/12 -- Canexus Corporation
(TSX:CUS) (the "Corporation" or "Canexus") today announced Board of
Director approval of the expansion of its North American Terminal
Operations ("NATO") at Bruderheim, Alberta to include pipeline
connected unit train operations. The Corporation also announced that
formal agreement has been reached with MEG Energy Corp. ("MEG") to
connect the Canexus Bruderheim terminal ("Bruderheim" or "Bruderheim
terminal") with pipelines which interconnect with the MEG Energy
Stonefell Terminal, and to provide terminalling services to MEG for
the loading of bitumen blend for transport by rail and the receiving
of diluent shipments by rail. 
In this next phase of NATO expansion, Canexus plans to connect the
Bruderheim terminal by pipeline (24 inch bitumen blend line and 12
inch condensate line) to MEG's pipelines which interconnect with
MEG's Stonefell Terminal, as well as potentially to a second pipeline
connected facility located nearby. In addition, it plans to build out
the rail infrastructure, loading/offloading and above ground tank
storage required to allow for unit train movement of up to 118 tank
cars (approximately 70,000 barrel movements) in single trains daily.
The cost of the project is expected to be approximately $125 million,
inclusive of the $45 million of pre-spending authorized by the Board
to date for long lead items and other construction activities that
are currently underway. This expansion will be financed from the
common share offering announced on November 29, 2012 (the "Offering,"
which is expected to close on December 19, 2012), excess
distributable cash, committed credit facilities and DRIP proceeds.
The expanded capabilities should be operational in the third quarter
of 2013. 
"We are pleased to announce full project approval of the expansion of
our Bruderheim terminal capabilities that will include pipeline
connected unit train operations for large scale movements of bitumen
blend and diluent by rail," said Mr. Gary Kubera, President and Chief
Executive Officer. "Agreement has been reached with MEG Energy Corp.
to connect Bruderheim with the MEG Energy Stonefell Terminal.
Significant progress on a potential second pipeline/terminal
connection to Bruderheim has also been made and negotiations are
proceeding with additional customers for unit train shipments from
Bruderheim under multi-year, take-or-pay terms." 
The Corporation expects this next phase of NATO expansion to be
accretive to all common shareholders after considering the common
share offering announced on November 29, 2012 (including the
over-allotment option if exercised). This next phase of expansion
sets the stage for future incremental unit train capability,
utilization of the existing 1.6 million barrels of salt cavern
storage, development of additional salt cavern storage and pursuit of
other attractive investment opportunities at this 480 acre site. 
About Canexus 
Canexus produces sodium chlorate and chlor-alkali products largely
for the pulp and paper and water treatment industries. Our four
plants in Canada and two at one site in Brazil are reliable,
low-cost, strategically-located facilities that capitalize on
competitive electricity costs and transportation infrastructure to
minimize production and delivery costs. Canexus also provides
fee-for-service hydrocarbon transloading services to the oil and gas
industry from its terminal at Bruderheim, Alberta. Canexus targets
opportunities to maximize shareholder returns and delivers
high-quality products to its customers. Canexus common shares (CUS)
and debentures (Series I - CUS.DB; Series III - CUS.DB.A; Series IV -
CUS.DB.B) trade on the Toronto Stock Exchange. More information about
Canexus is available at 
Forward Looking Statements  
This press release contains forwarding looking statements. More
particularly, this press release contains statements concerning the
closing of the Offering and the anticipated use of the net proceeds
of the Offering, statements concerning expectations for the
interconnection of the Bruderheim terminal and the MEG Energy
Stonefell terminal and the initial capacity, cost expectations,
timing for completion and contribution to operating cash flow of the
Bruderheim terminal, statements concerning expectations for a second
pipeline/terminal connection and expectations for securing customers
at Bruderheim under multi-year, take-or-pay agreements. By their
nature, forward looking statements involve a variety of assumptions,
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those anticipated in
such forward-looking statements including market and general economic
conditions, future costs, treatment under governmental regulatory,
tax and environmental regimes and the other risks and uncertainties
detailed under "Risk Factors" in the Corporation's Annual Information
Form filed on the Corporation's SEDAR profile at
Although Canexus believes that the expectations reflected in these
forward looking statements are reasonable, undue reliance should not
be placed on them because Canexus can give no assurance that they
will prove to be correct. Since forward looking statements address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. 
The closing of the Offering could be delayed if Canexus is not able
to obtain the necessary regulatory and stock exchange approvals on
the timelines it has planned. The Offering will not be completed at
all if these approvals are not obtained or some other condition to
the closing is not satisfied. Accordingly, there is a risk that the
Offering will not be completed within the anticipated time or at all.
The intended use of the net proceeds of the Offering might change if
the Board of Directors of Canexus Corporation determines that it
would be in the best interests of the Corporation to deploy the
proceeds for some other purpose. 
The forward looking statements contained in this press release are
made as of the date hereof and Canexus undertakes no obligations to
update publicly or revise any forward looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
Canexus Corporation
Gary Kubera
President and CEO
(403) 571-7300 
Canexus Corporation
Richard McLellan
(403) 571-7300
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