Resolute Reports Preliminary Fourth Quarter and 2012 Results

         Resolute Reports Preliminary Fourth Quarter and 2012 Results

PR Newswire

MONTREAL, Feb. 12, 2013

US $

  *2012 loss of $0.02 per share; earnings of $0.81 per share excluding
    special items
  *Q4 adjusted EBITDA of $104 million; $386 million for the year
  *Net debt of $271 million
  *Cash flow from operations of $266 million in 2012

MONTREAL, Feb. 12, 2013  /PRNewswire/ - Resolute  Forest Products Inc.  (NYSE: 
RFP) (TSX: RFP) reported a net loss of $2 million for the year ended  December 
31, 2012, or $0.02 per share, on sales of $4.5 billion.This compares with net
income of $41 million, or $0.42 per diluted share, on sales of $4.8 billion in
the year ended December 31, 2011.Net loss  in the fourth quarter of 2012  was 
$36 million, or $0.38 per share, on sales of $1.1 billion, compared with a net
loss of $6 million, or $0.06 per share, on sales of $1.1 billion in the fourth
quarter of 2011.

Excluding $81 million of special items, net  income for the full year was  $79 
million, or $0.81 per diluted share.  Excluding special items of $70  million, 
net income  in  the fourth  quarter  was $34  million,  or $0.35  per  diluted 
share.For the full  year 2011, net  income excluding special  items was  $166 
million, or $1.71  per diluted share,  and $45 million,  or $0.46 per  diluted 
share, in the fourth  quarter 2011.All special  items and non-GAAP  financial 
measures, such  as adjustments  for  special items  and adjusted  EBITDA,  are 
described and reconciled below.

"We significantly  improved the  Company's competitiveness  by optimizing  our 
asset base, reducing costs wherever  possible and strengthening our  financial 
position this  year,"  said Richard  Garneau,  president and  chief  executive 
officer."We added  pulp  assets,  committed to  growth  projects  in  lumber, 
invested in power cogeneration plants and further optimized our paper  assets, 
steps that will position us well for the future.At the same time, we returned
$67 million  to our  shareholders  in share  buybacks, reduced  balance  sheet 
working capital by a further $81 million from the end of 2011 and redeemed  an 
additional $85 million of debt."

Operating Income Variance

The Company recorded  an operating loss  of $30 million  in 2012, compared  to 
operating income  of  $198  million  in 2011.This  reflects  a  $134  million 
increase in  closure costs,  impairment and  other related  charges, and  $173 
million of lower volume, in both  cases because of additional market  downtime 
and  the  Company's  ongoing   efforts  to  focus   production  in  its   most 
cost-effective mills and drive better efficiency by restructuring and reducing
labor costs.As a result, and in addition to lower energy, recovered paper and
fiber costs,  manufacturing  costs  improved by  $55  million,  excluding  the 
effects of lower volume.The effect of pricing changes in the year was neutral
as the increase  in lumber  pricing offset declines  in pulp,  while gains  in 
specialty paper offset declines in newsprint and coated papers.

In the fourth quarter, the Company recorded an operating loss of $46  million, 
compared to operating income  of $26 million in  the third.This reflects  $82 
million in closure costs, impairment and other related charges, mainly related
to the idling  of a pulp  mill and  specialty paper machine  in Fort  Frances, 
Ontario, the closure of a specialty  paper machine in Laurentide, Quebec,  and 
costs related to the sale of assets in Mersey, Nova Scotia.The variance  also 
included  the  unfavorable  effects  of  a  $10  million  non-cash   inventory 
obsolescence charge  for  slow-moving  spare parts,  $10  million  unfavorable 
pricing and $8 million due  to lower volume.The Company's asset  optimization 
and restructuring initiatives, as well as more favorable pricing for recovered
paper, maintenance timing and a favorable wood products inventory  adjustment, 
led to savings of  $25 million in overall  manufacturing costs, excluding  the 
effects of lower volume.

SEGMENT DETAILS

Newsprint

The newsprint segment generated operating income of $18 million in the  fourth 
quarter, an  $8 million  decrease from  the third.Average  transaction  price 
slipped $6 per  metric ton  and shipments  fell 2%  as a  result of  newsprint 
export markets pressured  by the strong  U.S. dollar.There was  a $4  million 
non-cash provision  for spare  parts obsolescence  recorded against  operating 
income in the  quarter, but  it was offset  by lower  manufacturing costs  and 
favorable recovered paper pricing.

An 11% reduction in operating costs led  to a 9% increase in operating  income 
for the year, to $97  million, despite a 10% reduction  in shipments and a  1% 
decrease in average transaction price.The  Company reduced shipments as  part 
of its efforts to manage its exposure  to markets affected by the strong  U.S. 
dollar and its  steps to optimize  its asset base,  including the closure  and 
subsequent sale of its interest in the Mersey newsprint mill.

Coated Papers

Operating income in  the coated  papers segment  was unchanged  in the  fourth 
quarter compared to the third,  at $3 million.Average transaction price  rose 
$18 per short ton, or 2%, but shipments were down 14% as a result of equipment
failures, which pushed operating costs per unit up 3%.

Operating income in the coated papers segment was down $48 million in 2012, to
$9 million, as a result of a  3% reduction in average transaction price and  a 
13% reduction  in shipments.The  Company continued  to make  progress in  its 
efforts to  improve  equipment efficiency  with  a smaller  labor  force,  but 
operating costs  per unit  rose  by 6%  in the  year,  as the  Catawba,  South 
Carolina, mill continues to work toward capturing the expected efficiencies.

Specialty Papers

The specialty papers segment generated operating  income of $8 million in  the 
fourth quarter, an $18  million decrease from  the previous quarter.  Average 
transaction price was  stable but  shipments dropped 3%  on lower  demand.The 
decrease  in  operating  income  includes  $4  million  in  additional   costs 
associated with  the Dolbeau,  Quebec,  facility's ramp-up  and a  $3  million 
non-cash provision for spare parts obsolescence.

The restart of the Dolbeau facility is another step in the Company's  strategy 
to optimize its asset base; in  the last five quarters, three specialty  paper 
machines, one in each of Laurentide,  Fort Frances and Kenogami, Quebec,  were 
closed  or  idled,   and  the  Company   continued  its  labor   restructuring 
initiatives, most recently in Alma,  Quebec.Despite a 16% drop in  shipments, 
consistent with the industry average, operating  income rose 23% from 2011  to 
2012, to  $76 million,  as  average transaction  price  increased 3%  and  the 
Company improved manufacturing  costs, including a  $7 million improvement  in 
labor costs and $14 million of favorable power and steam costs.

Market Pulp

Operating income was breakeven in the quarter, a $22 million improvement  over 
the third.Average transaction price dropped $23  per metric ton, or 3%,  from 
its already low levels in  the third quarter.Despite indefinitely idling  the 
Fort Frances pulp mill in late November, shipments rose 8% as the Company  ran 
Fibrek's Saint-Felicien, Quebec, facility  throughout the quarter, except  for 
four days of downtime  to complete the dredging  of many years of  accumulated 
sludge in the lagoons.Manufacturing  costs improved by  $18 million as  there 
was no major maintenance in the quarter.

Operating income  in 2012  was $135  million lower  than in  2011,  reflecting 
primarily the $82  per metric  ton drop  in average  transaction price  (which 
includes, as of May 2012, the three Fibrek mills), but also an increase of $21
million  in  operating  costs  on  higher  chemicals,  maintenance  and  labor 
costs.The five-week  outage  at Saint-Felicien  had  a $16  million  negative 
impact on operating income.

Wood Products

The wood products  segment reported  operating income  of $14  million in  the 
fourth quarter, $8  million higher than  the third.Average transaction  price 
was unchanged  but  shipments  rose  1%.There  was  a  $7  million  favorable 
inventory adjustment  as  a result  of  increasing market  prices  for  lumber 
products.

As a  result  of stronger  market  conditions and  gradually  improving  North 
American housing starts, operating income  increased $51 million in the  year, 
to $26 million,  and average  transaction price  rose $53  per thousand  board 
feet, or 18%.Shipments were down 9% as a result of the closure of the Oakhill
sawmill in Nova Scotia and  downtime in Quebec sawmills.Manufacturing   costs 
rose $16 million mainly  because of higher stumpage  fees in Quebec, which  is 
tied to lumber pricing.

CORPORATE & FINANCE

The Company used cash on hand  to repurchase 1,946,205 shares of common  stock 
during the  fourth quarter  under its  previously announced  share  repurchase 
program, at a  total cost of  $22 million, and  to redeem $85  million of  its 
10.25% senior secured notes due 2018.With  $263 million of cash, the  Company 
ended the quarter with $782 million  of available liquidity, and $271  million 
in net debt.

OUTLOOK

Mr. Garneau  added: "combined  with softening  demand and  lower exports  from 
North America, recent capacity restarts by competitors are putting pressure on
pricing in  newsprint  and supercalender  grades.We  have focused  our  paper 
production in  our  most  productive  sites and  drove  better  efficiency  by 
restructuring mills and reducing labor costs.This gives us confidence in  the 
competitiveness of our improved asset base as we face the challenges ahead.We
expect to benefit in 2013 from investments in power cogeneration assets,  with 
Saint-Felicien and Dolbeau now fully  operational and Thunder Bay expected  to 
come online by the end of the first quarter.Recent demand and pricing  trends 
are giving us reason for cautious  optimism that the pulp market is  gradually 
coming out  of its  prolonged  slump.Wood products  should continue  to  show 
progress as housing  starts build on  recent improvements.Our ongoing  growth 
projects -  the  capacity enhancement  in  Thunder  Bay, in  addition  to  the 
announced restart of the Ignace sawmill  and construction of the new  Atikokan 
sawmill to be completed in 2014 -  further enhance our position in the  lumber 
segment for the future."

DESCRIPTION OF SPECIAL ITEMS
                                            Full                    Full
Special items, net of tax       Fourth        year        Fourth        year
(in millions)                quarter 2012     2012     quarter 2011     2011
Charge (gain) on non-                                            
cash translation of
Canadian dollar net
monetary assets                       $ 3     $ (23)         $ (13)       $ 23
Severance                              1         4             -         8
Closure costs,                                                   
impairment and other
related charges                        60        112              6         32
Inventory write-downs                                            
related to closures                     4          7              2          2
Start-up costs of idled                                          
mills                                   6         10              -          -
Net gain on disposition of                                       
assets                                (6)       (22)              -        (2)
Post-emergence                                                   
expenses                               4          9              9         34
Transaction costs related                                        
to the acquisition of
Fibrek                                  1          8              4          4
Other income, net                    (6)      (11)           (5)      (14)
Non-cash charge (gain)                                           
for reorganization-related
and other tax adjustments               3       (13)             48        38
Total                         $ 70      $ 81          $ 51     $ 125
                                                                     

EARNINGS CONFERENCE CALL

The Company will hold  a conference call to  discuss the financial results  at 
9:00 a.m. (ET) today.The public is invited to join the call at (888) 789-9572
(pass code  9922866)  at least  fifteen  minutes before  its  scheduled  start 
time.A simultaneous webcast will  also be available  using the link  provided 
under  "Presentations   and   Webcasts"   in  the   "Investors"   section   of 
www.resolutefp.com.A replay of the webcast will be archived on the  Company's 
website.A phone replay will  also be available until  February 27 by  dialing 
(800) 408-3053 with the pass code 1158286.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

Statements in this press release and the earnings conference call referred  to 
above that are not reported financial results or other historical  information 
of Resolute Forest Products Inc.  are "forward-looking statements" within  the 
meaning of the Private Securities Litigation Reform Act of 1995. They include,
for example, statements relating to our:  efforts to continue to reduce  costs 
and  increase  revenues  and   profitability,  including  our   cost-reduction 
initiatives regarding selling, general  and administrative expenses;  business 
and operating  outlook; assessment  of  market conditions;  prospects,  growth 
strategies and the industry in which we operate; and strategies for  achieving 
our goals generally.Forward-looking statements may  be identified by the  use 
of forward-looking terminology such as  the words "should," "would,"  "could," 
"will," "may,"  "expect," "believe,"  "anticipate," "attempt,"  "project"  and 
other  terms  with  similar  meaning  indicating  possible  future  events  or 
potential impact on our business or Resolute's shareholders.

The reader is cautioned not to  place undue reliance on these  forward-looking 
statements, which are not  guarantees of future performance.These  statements 
are based on management's current  assumptions, beliefs and expectations,  all 
of which involve a number of business risks and uncertainties that could cause
actual results  to differ  materially.The potential  risks and  uncertainties 
that could  cause Resolute's  actual future  financial condition,  results  of 
operations and  performance  to  differ materially  from  those  expressed  or 
implied in the presentation referred to above include, but are not limited to,
the potential  risks  and uncertainties  set  forth under  the  heading  "Risk 
Factors" in Part I, Item 1A of  Resolute's annual report on Form 10-K for  the 
year ended December  31, 2011,  filed with  the United  States Securities  and 
Exchange Commission and the Canadian securities regulatory authorities.

All forward-looking  statements  in the  presentation  referred to  above  are 
expressly qualified  by the  cautionary statements  contained or  referred  to 
above and in Resolute's other filings with the SEC and the Canadian securities
regulatory authorities. Resolute disclaims  any obligation to publicly  update 
or revise  any  forward-looking  information,  whether  as  a  result  of  new 
information, future events or otherwise, except as required by law.

ABOUT RESOLUTE FOREST PRODUCTS

Resolute Forest Products is  a global leader in  the forest products  industry 
with a diverse  range of  products, including  newsprint, commercial  printing 
papers, market pulp and  wood products. The Company  owns or operates over  40 
pulp and paper mills and wood products facilities in the United States, Canada
and South Korea, and power generation assets in Canada. Marketing its products
in close  to 80  countries, Resolute  has third-party  certified 100%  of  its 
managed  woodlands  to  at  least  one  of  three   internationally-recognized 
responsible forest management standards, including 65% certified to the Forest
Stewardship Council® (FSC) standards. The  shares of Resolute Forest  Products 
trade under the stock symbol RFP on  both the New York Stock Exchange and  the 
Toronto Stock Exchange.

Resolute and  other member  companies of  the Forest  Products Association  of 
Canada, as well as  a number of environmental  organizations, are partners  in 
the Canadian Boreal Forest Agreement.The group works to identify solutions to
conservation issues that meet the goal of balancing equally the three  pillars 
of sustainability  linked  to  human activities:  environmental,  social  and 
economic.Resolute is  also a  member  of the  World Wildlife  Fund's  Climate 
Savers program, in which businesses establish ambitious targets to voluntarily
reduce greenhouse gas emissions and work aggressively toward achieving them.

                        RESOLUTE FOREST PRODUCTS INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
              (Unaudited, in millions except per share amounts)
                                                                  
                                                                  
                                                          Twelve      Twelve
                         Three Months  Three Months    Months     Months
                                                          Ended        Ended
                             Ended          Ended        December    December
                         December 31,  December 31,     31,         31,
                             2012          2011         2012       2011
                                                                  
                                                                  
Sales                       $    1,128    $    1,147   $   4,503   $  4,756
Costs and expenses:                                                
    Cost of sales,
    excluding
    depreciation,
    amortization and cost
   of timber harvested            876            864        3,492       3,590
    Depreciation,
    amortization and cost
   of timber harvested            59           56        233       220
   Distribution costs            129          132        514       547
    Selling, general and
    administrative
   expenses                       35           36        149       158
    Closure costs,
    impairment and other
   related charges ^(2)           82           12        180        46
    Net gain on
    disposition of assets
   ^(3)                          (7)            -       (35)       (3)
Operating (loss) income          (46)           47       (30)       198
Other (expense) income:                                            
   Interest expense             (15)         (18)       (66)      (95)
    Foreign currency
    translation (loss)
   gain ^(4)                     (4)            9         17      (21)
   Other, net                      4          (6)          5      (27)
(Loss) income before
income taxes                     (61)           32       (74)        55
Income tax benefit
(provision) ^(5)                   26         (42)         38      (16)
Net (loss) income
including noncontrolling
interests                        (35)         (10)       (36)        39
Net (income) loss
attributable to
noncontrolling interests          (1)            4         34         2
Net (loss) income
attributable to Resolute
Forest Products Inc.        $     (36)    $      (6)   $     (2)   $     41
                                                                  
Net (loss) income per
share attributable to
Resolute Forest Products                                      
Inc. common shareholders:
^(6)
   Basic                   $   (0.38)    $   (0.06)   $  (0.02)   $   0.42
   Diluted                 $   (0.38)    $   (0.06)   $  (0.02)   $   0.42
                                                                  
Weighted-average number
of Resolute Forest                                            
Products Inc. common
shares outstanding: ^(6)
   Basic                        95.7         97.1       97.4      97.1
   Diluted                      96.0         97.1       97.5      97.1

                        RESOLUTE FOREST PRODUCTS INC.
                         CONSOLIDATED BALANCE SHEETS
                           (Unaudited, in millions)
                                                                        
                                                                        
                                                   December 31  December 31,
                                                      2012          2011
Assets                                                                   
Current assets:                                                          
 Cash and cash equivalents                           $     263     $     369
 Accounts receivable trade, net                          576          582
 Accounts receivable other                                121          168
 Inventories, net                                         545          475
 Assets held for sale                                       -            7
 Deferred income tax assets                                56          109
 Other current assets                                      58           59
              Total current assets                     1,619        1,769
Fixed assets, net                                        2,440        2,502
Amortizable intangible assets, net                          69           18
Deferred income tax assets                               2,002        1,749
Other assets                                               194          260
 Total assets                                        $   6,324     $   6,298
                                                                        
Liabilities and equity                                                   
Current liabilities:                                                     
 Accounts payable and accrued liabilities            $     581     $     544
 Current portion of long-term debt                          2            -
              Total current liabilities                  583          544
Long-term debt, net of current portion                     532          621
Pension and other postretirement benefit
obligations                                              1,946        1,524
Deferred income tax liabilities                             75           75
Other long-term liabilities                                 72           57
              Total liabilities                        3,208        2,821
                                                                        
Commitments and contingencies                                            
                                                                        
Equity:                                                                  
Common stock                                                 -            -
Additional paid-in capital                               3,730        3,687
Retained earnings                                           38           41
Accumulated other comprehensive loss                     (614)        (311)
Treasury stock at cost                                    (61)            -
  Total Resolute Forest Products Inc. shareholders'
 equity                                                 3,093        3,417
Noncontrolling interests                                    23           60
 Total equity                                           3,116        3,477
 Total liabilities and equity                        $   6,324     $   6,298



                        RESOLUTE FOREST PRODUCTS INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited, in millions)
                                                                        
                                                                        
                                              Twelve Months   Twelve Months
                                              Ended December  Ended December
                                                    31,              31,
                                                   2012            2011
Cash flows from operating activities:                                    
Net (loss) income including noncontrolling                    
interests                                          $     (36)       $       39
  Adjustments to reconcile net (loss) income
 including noncontrolling interests to net                   
  cash provided by operating activities:                                  
 Share-based compensation                                 5              3
 Depreciation, amortization and cost of                      
  timber harvested                                       233             220
 Closure costs, impairment and other related                 
  charges                                                161              41
 Write-downs of inventory                                12              3
 Deferred income taxes                                 (35)             19
 Net pension contributions                             (95)          (175)
 Net gain on disposition of assets                     (35)            (3)
 (Gain) loss on translation of foreign                       
  currency denominated deferred income taxes            (37)              25
  Loss (gain) on translation of foreign
 currency denominated pension and other                      
  postretirement benefit obligations                      30            (15)
 Premium related to debt redemptions                    (5)           (16)
 Dividends received from equity method                       
  investees in excess of income                            2               9
 Leasehold improvement incentive received                    
  from lessor                                              5               -
 Other, net                                             (3)            (3)
 Changes in working capital:                                            -
      Accounts receivable                               91             87
      Inventories                                     (21)           (39)
      Other current assets                               5             31
      Accounts payable and accrued                          
        liabilities                                     (11)            (28)
                  Net change in working                    
                     capital                              64              51
      Net cash provided by operating                        
        activities                                       266             198
                                                                        
Cash flows from investing activities:                                    
Cash invested in fixed assets                          (169)           (97)
Disposition of investment in ACH Limited                      
Partnership                                                -             296
Disposition of our interest in Bowater Mersey                 
Paper Company Limited, net of cash                        14               -
Disposition of other assets                               36             19
Acquisition of Fibrek Inc., net of cash                       
acquired ^(1)                                           (24)               -
Proceeds from holdback related to disposition                 
of investment in MPCo                                     -              29
Proceeds from insurance settlements                        -              8
Decrease (increase) in restricted cash                    76            (2)
Increase in deposit requirements for letters                  
of credit, net                                          (12)             (8)
Other investing activities, net                            4              -
      Net cash (used in) provided by                        
        investing activities                            (75)             245
                                                                        
Cash flows from financing activities:                                    
Purchases of treasury stock                             (67)              -
Dividends and distribution to noncontrolling                  
interests                                                (5)            (21)
Acquisition of noncontrolling interest ^(1)            (27)           (15)
Payments of debt                                       (198)          (354)
Payments of financing and credit facility fees             -            (3)
      Net cash used in financing activities          (297)          (393)
                                                                        
Net decrease (increase) in cash and cash                      
equivalents                                            (106)              50
Cash and cash equivalents:                                               
      Beginning of period                              369            319
      End of period                              $      263      $      369



                        RESOLUTE FOREST PRODUCTS INC.
   STATEMENTS OF OPERATING INCOME AND NET INCOME ADJUSTED FOR SPECIAL ITEMS
                                                                     
A reconciliation of our operating income, net income and net income per share
reported before special items
is presented in the tables below. See Note 7 to the Unaudited Consolidated
Financial Statement Information
regarding our use of non-GAAP measures.
                                                                     
Three Months Ended December 31,
2012                                   Operating
(unaudited, in millions except per   income (loss)     Net income
share amounts)                                          (loss)        EPS
                                                                     
GAAP as reported                         $     (46)     $   (36)    $ (0.38)
                                                                     
Adjustments for special items:                                        
   Foreign currency translation                                  
    loss                                         -           3        0.03
   Severance                                    2           1       0.01
   Closure costs, impairment and                                 
    other related charges                       82          60        0.63
   Inventory write-downs related                                 
    to closures                                  5           4        0.04
   Start up costs of idled mill                 8           6       0.06
   Net gain on disposition of                                    
    assets                                     (7)         (6)      (0.06)
   Post-emergence costs                         -           4       0.04
   Transaction costs                            1           1       0.01
   Other income, net                            -         (6)     (0.06)
   Reorganization-related and                                    
    other tax adjustments                        -           3        0.03
                                                                     
GAAP as adjusted for special items       $       45     $     34    $   0.35
                                                                     
                                                                
Three Months Ended December 31,
2011                                   Operating                  
(unaudited, in millions except per   income (loss)     Net income
share amounts)                                          (loss)         EPS
                                                                     
GAAP as reported                         $       47     $    (6)    $ (0.06)
                                                                     
Adjustments for special items:                                        
   Foreign currency translation                                  
    gain                                         -        (13)      (0.13)
   Closure costs, impairment and                                 
    other related charges                       12           6        0.06
   Inventory write-downs related                                 
    to closures                                  2           2        0.02
   Post-emergence costs                         -           9       0.09
   Transaction costs                            5           4       0.04
   Other income, net                            -         (5)     (0.05)
   Reorganization-related and                                    
    other tax adjustments                        -          48        0.49
                                                                     
GAAP as adjusted for special items       $       66     $     45    $   0.46
                                                                     
                                                                
Twelve Months Ended December 31,
2012                                   Operating    
(unaudited, in millions except per   income (loss)     Net income
share amounts)                                           (loss)        EPS
                                                                     
GAAP as reported                         $     (30)     $    (2)    $ (0.02)
                                                                     
Adjustments for special items:                                        
   Foreign currency translation                                  
    gain                                         -        (23)     $ (0.24)
   Severance                                    5           4    $   0.04
   Closure costs, impairment and                                 
    other related charges                      180         112     $   1.15
   Inventory write-downs related                                 
    to closures                                 12           7     $   0.07
   Start up costs of idled mill                13          10    $   0.10
   Net gain on disposition of                                    
    assets                                    (35)        (22)     $ (0.22)
   Post-emergence costs                         -           9    $   0.09
   Transaction costs                            8           8    $   0.08
   Other income, net                            -        (11)    $ (0.11)
   Reorganization-related and                                    
    other tax adjustments                        -        (13)     $ (0.13)
                                                                     
GAAP as adjusted for special items       $      153     $     79    $   0.81
                                                                     
                                                                
Twelve Months Ended December 31,
2011                                   Operating
(unaudited, in millions except per   income (loss)     Net income
share amounts)                                          (loss)        EPS
                                                                     
GAAP as reported                         $      198     $     41    $   0.42
                                                                     
Adjustments for special items:                                        
   Foreign currency translation                                  
    loss                                         -          23        0.24
   Severance                                   12           8       0.08
   Closure costs, impairment and                                 
    other related charges                       46          32        0.33
   Inventory write-downs related                                 
    to closures                                  3           2        0.02
   Net gain on disposition of                                    
    assets                                     (3)         (2)      (0.02)
   Post-emergence costs                         -          34       0.35
   Transaction costs                            5           4       0.05
   Other income, net                            -        (14)     (0.15)
   Reorganization-related and                                    
    other tax adjustments                        -          38        0.39
                                                                     
GAAP as adjusted for special items       $      261     $    166    $   1.71



                            RESOLUTE FOREST PRODUCTS INC.
                       STATEMENTS OF EBITDA AND ADJUSTED EBITDA
                                                                 
A reconciliation of our net income including noncontrolling interests to EBITDA and
Adjusted EBITDA is presented in the tables below.
See Note 7 to the Unaudited Consolidated Financial Statement Information regarding our
use of non-GAAP measures EBITDA and Adjusted EBITDA
                                                                 
                                                                 
Three Months
Ended December
31, 2012                                                            Corporate
(unaudited, in             Coated   Specialty   Market     Wood        and
millions)      Newsprint  papers   papers     pulp   products    other    Total
                                                                 
Net income
(loss)
including
noncontrolling
interests        $    18   $   3    $     8  $    -   $    14   $   (78)  $ (35)
Interest
expense, net                                               15     15
Income tax
benefit                                                  (26)   (26)
Depreciation,
amortization
and cost of
timber
harvested            18      9        11     13        8              59
EBITDA               36     12        19     13       22      (89)     13
                                                                 
Foreign
currency
translation
loss                                                        4      4
Severance                                                   2      2
Closure costs,
impairment and
other related
charges                                                    82     82
Inventory
write-downs
related to
closures                                                    5      5
Start up costs
of idled mill                                               8      8
Net gain on
disposition of
assets                                                    (7)    (7)
Post-emergence
costs                                                       4      4
Transaction
costs                                                       1      1
Other income,
net                                                       (8)    (8)
                                                                 
Adjusted
EBITDA           $    36   $  12    $    19  $   13   $    22   $      2  $  104
                                                                 
                                                                 
Three Months
Ended December
31, 2011                                                            Corporate
(unaudited, in             Coated   Specialty   Market     Wood        and
millions)      Newsprint  papers   papers     pulp   products    other    Total
                                                                 
Net income
(loss)
including
noncontrolling
interests        $    26   $  13    $    24  $   12   $   (5)   $   (80)  $ (10)
Interest
expense, net                                               18     18
Income tax
provision                                                  42     42
Depreciation,
amortization
and cost of
timber
harvested            18      9        13      8        8              56
EBITDA               44     22        37     20        3      (20)    106
                                                                 
Foreign
currency
translation
gain                                                      (9)    (9)
Closure costs,
impairment and
other related
charges                                                    12     12
Inventory
write-downs
related to
closures                                                    2      2
Post-emergence
costs                                                      12     12
Transaction
costs                                                       5      5
Other income,
net                                                       (6)    (6)
                                                                 
Adjusted
EBITDA           $    44   $  22    $    37  $   20   $     3   $    (4)  $  122
                                                                 
                                                                 
Twelve Months
Ended December
31, 2012                                                            Corporate
(unaudited, in             Coated   Specialty   Market     Wood        and
millions)      Newsprint  papers   papers     pulp   products    other    Total
                                                                 
Net income
(loss)
including
noncontrolling
interests        $    97   $   9    $    76  $ (50)   $    26   $  (194)  $ (36)
Interest
expense, net                                               66     66
Income tax
benefit                                                  (38)   (38)
Depreciation,
amortization
and cost of
timber
harvested            72     37        46     44       34             233
EBITDA              169     46       122    (6)       60     (166)    225
                                                                 
Foreign
currency
translation
gain                                                     (17)   (17)
Severance                                                   5      5
Closure costs,
impairment and
other related
charges                                                   180    180
Inventory
write-downs
related to
closures                                                   12     12
Start up costs
of idled mill                                              13     13
Net gain on
disposition of
assets                                                   (35)   (35)
Post-emergence
costs                                                      11     11
Transaction
costs                                                       8      8
Other income,
net                                                      (16)   (16)
                                                                 
Adjusted
EBITDA           $   169   $  46    $   122  $  (6)   $    60   $    (5)  $  386
                                                                 
                                                                 
Twelve Months
Ended December
31, 2011                                                            Corporate
(unaudited, in             Coated   Specialty   Market     Wood        and
millions)      Newsprint  papers   papers     pulp   products    other    Total
                                                                 
Net income
(loss)
including
noncontrolling
interests        $    89   $  57    $    62  $   85   $  (25)   $  (229)  $   39
Interest
expense, net                                               95     95
Income tax
provision                                                  16     16
Depreciation,
amortization
and cost of
timber
harvested            73     35        49     30       33             220
EBITDA              162     92       111    115        8     (118)    370
                                                                 
Foreign
currency
translation
loss                                                       21     21
Severance                                                  12     12
Closure costs,
impairment and
other related
charges                                                    46     46
Inventory
write-downs
related to
closures                                                    3      3
Net gain on
disposition of
assets                                                    (3)    (3)
Post-emergence
costs                                                      47     47
Transaction
costs                                                       5      5
Other income,
net                                                      (20)   (20)
                                                                 
Adjusted
EBITDA           $   162   $  92    $   111  $  115   $     8   $    (7)  $  481
                                                                 

RESOLUTE FOREST PRODUCTS INC.
Notes to the Unaudited Consolidated Financial Statement Information

1. Acquisition of Fibrek Inc.
  
  On December 15, 2011, we announced an offer to purchase all of the issued
   and outstanding shares of Fibrek Inc. ("Fibrek"), a producer and marketer
   of virgin and recycled kraft pulp, operating three mills. Our acquisition
   of Fibrek has been achieved in stages. In connection with the offer, as of
   April 23, 2012, we had taken up and accepted for payment approximately
   48.8% of the then outstanding Fibrek shares. On May 2, 2012, we took up and
   accepted for payment additional shares of Fibrek, after which we owned a
   controlling interest (approximately 50.1% of the then outstanding Fibrek
   shares) and Fibrek became a consolidated subsidiary. We subsequently
   acquired additional shares of Fibrek and, as of May 17, 2012 (the date the
   offer expired), we owned approximately 74.6% of the then outstanding Fibrek
   shares. On July 31, 2012, we completed the second step transaction for the
   remaining 25.4% of the outstanding Fibrek shares.
  
  As aggregate consideration for all of the Fibrek shares purchased, we
   distributed approximately 3.3 million shares of our common stock and Cdn$63
   million ($63 million, based on the exchange rates in effect on each of the
   dates we acquired the shares of Fibrek) in cash. In connection with the
   Fibrek shareholder vote on the arrangement, certain former shareholders of
   Fibrek exercised (or purported to exercise) rights of dissent in respect of
   the transaction, asking for a judicial determination of the fair value of
   their claim under the Canada Business Corporations Act. No consideration
   has to date been paid to the former Fibrek shareholders who exercised (or
   purported to exercise) rights of dissent. Any such consideration will only
   be paid out upon settlement or judicial determination of the fair value of
   their claims and will be paid entirely in cash. Accordingly, we cannot
   presently determine the amount that ultimately may be paid to former
   holders of Fibrek shares in connection with the proceedings, but we have
   reserved approximately Cdn$14 million ($14 million, based on the exchange
   rate in effect on December 31, 2012) for the eventual payment of those
   claims. The results reported for the year ended December 31, 2012 include
   the financial results of Fibrek for the period from May 2, 2012 to December
   31, 2012. Fibrek's results of operations are included in the market pulp
   segment.
  
2. Closure costs, impairment and other related charges for the years ended
   December 31, 2012 and 2011 were comprised of the following:

                                                                
                                            Pension and             
                                               OPEB plan
                                              curtailment    Severance
                                                  and           and
                  Impairment   Accelerated     settlement      other
(In millions)     of assets    depreciation      losses        costs     Total
Indefinite                                                          
idlings:                                                                 
 Bowater Mersey                                                    
  Paper Company
  Limited in Nova
  Scotia ^(1)           $ 72            $ -            $ 8        $ 15    $ 95
 Kraft mill and                                                    
  paper machine
  in Fort
  Frances,
  Ontario ^(2)            31              2              1           6      40
 Paper machine                                                     
  in Catawba,
  South Carolina
  ^(2)                     1              -              -           -       1
Permanent                                                           
closure:                                                                 
 Paper machine                                                     
  in Laurentide,
  Quebec                   -             18              -           4      22
Restructuring                                                       
initiatives:                                                             
 Catawba paper                                                     
  mill                     -              -              -           4       4
 Baie-Comeau,                                                      
  Quebec paper
  mill                     -              -              3           1       4
 Lump-sum                                                          
  payments to
  vested
  terminated
  participants             -              -              7           -       7
Other                      2             1             2          2      7
2012 Total             $ 106          $ 21          $ 21       $ 32  $ 180
2011 Total              $ 16           $ 8           $ 8       $ 14   $ 46

^(1) During 2012, we recorded long-lived asset impairment charges (including a
     $7 million write-down of an asset retirement obligation for environmental
     liabilities) related to the sale of our interest in Bowater Mersey Paper
     Company Limited to reduce the carrying value of our net assets to fair
     value less costs to sell.
    
^(2) During 2012, we recorded long-lived assets impairment charges to reduce
     the carrying value of the assets to their estimated fair value, which was
     determined based on the assets' estimated salvage values.
    
3.   During 2012, we sold two parcels of land in Gatineau, our Petit Saguenay
     sawmill, our recycling division's assets located in Phoenix, Arizona, our
     interest in our Mersey operations and various other assets for total
     consideration of $55 million, comprised of a note receivable of $5
     million and net cash proceeds of $50 million, resulting in a net gain on
     disposition of assets of $35 million.
    
4.   During 2012, we recorded a foreign currency translation gain of $17
     million. This gain is a result of the stronger Canadian dollar relative
     to the U.S. dollar at December 31, 2012 and its impact on the translation
     of our Canadian dollar net monetary assets in the Company's principal
     Canadian operating subsidiary.
    
5.   During 2012, we recorded an income tax benefit of $38 million. The income
     tax benefit reflects favorable reorganization-related and other tax
     adjustments, as well as foreign exchange impacts, primarily offset by a
     net increase in our valuation allowances.
    
6.   For the calculation of basic and diluted income per share for the year
     ended December 31, 2012 and 2011, no adjustments to net income
     attributable to Resolute Forest Products were necessary.
    
7.   Tables represent a reconciliation of certain financial statement line
     items reported under generally accepted accounting principles ("GAAP") to
     our use of non-GAAP measures of operating income (loss), net income
     (loss) and net income (loss) per share, in each case adjusted for special
     items, as well as EBITDA and adjusted EBITDA, in each case by reportable
     segment. We believe that these measures are useful because they allow the
     reader to more easily compare our ongoing operations, financial
     performance and EPS from period to period. They are also consistent with
     the indicators management uses internally to measure our performance.
     These non-GAAP measures should be considered in addition to and not a
     substitute for measures of financial performance calculated and presented
     in accordance with GAAP in our consolidated statement of operations in
     our filings with the Securities and Exchange Commission. Consequently,
     readers should rely on GAAP operating income (loss), operating income
     (loss) by reportable segment, net income (loss) and net income (loss) per
     share. Non-GAAP measures included in our press release include:
    
    Operating income (loss) adjusted for special items - is defined as
     operating income (loss) from our Consolidated Statements of Operations
     excluding special items, such as closure costs, impairment and other
     related charges, severance costs, inventory write-downs, start up costs
     of idled mills, gains and losses on dispositions of assets, transaction
     costs and other charges or credits that are excluded from our segment's
     performance from GAAP operating income (loss).
    
    Net income (loss) adjusted for special items - is defined as net income
     (loss) from our Consolidated Statements of Operations excluding the same
     items as under operating income (loss) adjusted for the special items, in
     addition to the effects of foreign currency translation, post-emergence
     costs, other income (expense) and reorganization-related and other tax
     adjustments.
    
    Net income (loss) per share (EPS) adjusted for special items - is defined
     as diluted EPS calculated based on the net income (loss) adjusted for
     special items as described above.
    
    EBITDA by reportable segment - is defined as net income (loss) including
     noncontrolling interests from our Consolidated Statements of Operations,
     allocated to each of our reportable segments (newsprint, coated papers,
     specialty papers, market pulp and wood products) in accordance with FASB
     ASC 290, "Segment Reporting," and adjusted for depreciation, amortization
     and cost of timber harvested. EBITDA for the corporate and other
     segment is defined as net income (loss) including noncontrolling
     interests from our Consolidated Statements of Operations after the
     allocation to reportable segments, adjusted for interest expense, income
     taxes and depreciation, amortization and cost of timber harvested.
    
    Adjusted EBITDA - is defined as EBITDA excluding the special items
     described above.
    
    Certain prior period amounts within these measures have been reclassified
     to conform to the 2012 presentation.

SOURCE Resolute Forest Products Inc.

Contact:

Investors
Rémi G. Lalonde
Vice President, Investor Relations
514 394-2345
ir@resolutefp.com

Media and Others
Seth Kursman
Vice President, Corporate Communications,
Sustainability and Government Affairs
514 394-2398
seth.kursman@resolutefp.com
 
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