VANCOUVER, June 23, 2011 /PRNewswire/ – TimberWest Forest Corp. (TSX: TWF.UN)
(“TimberWest” or the “Company”) announced today that the Canadian
Competition Bureau has issued a “no action” letter in connection with
the proposed statutory plan of arrangement under which British Columbia
Investment Management Corporation and the Public Sector Pension
Investment Board will indirectly acquire all of TimberWest’s
outstanding stapled units at a price of $6.16 in cash per stapled unit
(the “Transaction”). The issuance of the “no action” letter satisfies
the closing condition under the arrangement agreement governing the
Transaction that Competition Act clearance be obtained.

The Transaction was approved by TimberWest unitholders and optionholders
at an annual general and special meeting held on June 14, 2011, and a
final court order approving the Transaction was granted by the British
Columbia Supreme Court on June 17, 2011. The Transaction is expected
to close on June 29, 2011, following which the stapled units of
TimberWest will be de-listed from the Toronto Stock Exchange.

About TimberWest
TimberWest is uniquely positioned as western Canada’s largest private
timber and land management company. The Company owns in fee simple
approximately 327,000 hectares or 808,000 acres of private land and is
in the business of selling timber products and real estate.

Stapled Units of TimberWest Forest Corp. are traded on the Toronto Stock
Exchange under the symbol “TWF.UN”

Forward-looking Statements Disclaimer
Statements in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties.
Forward-looking statements in this news release include, but are not
limited to, statements about the anticipated closing date of the
Transaction and the de-listing of the stapled units from the Toronto
Stock Exchange. TimberWest’s actual results could differ materially from those expressed
or implied by such forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to general economic conditions, variations in
TimberWest’s product prices and changes in commodity prices generally, changes in market conditions,
variations in harvest levels, changes in log transportation costs,
actions of competitors, interest rate and foreign currency
fluctuations, regulatory, harvesting fee and trade policy changes and
other actions by governmental authorities including real estate zoning
approvals, the ability to implement business strategies and pursue
business opportunities, labour relations, weather conditions, forest
fires, insect infestation, disease and other natural phenomena and
other risks and uncertainties described in TimberWest’s public filings with securities regulatory
authorities. In addition, the completion of the Transaction is conditional upon a number of factors, many of which are outside of TimberWest’s
control. There is no assurance that the Transaction will be completed at all or upon the
terms and conditions described above.

SOURCE TimberWest Forest Corp.