(All financial information is in CAD$, unless otherwise noted.)

TICKER SYMBOL
(NYSE: UFS) (TSX: UFS)

MONTREAL, Nov. 22, 2012 /PRNewswire/ – Domtar Corporation (NYSE: UFS)
(TSX: UFS) today confirmed the November 20 closing of its previously
announced Definitive Purchase and Sale Agreement (“the agreement”)
signed by its Canadian subsidiary, Domtar Inc., for the sale of its
hydro assets in Ottawa, Ontario and Gatineau, Qu bec. The purchaser is
Chaudière Hydro L.P. (“Chaudière Hydro”), the newly-created affiliate
of Energy Ottawa Inc.

The approximately $46 million transaction, after closing adjustments,
includes Domtar’s three power stations (21 MW of installed capacity),
Domtar’s water rights in the area, as well as the company’s equity
stake in the Chaudière Water Power Inc. (CWPI) ring dam consortium.
With the closing of the agreement, the 12 workers currently operating
the three power stations become employees of Chaudière Hydro.

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About Domtar
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets
and distributes a wide variety of fiber-based products including
communication papers, specialty and packaging papers and adult
incontinence products. The foundation of its business is a network of
world class wood fiber converting assets that produce papergrade, fluff
and specialty pulps. The majority of its pulp production is consumed
internally to manufacture paper and consumer products. Domtar is the
largest integrated marketer of uncoated freesheet paper in North
America with recognized brands such as Cougar, Lynx Opaque Ultra, Husky Opaque Offset, First Choice and Domtar EarthChoice. Domtar is also a leading marketer and producer of a complete line of
incontinence care products marketed primarily under the Attends brand name. Domtar owns and operates Ariva^TM, an extensive network of strategically located paper and printing
supplies distribution facilities. In 2011, Domtar had sales of US$5.6
billion from nearly 50 countries. The Company employs approximately
9,300 people. To learn more, visit www.domtar.com.

SOURCE DOMTAR CORPORATION