VANCOUVER, June 14, 2011 /PRNewswire/ – TimberWest Forest Corp. (TSX: TWF.UN)
(“TimberWest” or the “Company”) announced today that the Company’s
unitholders and optionholders have approved the proposed acquisition of
TimberWest by British Columbia Investment Management Corporation
(“bcIMC”) and the Public Sector Pension Investment Board (“PSP
Investments”) for approximately $1.03 billion in cash, including
assumed debt, or $6.16 per stapled unit (the “Transaction”). At the
annual general and special meeting of securityholders held this
morning, the Transaction was approved by approximately 98% of the votes
cast by unitholders and by approximately 98% of the votes cast by
unitholders and optionholders, voting together as a class. TimberWest
unitholders also approved today the continuation of the Company as a
federal corporation under the Canada Business Corporations Act.

The closing of the Transaction remains subject to final court approval,
approval under the Competition Act, and the satisfaction or waiver of the other conditions specified in
the Arrangement Agreement entered into on April 10, 2011. An
application for final court approval is scheduled to be heard by the
British Columbia Supreme Court on June 17, 2011. Subject to court
approval being obtained, receipt of Competition Act approval and the satisfaction or waiver of all remaining closing
conditions, the Transaction is expected to close before the end of June
2011.

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 Transaction; applicable court and
regulatory approvals and other closing conditions; and the anticipated
closing date of the Transaction. 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.