The following stumpage appraisal parameter values are effective July 1,2010.

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1 QBRITISH COLUMBIA The Best Place on Earth Ministry afforests and Range Pricing Branch MEMORANDUM File: I 95-30/IAPP June 24, 2010 BY To: Re: Interior Regional Managers Market Pricing System - Interior On July 1,2010 significant policy changes will take effect. The transition portion ofthese changes means that the parameters from the old policy (MVI, BR and AMV's) need to be published one more time. The AMP and the FNA will be required to ensure neutrality for the 2 year duration ofthe transition. The following stumpage appraisal parameter values are effective July 1,2010. Interior Average Market Price (AMP) Interior Mean Value Index (MVI) Interior Base Rate (BR) Final Neutrality Adjustment (FNA) The three month lumber average market values, consumer price index and United States dollar exchange rate for calculating the average market price and for Be Timber Sales stumpage rates effective July 1, 2010 are attached. The twelve month lumber and chip average market values and the regional average basic silviculture costs by species, effective July 1,2010, are also attached. These parameters can also be found on the Revenue Branch home page on the Internet at: These documents and information are intended for personal use, and may be protected under the Federal Copyright Act (see attached guidelines). ~ Murray Stech Director Pricing Branch Attachments Page I of2

2 pc: Mike Falkiner, Executive Director, Field Operations Division Merva Lyons, Revenue Manager, Southern Interior Forest Region Stuart Card, AlRevenue Manager, Southern Interior Forest District Jason Nunn, Timber Pricing Officer, Revenue Branch Shawn Rice, Revenue Manager, Northern Interior Forest Region Torn Casey, Senior Timber Pricing Accountant (Interior), Revenue Branch Bob Bull, Senior Timber Pricing Forester, Revenue Branch Kim McGarry, Forest Products Values Analyst, Revenue Branch Steve Fletcher, Senior Timber Pricing Forester, Systems, Revenue Branch Sabina Ghazarian, Timber Pricing Forester, Systems, Revenue Branch Jo-Anne White, Timber Pricing Technical Assistant, Revenue Branch Carolyn Young, Timber Pricing Accountant (Interior), Revenue Branch Saunder Thorn, Assistant Manager, Projects and Planning Grant Loeb, Manager, Timber Pricing, Revenue Branch Page 2 of2

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4 MARKET PRICING SYSTEM LUMBER VALUES ($/MBM) FOR THE THREE MONTHS ENDED APRIL 30, 2010 FOR MARKET PRICING STUMPAGE CALCULATIONS BETWEEN JULY 1-31, 2010 AMV BALSAM CEDAR FIR I HEMLOCK LODGE- WHITE SPRUCE ZONE LARCH POLE PINE PINE B.C. Consumer Price Index (1992 = 10m effective for this oeriod: * Bank of Canada - US Exchange Rate US$/C$ (3 month Average) Note: factor has already been applied in order to restate CPI to 1992 base year. For Appraisals Effective January 1, 1999 Zone 5: Northern Interior & Quesnel Zone 6: Skeena Zone 7: Southern Interior Zone 8: Southern Cariboo Zone 9: Fort Nelson - Peace Prepared by Revenue Branch, Ministry of Forests and Range

5 AMV ZONE AVERAGE MARKET VALUES FOR STUD AND RANDOM LENGTH LUMBER COINCIDENT ZONING EFFECTIVE JULY 1,2010 FOR THE TWELVE MONTHS ENDED MARCH 31, 2010 AVERAGE LUMBER MARKET VALUES ($/MBM) WHITE BALSAM CEDAR FIRI LARCH HEMLOCK LODGEPOLE PINE SPRUCE PINE Stud Random All Stud Random All Stud Random All Stud Random For Appraisals Effective March 1, 1993 Zone 5: Northern Interior & Quesnel Zone 6: Skeena Zone 7: Southern Interior Zone 8: Southern Cariboo Zone 9: Fort Nelson - Peace Verified by:

6 AVERAGE MARKET VALUES FOR SMALL LOGS EFFECTIVE JULY 1,2010 FOR THE TWELVE MONTHS ENDED MARCH 31, 2010 AVERAGE LUMBER MARKET VALUES ($/MBM) AMV WHITE YELLOW BALSAM CEDAR FIRI LARCH HEMLOCK LODGEPOLE PINE SPRUCE ZONE PINE PINE Stud Random All Stud Random All Stud Random All All Stud Random For Appraisals Effective December 1,1994 Zone 15: Northern Interior & Quesnel Zone 16: Skeena Zone 17: Southern Interior Zone 18: Southern Cariboo Zone 19: Fort Nelson - Peace V,rifi,"', ~

7 AVERAGE MARKET VALUES FOR SMALL LOG LICENSES EFFECTIVE JULY 1,2010 FOR THE TWELVE MONTHS ENDED MARCH 31, 2010 AVERAGE LUMBER MARKET VALUES ($/MBM) AMV WHITE YELLOW BALSAM CEDAR FIR/LARCH HEMLOCK LODGEPOLE PINE SPRUCE ZONE PINE PINE Stud Random All Stud Random All Stud Random All All Stud Random For Appraisals Effective April 1, 1997 Zone 25: Interior Verified Oy.p

8 AVERAGE MARKET VALUES FOR GRADE 4 HEMLOCK LOGS EFFECTIVE JULY 1, 2010 FOR THE TWELVE MONTHS ENDED MARCH 31, 2010 AVERAGE LUMBER MARKET VALUES ($/MBM) AMV WHITE YELLOW BALSAM CEDAR FIRI LARCH HEMLOCK LODGEPOLE PINE SPRUCE ZONE PINE PINE Stud Random All Stud Random All Stud Random All All Stud Random For Appraisals Effective January 1, 1998 Zone 35: Northern Interior & Quesnel Zone 36: Skeena Zone 37: Southern Interior Zone 38: Southern Cariboo

9 INTERIOR AVERAGE CHIP VALUES EFFECTIVE JULY 1,2010 For The Twelve Months Ended March 31, 2010 APPRAISAL POINT CODE WW $/BDU CEDAR $/BDU APPRAISAL POINT CODE WW $/BDU CEDAR $/BDU ~_Q2 Mile House 100M 68+-.~ Lillooet_L_ LlLL _68 ~!.. _ Adams Lake ADLK 86 ' _ 65 Louis Creek ' L::;~K Armstrong ARMS 86 _ 65 Lumby LUMB 86~ Bear Lake BELK I_~ 50 Lytton LYTT I Boston=;BO=a-r----~--+--::B-::O:-::B:-;=A Mackenzie MKEN ;:-"c-=7=--;c =-~_;_+_-~ ~ ~~---~~----I--~-~-I ~----- Burns Lake BSLK McBride MBRI = = :':-'-''-c-;;=--= _-;=:~_= +_- ::_;; _::~O -- Canoe CANO Merritt,MERR Carnaby CARN 67-=~- 67 O_K_ Falls--lOI5:F~_I Ch~sr11 ~HSM I Prince George PRGE _ Che_~ynd CHET Princeton PRIN Clear Lake CLLK Quesnel QUES _._-- Craigellachie CRAI Revelstoke REVE Engen ENG_~+ 67 _~ Smithers SMIT Fort Nelson FTNE I Squamish SQUA~ Fort SI. James FTJA Strathnaver ~TRA Fort SI. John FTJO Taylor _ TAYL i 7:3. 1-_ 55 Fr<J.Ser La~ FRLK Terrace TERR 67, 67 Hazelton HAZE.L--~---~ _IJPper Fraser UPFR 67 l 50 Houston HOUS Valemount VALE "" - Isle Pierre ISPI Vanderhoof : VAND risamloops KAML Vavenby VAVE Kelowna KELO Westbank WEST :: i<itwanga KITW 67 I 67 Williams Lake WILK Lavinqton LAVI Ymir,YMIR Canal Flats LSAFL _ Castlegar CAST Cranbrook T=t CRAN 8~ ~_ 65 Creston CRES n-==:t ~~:o~., Midway MIDW 86 ~65=--_-j ~~"'~iding PASI I 86 i 65 Radium RADI I 86 i 65 Siocan--sLoc--r-a6---r--~65- r--;-'--'-'-'--'-' _~;=;_i:_;=;_ :'::; J;hrums THRU Ymir YMIR Verified by:~ 1/ :24 AM

10 INTERIOR BASIC SILVICULTURE COSTS BY SPECIES EFFECTIVE July 1, 2010 Basic Silviculture Costs ($/m 3 ) Region BALSAM CEDAR FIR HEMLOCK LARCH LODGEPOLE SPRUCE WHITE PINE YELLOW PINE PINE Northern Interior S Southern Interior Revenue Branch verifiedby:--=-5_(}_~_'_ ISC Jan 2010