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2016-05-06

RusForest Provides Update on Operations and Financial Position

erations and Financial Position

Stockholm, 2016-05-06 08:05 CEST (GLOBE NEWSWIRE) -- RusForest AB (publ)
(“RusForest” or the “Company”) (NASDAQ First North: RUSF), a Swedish forestry
company with operations in Russia, announces preliminary Q1 2016 production and
sales results for its Magistralny and Ust-Ilimsk units.

Management Comments

“We are happy to report that quarterly sawnwood production in Magistralny for
the first time exceeded 23,000 m3 in Q1 2016 and both the new pellet mill in
Magistralny and the new harvesting operations in Ust-Ilimsk performed well in
Q1 2016.

The Central Asian and Northern African markets remained difficult Q1 2016,
however, the Company managed to redirect more low quality product sales to the
Japanese market instead. The average sawnwood price realised (price 'on wagon')
in Q1 2016 was largely unchanged compared with Q1 2015.”

Harvesting

In Q1 2016, RusForest harvested 121,121 m3 of sawlogs, compared with 74,304 m3
in Q1 2015 (+63%), which included 28,793 m3 of recently developed own
harvesting in Ust-Ilimsk. Harvesting in Magistralny increased by 24% in Q1 2016
to 92,328 m3.

Subcontracting

In Q1 2016, RusForest's subcontractors harvested 273,933 m3 in Ust-Ilimsk
forest lease areas, compared with 262,415 m3 in Q1 2015 (+4%).

Sawmilling

In Q1 2016, RusForest produced 23,021 m3 of sawnwood, compared with 21,778 m3
in Q1 2015 (+6%). Q1 2016 production was the best quarterly production ever
from Magistralny.

Wood pellets

In Q1 2016, RusForest produced 6,225 tonnes of pellets, which was in accordance
with plan.

Sales

In Q1 2016 RusForest sold 21,656 m3 of sawnwood compared with 19,291 m3 in Q1
2015 (+12%).

In Q1 2016 RusForest sold 16,340 m3 of sawlogs from Magistralny compared with
16,410 m3 in Q1 2015 (-0%). Sawlogs sales to the Chinese market were hampered
at the beginning of the year. In Q1 2016 RusForest also delivered 26,823 m3 of
sawlogs from own harvesting in Ust-Ilimsk to local market.

A total of 6,219 tonnes of wood pellets were sold from Magistralny in Q1 2016.

Financial Position

At 31 March 2016 RusForest had a cash balance of approximately USD 10.9
million, of which approximately USD 3.3 million was held at the corporate level
and including restricted cash balances in the amount of USD 0.3 million,
connected with the Synthetic buyback program. At 31 March 2016, the Company had
corporate debt of approximately USD 0.1 million from zero coupon bonds
denominated in SEK and maturing in May 2018.

About RusForest AB

RusForest is a Swedish forestry company operating in Eastern Siberia. The
Company controls long-term timber leases and utilizes these resources to
produce a wide range of sawnwood products. RusForest is listed on NASDAQ First
North Stockholm (ticker “RUSF”).

RusForest AB's Certified Adviser on First North is Pareto Securities AB.

For additional information, please visit the Company’s website at
www.rusforest.com or contact:

Gustav Wetterling, Group CFO, telephone: +46 8 771 85 00

Författare SSE

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