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November 2011
Extreme Makeover: Home Edition Requests Teal Cedar Shingles.
In August, The Teal-Jones Group was contacted by Extreme Makeover: Home Edition (a television show that
builds houses for families facing financial, health and other difficulties) requesting our product for their
latest project. Many years ago our product was used on another EM: HE home and their choice to use it again
demonstrates their preference for Teal's quality.
We are pleased to announce that The Teal Jones Group was able to participate in this project.
The house utilized our 18" R&R Teal Tone Sidewall Shingles for the exterior and used the 18" R&R Natural
Sidewalls for the interior.
The house was recently completed and the big reveal has happened for the family.
The episode utilizing Teal's product aired Friday, October 28, 2011 and may be viewed at the
Extreme Makeover: Home Edition website under the McPhail family.
We were extremely pleased to be a part of this project and wish the McPhail family health and happiness in their new
home.
We would like to take this opportunity to thank the Teal Cedar Shake & Shingle mill crew and Reman crew for
the tremendous job they did and continue to do in producing such a high quality product. The care and pride each
person takes in his/her work is commendable and deserving of recognition.
The Teal-Jones Group Management

September 23, 2011
The Teal Jones Group is again Recommended for Registration!
We are very pleased to announce that QMI-SAS Global (third party independent auditors) have again recommended
The Teal-Jones Group, Fraser Valley & Honeymoon Bay Operations for continued registration to the CSA Z809-2002
Sustainable Forest Management System as well as the Dryland Sorts and the Surrey and Sumas mills to PEFC Annex 4
Chain of Custody.
The Operations underwent their annual audit in September and all findings proved to be in compliance with the set
standards and regulations. Positive comments were noted on the audit indicating that the system is working well.
The Fraser Valley Operation along with our Honeymoon Bay Operation voluntarily participates in the CAN/CSA
Sustainable Forest Management System which provides the public with assurance that environmental and sustainable
harvesting is being conducted.
These harvesting operations work in conjunction with The Teal-Jones manufacturing facilities which also
voluntarily participate in the PEFC Annex 4 Chain of Custody.
The Teal-Jones Group is firmly committed to the sustainability of our Forests, our Environment, our Employees,
and the Economy of British Columbians.
The Teal-Jones Group Management

January 21, 2010
Log Export Policy - Debate
The following letter has been sent to Minister Pat Bell (B.C. Minister of Forest), Gordon Campbell (Premier of B.C.)
and Gordon Hamilton (Forestry writer for the Vancouver Sun Newspaper). The letter firmly states The Teal-Jones
Group’s position on raw log exports and the special interest movement to remove the ban.
Hon. Pat Bell
Minister of Forests and Range
Province of British Columbia
PO Box 9049
STN PROV GOVT
Victoria BC
V8W 9E2
Log Export Policy - Debate
Dear Minister Bell,
The debate around log policy restrictions has again become an active current subject in the industry. Lobby efforts directed
to relaxation or flexibility of existing log policies are based on helping the industry during bad economic times and purport
to assist all sectors of the forest industry in the current severe down turn. These assertions are ill conceived and in fact
will result in significant long term harm to the industry as explained below.
Teal Jones believes it is very well positioned to express a view on policy impacts on the coastal forest industry as the
company, (1) is the 4th largest tenure holder on the coast, (2) owns 2 sawmills with a capacity of 300 million board feet,
(3) is one of the larger Cedar shake and shingle manufacturers on the coast, (4) has extensive value-added operations in
lumber, shakes and shingles, (5) operates in 7 communities on the coast, (6) is one of the larger producers of residual
chips for the coastal pulp and paper industry, and (7) sells B.C. solid wood products to 4 continents.
The Pearce report commissioned by the Province of B.C. in 2001 provided a strategic view of the future of the B.C. coastal
industry and included much needed investment in a small log conversion mills. Since the report, Teal Jones is the only
company that has built a new green field small log mill on the coast. The Pearce report's conclusions are confirmed by the
Pacific North West sawmill industry which was reinvented in the post Spotted Owl era, and is based on conversion of second
growth small logs.
For the provincial government to ensure that the conversion segment, sawmilling, plywood and value-added, is to grow and
thrive in the future, it is essential to stay the strategic course. To cede to short term self interest pressures from
certain industry groups would not only be disastrous to the conversion segment in the long term, but also damaging, not
beneficial, in the short term.
The proponents for increasing log exports typically argue:
- Better returns from export prices, will increase harvesting activity with related benefits to the economy,
- Logs that can be harvested exceed what can be consumed by local mills,
- More harvesting will increase supply for local mills, and
- B.C. will develop more markets for its logs.
Issues related to log exports that are typically not highlighted:
- Log exporters take premium lengths leaving a downfall for local sawmills - these do not only make the sawmill
programs uneconomic but are not suited for specific offshore lumber programs,
- Log exporters, in effect increase sawmilling in offshore markets in turn reducing demand for B.C. lumber,
- Local sawmills run reduced shifts, a major reason being lack of log availability,
- In many cases, the offshore markets for logs are limited; extra logs to the market only serve to reduce price
and in turn reduce the value derived back to the province,
- In the short term while there is increased economic activity from harvesting, it is to a large degree offset by
local mills taking downtime due to the export of quality logs,
- In the long term damage to the conversion mills will reduce the sawmilling, plywood, pulp and paper (residual
chip-dependant), and value-added industries, and in turn significantly reduce the value the province derives from
its primary resource, and
- Decimation, over time, of the conversion businesses will make the B.C. coast a log exporter only and with no
domestic option; offshore customers will then negotiate the log prices to the lowest common denominator.
The provincial government needs to ensure the protection and development of a small log conversion industry on the coast. This
is the strategic direction already chosen by the government. It is necessary to stay the course in the face of special interest
lobbying. A key example is policy makers in Russia, the largest wood exporter in the world, who have enacted significant raw
log export taxes with the goal to increase domestic manufacturing and capture more value from its own resource.
The argument for viable economic harvesting on the B.C. coast is not solved through short term log export flexibility. The
problem is endemic. The B.C. coast has suffered from historic inefficient management and work practices, and inefficiencies
compounded by the costs of a highly regulatory regime, a prime example being the added costs stemming from the Bill 13
legislation. For decades, B.C. coast logging costs have been at the high end when compared to other wood producing regions
in the world.
Teal Jones continually faces log shortages, particularly the right lengths and sorts, for its offshore lumber programs.
The company actively puts in offers to purchase logs destined for the export market to ensure it obtains log supply for
its own mills. The Teal Jones' small log mill has current order potential that would consume an additional 250 thousand
cubic meters annually even in this depressed market.
In conclusion, Teal Jones feels it is imperative to maintain log export policies that provide a 'first right' to conversion
in B.C. resulting in capturing higher finished-product values and creating economic benefits from manufacturing wood products
in the province.
Yours truly,
Hanif A Karmally
Vice-President and Chief Financial Officer
cc:
Hon. Gordon Campbell, Premier of British Columbia
Rick Jeffrey, President CFPA
Gordon Hamilton, Vancouver Sun
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