ANNUAL GENERAL MEETING

May 28th, 2019

1000 - 925 West Georgia Street Vancouver BC. Canada

2

Forward Looking Information - Disclaimer This presentation contains certain forward-looking information that reflects the Company’s current views and/or expectations with

respect to, among other things, the markets the Company operates in; the impact of currency exchange rates and other market

factors on the results of the Company’s mills; expectations relating to capital expenditure spending; and the Company’s production,

biorefinery, and balance sheet initiatives. Persons reading this presentation are cautioned that statements comprising forward-

looking information are only predictions, and that the Company's actual future results or performance are subject to certain risks

and uncertainties including, without limitation: those relating to potential disruptions to production and delivery, including as a result

of equipment failures, labour issues, extreme weather, the complex integration of processes and equipment and other factors;

fluctuations in the market price for products sold; trade restrictions or import duties imposed by foreign governments; labour

relations; failure to meet regulatory requirements; changes in the market; potential downturns in economic conditions; fluctuations in

the price and supply of required materials; foreign exchange fluctuations; availability of financing (as necessary); ability to

restructure the Company’s existing debt on satisfactory terms; and other risk factors detailed in our Annual Information Form dated

March 29, 2019 available on SEDAR at www.sedar.com and other filings with the Canadian securities regulatory authorities. In

particular, financial forecasts and expectations are not indicators of future financial performance and there is no assurance that the

Company’s assumptions in support of such forecasts or expectations are correct, accurate, or complete. These risks, as well as

others, could cause actual results and events to vary significantly. The Company does not undertake any obligation to update any

forward-looking information, except as required by applicable securities law.

Unless otherwise noted, all references in this presentation to “$” are to Canadian dollars. The selected financial information

presented herein is qualified in its entirety by, and should be read in conjunction with, the Company’s unaudited condensed

consolidated financial statements for the quarter ended March 31, 2019 and the related notes thereto and Management’s

Discussion & Analysis, which are available on SEDAR. This presentation contains reference to “Operating EBITDA”, which is a

non-GAAP financial measure. For disclosure of the manner in which these measures are calculated and a reconciliation to net loss,

please refer to the MD&A for the quarter ended March 31, 2019, available on SEDAR.

3

Year 2018 Recap

The Company created a new reporting segment, the Bioproducts Segment, as a result of

the acquisition of S2G Biochemicals Inc. (“S2G”)

Integrated S2G team and started front end engineering design for planned

demonstration plant

Secured Federal and Quebec Government commitments for up to $17.4 million and

initiated negotiations for an additional $12.5 million

Entered into a technology license and collaboration agreement with Mondelēz, one of

the world’s largest snacking companies, including commitments in principle relating to

the purchase of xylitol from the demonstration plant and a future commercial plant

Completed convertible debenture refinancing announced on Aug 28th 2018 by amending

and extending maturity to December 31, 2022 from December 31, 2019

Giovanni Iadeluca promoted to CEO of Fortress Global Enterprises

Progress was made in productivity, reliability and quality all while managing a baseline

capital expenditure program

4

Improved Production Stability

200

600

Ja

n-1

6

Ju

n-1

6

No

v-1

6

Ap

r-1

7

Sep

-17

Feb

-18

Ju

l-1

8

De

c-1

8

Liquor Cycle Volume (ADMT/day) ADMT

Launched leadership

Phase 1 - KBI/KPI Increase

5

Production Volume Improvements

0.0

600.0

Ju

n-1

7

Ju

l-1

7

Au

g-1

7

Sep

-17

Oct-

17

No

v-1

7

De

c-1

7

Ja

n-1

8

Feb

-18

Ma

r-18

Ap

r-1

8

Ma

y-1

8

Ju

n-1

8

Ju

l-1

8

Au

g-1

8

Sep

-18

Oct-

18

No

v-1

8

De

c-1

8

ADMT Production ADMT/day

6

15

25

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Megawatts MW

Improved Monthly Average MW Production

7

2019 Q1 Recap

Mill stability continued to improve, however, due to

a combination of factors the positive momentum

from the prior three quarters was temporarily

interrupted

Extreme weather conditions and unusual region-

wide electrical outages impacted operating results

in the first quarter and April of 2019*

Important cooking process knowledge was gained

which will ensure the winter issues are mitigated

and throughput increased under diverse conditions

Entering seasonably more productive months

*Operating EBITDA loss of $9.7 million, DP operating EBITDA loss of $8.8 million. The Company invested $0.8 million in the Bioproducts Segment which was

offset by grants and funding and corporate costs were $0.9 million in the first quarter of 2019.

Achieved important milestones in the

first quarter of 2019 by advancing

engineering for our bioproducts

demonstration plant, and ordering

equipment required for tie-in to the

FSC mill’s fifth digester

Signed definitive contribution

agreement with NRC for up to $10

million nonrefundable grant. This

funding from NRC is in addition to

previously announced Governments of

Canada and Quebec commitments for

up to $17.4 million

Milestones

8

Strategy 2019

Production Improvements

Biorefinery Balance Sheet Improvements

9

Annual planned shutdown in Q2 has been reduced by a

day as we were able to perform some maintenance during

the power outages in the first quarter

We intend to complete modifications to the fifth digester for

the extraction of prehydrolysis liquor, an important step for

the bioproducts demonstration plant project

Annual planned shutdown has been moved to Q2 to take

advantage of historically stronger seasonal pricing in the

second half of the year

Continued integration of the 5th digester through 2019 will

result in increased run rate throughput and reduced costs

Other Production initiatives such as online real-time

equipment monitoring system

Production Improvements

Strategy 2019 - Production Improvements

10

Cellulose 43-45%

Inorganics/Organics

Waste water treatments

Lignin 20-28%

Water

100 t of Green Wood

17t of specialty cellulose grade

20t of rayon cellulose grade

25t of fluff pulp

27t of paper pulp grade

Black Liquor Organics - Energy Inorganics - Recovery

Hemicelluloses (PHK) 12-15%

INPUT COOKING PROCESS BLEACHING PROCESS OUTPUT

Bio-products Opportunity

Burned in recovery boiler for energy

Biorefinery - Pulp Processes and Yields

Source: Hawkins Wright

11

Strategy 2019 – Biorefinery

Immediate Opportunities

•Existing waste streams

•Low-capital, quick wins

PHL Opportunities

•Animal feed

•Non-sulfonated lignin

•Furfural

•Organic acids

•Sugars for high-value bioproducts

Other Opportunities

•Sulfonated lignin

•Biofuels

•Bio-oil

•Hydrogen

•Power

•Biochemicals

•CO2-based products

High Value Bioproducts Products

•Xylitol

•Xylose

•Xylo-oligomers

•Other sugar alcohols

Strategic plan to become one of the world leaders in

demonstrating and commercializing leading technologies

for conversion of hemicellulose to advanced bioproducts

12

Biorefinery - Xylitol Market

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

0

50

100

150

200

250

300

350

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Tonnes USD Millions

000s T

on

nes

US

$M

• Average selling price (2018): ~US$4,900/tonne

• Volumes expected to grow at CAGR of 6.5% (2017 – 2024)

• Market expected to exceed US$1B by 2022

Volume & Revenue Forecast to 2024

Source: Global Market Insights -Xylitol Market Report 2024, ICTS, EPA, FDA, EFSA, ADA, CCM

13

Biorefinery – Value Added Products

Identify complimentary innovative value – added

processes/bioproduct opportunities

Assess business cases & required technology, priortize

and select

Identify additional strategic alliances

Finalize demonstration plant funding and commence

construction of demonstration plant in second half of

2019

Biorefinery

14

Strategy 2019 - Balance Sheet Improvements

Agreement in principle with Investissement Québec for a

multi year interest and principal payment deferrals and

an extended term on the $105.2 million indebtedness,

subject to definitive documentation

Restricted cash: CHF 3.2 million (CDN $4.3) expected

to become available June 2019

Working capital should improve with operations in

second half of the year

Balance Sheet Improvements

15

Dissolving Pulp - Market Outlook

Substantial recent increases in Viscose (VSF)

capacity has contributed to inventory build up

and softening of VSF pricing. Near term

dissolving pulp pricing will most likely continue

to be impacted by VSF market pricing and

paper pulp markets

Dissolving pulp (DP) and VSF markets remain

structurally sound – VSF demand should

eventually catch up to rapid increase in supply

Growing VSF market will increase pressure on

DP supply over the next few years

DP demand is projected to grow at ~ 6% per

annum for the foreseeable future

Source: RISI, CCF, Hawkins Wright

16

Textile Market

World textile market is growing as a result of

favorable macro trends, expanding middle

classes and consumer spending in emerging

markets

VSF is gaining market share due to technical

advantages over competing products thus

dragging along dissolving pulp demand

Per capita fibre consumption has risen from ~

5kg in 1960 to almost 14kg in 2016

Textile fibre demand growth expected to

increase by over 60% through 2030

VSF growth has historically outpaced textile

fibre demand growth

Source: RISI, CCF, Hawkins Wright

17

Global Fibre Markets - VSF Demand Growing Faster Than Other Fibres

Natural Fibers, 31.6mt , 30.6%

Cellulosic, 6.6mt, 6.4%

Synthetics, 64.9mt, 62.9%

-4.5% -4.2%

85.7%

68.8%

37.5%

-10.%

10.%

30.%

50.%

70.%

90.%

110.%

Cotton NaturalFibers

Cellulosic Synthetics Total FiberProduction

2006-2016 % Growth in Volume

Natural Fibers 32.9 mt 44.1%

Cellulosic 3.6 mt 4.8%

Synthetic 38.3 mt 51.1%

Source: “The Fiber Year 2017 ” and “Hawkins Wright, 2010 World Survey on Textiles & Nonwovens”

2017 World Fiber Production

103.1 Million tonnes (mt)

2006 World Fiber Production

74.8 mt

18

THANK YOU

www.fortressge.com

@fortressge

t:888-820-3888

Quote from Canada’s Bioeconomy Strategy "Canada has a window now to become one of the world’s most successful modern bioeconomies. It is important that governments, financial institutions and large corporations hasten the pace of policies”