October 22, 2002

News Release: Cambior Reports Strong Performance at its Operations and Net Earnings of $4.0 Million for the Third Quarter

All amounts are expressed in US dollars
- Net earnings of $4.0 million (3 cents per share)
- Cash flow from operations of $9.0 million (6 cents per share)
- Free cash flow of $2.8 million
- Completion of the Rosebel feasibility study: a 43% increase in gold reserves
- 31% decrease in gold hedging commitments since the beginning of the year
- 21% increase in mineral reserves at Niobec THIRD QUARTER FINANCIAL RESULTS

Cambior is pleased to report third quarter net earnings of $4.0 million (3 cents per share) compared to a loss of $8.5 million (9 cents per share) for the corresponding quarter last year, as a result of the excellent performance at its operations and a higher realized gold price.

Revenues were $52.6 million, slightly higher than the corresponding quarter in 2001, and the operating margin (EBITDA1) was $11.2 million, compared to $9.9 million in the third quarter of 2001.

Cash flow from operating activities was $9.0 million (6 cents per share). No cash flow was recognized for the delivery of gold under the terms of the Prepaid Gold Forward Sale Agreement as the full proceeds thereof were received on January 12, 2001. If the value of gold delivered was included, adjusted cash flow from operating activities would have been $12.1 million (8 cents per share) compared to $4.4 million (5 cents per share) for the corresponding quarter of 2001. For the third quarter, the Company generated $2.8 million of free cash flow and had, at the end of the quarter, $35 million of cash and cash equivalents.

(1) EBITDA: Earnings before interest, taxes, depreciation and amortization and unrealized non-hedge derivative losses and other.

FIRST NINE MONTHS FINANCIAL RESULTS

Revenues for the first nine months of 2002 totalled $150.8 million compared to $145.8 million for the same period in 2001. EBITDA for the first nine months was $29.5 million compared to $25.8 million for the corresponding period of 2001. The improvement in 2002 resulted mainly from an increase of $18 per ounce in the realized price of gold.

Cash flow from operating activities amounted to $18.3 million and, if the value of gold delivered under the Prepaid Gold Forward Sale Agreement was included, adjusted cash flow from operating activities would have been $27.5 million (20 cents per share) compared to $24.1 million (27 cents per share) for the corresponding period of 2001. The 2001 amount excludes the receipt of the $55.0 million of proceeds from the Prepaid Gold Forward Sale Agreement.

For the first nine months of the year, earnings, prior to the non-cash adjustment in the valuation of non-hedge derivative instruments, were $5.3 million (4 cents per share) compared to a loss of $7.1 million (8 cents per share) for the first nine months of 2001. Including this unrealized adjustment, the Company incurred a net loss of $9.5 million (7 cents per share) compared to a net loss of $20.3 million (22 cents per share) in the corresponding period of 2001.

PRODUCTION HIGHLIGHTS

For the third quarter of 2002, gold production totalled 149,700 ounces at a mine operating cost of $216 per ounce, due to the excellent performance of the Omai mine during the quarter, slightly higher than the 148,900 ounces produced in the third quarter of 2001 at a cost of $215 per ounce. Niobium sales in the third quarter were 371 tonnes compared to 329 tonnes for the third quarter of 2001.

Gold production for the first nine months of 2002 totalled 435,800 ounces at a mine operating cost of $218 per ounce, compared to 454,200 ounces produced in the same period last year at a cost of $218 an ounce. The lower production is mainly due to a decrease at the Omai mine, which had been anticipated in the mining plan.

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Production Highlights Third Quarter ended Nine Months ended
September 30, September 30,
Cambior's share 2002 2001 2002 2001
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(Ounces @ mine
operating costs($/oz))
Omai 90,100 @ $210 88,600 @ $216 245,600 @ $216 263,200 @ $220
Doyon
Division 52,100 @ $224 52,400 @ $214 165,300 @ $222 166,700 @ $217
Sleeping
Giant
(50%) 7,500 @ $227 7,900 @ $217 24,900 @ $213 24,300 @ $208
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Total 149,700 @ $216 148,900 @ $215 435,800 @ $218 454,200 @ $218
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Niobium
sales
(tonnes Nb)
(50%) 371 329 1,217 1,026
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The Omai mine produced 90,100 ounces, exceeding the 2002 budgeted mine plan and the production from the corresponding quarter in 2001. This strong performance is mainly attributable to the higher grade processed. Despite higher fuel costs, the mine operating cost was $210 per ounce, a 3% improvement over the cost achieved for the corresponding period of 2001. The Omai mine is expected to exceed its 2002 budgeted target of 285,000 ounces of gold by more than 20,000 ounces.

The Doyon Division produced 52,100 ounces of gold at a mine operating cost of $224 per ounce. The Division processed 308,400 tonnes at an average grade of 5.5 g Au/t from the underground mines and 18,400 tonnes at a grade of 1.0 g Au/t from the low grade stockpile. For the first nine months of 2002, the Doyon Division produced 165,300 ounces of gold at a mine operating cost of $222 an ounce compared to 166,700 ounces for the same period of 2001 at a cost of $217 an ounce.

During the quarter, Cambior's share of gold production from the Sleeping Giant mine totalled 7,500 ounces at a mine operating cost of $227 per ounce compared to 7,900 ounces at a cost of $217 per ounce during the third quarter of 2001. Drilling confirmed the southern extension of Zone 8 (150 meters laterally) and the potential of a new economic structure on the 785 level. A shaft deepening program is being considered at Sleeping Giant to allow access to resources at depth and to establish new drilling bases to explore for extensions to known mineralized lenses, in particular Zone 8. A feasibility study for the development of the lower portion of the deposit will be completed in the fourth quarter.

During the third quarter, Cambior's share of niobium sales from the Niobec mine totalled 371 tonnes compared to 329 tonnes sold for the third quarter of 2001. The Company and its joint venture partner also announced a 21% increase in proven and probable mineral reserves from those identified at December 31, 2001, which will extend the mine life to 18 years at the current mining rate. Mineral reserves are estimated at 22 million tonnes at an average grade of 0.67% Nb2O5.

FINANCIAL HIGHLIGHTS

Gold Market and Revenues

The third quarter of 2002 featured continued improvement in the market price of gold with a closing price of $324 per ounce, an increase of $5/oz over the closing price at June 30, 2002. This improvement is due to several factors, including the recent weakness in the U.S. dollar, the erosion of investor confidence following the wave of accounting/financial problems, and the geo-political tensions and continued conflicts between Iraq and the United States. During the quarter, gold averaged $314 per ounce, up slightly compared to the average price of gold in the second quarter of 2002. The Company remains positive on the future price of gold.

During the third quarter, the Company realized an accounting price of $315 per ounce compared to an average market price of $314 per ounce of gold. For the first nine months of 2002, the Company realized an accounting price of $305 per ounce compared to an average market price of $306 per ounce of gold.

Reduction in Hedge Book

In compliance with its lending agreements, the Company maintains a Revenue Protection Program. A decrease in the minimum required protection from 70% to 35% of production until the end of 2005 was negotiated effective in mid-June.

In line with the lower hedging requirements and the Company's positive outlook on gold, the Company has reduced its hedge commitments by 31% since the beginning of the year throu