In This Issue:

• Message from the CEO
• Corporate News
• Operations
• Log Harvesting
• Forestry & Engineering
• Manufacturing
• Safety Stats
• Information Systems

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Message from the CEO

As we enter into the final quarter of the year, we have seen very little change in the Coastal Forest Industry with most companies operating at 50% of their capacity.

We see our forestry operations continuing down the same path as 2010 limiting production to levels that we can flow through into lumber markets. We have picked up new customers for our Hemlock and Balsam production which has allowed us to schedule additional shifts at CML.

A significant strategic move has been with CAL where we have signed a nine-month contract with four one-year renewals to send C-FMAY and C-FXEC to join C-FCLM over in Afghanistan.

C-FMAY will be loaded into a Russian Antonov 124 freighter on Nov 13th for delivery to Afghanistan, and C-FXEC will fly from Melbourne, Australia to Jalalabad departing on January 2, 2011.

We will also have a support contract for two additional S-61s with the company we are working with on the operation which will keep CAL very busy as Afghanistan is a tough environment in which to support a large fleet of aircraft.

For our Australian fire-fighting operation, we have leased a second aircraft to work with C-GBSF, which is being shipped out of Long Beach, California and will start contract December 22, 2010.

Wayne