ETR Eacom Timber Corporation

MONTREAL and VANCOUVER, May 2 /CNW/ -- MONTREAL and VANCOUVER, May 2 /CNW Telbec/ - EACOM Timber Corporation (TSXV: ETR) ("EACOM", or the "Company") announced today that it has entered into asset purchase agreements with PricewaterhouseCoopers Inc., in its capacity as court-appointed receiver of each of Northern Sawmills Inc. and Atikokan Forest Products Ltd. The potential transactions are subject to a number of conditions in favour of EACOM, including due diligence, necessary approvals from third parties and court approval. The Atikokan asset purchase agreement is also subject to confirmation of the wood allocation. Part of the proceeds from the recent financing will be used to pay the purchase price for the Northern and Atikokan assets. These assets are located respectively in Thunder Bay and Atikokan, Ontario. "We continue to look for opportunities to expand our operations in Ontario. If acquired, the Atikokan assets provide the Company with an opportunity to expand its random length lumber business in Ontario. The Northern assets may be used to increase productivity and lower costs in our Ontario and Quebec sawmills. They also provide an opportunity to further expand into value added products'', said Mr. Rick Doman, President and CEO of EACOM. About EACOM EACOM Timber Corporation is a TSX-V listed company. EACOM owns seven sawmills and an equity interest in an eighth sawmill, all located in Eastern Canada, and related tenures. The mills are Timmins, Nairn Centre, Gogama and Ear Falls in Ontario, and Val-d'Or, Ste-Marie and Matagami in Quebec. The equity interest is in the Elk Lake sawmill located in Ontario. The sawmills in Ear Falls, Ontario, and Ste-Marie, Quebec, are currently idled. EACOM also owns one idled mill in Big River, Saskatchewan, a remanufacturing facility and a 50% interest in an "I" joist plant. The TSX Venture Exchange has neither approved nor disapproved the content of this press release. All director and officer appointments are subject to TSX Venture Exchange approval. Forward-Looking Statements All statements in this news release that are not based on historical facts are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Risk Factors" of the Filing Statement dated January 8, 2010 and the current MD&A for EACOM Timber Corporation on file with the Canadian Securities Commissions. To view this news release in HTML formatting, please use the following URL: http://www.cnw.ca/en/releases/archive/May2011/02/c8449.html p bInvestors:/bbr/ Marc Girardbr/ Executive Vice-President and Chief Financial Officerbr/ (514) 848-5133 /p p align="justify" bMedia Relations:/bbr/ Frédéric Bérardbr/ HKDPbr/ (514) 917-1040 /p

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