Cambior Records Its Most Profitable Year Ever

Cambior Inc. (TSX:CBJ) (AMEX:CBJ). All amounts are expressed in US dollars, unless otherwise indicated.

2005 HIGHLIGHTS

- Net earnings of $20.2 million ($0.07 per share)
- Cash flow from operating activities of $40.5 million, up 7%
- Revenues of $368.5 million, up 22%
- Record year of production at Rosebel (341,000 ounces at $208 per
ounce)
- Total production of 638,400 ounces (at $285 per ounce)
- 42% increase in reserves
- Operations ended at Omai Gold mine in September
- Sale of the Carlota Copper project for a net gain of $12.5 million
- Final deliveries on prepaid gold forward sales agreement

The Company generated record net earnings in 2005 of $20.2 million (or $0.07 per share), a major reversal from the $73.8 million net loss (or $0.30 per share) incurred in 2004. Revenues increased to $368.5 million in comparison to $300.9 million the year before, mainly as a result of higher gold prices and increased revenues from non-gold operations. Cash flow from operating activities was $40.5 million in 2005 compared to $38.0 million the previous year. Following the sale of the Carlota project in December 2005, the Company recorded a gain on disposal of assets of $12.5 million. In 2004, an impairment charge of $73.1 million was recorded at the Doyon mine.

Operating costs were negatively affected by the strength of the Canadian Dollar and higher costs for fuel and other consumables such as steel, chemicals and lubricants, as compared to costs prevailing in 2004.

FOURTH QUARTER

For the fourth quarter ended December 31, 2005, revenues reached $97.4 million compared to $81.9 million for the same period a year earlier. A higher gold price and stronger non-gold revenues more than offset lower gold output. Cambior realized net earnings of $19.8 million (or $0.07 per share) for the quarter compared to a net loss of $76.7 million (or $0.28 per share) for the corresponding period in 2004. Cash flow from operating activities for the quarter was $6.8 million compared to $3.8 million a year earlier.

Mine operating costs at Rosebel and Doyon remained in line with those achieved during the third quarter of 2005. This performance is primarily due to the stabilization of the costs of fuel and other consumables during the last three months of the year. Moreover, the Sleeping Giant training program, set in place to counter the workforce attrition problem observed during the third quarter, was a significant contributing factor to the decrease in mine operating costs to $444 per ounce during the fourth quarter of 2005 from $525 in the previous quarter.

On December 21, 2005, Cambior completed the previously announced sale of its Carlota Copper project to Quadra Mining Ltd. As per the terms of the agreement, the Company received a cash consideration of $15 million at closing and will receive, commencing on March 31, 2006, further consideration in the form of eight quarterly deliveries of 6,250 ounces of gold each. The final four gold deliveries may be deferred if the buyer is unable to begin construction at Carlota by the first quarter of 2007. Based on the forward prices of these gold deliveries as of the closing date and assuming a 3% risk premium, the total value of the transaction was estimated to be $38.6 million. Cambior's net gain on disposal was $12.5 million.

COMMENTARY

Louis P. Gignac, Cambior's President and Chief Executive Officer stated: "We are proud to announce that Cambior not only returned to profitability, but also earned a record profit of $20.2 million. This profit was fuelled by the Rosebel mine which, building on the results achieved during its first year of operations, increased its production by 25% in 2005. This strong performance allowed us to surpass our 2005 gold production target by 3%. Total reserves were also increased by 42% to reach 5 million ounces of gold, mostly due to the conversion of Camp Caiman's 1.1 million ounces from resources to reserves and to the addition of 753,000 ounces, net of production, at Rosebel. More importantly, 2005 was a cornerstone year in the development of a new generation of gold mines. We completed the Camp Caiman feasibility study, delivered promising drilling results on our La Arena project and accelerated our Westwood exploration program. These accomplishments were achieved while Cambior was attaining profitability. We intend to build on the fourth quarter's performance and on favourable conditions in the gold market to further progress toward our objective in 2006 of increased shareholder value through growth in production and reserves."

FINANCIAL POSITION

At year end, Cambior's financial obligations stood at $63.0 million while cash and short-term investments amounted to $15.6 million.

The Company reimbursed $18 million on its corporate term loan. The $12.2 million balance in deferred revenue resulting from the $55 million prepaid gold forward sales agreement signed in 2001, was totally extinguished following the last scheduled gold delivery in December 2005.

Over the course of 2005, $10.0 million was borrowed from a Caribbean financial institution under a credit facility received by Omai Bauxite Mining Inc. (OBMI), a company owned 70% by Cambior and 30% by the government of Guyana; $8.0 million was also borrowed under a separate credit facility received from the same financial institution by Omai Services Inc. (OSI), a power generation company 100% owned by Cambior which supplies electricity to OBMI. These two financings, that are non-recourse to Cambior Inc., have been used to finance the refurbishing of the bauxite infrastructure.

Capital expenditures amounted to $93.8 million in 2005 compared to $133.0 million in the previous year. Of this amount, sums of $6.5 million were invested in the Rosebel Phase-2 construction, $11.6 million to increase our mine gold reserves, $16.0 million in our advanced development projects, $4.1 million to purchase the remaining 50% interest in the Sleeping Giant mine, $16.6 million to complete phase-1 and initiate phase-2 of the Omai Bauxite rehabilitation process, $6.1 million on the Niobec expansion program and the remaining $32.9 million in sustaining capital.

PRODUCTION HIGHLIGHTS

Cambior achieved gold production of 638,400 ounces at a mine operating cost of $285 per ounce in 2005, compared to 694,100 ounces at $244 per ounce in the previous year. The decrease in production is primarily attributable to the scheduled termination of operations at the Omai Gold mine in late September 2005. The increase in unit cost in 2005 is due to the increased value of the Canadian dollar (relative to the US dollar) and its effect on Canadian operations, in addition to increased energy and commodity costs.

For the fourth quarter of 2005, gold production totalled 141,600 ounces at a mine operating cost of $286 per ounce compared to 175,100 ounces at a mine operating cost of $251 per ounce for the corresponding quarter in 2004. The cost increase is mainly due to higher energy costs.

OPERATIONS

The Rosebel mine produced 341,400 ounces of gold in 2005, compared to gold production of 273,700 ounces in 2004. Since the commencement of commercial production in February 2004, improvements and minor circuit expansions have allowed the mill to process at a tonnage above design capacity. Daily throughput averaged 19,700 tonnes in 2005, a 30% increase from the 15,200 tonnes averaged in 2004. The higher 2005 throughput allowed the termination of the planned high-grading period in the mining plan and all available ore was fed to the mill as it was mined. During 2005, the mill processed 7.2 million tonnes of ore at an average grade of 1.56 g Au/t, compared to 5.1 million tonnes at an average grade of 1.84 g Au/t in 2004. The mining operating costs increased to $208 per ounce from $170 per ounce in 2004; the increase is mainly attributable to the end of focusing on higher grade ore and increased energy and blasting costs.

For 2005, the Doyon Division (which includes both the Doyon and Mouska mines) produced 157,500 ounces of gold at a mine operating cost of $358 per ounce, compared to the 146,500 ounces produced at a mine operating cost of $374 per ounce in 2004. The 7.5% increase in gold production is due to the full year of production at the Mouska mine following the completion of the shaft deepening project and operational improvements following the reorganization of the Doyon mine in late 2004.

Cambior's share of production at the Sleeping Giant mine amounted to 40,000 ounces of gold in 2005 at a mine operating cost of $449 per ounce compared to 33,500 ounces at a mine operating cost of $291 per ounce in 2004. Cambior acquired the residual 50% interest in the mine in April 2005. Production was seriously impaired from May to September due to the loss of experienced miners. Following the implementation of a recruitment and training program for new miners, gold production increased 42% in the fourth quarter to 13,900 ounces from 9,800 in the third quarter. Along with an increase in the grade milled, the higher production lowered the mine operating cost in the last quarter.

The Omai Gold mine ceased its operations in September 2005. The final year was mostly devoted to processing the low grade ore stockpiled in the early years of operations. Consequently, a total of 3.7 million tonnes of ore were processed at an average grade of 0.91 g Au/t for production of 99,500 ounces of gold in 2005, compared to 5.5 million tonnes at an average grade of 1.46 g Au/t for production of 240,400 ounces in 2004. During its lifetime, Omai Gold produced over 3.7 million ounces of gold.

In 2005, niobium sales from the Niobec mine totalled $51.4 million compared to $37.9 million in 2004. This increase was primarily due to Cambior's acquisition of the residual 50% interest in Niobec in July 2004. In September 2005, the Company completed a major expansion and optimization program that increased capacity by 20 percent.

In its first year of production, Omai Bauxite had total sales of $36.9 million. During the year, the Company completed its Phase 1 rehabilitation program which totally rebuilt kiln #14. Along with kiln #13, monthly production reached 28,300 tonnes of high-alumina bauxite in December 2005.

MINERAL RESERVES AND RESOURCES

At year-end 2005, proven and probable reserves for the gold mines amounted to 5 million ounces of gold contained compared to 3.5 million ounces of gold contained at the end of 2004, representing a 42% increase. This increase is attributable to a net gain of 753,000 ounces at the Rosebel mine and the addition of 1.1 million ounces in the probable category following the completion of the Camp Caiman feasibility study. A full description of Cambior's mineral reserves and resources is provided in the January 18, 2006 press release.

EXPLORATION AND PROJECT DEVELOPMENT

In 2005, Cambior pursued an aggressive exploration and business development program with total expenditures of $33.6 million. The program included completion of a full feasibility study at the Camp Caiman project as well as exploration and development of the Westwood and La Arena projects. The Company completed the Camp Caiman feasibility study in August 2005 and is currently working on fulfilling the conditions set by the board of directors to allow the beginning of construction, namely obtaining all operating permits, satisfactory government grants under Loi Girardin and relief from certain regional fuel tax. Drilling results at the La Arena property in Peru have been positive and the Company has plans to aggressively pursue additional drilling programs and studies and complete a pre-feasibility study in 2006. Additionally, Cambior is accelerating its exploration of the Westwood deposit following positive surface drilling results. A more detailed description of Cambior's exploration program can be found in its January 18, 2006 press release.

2006 PRODUCTION TARGETS

Cambior's gold production target for 2006 is 529,000 ounces at an estimated mine operating cost of $294 per ounce. The decrease in the 2006 projected production compared to 2005 is the result of the termination of operations at the Omai Gold mine in September 2005.

2006 TARGETS
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Gold Mines Production (ounces) Mine operating cost
($/oz)
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Rosebel 335,200 240
Doyon Division 150,000 381
Sleeping Giant 43,800 408
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TOTAL 529,000 294
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2006 TARGETS
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Non-gold Mines Sales
(in millions of $)
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Niobec (niobium) 60
OBMI (calcined bauxite) 64
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Consolidated Financial Statements

The unaudited consolidated financial statements and explanatory notes for the fourth quarter and for the year ended December 31, 2005, are available in PDF format on Cambior's website at www.cambior.com or through the CCNMatthews website at http://www.ccnmatthews.com/docs/Q4_2005_EN.pdf.

Year-End 2005 Financial Results Conference Call

Cambior will host a conference call on February 21, 2006 at 10:30 a.m., local time, to discuss its fourth quarter and year-end consolidated 2005 unaudited financial results.

Financial analysts are invited to participate in the call by dialing 1-800-274-8650 in North America. Outside of North America, please dial (416) 641-6653. Media and all other interested individuals are invited to listen to the live webcast on the Cambior website at www.cambior.com or through CCNMatthews at www.ccnmatthews.com/cambior.

The conference call will be available for replay for a period of 48 hours by calling (416) 626-4100, reservation # 21281925. The webcast will also be archived on the Company's website.

Record Date Set For Cambior's Annual General and Special Meeting of Shareholders

Cambior Inc. announces that its board of directors adopted a resolution fixing the close of business on Wednesday, March 15th, 2006, as the record date for the purpose of determining shareholders entitled to receive notice of its Annual General and Special Meeting of Shareholders.

The Annual General and Special Meeting of Shareholders of Cambior Inc. will be held at the Marriott Chateau Champlain in Montreal on Wednesday, May 3, 2006 at 11:00 a.m. (local time).

Cambior Inc. is an international gold producer with operations, development projects and exploration activities throughout the Americas. Cambior's shares trade on the Toronto (TSX) and American (AMEX) stock exchanges under the symbol "CBJ". Cambior's warrants, "CBJ.WT.C" and "CBJ.WT.D", trade on the TSX.

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission (the "SEC") allows mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in Cambior's Annual Report on Form 40-F. A copy of the 2004 Form 40-F is available to shareholders, free of charge, upon written request addressed to the Investor Relations Department.

Caution Concerning Forward-Looking Statements

This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, future commercial production, sales and financial results, construction and production targets and timetables, the evolution of mineral reserves and resources, mine operating costs, in particular the continued impact of the fuel price, the strength of the Canadian currency and the cost of raw materials; statements regarding capital expenditures, work programs, development plans, and exploration programs, objectives and budgets; statements regarding the assumptions underlying the Camp Caiman feasibility study, conversion of its mineral resources into reserves, timetables (including the timetable to obtain all permits), the possible grant of investment incentives (including those under Loi Girardin) and, generally, the meeting of conditions relating to the Company's board of directors approval; statements regarding the receipt of each gold deferred payment on its due date and the dollar value of such gold at the time of delivery or, in other words, the effect of Cambior's full exposure to the gold price in connection with such deferred payments, the eventual commencement of construction of the Carlota project and its impact on the timing of gold payments. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licences, risks of hedging strategies, risks of delays in construction and production and other risks referred to in Cambior's 2004 Annual Information Form filed with the Securities Commissions of all provinces in Canada, and with the United States Securities and Exchange Commission (under Form 40-F), as well as the Toronto Stock Exchange and the American Stock Exchange.

HIGHLIGHTS

Fourth Quarter ended Year ended
(unaudited) December 31, December 31,
(All amounts are in US dollars) 2005 2004 2005 2004
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RESULTS (in millions of $)
Revenues 97.4 81.9 368.5 300.9
Cash flow from operating
activities 6.8 3.8 40.5 38.0
Net earnings (loss) 19.8 (76.7) 20.2 (73.8)
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PER SHARE ($)
Net earnings (loss) 0.07 (0.28) 0.07 (0.30)
Basic weighted average number
of common shares outstanding
(in millions) 274.5 269.9 274.3 249.3
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GOLD PRODUCTION
Number of ounces produced (000) 142 175 638 694
Realized gold price
($per ounce) 466 392 421 370
Mine operating costs
($per ounce) 286 251 285 244
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December 31, December 31,
2005 2004
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FINANCIAL POSITION (in millions of $)
Cash and short-term
investments 16 55
Total assets 621 590
Shareholders' equity 402 375
Total number of shares outstanding
(in millions) 274.6 274.2
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MINERAL RESERVES AND RESOURCE Dec. 31, 2005 Dec. 31, 2004
Gold (ounces contained) @ $425 /oz @ $400/oz
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Proven and probable reserves 5,036,600 3,541,200
Measured and indicated resources 3,205,700 3,480,500
Inferred resources 4,757,100 3,677,400
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Fourth Quarter Year
GOLD PRODUCTION STATISTICS ended December 31, ended December 31,
(unaudited) 2005 2004 2005 2004
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Rosebel (100%) (1)
Production (ounces) 81,800 93,300 341,400 273,700
Tonnage milled (t) 1,786,300 1,580,000 7,196,400 5,067,000
Grade milled (g Au/t) 1.51 1.93 1.56 1.84
Recovery (%) 94 95 94 94
Mine operating costs
($per tonne milled) 11 9 10 9
Mine operating costs
($per ounce) 230 158 208 170
Depreciation, depletion and
amortization ($per ounce) 46 67 56 78
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OMAI (100%)(2)
Production (ounces) 2,600 43,000 99,500 240,400
Tonnage milled (t) - 1,414,500 3,703,200 5,545,400
Grade milled (g Au/t) - 1.05 0.91 1.46
Recovery (%) - 91 90 93
Mine operating costs
($per tonne milled) - 9 10 11
Mine operating costs
($per ounce) - 307 366 244
Depreciation, depletion and
amortization ($per ounce) - 31 34 37
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Doyon Division (3)
Production (ounces) 43,300 31,300 157,500 146,500
Tonnage milled (t)
Underground mines 188,400 180,100 773,200 964,200
Pit and low grade stockpile 14,500 21,900 33,200 207,800
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Total 202,900 202,000 806,400 1,172,000
Grade milled (g Au/t)
Underground mines 7.4 5.5 6.6 4.6
Pit and low grade stockpile 1.0 1.3 1.0 1.5
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Average 6.9 5.0 6.3 4.1
Recovery (%) 97 97 96 96
Mine operating costs
($per tonne milled) 76 67 70 47
Mine operating costs
($per ounce) 356 430 358 374
Depreciation, depletion and
amortization ($per ounce) 96 114 87 97
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Sleeping Giant(4)
Production (ounces) 13,900 7,500 40,000 33,500
Tonnage milled (t) 40,600 22,500 121,200 96,500
Grade milled (g Au/t) 10.9 10.7 10.6 11.1
Recovery (%) 97 97 97 97
Mine operating costs
($per tonne milled) 150 109 148 101
Mine operating costs
($per ounce) 444 327 449 291
Depreciation, depletion and
amortization ($per ounce) 107 61 105 63
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TOTAL GOLD PRODUCTION
(ounces) 141,600 175,100 638,400 694,100
MINE OPERATING COSTS
($per ounce) 286 251 285 244
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Fourth Quarter Year
CONSOLIDATED GOLD PRODUCTION ended December 31, ended December 31,
COSTS
($per ounce) (unaudited) 2005 2004 2005 2004
---------------------------------------------------------------------
Direct mining costs 286 250 284 238
Deferred stripping costs - - - 6
Refining and transportation 2 2 2 2
By-product credits (2) (1) (1) (2)
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Mine operating costs 286 251 285 244
Royalties 26 13 20 13
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Total operating costs 312 264 305 257
Depreciation, depletion and
amortization 66 66 63 67
Restoration 2 3 3 2
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Total production costs 380 333 371 326
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(1) Production began in February 2004.
(2) Production ended in 2005.
(3) Includes the Doyon and Mouska mines. Production from Mouska was
temporarily suspended in late December 2003 to allow for shaft
deepening. Production resumed in October 2004.
(4) On April 30, 2005, Cambior purchased the remaining 50% interest
in the Sleeping Giant mine. Before that date, it was a 50%
ownership through a joint venture.
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NON GAAP MEASURE

The Company reports mine operating costs on a production basis
commonly used as a performance measure in gold mining industry even
if it is a non-GAAP measure. Mine operating costs per ounce data are
a measure that management uses to monitor performance. These
statistics are used to assess how well the producing mines are
performing compared to plan and also to assess the overall
effectiveness and efficiency of mining operations. Reported mine
operating costs per ounce data are calculated in accordance with The
Gold Institute Production Cost Standard (the Standard). The data does
not have a meaning prescribed by Canadian GAAP and therefore amounts
presented may not be comparable to data presented by gold producers
who do not follow the Standard. Total mine operating costs per
ounce are derived from amounts included in the Statement of
operations and mine site operating costs such as mining, processing,
administration and royalties but exclude amortization, restoration
costs, financing costs and capital, development and explorations
costs.

The data is intended to provide additional information and should not
be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. The measures are not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP. The following table provides a
reconciliation of total mine operating costs per ounce produced to
the financial statements.

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Fourth Quarter ended Year ended
December 31, December 31
2005 2004 2005 2004
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(in millions of $)
Mine operating costs-as
per financial statements 71.3 62.7 282.2 224.5
Royalties (3.6) (3.5) (13.0) (11.5)
Non-gold costs (25.6) (17.0) (82.1) (42.4)
By-product credits (0.3) (0.1) (0.9) (1.2)
Accretion expense at gold
operating mines (0.3) (0.5) (1.7) (1.5)
Inventory adjustments (1.0) 2.3 (2.5) 1.7
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Gold mine operating costs 40.5 43.9 182.0 169.6
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Ounces produced 141,600 175,100 638,400 694,100
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Gold mine operating costs
($per ounce) 286 251 285 244
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Cambior Inc. (TSX:CBJ) (AMEX:CBJ)