Sep 29, 2005. /Lesprom Network/. TimberWest Forest Corp. is pleased to announce that it has reached an agreement to terminate a fibre supply agreement with Western Forest Products Inc. for $15 million. This fibre supply agreement, entered into in 1997 required TimberWest to offer Western, in perpetuity, an annual volume of 330 000 cubic meters of primarily Douglas fir sawlogs from its private lands at domestic prices. "This is a very good transaction for TimberWest as it removes a further encumbrance from our private timberlands and allows the company to ensure that we get the maximum value in the market for this fibre," said Paul McElligott, president and CEO. TimberWest Forest Corp. is uniquely positioned as the largest owner of private forest lands in western Canada. The company's 334 000 hectares, providing a sustainable annual harvest of 2.5 million cubic meters of logs, are located on Vancouver Island and predominantly support the growth of Douglas fir forests, a premium species used for structural purposes. TimberWest runs fully- contracted harvesting operations. With approximately 70% of the company's logging now being done in second-growth stands, TimberWest leads the industry in the harvest of second-growth timber. Third party auditors have certified that the management of the company's private forest land conforms to the objectives and performance measures of the American Forest and Paper Association's Sustainable Forestry Initiative (SFI(R)). TimberWest also owns renewable Crown harvest rights to 0.8 million cubic meters of logs per year and operates a lumbermill located near Campbell River, British Columbia. In addition, approximately 6,000 hectares of the company's private forest lands have been identified as having greater value as real estate properties and are progressively being made available for higher uses.