GreenFirst Forest Products: Q1 Financial Statement (Financial Statements Q1 2026 For SEDAR)

(In thousands of Canadian dollars unless otherwise stated)

(Unaudited)

(In thousands of Canadian Dollars)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

(In thousands of Canadian Dollars, except share and per share amounts)

Other comprehensive income (loss)

Items that will not be reclassified to earnings in future periods:

Defined benefit pension plans adjustments, net of a tax recovery of

$12 (2025 - net of tax recovery of $51) 33 (142)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

(In thousands of Canadian Dollars)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

(In thousands of Canadian Dollars)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

For the first quarter ended March 28, 2026

(In thousands of Canadian dollars unless otherwise stated)

1. ‌NATURE OF OPERATIONS‌

   GreenFirst Forest Products Inc. ("GreenFirst", or the "Company") is an Ontario-based forest products company operating four sawmills located in Ontario, Canada. The Company manufactures and markets a broad range of spruce-pine-fir ("SPF") lumber products primarily for use in residential and commercial construction. By-products generated from lumber production are sold to pulp producers and other industrial customers.

   The Company's head office and registered office is located at 222 McIntyre Street West, Unit 200, North Bay, Ontario, P1B 2Y8. The Company's common shares are listed on the Toronto Stock Exchange ("TSX") under the trading symbol "GFP".

2. ‌BASIS OF PREPARATION

   Statement of Compliance

   These condensed consolidated interim financial statements ("Financial Statements") have been prepared in accordance and in compliance with International Accounting Standards("IAS 34"), Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB").

   The Company's fiscal year is the calendar year ending December 31. The Company's fiscal quarters are the 13-week periods ending on the closest Saturday to the end of March, June, and September with the fourth quarter ending December 31. References to the first quarter ended March 28, 2026 relate to the 13-week period ended March 28, 2026.

   These Financial Statements were authorized for issuance by the Company's Board of Directors ("Board") on May 5, 2026.

   Basis of Presentation

   These Financial Statements have been prepared under the historical cost basis, except for certain financial instruments and cash-settled deferred share units ("DSUs"), which are measured at fair value at each reporting period.

   Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

   Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, Share-based Payment ("IFRS 2") and measurements that have some similarities to fair value but are not fair value, such as value in use in International Accounting Standard ("IAS") 36, Impairment of Assets.

   Going Concern

   These Financial Statements have been prepared on a going concern basis, which assumes that the Company will continue in operation for the foreseeable future and will realize its assets and discharge its liabilities in the normal course of business.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   For the first quarter ended March 28, 2026, the Company reported a net loss of $20.7 million and cash used in operating activities of $35.0 million. As at March 28, 2026, the Company had working capital of

   $50.1 million, including cash and cash equivalents of $6.5 million. In addition, as at March 28, 2026, availability under the revolving portion of the Credit Facility was $14.3 million (net of $28.0 million drawn and $3.9 million of outstanding letters of credit).

   The Company's ability to continue as a going concern is dependent upon its ability to generate sufficient cash flows from operations, obtaining additional financing and to maintain compliance with the terms and financial covenants of its Credit Facility. Cash flows are influenced by several factors, including market prices for lumber, demand for the Company's products, operating performance, productivity improvements, and production and sales volumes.

   At the end of each reporting period, management exercises judgment in assessing the Company's ability to continue as a going concern and operate in the normal course by reviewing the Company's performance, resources and future obligations. The Company is also dependent on regional supply and demand dynamics for the sale of its by-products. The financial viability of pulp and paper mills, including their reliance on government assistance, may impact demand or pricing for these by-products. A sustained reduction in demand or pricing for by-products could adversely impact sawmill operations and may result in production curtailments or mill closures.

   Uncertainty also exists regarding amended duties and newly imposed tariffs affecting the Canadian softwood lumber market. The timing, magnitude and ultimate impact of such duties and tariffs on the Company's operating results and cash flows remain uncertain and are outside the Company's control.

   Management also considered the duties liability recognized in connection with the U.S. Department of Commerce's final determination of the Sixth Administrative Review ("AR6"). As at March 28, 2026, the Company recorded export duties and related interest totaling $41.5 million based on the final AR6 rate (Note 9). Cash deposits related to these duties are held in trust by the U.S. Department of Commerce. The ultimate amount of countervailing and anti-dumping duties payable will not be determined until the completion of future administrative reviews and any appeals. The Company reassesses the duties liability at each reporting date using the prescribed methodology and updated sales and cost information.

   These conditions indicate the existence of material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern.

   In the prior quarter and during the first quarter ended March 28, 2026, the Company strengthened its liquidity and financial flexibility through the realization of a $10.7 million pension surplus, continued support from Export Development Canada on certain lines of credit, and $30.0 million of financing under the Federal Softwood Lumber Program. While these actions provide additional liquidity, they do not eliminate the underlying uncertainties related to market and operational risks.

   Management has prepared cash flow forecasts for the twelve months following March 28, 2026, based on assumptions regarding lumber prices, duty and tariff rates, operating costs, production and sales volumes consistent with recent operating levels and additional financing. While management believes the assumptions used are reasonable, they are subject to significant estimation uncertainty. Based on these forecasts, management expects that the Company will have sufficient liquidity, including available borrowing capacity under its Credit Facility and future financing, to fund its operations and meet its obligations as they become due for at least the next twelve months.

   These Financial Statements do not include adjustments to the carrying amounts or classifications of assets and liabilities, or related expenses, that would be necessary if the Company were unable to continue as a going concern. Such adjustments could be material.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   Basis of Consolidation

   These Financial Statements include the accounts of the Company and the subsidiaries over which the Company has control. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

   Subsidiaries are included in these Financial Statements from the date control is obtained until the date on which control ceases. The financial statements of the subsidiaries are prepared for the same reporting period and apply the same accounting policies. All intercompany balances, transactions and unrealized gains and losses are eliminated on consolidation.

   The following is a list of subsidiaries of the Company:

   Subsidiary Jurisdiction Direct or Indirect Ownership Date of control and consolidation

   2776034 Ontario Inc. Ontario, Canada 100% September 8, 2020 GreenFirst Forest Products (QC) Inc. Quebec, Canada 100% March 16, 2021 GreenFirst Forest Products (Ontario) Inc. Ontario, Canada 100% January 1, 2024

   Use of Estimates and Judgments

   The preparation of these Financial Statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses and related disclosures at the reporting date. Management also exercises judgment in the process of applying accounting policies.

   Estimates are based on management's best knowledge of current events and actions the Company may undertake in the future. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

   Judgments included in the financial statements are decisions made by Management, based on analysis of relevant information available at the time the decision is made. Judgments relate to the application of accounting policies and decisions applied to the measurement, recognition, and disclosure of financial information.

   Information about areas of estimation uncertainty and critical judgments in applying accounting policies, that have the most significant effects on the amounts recognized in the financial statements, are included both below and in the financial statement notes relating to items subject to significant estimation uncertainty and critical judgments

   Significant areas requiring estimation and judgment include, but are not limited to:

   • Inventory valuation, including the assessment of the net realizable value and the determination of production and logging costs, allocation of manufacturing overhead, and calculation of weighted average costs;

   • Recoverability of trade receivables;

   • Useful lives of property, plant and equipment and timber licenses;

   • Impairment of long-lived assets, including the assessment of indicators and the determination of the recoverable amounts;

   • Measurement of employee future benefit obligations, including discount rates, future compensation increases, and other actuarial assumptions;

     Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

     For the first quarter ended March 28, 2026

     (In thousands of Canadian dollars unless otherwise stated)

   • Asset retirement obligations, including the estimation of future reclamation and decommissioning costs, timing of settlement, inflation rates, and discount rates used in determining the present value of the obligation;

   • Measurement and timing of payments related to duties liability;

   • Assumptions related to going concern.

   Actual results may differ from these estimates and assumptions, and such differences could be material. The effects of changes in estimates are recognized prospectively in the period of change and in future periods, as applicable.

   Functional and Presentation Currency

   These Financial Statements are presented in Canadian dollars, which is the Company's functional and presentation currency.

   Reclassification

   Certain amounts in prior periods have been reclassified to conform with the presentation for the current year.

3. ‌MATERIAL ACCOUNTING POLICIES AND ESTIMATES

These Financial Statements do not include all the information required for full annual financial statements and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2025, which have been prepared in accordance with IFRS® Accounting Standards ("IFRS"), as issued by the IASB. The Financial Statements follow the same accounting policies as described in the consolidated financial statements for the year ended December 31, 2025.

We did not adopt any accounting pronouncements or amendments this period.

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure in Financial Statements (IFRS 18), which replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income statement by requiring income and expenses to be presented into the three defined categories of operating, investing, and financing, and by specifying certain defined totals and subtotals. Where company-specific measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations around these measures, which are referred to as management-defined performance measures. IFRS 18 also provides additional guidance on principles of aggregation and disaggregation which apply to the primary financial statements and the notes. The standard is effective for reporting periods beginning on or after January 1, 2027 with retrospective application required. The Company is currently assessing the effect of this new standard on our financial statement presentation.

No other standards or amendments or interpretations to existing standards issued but not yet adopted are currently considered by the Company to be significant or likely to have a material impact on future financial statements.

For the first quarter ended March 28, 2026

(In thousands of Canadian dollars unless otherwise stated)

(1) Certain prior period amounts have been adjusted from salaries and benefits. See below.

Prior Period Adjustment of Certain Costs

During the year ended December 31, 2025, the Company identified that certain costs previously capitalized to inventory and subsequently expensed as cost of sales was more appropriately categorized as selling, general and administrative expenses. There is no impact on the December 31, 2025 balance sheet as any adjustments had been considered in the prior year. The impact on the March 29, 2025 inventory balance was not material. The Company has recorded a reclassification of $1.2 million to reduce cost of sales and increase selling, general and administrative expenses in these condensed consolidated interim financial statements for the first quarter ended March 29, 2025. This adjustment has no impact on net loss, the statement of cash flows or the statement of changes in shareholders' equity for the first quarter ended March 29, 2025.

For the first quarter ended March 28, 2026

(In thousands of Canadian dollars unless otherwise stated)

As at March 28, 2026, the Company recorded an inventory provision of $20.6 million (December 31, 2025

- $18.8 million) to write down inventory to its net realizable value where net realizable value was lower than cost. The write-down was recorded in cost of sales in the consolidated statement of (loss) income and comprehensive (loss) income.

1. ‌LONG-TERM DEBT

   The Company's debt as at March 28, 2026 and December 31, 2025 is as follows:

   Continuity of debt	March 28, 2026	December 31, 2025
   Opening balance of debt	28,853	13,704
   Net proceeds from revolving portion of Credit Facility	10,000	18,000
   Unamortized deferred financing charges on Credit Facility	1	(35)
   Proceeds from SLP Term Loan	30,000	-
   Repayment of Equipment Term Loan	(738)	(2,816)
   Carrying value of debt	68,116	28,853
   Less: current portion of debt	(3,100)	(3,041)
   Long-term portion of debt	65,016	25,812

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   Contractual minimum principal repayments related to the debt are due as follows:

   	Credit Facility	Equipment Term Loan	SLP Term Loan	Total
   Less than 1 year	$ -	3,100	-	3,100
   1-2 years	-	3,347	-	3,347
   2-3 years	27,966	3,500	4,000	35,466
   Thereafter	-	203	26,000	26,203
   Total	$ 27,966	10,150	30,000	68,116
   GreenFirst Credit Facility

   As at March 28, 2026, the Company had $28.0 million outstanding under the revolving portion of its Credit Facility (December 31, 2025 - $18.0 million), reflecting net drawdowns of $10.0 million during the first quarter ended March 28, 2026.

   As at March 28, 2026, the Company had $10.2 million outstanding under the equipment financing portion of the Credit Facility, structured as a term loan (December 31, 2025 - $10.9 million). The Equipment Term Loan has a 60-month term and is repayable in monthly installments of principal and interest. Borrowings under this portion of the facility are supported by specific strategic capital expenditure projects and the value of certain existing equipment.

   Under the amended and restated credit agreement, the maximum borrowing capacity is $60.0 million for the revolving portion (December 31, 2025 - $60.0 million) and $25.0 million for the equipment financing portion (December 31, 2025 - $25.0 million). Availability under the revolving portion of the facility is based on a prescribed percentage of eligible accounts receivable and inventory carrying value, less applicable reserves, as defined in the credit agreement. The Company is also subject to restrictions on annual capital expenditures relative to approved budgets. As at March 28, 2026, the Company was in compliance with all covenants under the Credit Facility

   During the first quarter ended March 28, 2026, the Company amortized $1 thousand of deferred financing costs related to the Credit Facility (March 29, 2025 - $1 thousand) .

   At March 28, 2026, the Company had $17.8 million of standby letters of credit outstanding (December 31, 2025 - $17.6 million) that were backstopped by a third-party financial institution and did not reduce availability under the Credit Facility. In addition, standby letters of credit totaling $3.9 million were issued under the Credit Facility (December 31, 2025 - $3.9 million). Included in these standby letters of credit were $3.9 million (December 31, 2025 - $3.9 million) issued in favor of Kap Paper Inc. As at March 28, 2026, the Company had provided indemnification to the issuing financial institution and therefore these letters of credit reduce availability under the Credit Facility. As at March 28, 2026, the Company had the ability to draw $14.3 million, net of 3.9 million of letters of credit under the Credit Facility (December 31, 2025 - $23.1 million, net of 3.9 million)

   Softwood Lumber Program Term Loan

   During the first quarter ended March 28, 2026, the Company entered into a $30.0 million term loan under the Business Development Bank of Canada's Softwood Lumber Program ("SLP Term Loan"). The facility was arranged with the Company's banking partner as an amendment to the existing Credit Facility and is intended to support liquidity and ongoing operations amid continued volatility in the North American lumber market.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   The SLP Term Loan bears an interest rate of Canadian prime + 1.50% and matures on July 1, 2033 with principal repayments required monthly starting August 1, 2028. The SLP Term Loan is supported by Business Development Bank of Canada under it's softwood lumber guarantee program, and is also subject to the same customary covenants noted above in the Company Credit Facility. As at March 28, 2026, the Company was in compliance with all covenants under the SLP Term Loan.

   As at March 28, 2026, the Company had drawn $30.0 million (December 31, 2025 - nil) under the SLP Term Loan.

2. DUTIES AND TARIFFS

   Duties Liability

   In late 2016, a petition was filed by the U.S. Lumber Coalition and other petitioners seeking countervailing duties ("CVD") and anti-dumping duties ("ADD") on Canadian softwood lumber imports to the U.S. On January 6, 2017, a preliminary determination was announced by the U.S. International Trade Commission ("ITC") that there was reasonable indication that the U.S. industry is materially injured by imports of softwood lumber products from Canada. Subsequently, the U.S. Department of Commerce ("DOC") imposed duties on Canadian shipments of softwood lumber into the U.S. As each DoC Administrative Review ("AR") of a shipment year is completed, final rates are published in the federal register and a revised cash deposit rate is established until publication of final rates of the next AR. The Company expenses export taxes at the cash duty deposit rate as lumber shipments are made. Where final duty rates differed from cash deposit rates, the Company recognized revisions to its export tax expense. For accounting purposes, a net duty deposit receivable or liability is recorded reflecting differences between the cash deposit rates and the Company's combined accrual rates for each period of review, plus accrued interest receivable/payable.

   The following table summarizes the cash deposit rates in effect, including preliminary and final revised rates by period:

   Effective dates for combined CVD and ADD Fourth administrative review Cash deposit rates in effect Final Rate

   August 28, 2021 - December 31, 2021 20.23 % 8.05 %

   Fifth administrative review

   January 1, 2022 - December 31, 2022 20.23 % 14.40 %

   Sixth administrative review

   January 1, 2023 - August 1, 2023	20.23 %	35.16 %
   August 2, 2023 - December 31, 2023	8.05 %	35.16 %
   Seventh administrative review
   January 1, 2024 - August 18, 2024	8.05 %	Pending
   August 19, 2024 - September 18, 2024	14.54 %	Pending
   September 19, 2024 - December 31, 2024	14.40 %	Pending
   Eighth administrative review
   January 1, 2025 - July 28, 2025	14.40 %	Pending
   July 29, 2025 - August 11, 2025	27.30 %	Pending
   August 12, 2025 - September 7, 2025	35.19 %	Pending
   September 8, 2025 - December 31, 2025	35.16 %	Pending
   Ninth administrative review
   January 1, 2026 - March 28, 2026	35.16 %	Pending

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   Each Period of Inquiry ("POI") is subject to independent administrative review by the US DOC. The results of each POI cannot be offset against each other. However, within a POI, ADD and CVD may be offset.

   On August 8, 2025, the US DOC's issued its Final Determination of the Sixth Administrative Review ("AR6") with respect to imports of softwood lumber products from Canada for 2023. The final duty rate of 35.16% was higher that the Company's prior assessment for 2023. As a result, the Company recorded a duty expense of $33.8 million (US$24.6 million), plus accrued interest of $6.6 million (US$4.8 million) in finance costs. The total duties liability as at March 28, 2026 was $41.5 million (March 29, 2025 - nil), which includes accrued interest for the current period. Cash deposits are paid at the most recent final ADD and CVD duty rates and amounts paid to date remain held in trust by the US DOC. The Company has filed a continued suspension of liquidation for entries subject to the rates established in the final results of AR6.

   The duties liability is represented as follows: Duties liability
   Balance, January 1, 2026	$ 40,361
   Interest expense related to AR 6 recognized on duties liability	686
   Foreign exchange loss	501
   Balance, March 28, 2026	$ 41,548

   Notwithstanding the deposit rates assigned under the investigations, the Company's final liability for CVD and ADD will not be determined until each annual administrative review and related appeals are concluded.

   The Company reassesses the duties receivable/liability estimate at each quarter by applying the US DOC's methodology to updated sales and cost data as it becomes available. Quarterly revisions to the duty deposit rate may result in a material adjustment to the consolidated statement of (loss) income and comprehensive (loss) income during the period in which the administrative reviews are ongoing. In addition, changes to the US DOC's existing CVD and ADD rates during the course of each administrative review may also result in material adjustments to the consolidated statement of (loss) income and comprehensive (loss) income.

   Incremental US Tariffs

   On October 14, 2025, the United States imposed a 10% global tariff on the import of softwood timber and lumber, under Section 232 of the 1962 Trade Expansion Act, which included imports from Canada. The incremental US Tariffs was recorded under the duties and tariffs caption in the Company's consolidated statement of (loss) income and comprehensive (loss) income.

   Duties and Tariff Expense

   For the first quarter ended March 28, 2026, the Company recorded duties and tariffs of $12.1 million (March 29, 2025 - $5.7 million) based on the effective cash deposits rates for CVD and ADD and applicable tariffs.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

3. ‌SHAREHOLDERS' EQUITY

   Share Capital

   Authorized

   • Unlimited number of common voting shares with no par value.

   • 100,000,000 preferred shares with no par value, none of which are outstanding for the reporting periods presented.

     Issued and outstanding

     Changes to common shares and share capital issued and outstanding are as follows:

     Number of

     	Common Shares	Amount
     Balance, January 1, 2025	22,602,750	$ 273,991
     Shares issued in relation to deferred shares unit exercises	6,762	61
     Shares issued in relation to restricted share unit exercises	24,272	45
     Shares issued in relation to warrant exercises	504,020	1,208
     Balance, December 31, 2025	23,137,804	275,305
     Shares issued in relation to deferred shares unit exercises	9,169	-
     Balance, March 28, 2026	23,146,973	$ 275,305
     Warrants

     The Company has issued common share purchase warrants as part of its capital management and financing activities. Warrants entitle the holder to purchase common shares of the Company at a specified exercise price prior to expiry, subject to the terms and conditions of the warrant agreements.

     The following table summarizes the warrant activity for the year ended March 28, 2026, including issuances, exercises, forfeitures, and expiries:

     	Number of Warrants	Exercise Price(1)	Amount in reserves
     Balance, January 1, 2025	3,175,262	$ 16.23	$ 9,132
     Forfeitures	(539,370)	2.40	-
     Exercised	(1,066,642)	2.40	-
     Balance, December 31, 2025	1,569,250	30.39	9,132
     Balance, March 28, 2026	1,569,250	$ 30.39	$ 9,132
     (1) In dollars per common share.
     Earnings (Loss) Per Share
     For the first quarter ended		March 28, 2026	March 29, 2025
     Net (loss) income		$ (20,678)	$ 920
     Basic weighted average number of common shares outstanding		23,146,070	22,602,750
     Basic (loss) earnings per share		$ (0.89)	$ 0.04

     Weighted Average Carrying Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

     For the first quarter ended March 28, 2026

     (In thousands of Canadian dollars unless otherwise stated)

     For the first quarter ended	March 28, 2026	March 29, 2025
     Net (loss) income	$ (20,678)	$ 920
     Basic weighted average number of common shares outstanding	23,146,070	22,602,750
     Dilutive effect of exercisable warrants outstanding	-	763,537
     Diluted weighted average number of common shares outstanding	23,146,070	23,366,287
     Diluted (loss) earnings per share	$ (0.89)	$ 0.04

     As at March 28, 2026, 372,303 stock options (March 29, 2025 - 403,298), granted by the Company were either not vested or not in-the-money and therefore non-exercisable (Note 11).

     There were no shareholder dividends declared during the first quarter ended March 28, 2026 and March 29, 2025.

4. ‌EQUITY-BASED COMPENSATION

   Omnibus Equity Incentive Plan

   In 2021, the Company established the 2021 Omnibus Equity Incentive Plan ("Omnibus Plan") for directors, officers, employees and contractors. Under the Omnibus Plan, the Company may grant stock options, Deferred Share Units ("DSUs"), Restricted Share Units ("RSUs"), Performance Share Units ("PSUs"), and Dividend-Equivalent Rights. The maximum number of common shares which can be reserved for issuance under the Plan is 10% of the prevailing issued and outstanding shares of the Company. The Omnibus Plan was amended and restated in 2024 to reflect updated terms and governance provisions.

   Stock Options

   During the first quarter ended March 28, 2026 the Company granted nil stock options, under the Omnibus Plan (March 29, 2025 - nil). During the first quarter ended March 28, 2026 the Company forfeited/expired nil stock options, due to terminations/expirations under the Omnibus Plan (March 29, 2025 - nil).

   As at March 28, 2026, 372,303 stock options to directors, officers, employees and contractors were outstanding (March 29, 2025 - 403,298), of which 280,870 stock options were vested and exercisable (March 29, 2025 - 266,884).

   	Number of Options	Weighted Average Exercise Price(1)	Years Before Expiration
   Outstanding, January 1, 2025	403,298	$ 16.81	2.38
   Forfeited/expired	(30,995)	16.58	-
   Outstanding, December 31, 2025	372,303	16.89	1.32
   Outstanding, March 28, 2026	372,303	$ 16.89	1.08
   (1) In dollars per option.

   The Company recorded an expense related to the stock options outstanding under the Omnibus Plan for the first quarter ended March 28, 2026 of $0.02 million (March 29, 2025 - expense of $0.05 million).

   Deferred Share Units (Equity-settled)

   DSUs are granted to members of the Board of Directors, to provide a structure for accumulating an equity-like interest in the Company. Each director is required to receive DSU's representing at least 50% of their annual retainer until a prescribed minimum equity holding is reached. Once the minimum equity holding is reached, directors may elect to receive up to 50% of their annual retainer in cash.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   All DSUs are vested immediately upon issuance and are based on the market price of the Company's Common shares at the date of grant.

   During the first quarter ended March 28, 2026, the Company granted 82,436 DSU (March 29, 2025 -26,803).The DSUs granted during the first quarter ended March 28, 2026 were issued at share prices of

   $1.76.

   As at March 28, 2026, the Company had 477,542 equity-settled DSUs outstanding (March 29, 2025 -

   132,574).

   Number of DSUs		Weighted Average Unit Price(1)
   Outstanding, January 1, 2025	105,771	$ 6.77
   Granted	305,268	3.87
   Exercised	(15,933)	9.57
   Outstanding, December 31, 2025	395,106	5.19
   Granted	82,436	1.76
   Outstanding, March 28, 2026	477,542	$ 3.96
   In dollars per unit.

   During the first quarter ended March 28, 2026, the Company recorded an expense of $0.1 million (March 29, 2025 - $0.9 million) related to the issuance of equity-settled DSUs under the Omnibus Plan. Because the DSUs vest immediately, the fair market value of the awards is recognized as an expense at the grant date.

   Deferred Share Units (Cash-settled)

   During the first quarter ended March 28, 2026, the Company granted no cash-settled DSUs, (March 29, 2025 - nil).

   Number of DSUs		Weighted Average Unit Price(1)
   Outstanding, January 1, 2025	79,425	$ 5.23
   Exercised	(23,757)	2.26
   Outstanding, December 31, 2025	55,668	1.80
   Outstanding, March 28, 2026	55,668	$ 2.15

   During the first quarter ended March 28, 2026, the Company recorded an expense of $0.02 million (March 29, 2025 - recovery of $0.6 million) related to the remeasurement of the DSUs liability under the Omnibus Plan. Liability-settled DSUs are measured at fair value at each reporting date, with changes in fair value recognized in the consolidated statement of loss and comprehensive income (loss)

   As at March 28, 2026, the Company had 55,668 cash-settled DSUs outstanding (December 31, 2025 -55,668). The associated liability was $0.1 million as at March 28, 2026 (December 31, 2025 - $0.1 million).

   Restricted Share Units

   Under the Omnibus Plan, RSUs may be granted to employees to attract, retain, and motivate key employees and officers by aligning their interests with those of shareholders and promoting a culture of ownership. RSUs are granted to eligible participants and vest over a specified period, subject to continued employment.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   During the first quarter ended March 28, 2026, the Company granted nil RSUs (March 29, 2025 - nil). During the first quarter ended March 28, 2026, employees exercised nil RSUs (March 29, 2025 - nil).

   As at March 28, 2026, the Company had 107,042 RSUs outstanding (March 29, 2025 - 118,363) of which

   	Number of RSUs	Weighted Average Unit Price(1)
   Outstanding, January 1, 2025	118,363 $	9.29
   Granted	85,766	3.53
   Exercised	(97,087)	10.30
   Outstanding, December 31, 2025	107,042 $	3.76
   Outstanding, March 28, 2026	107,042 $	3.76
   In dollars per unit.

   nil RSUs had vested (March 29, 2025 - 48,544).

   $

   For the first quarter ended March 28, 2026, the Company recorded an expense of $0.1 million (March 29, 2025 - $0.1 million) related to the RSUs. The RSUs are valued based on the fair market value of the Company's common shares at the date of grant, and the fair value is expensed over the vesting period.

   Performance Share Units (Equity-settled)

   The Company may grant PSU as part of its long-term incentive program for key employees and executives. The PSUs are designed to align the interests of management with those of shareholders by linking a portion of compensation to the achievement of specific performance objectives over a defined period. PSUs are granted to eligible participants and typically vest at the end of a multi-year performance cycle, subject to the attainment of pre-established financial or operational targets and continued employment.

   Each PSU represents the right to receive one common share of the Company upon vesting, contingent on the level of performance achieved relative to the targets set for each performance period. The number of shares ultimately issued may vary based on the actual performance outcome, which is assessed at the end of the performance period.

   During the first quarter ended March 28, 2026, the Company granted nil PSUs which are equity-settled (March 29, 2025 - nil).

   As at March 28, 2026, the Company had 39,538 PSUs outstanding (March 29, 2025 - nil) of which nil PSUs had vested (March 29, 2025 - nil).

   Number of PSUs		Weighted Average Unit Price(1)
   Outstanding, January 1, 2025	-	$ -
   Granted	39,538	4.11
   Outstanding, December 31, 2025	39,538	4.11
   Outstanding, March 28, 2026	39,538	$ 4.11
   In dollars per unit.

   During the first quarter ended March 28, 2026, the Company recorded an expense of $0.01 million (March 29, 2025 - nil). The PSUs are valued based on the fair market value of the Company's common shares at the date of grant, and the fair value is expensed over the vesting period.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

5. ‌RELATED PARTY TRANSACTIONS

   Key management personnel compensation

   The Company's key management personnel is comprised of its Board of Directors and members of the senior leadership team. Compensation for key management personnel consists of the

   following:

   March 28, March 29, For the first quarter ended 2026 2025

   Salaries, benefits and fees $ 321 $ 321

   Equity-based compensation(1) 207 313

   Total $ 528 $ 634

   (1) Please refer to Note 11 - Equity-based Compensation.

   Investment in Boreal Carbon Corporation

   On November 30, 2021, the Company purchased 1,428,571 common shares in Boreal Carbon Corporation ("Boreal") for $0.5 million. As at March 28, 2026, the investment is valued at $1.1 million. Boreal focuses on acquiring and managing forestry projects in North America to generate carbon credits. The Chairman of GreenFirst is a member of the Boreal board.

   During the first quarter ended March 28, 2026, the Company recorded a $0.3 million change in fair value as a result of a return of capital made by Boreal to all shareholders (March 29, 2025 - nil). This investment is accounted for at fair value with changes in fair value recorded in net loss.

   Management Services Agreements

   Certain directors of the Company, or their related parties, hold positions in other companies over which they have control or significant influence. During the first quarters ended March 28, 2026 and March 29, 2025, some of these companies transacted with the Company. The aggregate value of such transactions is summarized as follows:

   March 28, March 29, For the first quarter ended 2026(1) 2025(1)

   Fees incurred for services - officers and companies controlled by

   officers 54 52

   (1) Includes fees for management services, administrative support, and reimbursement of expenses.

6. ‌FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

   As at March 28, 2026, the Company's financial instruments categorization and values are as follows:

   Category

   Cash and cash equivalents Amortized cost

   Trade and other receivables Amortized cost

   Trade accounts payable and other current liabilities, excluding lease liabilities Amortized cost Long-term debt, current Amortized cost

   Long-term debt Amortized cost

   Duties liability Amortized cost

   Vendor-takeback mortgage Amortized cost

   Other current liabilities, related to cash-settled DSU liability Fair Value

   Investment Fair value

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   The Company's financial instruments expose the Company to credit, liquidity and market risk.

   The Company has classified its investment in Boreal Carbon Corporation as fair value through profit and loss. The fair value is assessed using level 3 as there is no public market information available for Boreal's common shares.

   Credit Risk

   Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations arising primarily from cash deposits and accounts receivable.

   The Company's maximum exposure to credit risk attributable to cash deposits as at March 28, 2026 is

   $6.5 million (December 31, 2025 - $3.5 million). The Company holds these deposits with a Canadian Schedule 1 financial institution.

   The Company's exposure to credit risk with respect to accounts receivable is dependent upon individual characteristics of each customer. Each new customer is assessed for creditworthiness before payment and delivery terms and conditions are offered, with such review encompassing external ratings, and bank and other references. Purchase limits are established for each customer and are regularly reviewed. The Company does not require specific credit guarantees for its customers and mitigates the risk of potential losses through the active monitoring of its receivables, considering past experience with its customer base, current economic conditions and any known specific customer issues.

   The Company regularly reviews the collectability of its accounts receivable and establishes an allowance for expected credit losses based on its best estimate of potential credit losses based on historical experience, current economic conditions and known customer-specific issues. At March 28, 2026, a $0.2 million (December 31, 2025 - $0.2 million) allowance for expected credit losses was recorded.

   The carrying amount of accounts receivable, excluding value added tax, of $20.3 million, represents the maximum credit exposure for its accounts receivables as at March 28, 2026 (December 31, 2025 - $18.2 million).

   Given our credit monitoring activities, the percentage of overdue accounts, and our history of minimal customer defaults, we consider the credit quality of our trade accounts receivable at March 28, 2026, to be high. Accordingly, we have recorded nominal expected credit losses on our trade accounts receivable. The aging analysis of trade accounts receivable is presented below:

   As at	March 28, 2026	December 31, 2025
   Accounts receivable, trade Not due	9,357	2,404
   0-30 days past due	854	8,752
   31-60 days past due	74	86
   Over 60 days past due	1,593	2,081
   Accounts receivable, trade	11,878	13,323
   Allowance for expected credit losses	(158)	(158)
   Total trade receivables	11,720	13,165

   Liquidity Risk

   Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity by monitoring cash flows daily and projecting weekly ensuring obligations can be met.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   Under the amended and restated credit agreement for the Credit Facility, the maximum borrowing capacity is $60.0 million for the revolving portion (December 31, 2025 - $60.0 million) and $25.0 million for the equipment financing portion (December 31, 2025 - $25.0 million).

   The Company can draw down on the revolving portion of the Credit Facility based on a prescribed percentage of accounts receivable and its inventory carrying value, less reserves. The facility matures on September 23, 2028. Drawings under the equipment financing portion are either project specific or based on a prescribed percentage of appraised equipment value.

   At March 28, 2026, the Company had $6.5 million in cash on hand (December 31, 2025 - $3.5 million).

   In addition, the Company had $14.3 million of excess availability under the revolving Credit Facility (net of

   $28.0 million drawn and $3.9 million for standby letters of credit) compared to $23.1 million as at December 31, 2025 (net of $18.0 million drawn and $3.9 million for standby letters of credit). The Company also had access to $14.8 million under its equipment financing agreement (December 31, 2025

   - $14.1 million) of which $10.2 million was drawn as at March 28, 2026 (December 31, 2025 - $10.9 million).

   Additionally, as at March 28, 2026, the Company had $17.8 million of standby letters of credit outstanding (December 31, 2025 - $17.6 million) that were backstopped by a third-party financial institution, which did not reduce availability under the Credit Facility. In addition, $3.9 million of standby letters of credit were issued under the Credit Facility (December 31, 2025 - $3.9 million), including $3.9 million (December 31, 2025 - $3.9 million) issued in favor of Kap Paper Inc. As at March 28, 2026, these Kap Paper letters of credit are no longer backstopped and therefore reduce availability under the Credit Facility.

   As of March 28, 2026, the Company had surety bonds of $1.7 million outstanding (December 31, 2025 -

   $3.6 million). These bonds are in support of the Ontario Ministry of the Environment for access to certain waste disposal sites.

   The estimated cash payments (undiscounted) due in respect of contractual and legal obligations including debt principal payments and capital commitments for the one-year periods ending March 28 are summarized as follows:

   2030 and

   	2026	2027	2028	2029	beyond	Total
   Trade accounts payable and accrued liabilities	$ 44,329	$ -	$ -	$ -	$ -	$ 44,329
   Other liabilities, excl. leases	15,075	-	-	-	8,322	23,397
   Lease liabilities	1,574	1,436	873	844	2,980	7,707
   Long term debt	3,100	3,347	35,466	6,203	20,000	68,116
   Total	$ 64,078	$ 4,783	$ 36,339	$ 7,047	$ 31,302	$ 143,549

   Market Risk

   Market risk includes exposure to commodity prices, interest rates and foreign currency fluctuations.

   Commodity Prices

   The Company's products are commodities that are widely available from other producers; because these products have few distinguishing qualities from producer to producer, competition is based primarily on price, which is determined by supply relative to demand. The Company attempts to minimize the economic impact of these changes through continuously looking for cost reductions in its operations and employing flexible manufacturing schedules that can increase or decrease in response to supply and demand fluctuations. The Company currently does not hedge its exposure to commodity prices.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

   Interest Rate Risk

   Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has borrowings under its Credit Facility which creates interest rate risk exposure for the Company. The revolving portion of the Credit Facility bears a variable rate of Canadian Prime Rate plus a premium, currently at 4.95% annualized as at March 28, 2026. The non-revolving portion of the Credit Facility, SLP Term Loan, bears a variable rate of Canadian Prime Rate plus a premium, currently at 5.95% annualized as at March 28, 2026. The Equipment Term Loan portion of the Credit Facility bears a fixed rate of 7.70%.

   As at March 28, 2026 a 100 basis point increase in the interest rate on the revolving portion of the Credit Facility would increase the net loss in the statement of (loss) income and comprehensive (loss) income by

   $0.3 million on an annual basis. Similarly, as at March 28, 2026 a 100 basis point reduction in the interest rate on the equipment portion of the Credit Facility would decrease the net loss by $0.1 million on an annual basis.

   Currency Risk

   The Company is exposed to foreign exchange risk on revenues and expenditures denominated in foreign currencies, principally US dollars. The Company's US dollar denominated sales accounts for a significant volume of its sales. Except for duties and transportation, the majority of the Company's expenditures are in Canadian dollars.

   The Company is exposed to currency risk on US dollar cash and cash equivalents, accounts receivable and accounts payable balances.

   As at March 28, 2026, the portion of the Company's monetary assets and liabilities held in US dollars are as follows:

   March 28,

   As at (in thousands of US dollars)	2026
   Cash and cash equivalents	$ 2,856
   Accounts receivable	6,897
   Trade accounts payable and other liabilities	(6,850)
   Duties liability, including accrued interest	(29,909)
   Net monetary assets in US Dollars	$ (27,006)

   Based on the US dollar statement of financial position exposure at March 28, 2026, with other variables unchanged, if the Canadian dollar were to weaken against the US dollar by 1%, relative to the rate at March 28, 2026, the net loss in the statement of (loss) income and comprehensive (loss) income would be approximately $0.4 million greater. If the Canadian dollar were to strengthen against the US dollar by 1%, relative to the rate at March 28, 2026, the net loss in the statement of (loss) income and comprehensive (loss) income would be approximately $0.4 million less.

7. ‌CAPITAL MANAGEMENT

   The Company's objectives when managing capital are to maintain a strong statement of financial position, maintain liquidity through commodity price cycles and support access to additional capital for expansion. The Company defines capital as net debt and shareholders' equity.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)
   For the first quarter ended March 28, 2026
   (In thousands of Canadian dollars unless otherwise stated)
   As at	March 28, 2026
   Total debt outstanding1	$ 68,116
   Less: cash and cash equivalents	(6,516)
   Net debt	61,600
   Shareholders' equity	40,223
   Total capital	$ 101,823

   (1) Total debt outstanding consists of the carrying amounts of the Company's borrowings under the Credit Facility.

   The Company manages its capital through detailed operating and capital expenditure budgets combined with frequent forecasting. Strategic capital expenditure decisions are based on adequate cash flow from operations and when necessary, the sale of non-core assets to support such expenditures.

   The Company's Credit Facility contains restrictive covenants that limit certain actions without the lender's consent. It also includes the financial covenant tests performed quarterly, including a maximum annual capital expenditure relative to approved budgets, as defined in the Credit Agreement.

   The Company monitors its performance monthly, assessing future expectations and making adjustments as required to ensure compliance with covenants. As at March 28, 2026, the Company was in compliance with its covenants under its Credit Facility.

8. COMMITMENTS AND CONTINGENCIES

   Surety bonds and letters of credit

   In the normal course of business, the Company is required to provide financial assurances to various governmental agencies, regulatory authorities, and counterparties in connection with its operating activities. These assurances are provided through surety bonds and letters of credit, which are off-balance sheet arrangements. These instruments do not represent a direct financial liability of the Company unless a claim is made by the beneficiary and the Company fails to perform under the related contractual or regulatory obligation. In such an event, the Company would be required to reimburse the issuing financial institution for any amounts paid.

   Surety bonds are issued primarily in support of the Company's obligations related to site reclamation and to secure the payment of estimated countervailing and anti-dumping duty cash deposits on softwood lumber sales to the United States. These bonds ensure that the Company will satisfy its regulatory and contractual obligations, including compliance with U.S. customs requirements for cross-border lumber shipments.

   Letters of credit are issued under the Company's credit facilities provide security for the Company's obligations under U.S. softwood duty requirements, certain operational contracts, energy agreements, and other operating commitments. These letters of credit do not reduce the availability under the Company's Credit Facility as they are backstopped by a third-party financial institution. Letters of credit are required to support the Company's ability to meet its contractual and regulatory obligations and are typically drawn upon only if the Company fails to fulfill the underlying commitments.

   Litigation and claims

   In the ordinary course of business, from time to time, the Company is involved in various claims related to operations, rights, commercial, employment or other claims. Although such matters cannot be predicted with certainty, management does not consider the Company's exposure to these claims to be material to these Financial Statements.

   Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

   For the first quarter ended March 28, 2026

   (In thousands of Canadian dollars unless otherwise stated)

9. ‌SEGMENT AND GEOGRAPHICAL INFORMATION

   The Company manages its business as a single operating segment, being lumber products. The Company harvests and purchases logs which are then manufactured into lumber and other wood products at its operations. All operations are located in Ontario, Canada.

   For the first quarter ended March 28, 2026, there was one customer that represented 10% or more of total net sales for the Company (March 29, 2025 - one customer).

   The Company sells to both foreign and domestic markets as follows:
   	March 28,		March 29,
   For the first quarter ended	2026		2025
   Canada	$ 13,740		$ 14,433
   United States	46,881		57,397
   Total net sales	$ 60,621		$ 71,830
   Sales by product line is as follows:	March 28,		March 29,
   For the first quarter ended	2026		2025
   Lumber products	$ 55,413		$ 65,629
   Chips, by-products and other	5,208		6,201
   Total net sales	$ 60,621		$ 71,830
   Accounts receivable, trade by product line is as follows:	March 28,		December 31,
   As at	2026		2025
   Lumber products	$ 6,716		$ 4,688
   Chips, by-products and other	5,162		8,635
   Accounts receivable, trade	$	11,878 $	13,323

10. SUBSEQUENT EVENTS

Subsequent to March 28, 2026 the Company made net drawdowns of $5.5 million on the revolving portion of its Credit Facility.