Q1 MD&A (Q1 MDA 1)

FOR THE FIRST QUARTER ENDED MARCH 29, 2025

GREENFIRST FOREST PRODUCTS INC.

Dated: May 13, 2025

‌Table of Contents

Page

Background 2

Forward-Looking Statements 2

Our Sustainable Business and Strategy 3

Recent Business Highlights 4

GreenFirst's Capital Allocation 4

Economic Outlook 5

Financial Highlights 7

Non-GAAP Measures 7

Results of Operations 8

Selected Financial Information 11

Capital Resources and Liquidity 12

Contractual Obligations 14

Off Balance Sheet Arrangements 14

Related Party Transactions 14

Risks and Uncertainties 15

Use of Estimates and Judgements 15

Financial Instruments and Risk Management 15

17

Disclosure Controls and Procedures and Internal Control Over Financial Reporting

Share Data Information 18

‌Background‌

This Management's Discussion and Analysis ("MD&A") provides information on GreenFirst Forest Products Inc. ("GreenFirst", the "Company", "we", "us", "our" or similar terms referring to GreenFirst) and should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and notes thereto for the first quarter ended March 29, 2025 ("Financial Statements"), which have been prepared in accordance and in compliance with International Accounting Standards ("IAS 34"), Interim Financial Reporting ("IFRS"), as issued by the International Accounting Standards Board, using the same accounting policies, including estimates and judgments and methods of application as those disclosed in the Company's annual audited consolidated financial statements for the year ended December 31, 2024 ("Annual Financial Statements"). This MD&A should also be read in conjunction with the Company's Annual Financial Statements and the Annual Management's Discussion and Analysis for the year ended December 31, 2024 ("Annual MD&A"). This MD&A has been prepared as of May 13, 2025, and has been approved by the Company's Board of Directors.

In this MD&A, the Company uses a number of performance measures and indicators to monitor and analyze the financial results that do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar performance measures and indicators used by other issuers. Please refer to the "Non-GAAP Measures" section of this MD&A for details. All figures are stated in Canadian dollars, unless otherwise noted, and all references to "USD" or "US$" are to the United States dollar.

‌Forward-Looking Statements‌

This MD&A has been prepared taking into consideration information available as at May 13, 2025, and contains forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts should be considered forward-looking statements. Such forward-looking statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this MD&A, the words "may"," will", "anticipate, "believe, "estimate", "expect" and "intend" and words of similar import, are intended to identify forward-looking statements.

Readers are cautioned not to place undue reliance on these forward-looking statements. These statements reflect management's current view of future events and are subject to certain risks and uncertainties as contained herein, and in the Company's other filings with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company's actual results could differ materially from those anticipated in these forward-looking statements. Management undertakes no obligation to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events. Although we believe that these expectations are based on reasonable assumptions, the Company can give no assurance that those expectations will materialize.

A comprehensive list of forward-looking statements the Company uses can be found in our Annual Information Form dated March 14, 2025 available at https://www.sedarplus.com.

‌Our Sustainable Business and Strategy‌

GreenFirst is a forest-first business dedicated to sustainable forest management and responsible lumber production. We operate four sawmills and hold timber licenses for Crown forests in Ontario, securing a renewable and stable supply of raw materials. Headquartered in Toronto, with regional offices in North Bay and Timmins, we are deeply connected to the communities we serve.

Our long-term vision is to grow GreenFirst's business in the lumber sector and become the largest wood producer in Ontario. By combining responsible forestry practices with the carbon-storing benefits of lumber, GreenFirst is positioned to succeed in both cyclical market changes and long-term trends in building materials.

GreenFirst maximizes value by focusing on strong financial performance, a culture of safety, and disciplined cost control. We recognize the cyclical volatility of the lumber market, and remain committed to fiscal prudence. Our capital allocation strategy ensures a resilient balance sheet and robust liquidity, supporting sustainable growth through carefully managed investments.

At GreenFirst, sustainability is at the heart of everything we do. Our Forest Stewardship Council® (FSC®) certification ensures that our forest management practices meet globally recognized environmental and social responsibility standards. We are committed to enhancing biodiversity, promoting forest health, and reducing energy consumption, with a focus on utilizing the whole tree for maximum efficiency.

We are strategically investing in our Ontario operations to enhance productivity, expand capacity, and reduce production costs. These efforts are guided by a prudent approach to capital projects, with the goal of achieving top-quartile performance in the forestry sector. We expect increased lumber production from our Ontario sawmills in the near term, driven by continuous improvement, operational excellence and strategic upgrades. This growth is supported by our annual allowable harvest rights in Ontario-an environmentally stable, business-friendly jurisdiction-even as fibre availability tightens across Canada.

GreenFirst values its employees as its most important asset. We prioritize diversity and inclusion, creating a workplace where all are welcome. We also maintain strong, long-standing relationships with Indigenous and rural communities, ensuring mutual growth and respect.

GreenFirst is committed to environmental stewardship, recognizing that sustainable forestry practices contribute to combating climate change. Lumber is carbon-negative and the only renewable building material, requiring less energy to produce and transport compared to alternatives. We also utilize by-products such as wood chips for energy production, generating power with net-zero carbon emissions.

GreenFirst is well-positioned for long-term growth, with a solid asset base, clear operational goals, and a firm commitment to sustainability. We will continue to create value for our shareholders, employees, customers, and local communities while advancing our mission to be a global leader in sustainable forestry.

‌Recent Business Highlights‌

On February 1, 2025, the new U.S. administration issued an executive order directing the imposition of new tariffs on imports from Canada, effective March 4, 2025.

In addition, on March 1, 2025, another executive order was issued directing the U.S. Secretary of Commerce to initiate a Section 232 investigation. This investigation will assess the national security risks posed by timber, lumber, and derivative products imports, including lumber from Canada. A report will be submitted to the U.S. president within 270 days, with recommendations on actions to mitigate potential threats, such as tariffs, export controls, quotas, or incentives for increased domestic production.

Between March 4, 2025 and March 6, 2025, a 25% tariff was imposed on wood products (including lumber) imported from Canada to the U.S., effective March 4, 2025. This impacted shipments of Canadian lumber to the U.S. market.

On March 6, 2025, the U.S. administration signed an executive order temporarily pausing tariffs on Canadian goods compliant with the United States-Mexico-Canada Agreement ("USMCA"), including products like lumber, until April 2, 2025.

On April 2, 2025, the U.S. administration issued a new executive order imposing a 10% tariff on all imports into the U.S. from all countries, with much higher tariffs applied to certain other goods. However, goods compliant with the USMCA, such as lumber, are exempt from these tariffs.

On March 3, 2025, the United States Department of Commerce ("US DOC") released the preliminary results of the 6th Administrative Review (AR6) for Anti-Dumping Duties (ADD) on Canadian softwood lumber imports for the 2023 calendar year, indicating a proposed ADD rate of 20.07%.

On April 4, 2025,The US DOC released the preliminary AR6 results for Countervailing Duties (CVD), showing a proposed CVD rate of 14.38% for the same period.

If finalized, the combined cash deposit rate for affected companies (ADD + CVD) would increase to 34.45%, compared to the current rate of 14.40%.

These rates are not yet final and are subject to comment, appeal, and revision. Final determinations are expected by August / September 2025. Adjustments will be recorded once rates are finalized.

‌GreenFirst's Capital Allocation‌

As of May 13, 2025, the Company has total debt outstanding of $28.7 million, comprised of $16.0 million under the revolving portion of the credit facility and $12.7 million under the equipment financing portion of the credit facility.

During the first quarter ended ended March 29, 2025, the Company made net debt drawdown of $12.0 million, under the revolving portion of the credit facility.

GreenFirst's approach to capital management is designed to support long-term value creation, operational resilience, and investor confidence. Effective capital allocation and financial discipline are essential to our strategy, particularly given the cyclical nature of commodity markets and the forestry sector. Our capital management objectives include maintaining a strong financial position, improving our cost structure, ensuring liquidity across commodity price cycles, supporting access to growth capital, and maintaining compliance with all debt agreements.

We define capital as the sum of net debt and shareholders' equity. This definition provides a clear view of the resources available to support the business and aligns with how management evaluates financial

health and allocates resources. Maintaining balance between debt and equity ensures that we can respond quickly to opportunities or challenges, while preserving flexibility and minimizing financial risk.

Seasonality is a key consideration in our capital planning. Our harvesting operations require significant capital investment in the first quarter each year to build up log inventory ahead of the primary production season. This front-loaded capital demand is built into our liquidity planning to ensure we can meet operational needs without compromising financial stability.

GreenFirst maintains a disciplined and long-term approach to capital allocation. Strategic investments in our Ontario sawmills and forest operations are aimed at enhancing productivity, expanding capacity, and reducing costs. By prioritizing projects with strong returns and maintaining fiscal prudence, we are able to strengthen our competitive position while navigating industry volatility. This capital strategy supports our broader goals of sustainable growth and responsible value creation for shareholders.

1.Total debt outstanding consists of the carrying amounts of the Company's credit facilities.

In addition to its prudent and solid financial position, the Company possesses valuable core assets and opportunities as follows:

• Four uniquely positioned operating sawmills in Ontario with over 510 million board feet of annualized production capacity. With a focus on capital projects and increased productivity, we believe our four mills in Chapleau, Cochrane, Hearst and Kapuskasing have the ability to potentially produce higher annual volumes of lumber in the coming years;

• Abundant forests with a dedicated 2.5 million cubic metres of annual allowable fibre supply in Ontario. The general fibre basket is shrinking in Canada and our allowable cut provides us with a competitive advantage in a stable, business-friendly jurisdiction;

• Net over-funded pension assets of approximately $11.9 million, which the Company has been able to protect from market volatility and preserve the asset surpluses;

• Available non-capital and capital tax loss carryforwards of $146.5 million and nil, respectively, which will shelter future taxable income; and

• Long-term relationships with leading companies in the home improvement segment.

‌Economic Outlook‌

The economic outlook for the lumber industry reflects a balance of ongoing challenges and emerging opportunities. Macroeconomic concerns are beginning to stabilize, which may support a recovery in lumber demand and pricing. In North America, the housing market is showing signs of recovery after recent volatility. Mortgage rates are expected to ease while price growth moderates in 2025, which should improve affordability for borrowers. This could provide relief to homeowners and support demand in new construction, remodeling, and renovation activity which are all keys factors that are expected to continue driving lumber demand. However, it's hard to say for sure how much mortgage rates will go down and it is also possible they will rise due to the current economic uncertainty.

Structural market dynamics are also contributing to longer-term demand fundamentals. A persistent shortage of housing inventory in the U.S., the aging of the existing housing stock, and demographic-driven demand are likely to support the lumber market both in the near and long term.

In the short term, reduced lumber demand and conservative inventory management are creating supply-side pressures. However, continued production curtailments across several regions including British Columbia, Quebec, and other areas of North America could help stabilize or even support lumber prices in the coming months.

Labour market constraints remain a key challenge for the industry, contributing to higher costs and occasional production disruptions. Inflationary pressures across North America have further increased the cost of critical inputs, placing additional strain on operational efficiency. Staffing challenges and tight wood supply are ongoing risks that could negatively impact production output and margins across the industry. Despite these pressures, continuous improvements in production and processing techniques are driving gains in efficiency and helping reduce costs. Companies with access to capital to invest in modern, efficient equipment are better positioned to enhance long-term competitiveness.

A growing focus on environmental sustainability is also reshaping the industry landscape. Organizations that prioritize sustainable forest management and environmentally responsible operations are increasingly gaining favor among regulators, consumers, and investors. GreenFirst is aligned with this trend, producing high-quality lumber in a safe and responsible manner. We are committed to protecting our employees and the environment while creating long-term value for our stakeholders. Our renewable building materials sequester carbon and represent a natural solution in the global effort to combat climate change.

Nonetheless, downside risks remain. Should broader economic conditions or employment levels weaken significantly, or if interest rates remain elevated for an extended period without sufficient adjustments in housing prices, affordability could remain strained. This scenario could suppress new home construction and, in turn, reduce near-term demand for lumber products.

On February 1, 2025, the new U.S. administration issued an executive order imposing new tariffs on imports from Canada, which came into effect on March 4, 2025. These tariffs were subsequently reversed on March 6, 2025. In parallel, on March 1, 2025, the U.S. administration launched a new trade investigation focused on potential anti-dumping measures targeting imported Canadian lumber. This investigation has contributed to an environment of financial uncertainty for Canadian-based lumber manufacturers.

The actual impact of any current or future tariffs remains unknown and cannot be reasonably estimated at this time. Several factors will influence the outcome, including the effective date and duration of any new trade actions, potential changes in the amount, scope, or nature of the tariffs, and the possibility of countermeasures by the Canadian government. Additionally, any mitigating actions available to the Company or the broader industry may affect the overall impact. We continue to monitor developments closely and assess their potential implications for our operations and financial position.

‌Financial Highlights‌

The following selected financial information is derived from the Company's Financial Statements and Annual Financial Statements for first quarter ended March 29, 2025, March 30, 2024, and fourth quarter ended December 31, 2024, respectively:

1Adjusted EBITDA is a Non-GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in this MD&A.

2Non-GAAP Adjusted EBITDA before one-time duties recoveries for the first quarter ended March 29, 2025 was positive $5.1 million compared to positive $6.3 million for the first quarter ended March 30, 2024 and negative $0.9 million for the fourth quarter ended December 31, 2024.

3Includes net sales to external parties only.

4Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information.

‌Non-GAAP Measures‌

EBITDA and Adjusted EBITDA are used by the Company and its investors as a means of assessing the performance of its core operations in comparison to prior periods. EBITDA and Adjusted EBITDA are non-GAAP measures and are not intended to replace net income (loss), or other measures of financial performance and liquidity reported in accordance with IFRS.

References to EBITDA in this document are measures of earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA reflect EBITDA plus other non-operating costs such as impact of valuation changes on the Company's investments, loss on sale of assets and other non-operating losses. Management believes that certain lenders, investors, and analysts use EBITDA and Adjusted EBITDA as a common valuation measurement and to measure the Company's ability to service debt and meet other payment obligations.

Management has utilized net debt and net debt to invested capital as key indicators to monitor its debt levels and leverage. Net debt is defined as borrowings under the Company's credit facilities and term loans, less cash and cash equivalents. Invested capital is calculated as the sum of net debt and

shareholders' equity. These are non-GAAP financial measures and are not intended to replace other measures of financial performance and liquidity reported in accordance with IFRS.

March 29,

December 31,

March 30,

1Adjusted EBITDA is a Non-GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in this MD&A.

2Non-GAAP Adjusted EBITDA before one-time duties recoveries for the first quarter ended March 29, 2025 was positive $5.1 million compared to positive $6.3 million for the first quarter ended March 30, 2024 and negative $0.9 million for the fourth quarter ended December 31, 2024.

3Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information.

2025

1.Total debt outstanding consists of the carrying amounts of the Company's credit facilities.

‌Results of Operations for the First Quarter Ended March 29, 2025‌

Except for the fourth quarter the Company operates on a 13-week fiscal quarter.

The first quarter of 2025 comprises the results of operations from January 1, 2025 through March 29, 2025. The Company's results for the preceding fourth quarter of 2024 includes results of operations from September 29, 2024 through December 31, 2024. The results for the first quarter of 2024 include results of operations from January 1, 2024 through March 30, 2024.

For purposes of the following discussion on the results of operations, the Company has excluded results from its discontinued operations (Please see Note 4 - Discontinued Operations in the Company's Financial Statements for further information).

During the first quarter ended March 29, 2025, the Company recorded a net income from continuing operations of $0.9 million (diluted earnings per share from continuing operations of $0.04) and Adjusted EBITDA from continuing operations of positive $5.1 million.

In the preceding fourth quarter of 2024, the Company recorded a net loss from continuing operations of

$26.6 million (diluted loss per share from continuing operations of $1.39) and Adjusted EBITDA from continuing operations of negative $0.9 million.

In the comparative first quarter ended March 30, 2024, the Company recorded net income from continuing operations of $0.1 million (diluted earnings per share from continuing operations of $0.01) and Adjusted EBITDA from continuing operations of positive $6.3 million.

In the first quarter of 2025, based on its continuing operations, the Company reported an operating earnings of $1.4 million, including a positive contribution of $10.3 million defined as revenues of $71.8 million offset by cost of sales of $62.1 million. The operating earnings also includes the impact of duties paid ($5.7 million), selling, general & administrative expense ($2.6 million) and other operating loss ($0.03 million).

For the first quarter ended March 29, 2025, the Company reported net sales of $71.8 million compared to

$69.9 million in the fourth quarter ended December 31, 2024, an increase of approximately 3%. The increase in net sales was primarily driven by higher realized pricing during the quarter, which offset the impact of lower shipments.

The total volume shipped in the first quarter of 2025 was 90.0 million board feet at an average price of

$729 per thousand board feet (mfbm), compared to 93.5 million board feet shipped in the fourth quarter of 2024 at an average price of $680 mfbm. The improvement in averaging pricing reflects stronger market pricing conditions during the quarter, although demand remained subdued.

The lumber industry continues to face headwinds, including reduced demand due to housing affordability challenges caused by elevated mortgage rates, as well as an oversupply of lumber inventory in the market. These factors are compounded by ongoing uncertainty regarding the potential impact of U.S. trade tariffs despite production curtailments across North America.

In the comparative first quarter ended March 30, 2024 the Company reported net sales of $72.4 million, reflecting shipments of 107.2 million board feet at $618 mfbm. When compared to the first quarter of 2024, the first quarter of 2025 saw lower sales volumes driven by weaker buyer sentiment due to the economic uncertainty around potential tariffs from the US and it's potential impact on the economy.

US housing starts were reported at 1.32 million units (SAAR) in March 2025, a decrease from the 1.52 million seen in December 2024. US benchmark lumber prices for delivery to the Great Lakes region for 2x4 random length 2&better and studs are currently averaging US$598/Mfbm and US$517/Mfbm, respectively, for the second quarter of 2025 thus far. Demand for lumber remains heavily impacted by the potential of a recession, uncertainty around tariffs and higher mortgage rates.

Cost of sales includes labour, raw materials costs (including log costs), consumables, freight, depreciation, and energy costs.

For the first quarter ended March 29, 2025, the Company reported cost of sales of $62.1 million compared to $68.5 million in the fourth quarter ended December 31, 2024, a decrease of approximately 9%. The decrease in cost of sales was primarily due to lower shipment volumes during the quarter.

Lumber production for the first quarter of 2025, was 101.4 million board feet, compared to 102.9 million board feet in the fourth quarter of 2024. This slight decrease in production was primarily attributable to adverse weather conditions and related supply change disruptions experienced during the first quarter of 2025, which impacted operational efficiency and output levels.

The comparative first quarter ended March 30, 2024 had cost of sales of $64.9 million. Lumber production in the first quarter of 2024 was 104.0 million board feet. The decrease in cost of sales in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to lower volumes sold, despite increased production costs per unit, and the absence of a net realizable value benefit on inventory that was recognized in the first quarter of 2024.

The Company's softwood lumber sales to US customers are subject to countervailing and anti-dumping duties as determined by the US DOC. The Company expenses all softwood lumber duties and includes the impact in profit and loss. The Company records duties as an expense at the cash deposit rate until an Administrative Review by the US DOC is finalized and has set a new applicable rate for each period of review. The difference between the cumulative cash deposits paid and cumulative export duty expense recognized for each period of review is recorded on our balance sheet as export duty deposits receivable or payable.

Duties expense of $5.7 million in the first quarter of 2025 were lower than the fourth quarter of 2024 of

$6.2 million due to lower shipments. During both quarters the Company was subject to a combined duty rate of 14.4%.

In comparison, in the first quarter of 2024, the Company paid duties of $3.5 million at a rate of 8.05%. Increased sales dollars in the United States in the combined with the higher duty rate resulted in duties expense to increase by $2.2 million in the first quarter of 2025.

The Company will continue to reassess the duties deposit estimate at each quarter-end applying the US DOC's methodology to updated sales and cost data as this becomes available. Quarterly revisions to the duties deposit rate may result in a material adjustment to the condensed consolidated interim statement of loss and comprehensive loss while the Administrative Reviews are taking place. Changes to the US DOC's existing countervailing duties and anti-dumping duties rates during the course of each administrative review may also result in material adjustments to the condensed consolidated interim statement of loss and comprehensive loss.

Countervailing and anti-dumping duties and adjustments paid or incurred prior to the RYAM Acquisition were retained by the previous owner.

The Company's selling, general and administrative ("SG&A") expenses primarily reflect corporate and

administrative personnel costs, fees paid to consultants and external service providers, IT and infrastructure costs, public-company costs, and other shared back-office expenses.

SG&A expenses were $2.6 million in the first quarter of 2025 compared to $2.8 million in the fourth quarter ended December 31, 2024 which is aligned with the Company's initiative to managing its SG&A.

For the first quarter ended March 30, 2024 the Company reported SG&A expenses of $1.8 million. For the first quarter ended March 30, 2024, SG&A included a recovery of $1.3 million related to the difference

between accrued and actual incentive payout for 2024. Excluding the impact of the benefit between the two periods, SG&A expenses are down $0.5 million which is aligned with the Company's announced initiative to reduce SG&A.

Other operating income (loss) mainly includes the impact of foreign exchange on the Company's US dollar-denominated net working capital. As the Company sells a substantial portion of its products to customers in the United Sales, those sales are denominated in US dollars.

For the first quarter ended March 29, 2025, the Company reported other operating loss of $0.03 million. This was driven by realized and unrealized foreign exchange losses due to the strengthen of the Canadian dollar compared to the US dollar. In the comparative period of the first quarter ended March 30, 2024, the Company reported a other operating income of $0.5 million.

Net finance costs primarily include interest on the Company's credit facility, including amortization of deferred financing costs. Net finance costs also include bank charges, net interest on the Company's pension assets and liabilities, interest income related to the duties deposits, and accretion expense related to lease liabilities and decommissioning obligations. During the first quarter ended March 29, 2025 net finance costs were $0.4 million. In the prior period and for the first quarter ended March 30, 2024, net finance costs for the Company were $1.1 million. The decrease was primarily related to the full repayment of the revolving portion of the credit facility as at December 31. 2024 which resulted in lower interest charges for the first quarter ended March 29, 2025.

For the first quarter ended March 29, 2025, the Company recorded a deferred tax expense of $0.1 million, a substantial portion of which was triggered by deferred tax recoveries on other comprehensive losses related to the Company's pension plans during period.

‌Selected Financial Information - Quarterly Highlights‌

The following table presents selected financial information related to the Company's eight most recent completed fiscal quarters (in thousands of Canadian dollars, except per share amounts and certain operating metrics):

Operating metrics

1Average gross price before duties and other deductions.

2Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information.

3Average selling price is not inclusive of sales by-products and logs.

On a sustained basis, the Company's quarterly financial trends are impacted by typical industry-wide seasonality, levels of lumber production, log costs, market prices for lumber, the USD/CAD foreign currency exchange rate and business-development transactions.

Logging operations are seasonal due to several factors including weather and ground conditions that vary from winter freezing to spring snow melt.

‌Capital Resources and Liquidity‌

At March 29, 2025, the Company had $2.5 million in cash on hand (December 31, 2024 - $27.8 million). In addition, as at March 29, 2025, net of $12.0 million (December 31, 2024 - nil) drawn down, the Company had $40.3 million (December 31, 2024 - $39.3 million), less $8.6 million for standby letters of credit (December 31, 2024 - $8.3 million), of excess availability under the revolving portion of the credit facility. In addition, the Company also had access to $12.0 million (December 31, 2024 - $11.3 million) remaining under its equipment financing portion of the credit facility (or, "equipment financing agreement"). The Company had drawdown $13.0 million (December 31, 2024 - $13.7 million) under its equipment financing agreement as at March 29, 2025. As of the date of this MD&A, the Company had drawdown $16.0 million and $12.6 million under its ABL and equipment financing agreement, respectively.

During the first quarter ended March 29, 2025 the Company decreased its cash balance by $25.3 million as compared to a decrease of $0.9 million for the first quarter ended March 30, 2024, Ending cash on hand as at March 29, 2025 was a balance of $2.5 million as compared to $1.5 million as at March 30, 2024.

During the first quarter ended March 29, 2025, the Company used cash in operations of $29.7 million, primarily reflecting net investments in working capital driven by cash used in seasonal harvesting activities and timing of collections for certain receivables offset by cash provided from extending certain accounts payable balances and income from operations.

During the first quarter ended March 29, 2025 the Company used cash for investing activities of $6.5 million as a result of purchases in property, plant and equipment of which approximately $5.0 million related to the Chapleau large log line project.

During the first quarter ended March 29, 2025 the Company generated $10.9 million in cash from financing related activities. This was primarily driven by a net drawdown of $12.0 million against the Company's revolving portion of the credit facility, offset by $0.6 million in repayments on the equipment term loan portion of the credit facility.

The Company's objectives when managing capital are to maintain a strong financial position, to continuously improve its cost structure, to maintain liquidity throughout commodity price cycles, to support access to additional capital for expansion and to ensure compliance with existing debt agreements. The Company defines capital as the sum of net debt and shareholder's equity.

The Company manages its capital through detailed operating and capital expenditure budgeting combined with frequent forecasting. The Company's strategic capital expenditure decisions are predicated on adequate cash flow from operations and through sale of non-core assets to support those expenditures.

The Company's credit facility contains restrictive covenants that limit the Company's ability to undertake certain actions without the lender's consent, and it also includes the following financial covenant test performed quarterly: a maximum annual capital expenditure amount relative to budget, as defined in the Credit Agreement. The Company monitors its performance monthly as well as its future performance expectations, adjusting as required, so it remains in compliance with the covenants. The Company was in compliance with its covenants under the Credit Agreement as at March 29, 2025.

As at March 29, 2025, the Company also has approximately $146.5 million and nil in non-capital and capital loss carryforwards, respectively, available to offset taxable income and capital gains.

For the first quarter ended March 29, 2025, shareholders' equity increased by $1.8 million, compared to December 31, 2024, primarily reflecting the following transactions during the period $0.9 million net income, $0.1 million other comprehensive loss and $1.0 million equity based payments.

During the first quarter ended March 29, 2025, the Company made a net drawdown of $12.0 million respectively, on the revolving portion of the credit facility. Additionally, as at March 29, 2025, the Company had a net aggregate $13.0 million draw under the equipment financing portion of the credit facility in the form of a term loan. The Equipment Term Loan has a 60-month term, with monthly amortizing repayments that include both principal and interest. The borrowing is based on select strategic capital expenditure projects and value of existing equipment.

The Company remains subject to a maximum annual capital expenditure amount relative to budget, as these terms are defined in the Credit Agreement. The Company can draw down on the facility based on a prescribed percentage of accounts receivable and its inventory carrying value, less reserves. As at March 29, 2025, the Company was in compliance with all covenants under the credit facility.

Under the amended and restated credit agreement, the Company's maximum borrowing capacity under the revolving portion of the credit facility is $60.0 million (March 30, 2024 - $75.0 million) and equipment financing portion of $25.0 million (March 30, 2024 - 25.0 million).

During the first quarter ended March 29, 2025, $1 thousand (March 30, 2024 - $49 thousand) of deferred financing costs were amortized relating to the credit facility.

At March 29, 2025, there were $8.6 million (March 30, 2024 - $5.4 million) of outstanding standby letters of credit issued, which reduces the amounts available to draw under the revolving credit facility. Additionally, as at March 29, 2025, the Company also had $5.4 million (March 30, 2024 - $5.4 million) of outstanding standby letter of credit issued backstopped by another third party, thereby not impacting the amounts available to draw under the credit facility. The letter of credit as at March 29, 2025 issued to Kap

Paper Inc. as the applicant was issued and guaranteed (March 30, 2024 - nil) by a financial institution for which the Company has indemnified the financial institution.

‌Contractual Obligations‌

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 29 are summarized as follows:

2030 and

As at March 29, 2025, the Company had net assets related to pension plans in asset positions on the Balance Sheet of $1.5 million (December 31, 2024 - $2.3 million), and had recorded $4.7 million (December 31, 2024 - $4.7 million) of liabilities related to post-retirement obligations and pension plans in liability positions.

During the first quarter ended March 29, 2025, the Company recorded a $0.1 million remeasurement loss from continuing operations, net of tax (March 30, 2024 - loss, net of tax $4.3 million) related to its pension plans in other comprehensive loss.

‌Off Balance Sheet Arrangements‌

As of March 29, 2025, the Company had $8.6 million (March 30, 2024 - $5.4 million) of outstanding letters of credit that are backed by a reserve against the revolving portion of the Company's credit facility, reducing maximum availability for borrowing. Additionally, the Company had a further $5.4 million (March 30, 2024 - $5.4 million) of outstanding letter of credit backstopped by another third party, thus not impacting the amounts available under the Company's credit facility.

The Company also had surety bonds totaling $1.7 million and US$2.3 million outstanding as of March 29, 2025. These bonds are in support of the Company's obligations to the Ontario Ministry of the Environment for access to certain waste disposal sites, The Quebec Bureau de Mise en Marche Des Bois ("BMMB") in relation to timber cutting rights and the US Department of Commerce for countervailing and anti-dumping duties.

‌Related Party Transactions‌

On November 30, 2021, the Company purchased 1,428,571 common shares in Boreal Carbon Corporation ("Boreal") for $0.5 million which is currently fair valued at $1.4 million. Boreal is an entity focused on acquiring and managing forestry projects in North America to generate carbon credits. The Chairman and a former director of GreenFirst are members of the Boreal board.

There was no change in the investment carrying value during the first quarter ended March 29, 2025 (March 30, 2024 - nil). This investment is accounted for at fair value with changes in fair value recorded in net income (loss).

Certain directors of the Company, or their related parties, hold positions in other companies that result in them having control or significant influence over these companies. Some of these companies transacted with the Company during the periods noted below. Following are the aggregate values of such transactions (amounts are in thousands of dollars):

March 29, March 30

For the year ended 2025(1) 2024(1)

Fees incurred for services - officers and companies controlled by

officers 52 785

(1)Includes fees for management services, administrative support, and reimbursement of expenses. These fees were paid to entities controlled by or affiliated with a director of the Company.

‌Risks and Uncertainties‌

There are certain risks inherent in an investment in securities and activities of the Company, which investors should carefully consider before investing in the Company. A comprehensive list of risks and uncertainties to which the Company is exposed can be found in our Annual Information Form dated March 14, 2025 available at https://www.sedarplus.com.

‌Use of Estimates and Judgments‌

The preparation of the Financial Statements in conformity 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 disclosures at the date of these Financial Statements. It also requires management to exercise judgment in the process of applying accounting policies. Significant areas requiring estimation and judgment include: assessing the net realizable value of inventory based on estimated selling prices, costs of completion, applicable duties, transportation costs and disposal costs; recoverability of trade and other receivables; estimated useful lives of property, plant and equipment; recoverability of long-lived assets; and employee future benefits. Actual amounts could differ materially from these and other estimates, the impact of which would be recorded in future periods.

‌Financial Instruments and Risk Management‌

Except for the Company's investment asset, the fair value of all other financial instruments approximates the carrying value due to their short-term nature. Long-term debt and the vendor take-back mortgage are recorded at amortized cost based on the amount at initial recognition, less principal payments or receipts respectively, plus cumulative amortization using the effective interest rate method of the difference between initial amount and the maturity amount.

The Company has classified its investment in Boreal as fair value through profit and loss. The Company uses Level 3 inputs to assess the fair value of the investment at the reporting date as there is no public information available regarding the value of Boreal's common shares.

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument. Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognized when it is extinguished, discharged, cancelled, or expires.

Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).

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

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises primarily from the Company's cash deposits and receivables from customers.

The Company's maximum exposure to credit risk attributable to cash deposits as at March 29, 2025 is

$2.5 million (December 31, 2024 - $27.8 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 expected credit losses. At March 29, 2025, a $0.2 million (December 31, 2024 - $0.2 million) allowance for expected credit losses was recorded.

The carrying amount of accounts receivable of $23.1 million, excluding value added tax, represents the maximum credit exposure for its accounts receivables as at March 29, 2025 (December 31, 2024 - $13.7 million).

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 to fulfill its obligations when due and monitors cash flow requirements daily and projections weekly.

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.

The Company had drawn down $12.0 million on the revolving portion of the credit facility at March 29, 2025 (December 31, 2024 - nil). Additionally, the Company had excess liquidity of $40.2 million (December 31, 2024 - $39.3 million) less open letters of credit of $8.6 million (December 31, 2024 - $8.3 million) backed by the credit facility. Additionally, as at March 29, 2025, the Company also had $5.4 million (March 30, 2024 - $5.4 million) of outstanding standby letter of credit issued backstopped by another third party, thereby not impacting the amounts available to draw under the credit facility. The letter of credit as at March 29, 2025 issued to Kap Paper Inc. as the applicant was issued and guaranteed (March 30, 2024

- nil) by a financial institution for which the Company has indemnified the financial institution. The Company also had $13.0 million drawn against the equipment financing portion of the credit facility at March 29, 2025 (December 31, 2024 - nil) with an additional $12.0 million (December 31, 2024 - $11.3 million) available to draw down.

The Company is exposed to market risk primarily through changes in commodity prices,interest rates and the US dollar to Canadian dollar exchange rate.

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.

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 CDOR or Canadian Prime Rate plus a premium, currently at 5.45% annualized at March 29, 2025. The Equipment Term Loan portion of the credit facility bears a fixed rate of 7.70%.

As at March 29, 2025 a 100 basis point increase in the interest rate on the revolving portion of the credit facility would decrease the net earnings in the statement of loss and comprehensive loss by $0.1 million on an annual basis. Similarly, as at March 29, 2025 a 100 basis point reduction in the interest rate on the revolving portion of the credit facility would increase the net income (loss) by $0.1 million on an annual basis.

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 29, 2025, the portion of the Company's monetary assets and liabilities held in US dollars are as follows:

Based on the US dollar statement of financial position exposure at March 29, 2025, with other variables unchanged, if the Canadian dollar were to weaken against the US dollar by 1%, relative to the rate at March 29, 2025, the net earnings in the statement of loss and comprehensive loss would be approximately $0.04 million greater. If the Canadian dollar were to strengthen against the US dollar by 1%, relative to the rate at March 29, 2025, the net earnings in the statement of loss and comprehensive loss would be approximately $0.04 million less

‌Disclosure Controls and Procedures and Internal Control Over Financial Reporting‌

The Company's Chief Executive Officer and Chief Financial Officer are responsible for the establishment and maintenance of internal controls over financial reporting including disclosure controls and procedures. The Company has designed internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external reporting purposes in accordance with IFRS.

Management has evaluated the design and effectiveness of the Company's internal controls over financial reporting as of December 31, 2024 through inquiry, review and testing. Management has used The Committee of Sponsoring Organizations of the Treadway Commission ("COSO") framework (2013) to evaluate the effectiveness of the Company's internal controls over financial reporting as of December 31, 2024. Based on this evaluation, Management has concluded that as at December 31, 2024, the

Company's internal controls and disclosure controls and procedures over financial reporting were effective.

There have been no changes to the design of internal controls over financial reporting that occurred during the year ended March 29, 2025 which have materially affected or are reasonably likely to materially affect the internal controls over financial reporting.

‌Share Data‌

As of the date of this MD&A the Company has: 22,602,750 common shares outstanding; 3,175,262 warrants to purchase common shares at prices ranging from $2.40 to $30.39 with expiry dates ranging from October 22, 2025 to July 30, 2026; 403,298 stock options to purchase common shares at prices ranging from $15.0 to $19.20 with expiry dates ranging from December 15, 2026 to January 2, 2028; 118,363 restricted share units with expiry dates ranging from November 14, 2027 to September 16, 2028; and 169,122 deferred share units which can be cash or equity-settled with an expiry date at the end of the subsequent fiscal year following the director's retirement.