2015 Annual Report

Presented at the Annual General Meeting, March 30, 2016.

President’s Report

I am very pleased to present the 2015 Annual Report for Bella Coola Community Forest Ltd.

After a difficult year in 2014, 2015 was a big improvement. It was one of our busiest years and we
harvested over 21,000 m3. Work got started early in the year in the Talchacko where we logged 13,800 m3. Then we moved to Nusatsum where we logged a couple small blocks prior to fire weather shutdown. With cooler and wetter conditions, we got started again in September in Salloompt where we logged a small block along the west mainline.

Oran Hoppe, Presient

The transition from harvesting primarily old growth to second growth continued in 2015. Although the block logged in Talchacko did not originate from previous logging, it regenerated naturally after a fire around 1915. The resulting timber was very much like second growth which opened the door for new, more efficient harvesting techniques.

With potential for more of this type of work, our contractors invested in a feller buncher machine that quickly fells this size of timber. I should point out however, that there is still not enough second growth coming on line to support our operations and we will need to rely on older timber for the foreseeable future.

We are very pleased that there is steady local demand for our logs to mill into a variety of custom products. Our goal is to continue to expand this local market and future initiatives include joint marketing efforts with local millers to build a broader customer base.

Looking ahead, we are optimistic about 2016. The US housing market continues to improve and the demand for cedar remains strong. Uncertainty, regarding government policies on log exports and the Great Bear Rainforest initiative has been settled for a time, allowing security in our planning. Of concern though, is the rising valuation of the Canadian dollar as it directly affects the viability of our different logging options.

On behalf of the Directors, thank you for your continued support as we work for economic development in Bella Coola.

Highlights

BCCFL Board of Directors

The Board is very much involved in directing the management of the Community Forest. The 2015/16
Board consisted of Oran Hoppe, President; Troy Gurr, VP; Ron Ngaard Treasurer, Ed Willson, Rod Krimmer, Barry Brekke and the Bella Coola Resource Society designated Director was Neil Oborne.

Operations

Safety & Environment

The company’s first serious safety incident occurred in 2015. A consulting engineer was attacked by a grizzly bear while laying out a heli-block at Kwatna Inlet. The injured worker was transported quickly to hospital and after several months of recuperation and therapy, he is back doing forestry engineering.

Safe Certification was retained in 2015 and there were no significant environmental issues to report.

Operations

Logging capacity was further improved in 2015 with local contractors continuing to invest in new
machinery. Except for rock blasting, we now have the full complement of equipment in the valley to carry out our logging operations.

Future operations will be focused in the Salloompt, Nusatsum and the area west of Noomst, on the
south side of the Bella Coola River towards Firvale.

Silviculture

All of the areas logged are promptly replanted, usually within one year and on-going monitoring shows that the majority of the plantations are doing very well. The dry spring and summers in last two years have caused higher than usual mortality in our younger plantations. These under-stocked areas will be fill planted in spring, 2016.

Community

Besides helping to keep forest roads open, firewood salvage continues to be one of the main ways people interact with the community forest.

Summarized Financial Statement

The following summary is from the year-end financial report prepared by PMT Chartered Accountants.