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Maple Leaf Foods Issues Notice of Repayment for $706 million Senior Notes

TORONTO, Mar 17, 2014 (Canada NewsWire via COMTEX) –Canadian Competition Bureau Clears Purchase of Canada Bread by Grupo

Maple Leaf Foods Inc. (TSX: MFI) (“Maple
Leaf” or the “Company”) announced today that it has issued notice of
repayment to be made on April 14, 2014 for all of its outstanding
senior notes (the “Notes”) in aggregate principal amounts of Cdn$706
million (including US$318 million notes converted at 1.106 USD/CAD) and
original maturity dates ranging from December 2014 to January 2021.
The estimated redemption amount based on current foreign exchange
rates, U.S. Treasury yields and Government of Canada bond yields,
including make-whole premiums and accrued interest, is $800 million.

The repayment will be paid from available and committed bank credit
facilities and will provide greater financial flexibility. Following
repayment of the Notes, the Company’s remaining debt will consist
largely of short term bank facilities that the Company plans to repay
with proceeds from the previously announced $1,650 million sale of its
interest in Canada Bread Company, Limited (“Canada Bread”) to Grupo
Bimbo, S.A.B. de C.V. The Canadian Competition Bureau has recently
given clearance for the transaction to proceed. Subject to remaining
regulatory and shareholder approvals, the sale is expected to close in
the second quarter of 2014.

Maple Leaf Foods Inc. is a leading food processing company,
headquartered in Toronto, Canada. The Company employs approximately
18,000 people at its operations across Canada and in the United States,
the United Kingdom, and Asia. The Company had sales of $4.4 billion in

Forward Looking Statements
This document may include forward looking statements within the meaning
of applicable securities law. Such statements include, but are not
limited to, the amount and timing of amounts payable relating to
make-whole premiums and foreign currency-denominated obligations, the
continued access to sources of financing, and the timing and completion
of the sale of Canada Bread to Group Bimbo and any use of proceeds
flowing from such transaction. There can be no assurances that such
transaction will be completed. These statements are not guarantees of
future events and involve assumptions and risks and uncertainties that
are difficult to predict. Actual results may differ materially from
those expressed, implied or forecasted in such forward-looking
information. Some of the factors that could cause actual results or
outcomes to differ materially from the results expressed, implied or
forecasted by such forward-looking information, including some of the
assumptions used in making such statements, is discussed more fully in
the Company’s Annual Management’s Discussion and Analysis for the
period ended December 31, 2013 including the section entitled “Risk
Factors” that are updated each quarter in the Management’s Discussion
and Analysis, and are available on SEDAR at Maple Leaf does not intend to, and Maple Leaf disclaims any obligation
to, update any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.

SOURCE Maple Leaf Foods Inc.

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SOURCE: Maple Leaf Foods Inc.

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