Cathay Forest Products Corp.

Cathay Forest Products Corp.

June 02, 2009 11:22 ET

Cathay Forest Announces First Quarter Results

TORONTO, ONTARIO--(Marketwire - June 2, 2009) - Cathay Forest Products Corp. ("Cathay" or the "Company")(TSX VENTURE:CFZ) is pleased to announce its financial results for the fiscal first quarter ended March 31, 2009.

Cathay reported revenues of $6,277,519 for the three-month period ended March 31, 2009, representing a 2.4% increase compared with revenues of $6,130,201 for the same period in 2008. Net loss for the latest three month period was $1,117,908 or $0.01 per share.

The increase in revenue is encouraging given the current global economic conditions. As Cathay's importing business continues to establish itself as the leader in cross border import from Russian of roundwood lumber, the Russian operations have demonstrated their operational ability to attain full quota production levels. In addition to the sale of logs to the Chinese market, Cathay is expanding its market reach by selling roundwood harvested in Russia into the Japanese market.

The Company continues to maintain a strong cash position at the end of the quarter with $8,975,908 in cash and cash equivalents. This level of cash amount is sufficient to meet all foreseeable needs of the Company.

The Company is currently reviewing its harvesting plans of its Fast Growth Poplar plantation in China in view of the current economic conditions including the demand and pricing of the species. Based on the Company's analysis the decision to harvest the FGP plantations significantly in 2009 will be made in the next few months.

About Cathay Forest Products Corp.

Cathay is a forest products company that manages over 1,000,000 hectares of standing timber properties and fast-growth, high-yield poplar plantations in China and Russia. Cathay is building a world-class forest products company through a customer base that includes the domestic Chinese pulp and paper industry and other wood products customers in the Japanese market.

Forward-Looking Statements

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Cathay. Actual results and future events could differ materially from those anticipated in such statements. Except as required by applicable securities laws, Cathay assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this release.

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