Cathay Forest Products Corp.

Cathay Forest Products Corp.

November 21, 2007 09:55 ET

Cathay Forest Completes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2007) -


Cathay Forest Products Corp. (TSX VENTURE:CFZ) ("Cathay Forest" or the "Company") announced today that it has completed its previously announced private placement financing (the "Offering") of 30,000,000 common shares (the "Common Shares") at a price of $1.50 per Common Share for gross proceeds of $45 million. The Offering was arranged by a syndicate of agents led by Canaccord Capital Corporation and CIBC World Markets Inc., and including Jennings Capital Inc. (collectively, the "Agents").

The net proceeds of the Offering will be used to fund a capital expenditure loan in connection with the Company's previously announced acquisition of a 51% interest in a 271,100 hectare standing timber concession in Russia. The capital expenditure loan is for equipment, road, and general construction. Proceeds of the Offering will also be used for the acquisition of the first phase of a standing timber joint venture in Guizhou Province, China, as well as for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Cathay Forest Products

Cathay Forest is a forest products company managing standing timber properties and developing fast-growth, high-yield poplar plantations in the peoples republic of China and Russia. Cathay Forest is building a world class forest products company through a customer base that includes the domestic Chinese pulp and paper industry and harvesting customers serving a variety of wood product industries.

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 the Company. We caution readers not to place undue reliance on these statements as a number of important factors could cause actual results and future events to differ materially from the plans, objectives, expectations and intentions expressed in such forward-looking statements. The Company 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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