Cathay Forest Products Corp.

Cathay Forest Products Corp.

November 24, 2008 11:22 ET

Cathay Forest Receives First Shipment of Harvested Russian Roundwood From DalEuroLes

TORONTO, ONTARIO--(Marketwire - Nov. 24, 2008) - Cathay Forest Products Corp. ("Cathay Forest") (TSX VENTURE:CFZ) is pleased to announce that its majority-owned Russian joint venture DalEuroLes L.L.C. ("DalEuroLes") has recently delivered its first shipment of harvested roundwood into China. This shipment and Cathay Forest's current inventory will be sold on the Chinese market. DalEuroLes holds concession rights on approximately 1,000,000 hectares of forest in Khabarovsk Russia, with a current total annual allowable cut of 300,000 cubic metres.

By virtue of it membership in Russia's Priority Investment Program, DalEuroLes enjoys complete Russian export tariffs exemptions on the export of processed wood products. As such Cathay Forest is committed to developing value-added wood processing operations in Russia in the course of 2009. To do so, Cathay Forest plans to acquire pre-owned North American or Japanese sawmill equipment given the excess capacity in these markets.

Cathay Forest also favorably received the recent announcement by Russian Prime Minister Vladimir Putin that the adoption of increased export tariffs on un-processed roundwood originally scheduled for January 1, 2009 will be delayed for a period of 9 to 12 months.

"With the delay in the increase of export tariffs, Cathay Forest will have more flexibility to take advantage of the current low prices for pre-owned sawmill equipment." said Anthony Ng, Cathay Forest's President and CEO, "Our strong cash position will also enable us to fund the development of our downstream business strategy."

Cathay Forest is also pleased to confirm that construction of the DalEuroLes lower landing shipping area is expected to be completed in early December 2008.

About Cathay Forest Forest Products

Cathay Forest 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 Forest 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 Forest. Actual results and future events could differ materially from those anticipated in such statements. Except as required by applicable securities laws, Cathay Forest 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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