Cathay Forest Products Corp.

Cathay Forest Products Corp.

November 09, 2009 09:27 ET

Cathay Forest Releases Results of Independent Forestry Valuation Report

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2009) - Cathay Forest Products Crop., ("Cathay Forest" or the "Company") (TSX VENTURE:CFZ) released today forest valuation reports prepared by Pöyry Forest Industry Consulting Ltd ("Pöyry"), an international forestry consulting firm. The reports concluded that the net present value of Cathay Forest's China and Russia based forest assets, based on a discounted cash flow analysis on a single rotation using a pre-tax discount rates of 11.5% to 12.0%, to be US$175.50 million as at September 30, 2009.

Pöyry 's valuation composed of the following asset classes:

Forest AssetPre-tax discount rateSingle Rotation Value Rate (US$ million)
China FGP and Standing Timber11.5 %$119.98
Bamboo 11.5 %3.52
Russian Standing Timber 12.0%52.0
Total $175.50

The report was commissioned by Cathay Forest to provide an independent assessment of its managed forestry assets portfolio and to establish market value of its assets for purpose of the required conversion to International Financial Reporting Standards in 2011.

Cathay Forest's strategy is to develop sustainable, regenerative forest assets. To date the Company has developed poplar plantations and acquired standing timber properties in both China and Russia. In Russia, the Company has developed a large scale harvesting operation to feed its China-based roundwood trading business. Cathay Forest will continue to expand its timber properties and further its strategy to become the preferred supplier of forest products to the domestic Chinese and other Asian markets.

The complete Pöyry valuation report is available on Cathay's website ( as well as SEDAR ( .

About Cathay Forest
Cathay Forest is a forest products company that manages approximately 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.

About Pöyry Forest Industry Consulting Ltd
Pöyry is a global expert in consulting and engineering. Offering in-depth industry expertise, innovative solutions and lifecycle engagement. Pöyry's knowledge extends across hydropower, oil and gas, power and heat, renewable energy, pulp an paper industry, chemical process industry, transportation, water and environment, and construction services. Pöyry is recognized as one of the world's leading advisors to the global forestry industry.

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