Cathay Forest Products Corp.
TSX VENTURE : CFZ

Cathay Forest Products Corp.

September 18, 2009 16:32 ET

Cathay Forest's Jatropha Investment Receives Valuation Report From Poyry

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2009) - Cathay Forest Products Corp. (TSX VENTURE:CFZ) ("Cathay Forest" or the "Company") is pleased to announce that a valuation report has been completed by Poyry Forest Industry Consulting, an independent forestry consulting company engaged by Eco-Energy China Group Incorporated ("Eco-Energy"). Based in Guizhou, China, Eco-Energy is an integrated bio-diesel producer managing Jatropha plantations and refining Jatropha oil into biodiesel. Cathay holds a stake in Eco-Energy with a long-term investment outlook.

The report was positive on the condition of the Jatropha assets and cited a net present value estimate of the existing plantation of approximately USD$70 million based on a cash flow of 40 years using a discount rate of 11.5%.

The executive summary of the report can be found on our website at www.cathayforest.com and on SEDAR at www.sedar.com.

About Eco-Energy China Group

EEC owns a 30 000 tonne/annum multi-feedstock refinery on the outskirts of Guiyang, the provincial capital of Guizhou. EEC also owns nearly 10 000 hectares of Jatropha that was planted in southern Guizhou province during 2006 and 2007. EEC plans to expand this existing Jatropha estate by planting a further 30 400 hectares in southern Guizhou in 2010 and 2011. The successful establishment of a further 30 400 ha will make EEC's jatropha estate one of the largest commercial plantations in the world. Jatropha (Jatropha curcas) is a non-edible oil-yielding perennial shrub which is attracting considerable global interest due to its potential use as a biofuel crop.

About Cathay Forest

Cathay Forest is a forest products company managing standing timber properties and developing 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 harvesting customers serving a variety of wood products industries.

About Poyry Forest Industry Consulting

Poyry is a global expert in consulting and engineering. Offering in-depth industry expertise, innovative solutions and lifecycle engagement. Poyry's knowledge extends across hydropower, oil and gas, power and heat, renewable energy, pulp and paper industry, chemical process industry, transportation, water and environment, and construction services.

Forward-Looking Statements

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risk and uncertainties, including, without limitation, statements regarding the future plans and objectives of Cathay Forest. 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. Except as required under 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.

Contact Information

  • Cathay Forest Products Corp.
    Ermo Ou
    Vice President, Corporate Planning
    (416) 226-7269
    (905) 731-7273 (FAX)
    ermo.ou@cathayforest.com