Cathay Forest Products Corp.

Cathay Forest Products Corp.

December 15, 2008 11:11 ET

Cathay Announces Timber Sale Into Japanese Market

TORONTO, ONTARIO--(Marketwire - Dec. 15, 2008) - Cathay Forest Products Corp. ("Cathay Forest") (TSX VENTURE:CFZ) is pleased to announce that it has received its first order for shipment of round logs to Japan under its existing distribution agreement with Marubeni Corporation ("Marubeni").

This order for timber for round logs by Marubeni is the first order pursuant to the distribution agreement signed by Cathay Forest and Marubeni in June 2008. The initial order for up to 3,730 cubic meters, with a value of approximately C$625,000, is to be fulfilled from logs being harvested by Cathay's joint venture operation in Russia, DalEuroles L.L.C. ("DalEuroLes"). The shipment of logs to Japan will take place within the next few weeks.

"With this order from Marubeni, Cathay is continuing to expand its market reach by adding Japan as a destination point for logs harvested in Russia in addition to the existing destination market in China." said Anthony Ng, Cathay Forest's President and CEO. "This sale confirms Cathay's strategic direction of supplying much needed wood products to both China and Japan through the abundance of forest products located in Russia. We anticipate that this order will be the first of many more orders to come for the Japanese market as we continue to develop our relationship with Marubeni."

In 2007, Cathay Forest purchased a 51% interest in DalEuroLes, which at the time owned a 271,000 hectare concession of standing timber in the Khabarovsk region. In July 2008, DalEuroLes obtained an additional forest concession of 720,000 hectares adjacent to its original property. Timber products harvested from these concessions are now being shipped to China and Japan.

About Cathay Forest Products

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 Marubeni Corporation

Marubeni is one of the largest trading conglomerates and importers of wood products in Japan. Its Forest Products division engages in all operations relating to paper and pulp, through the established value chain from the upstream to the downstream sectors, ranging from forestation, production of wood chips and pulp, supplier of wood building materials, collection of used paper to the manufacture and marketing of paper and hardboard products. Marubeni has the largest market share of the wood chips import business and of the paper and pulp trading business in Japan.

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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