Cathay Forest Products Corp.
TSX VENTURE : CFZ

Cathay Forest Products Corp.

December 01, 2010 13:00 ET

Cathay Forest Announces Delay in Filing Interim Financial Statements and Resignation of a Director and Officer

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2010) - Cathay Forest Products Corp. ("Cathay Forest" or the "Company") (TSX VENTURE:CFZ) announces that it is late in filing its interim financial statements for the period ended September 30, 2010. The interim financial statements were required to be filed no later than November 29, 2010. The delay is attributable to the need for Cathay Forest to determine the appropriate accounting treatment and presentation of several sale agreements for poplar and bamboo entered into during 2009.

Cathay Forest is working with its auditors to complete the review of the Company's interim financial statements as soon as possible. Based on the work completed to date, the Company anticipates that the interim financial statements will be filed by December 31, 2010. Until its interim financial statements and related interim filings are filed, the Company intends to satisfy the requirements of the "alternate information guidelines" described in National Policy 12-203 – Cease Trade Orders for Continuous Disclosure Defaults (the "Policy"), including issuing bi-weekly default status reports.

As a result of this delay, Cathay Forest has made an application with the Ontario Securities Commission and other securities commissions in each of British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, the North West Territories, Yukon and Nunavut requesting that a management cease trade order (an "MCTO") be imposed in respect of this late filing. There is no guarantee that an MCTO will be granted. If an MCTO is granted, the MCTO will prohibit the interim Chief Executive Officer and Chief Operating Officer, the Chief Financial Officer, and possibly the directors, other officers and other insiders of Cathay Forest from trading in securities of the Company for so long as the required filings have not been completed. The issuance of an MCTO does not generally affect the ability of persons who are not directors, officers or other insiders of Cathay Forest to trade in securities of the Company.

Pursuant to the Policy, if the Company's interim financial statements and related interim filings are not filed by December 31, 2010, one or all of the Ontario Securities Commission and other securities commissions in each of British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, the North West Territories, Yukon and Nunavut may impose an issuer cease trade order against Cathay Forest. The Company does not believe that it will be affected by this aspect of the Policy because it anticipates that it will be in a position to file its interim financial statements and related interim filings by December 31, 2010.

Cathay Forest also announces that Mr. Anthony Ng has tendered his resignation as a director and President of the Company, effective immediately.

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.

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 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.

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