Cathay Forest Products Corp.

Cathay Forest Products Corp.

July 07, 2008 12:50 ET

Cathay Forest Finalizes Acquisition of Additional Standing Timber Concession in Russia


TORONTO, ONTARIO--(Marketwire - July 7, 2008) - Cathay Forest Products Corp. (TSX VENTURE:CFZ) -

New Russian Concession Confirmed

Cathay Forest Products Corp., ("Cathay") is pleased to announce that its 51% owned Russian Joint Venture, DalEuroles L.L.C. has final received approval from the government of Khabarovsk its previously announced 49 year land lease concession of an aggregate 721,198 hectares. This new concession brings Cathay's current holdings in the Kharbarovsk Region to 992,198 hectares with a total annual allowable cut of 731,000 cubic metres.

New Independent Board Members

Cathay also announces that following its Annual General Meeting held on June 26 Mr. Raymond Lo FCA and the Honourable John Reynolds, PC have been elected as independent directors of Cathay. They have also respectively agreed to chair Cathay's Audit and Compensation and Nominating Committees.

Mr. Lo is currently Managing Partner of AsiaVest Partners Limited based in Hong Kong. He is a fellow of the Institute of Chartered Accountants of England and Wales. Mr. Lo is also a Director and Chairman of the Board of Luk Fook Holdings (International) Limited, Executive Director and Chairman of the Board of Golife Holdings Limited, Director and Chairman of the Audit Committee of Shanghai Zendai Property Holdings Limited and Director and Vice Chairman of Asian Capital Resources Holdings Limited. Each of the foregoing companies is listed on the Hong Kong Stock Exchange.

Mr. Reynolds is currently a Senior Strategic Advisor with Lang Michener LLP. Mr. Reynolds is also a director of ARA Safety Inc., Avcorp Industries Inc., Calibre Mining Corp., CY Oriental Holdings Ltd., Oriel Resources plc., Rusoro Mining Ltd. and Terrane Metals Corp. Each of the foregoing companies is listed either on the Toronto Stock Exchange or the TSX Venture Exchange Inc.

Mr. Thomas Vukovich and Mr. Zhao He Er decided not stand for re-election as directors at the Annual General Meeting. Cathay wishes to thank them both for their contribution to board and as well as their advice and support over their respective terms as directors.

About Cathay 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 the Company. Actual results and future events could differ materially from those anticipated in such statements. Except as mandated by applicable securities legislation. 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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