Cathay Forest Products Corp.

Cathay Forest Products Corp.

March 31, 2011 17:51 ET

Cathay Forest Provides Further Update on Trading Suspension

TORONTO, ONTARIO--(Marketwire - March 31, 2011) - At the request of the TSX Venture Exchange (the "Exchange") Cathay Forest Products Corp. (TSX VENTURE:CFZ) ("Cathay Forest" or the "Company") provides a further update with respect to the Exchange's review of the Company's application to have trading in its common shares reinstated.

The Company did not provide notice nor seek Exchange approval with respect to four non-arm's length investments in Eco-Energy China Group Inc., a private corporation, and failed to disclose such non-arm's length transactions by way of press in accordance with the policies of the Exchange. Such transactions took place between July 2009 and February 2010. All requisite filings have now been made and are being reviewed by the Exchange.

All such non-arm's length transactions were disclosed in the applicable Management's Discussion and Analysis, Notes to the Financial Statements, Annual Information Form and other relevant public disclosure documents issued by the Company.

The Board of directors and the senior management of Cathay Forest are currently reviewing the Company's internal disclosure procedures and corporate governance practices to ensure that the contraventions of Exchange policies are not repeated. The Company is to make a submission to the Exchange in this regard.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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