Cathay Forest Products Corp.

Cathay Forest Products Corp.

February 22, 2008 07:30 ET

Cathay Forest's Timber Assets Not Significantly Affected by Winter Storms

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2008) - Cathay Forest Products Corp. (TSX VENTURE:CFZ) today issued an update on the state of its forestry plantations after surveying the properties after the winter storms that have hit China in recent weeks.

Following the end of the Chinese New Year holiday, field staff returned to Cathay's plantations and conducted surveys to assess the impact of the winter storms. The surveys revealed no unusual or widespread damage to Cathay's forest assets.

Across Cathay's poplar plantations, the hardest hit area suffered only 3% damage. This occurred at the Poyang Lake plantation where the poplar trees are youngest and more susceptible to harsh winter conditions. Cathay's other poplar plantations, which have more mature trees, were negligibly impacted.

The area of greatest concern to the company had been Jiangxi Province, one of the hardest hit areas in the country. However, inspection revealed that only 10% of young bamboo had been damaged, representing an insignificant amount of the plantations overall asset value. The Chinese Fir in the same area was not significantly damaged, as the species is much hardier than bamboo.

"We are relieved that our plantations did not suffer significant damages" said Anthony Ng, President and CEO of Cathay Forest Corp. "Given the extent of the damage to forests across the country, we are fortunate that our assets escaped relatively unscathed. We will be continuing with our planting and harvesting activities as usual."

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 product industries.

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. 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. 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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