Cathay Forest Releases Results of Independent Forestry Valuation Report

TORONTO, ONTARIO, Nov 09 (MARKET WIRE) --
Cathay Forest Products Crop., ("Cathay Forest" or the "Company") (TSX
VENTURE: CFZ) released today forest valuation reports prepared by Poyry
Forest Industry Consulting Ltd ("Poyry"), an international forestry
consulting firm. The reports concluded that the net present value of
Cathay Forest's China and Russia based forest assets, based on a
discounted cash flow analysis on a single rotation using a pre-tax
discount rates of 11.5% to 12.0%, to be US$175.50 million as at September
30, 2009.

Poyry 's valuation composed of the following asset classes:

---------------------------------------------------------------------------
Forest Asset Pre-tax discount Single Rotation
rate Value Rate
(US$ million)
---------------------------------------------------------------------------
China FGP and Standing Timber 11.5% $119.98
---------------------------------------------------------------------------
Bamboo 11.5% 3.52
---------------------------------------------------------------------------
Russian Standing Timber 12.0% 52.0
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Total $175.50
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The report was commissioned by Cathay Forest to provide an independent
assessment of its managed forestry assets portfolio and to establish
market value of its assets for purpose of the required conversion to
International Financial Reporting Standards in 2011.

Cathay Forest's strategy is to develop sustainable, regenerative forest
assets. To date the Company has developed poplar plantations and acquired
standing timber properties in both China and Russia. In Russia, the
Company has developed a large scale harvesting operation to feed its
China-based roundwood trading business. Cathay Forest will continue to
expand its timber properties and further its strategy to become the
preferred supplier of forest products to the domestic Chinese and other
Asian markets.

The complete Poyry valuation report is available on Cathay's website
(www.cathayforest.com) as well as SEDAR (www.sedar.com).

About Cathay Forest

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 Poyry Forest Industry Consulting Ltd

Poyry is a global expert in consulting and engineering. Offering in-depth
industry expertise, innovative solutions and lifecycle engagement.
Poyry's knowledge extends across hydropower, oil and gas, power and heat,
renewable energy, pulp an paper industry, chemical process industry,
transportation, water and environment, and construction services. Poyry
is recognized as one of the world's leading advisors to the global
forestry industry.

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 required by applicable securities laws, 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.

Contacts:
Cathay Forest Products Corp.
Ermo Ou
Vice President, Corporate Planning
(416) 226-7269
ermo.ou@cathayforest.com

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