TORONTO, ONTARIO, Nov 10 (MARKET WIRE) --
Cathay Forest Products Corp., ("Cathay Forest") (TSX VENTURE: CFZ)
recently released a forest valuation report prepared by Poyry Forest
Industry Consulting Ltd ("Poyry"), an international forestry consulting
firm. The report was commissioned by Cathay Forest to provide an
independent assessment of the entire managed forestry assets portfolio,
which includes the minority interest of Cathay Forest's various business
partners. Cathay Forest's interests in its forestry operating
subsidiaries is described below.
Poyry's valuation composed of the following asset classes for the entire
managed forestry assets portfolio:
---------------------------------------------------------------------------
Forest Asset Pre-tax discount rate Single Rotation Value
Rate (US$ million)
---------------------------------------------------------------------------
China FGP and Standing Timber 11.5 % $119.98
---------------------------------------------------------------------------
Bamboo 11.5 % 3.52
---------------------------------------------------------------------------
Russian Standing Timber(1) 12.0 % 52.00
---------------------------------------------------------------------------
Total $175.50
---------------------------------------------------------------------------
The following table provides a description of Cathay Forest's interest in
each of its forestry operating subsidiaries:
---------------------------------------------------------------------------
Size of
Ownership Plantation Operations and
Entity Interest (ha) Locations
---------------------------------------------------------------------------
Shanghai Shengtai Forest Company 97% 11,530 Fast Growth
Limited Plantations
---------------------------------------------------------------------------
Jiangsu Cathay Forest Company 96.67%(2) 874 Fast Growth
Limited Plantation
---------------------------------------------------------------------------
Guizhou Hanfang Cathay Forestry 51% 6,996 Standing Timber
Co., Ltd. Operations
---------------------------------------------------------------------------
Henan Xinya Cathay Forest 70% 221 Fast Growth
Products Co. Ltd. Plantation
---------------------------------------------------------------------------
Jiangxi Cathay Forest Co. Ltd. 100% 1,361 Fast Growth
Plantation
5,173 Standing Timber
Operations
Bamboo
---------------------------------------------------------------------------
DalEuroLes LLC 51% 992,196 Standing Timber
Operations
---------------------------------------------------------------------------
(1) Held through DalEuroLes LLC
(2) Cathay Forest has the right to use 96.7% of the Jiangsu fast growth
plantation under the relevant land lease agreements. In lieu of paying
annual rent, Cathay Forest shares the harvest equally with the lessors.
Accordingly, Cathay Forest's effective beneficial ownership interest is
48.5%.
The complete Poyry valuation report is available on Cathay Forest's
website (www.cathayforest.com) as well as SEDAR (www.sedar.com).
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.
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 and 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 Cathay Forest. Actual results and future
events could differ materially from those anticipated in such statements.
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.
Contacts:
Cathay Forest Products Corp.
Ermo Ou
Vice President, Corporate Planning
(416) 226-7269
ermo.ou@cathayforest.com
Copyright 2009, Market Wire, All rights reserved.
-0-
