Cathay Forest Announces New Board Member

Cathay Forest Products Corp. announces that at a board of directors meeting held following its annual meeting of shareholders, Robert J. Beutel was appointed as director of Cathay Forest. With the addition of Mr. Beutel, the board of directors of Cathay Forest is now comprised of seven directors following the re-election at the annual meeting of John Duncanson, John Housser, Raymond Lo, Stephen Miller, Anthony Ng and the Honourable John D. Reynolds, P.C.

Mr. Beutel is President of Oakwest Corporation Limited, an investment management and holding company focused on the pursuit of long-term investments in the area of consumer products, manufacturing, distribution and financial services. Mr. Beutel is also director of several public and private companies including; Chairman of Strongco Income fund, Chairman of Hanfeng Evergreen Inc, and director of Accord Financial Corporation, all of which are listed on the TSX in Toronto.

Mr. Beutel replaces Mr. Paul Wong on Cathay Forest's board of directors. At his request, Mr. Wong was not nominated for election as a director at the annual meeting of shareholders. Mr. Wong has been a director of Cathay Forest since November 2004. Mr. John Housser, Cathay Forest's Chairman, stated: 'We are pleased that Robert Beutel has agreed to join Cathay Forest's board of directors. His experience in China as well as his experience in several industry sectors and his track record as an investor make him a great addition to Cathay Forest. Regulatory requirements respecting the timing of mailing of our Management Information Circular unfortunately prevented him from being elected at the annual meeting.' Mr. Housser also stated: 'The board of directors of Cathay Forest wishes to thank Paul Wong for his dedication as a director and overall contribution to Cathay Forest since its inception.'

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this release.