Cathay Forest Products Corp
Toronto, Ontario, Canada, 10 November 2009 -- (Marketwire ) -- Cathay Forest Products Corp., (TSX-V:CFZ - News) recently released a forest valuation report prepared by Poyry Forest Industry Consulting Ltd., 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 (USD million) --------------------------------------------------------------------------- China FGP and Standing Timber 11.5% USD 119.98 --------------------------------------------------------------------------- Bamboo 11.5% USD 3.52 --------------------------------------------------------------------------- Russian Standing Timber(1) 12.0% USD 52.00 --------------------------------------------------------------------------- Total USD 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 Web site (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.
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