Cathay Forest Completes Private Placement Financing

Toronto, Ontario, Canada, 21 November 2007 -– Cathay Forest Products Corp. (TSX VENTURE:CFZ) announced today that it has completed its previously announced private placement financing (the "Offering") of 30,000,000 common shares at a price of CAD 1.50 per Common Share for gross proceeds of CAD 45 million. The Offering was arranged by a syndicate of agents led by Canaccord Capital Corporation and CIBC World Markets Inc., and including Jennings Capital Inc. (collectively, the "Agents").

The net proceeds of the Offering will be used to fund a capital expenditure loan in connection with the company's previously announced acquisition of a 51% interest in a 271,100 hectare standing timber concession in Russia. The capital expenditure loan is for equipment, road, and general construction. Proceeds
of the Offering will also be used for the acquisition of the first phase of a standing timber joint venture in Guizhou Province, China, and for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation, or sale would be unlawful.

About Cathay Forest Products

Cathay Forest is a forest products company managing standing timber properties and developing fast-growth, high-yield poplar plantations in the peoples republic of 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.