Cathay Forest Provides Fourth Default Status Report

Cathay Forest Products Corp. (TSX VENTURE:CFZ) ("Cathay Forest" or the
"Company") provides this bi-weekly Default Status Report in accordance with
National Policy 12-203 - Cease Trade Order for Continuous Disclosure Defaults
("NP 12-203"). On December 1, 2010 the Company announced that it was not able to
timely file its interim financial statements and accompanying management's
discussion and analysis and related CEO and CFO certifications for the period
ended September 30, 2010 (collectively, the "Third Quarter Financial
Statements").


In accordance with NP 12-203, and as previously announced, the Company applied
to the applicable securities commissions for Management Cease Trade Orders
related to the common shares of Cathay Forest to be imposed against certain of
the Company's executive officers (and at the discretion of the applicable
securities commissions, some or all of the directors, officers or insiders of
the Company) instead of a general Cease Trade Order being imposed against all
common shares of the Company. On December 20, 2010, the Ontario Securities
Commission issued a Permanent Management Cease Trade Order related to the
Company's common shares against certain executive officers of the Company
expiring two full business days following the filing of the 2010 Third Quarter
Financial Statements. The issuance of such Management Cease Trade Orders does
not generally affect the ability of persons who have not been directors,
officers or insiders of the Company to trade the common shares of the Company. A
general Cease Trade Order may be imposed by the applicable securities
commissions if the Company fails to satisfy the provisions of the Alternative
Information Guidelines required pursuant to NP 12-203 (the "Alternative
Information Guidelines").


Cathay Forest is working with its auditors to complete the review of the 2010
Third Quarter Financial Statements as soon as possible. Until the 2010 Third
Quarter Financial Statements are filed, the Company intends to satisfy the
Alternative Information Guidelines by issuing bi-weekly Default Status Reports,
each of which will be issued in the form of a press release. If the 2010 Third
Quarter Financial Statements are not filed beforehand, the Company intends to
issue its next Default Status Report on February 11, 2011.


The Company reports that since its original announcement on December 1, 2010
(the "Notice") in respect of the delay in filing its 2010 Third Quarter
Financial Statements, there have not been any material changes to the
information provided in the Notice other than as described herein nor any
failure by the Company in fulfilling its stated intention with respect to
satisfying the Alternative Information Guidelines. In addition, there has not
been any other specified default by the Company under NP 12-203, nor are any
anticipated and there is no other material information concerning the affairs of
the Company that has not been generally disclosed.


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.