Cathay Forest Provides Operational Update

   Cathay Forest Products Corp. ("Cathay Forest" or the "Company") (TSX VENTURE: CFZ) is pleased to provide an operational update. Trading in the shares of the Company was initially suspended by the TSX Venture Exchange (the "Exchange") as a result of a Cease Trade Order issued by the Ontario Securities Commission (the "OSC") and the British Columbia Securities Commission (the "BCSC") on February 1, 2011. The Cease Trade Order issued by the OSC expired on February 16, 2011 and the Cease Trade Order issued by the BCSC was revoked on the same date.

Cathay Forest then proceeded expeditiously with its application to the Exchange for a reinstatement of trading in its shares. Prior to the shares of the Company being reinstated to trading the Exchange initiated a full review of the Company's application. The Company is cooperating fully with the Exchange in its listing review and expects trading to be reinstated shortly following its completion by the Exchange.

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.

Contacts: Cathay Forest Products Corp. Luc Perron, CA Chief Financial Officer [phone] [e-mail] Cathay Forest Products Corp. John Duncanson, RPF Interim Chief Executive Officer & Chief Operating Officer [phone] [e-mail]