CFZ Cathay Forest Products Corp

Cathay Forest Products Corp. ("Cathay Forest") (TSX VENTURE:CFZ) today announces
that Mr. Honda Cheng was appointed as director of Cathay Forest. With the
addition of Mr. Cheng, the board of directors of Cathay Forest is now comprised
of six directors including Robert Beutel, Thomas Chan, John Duncanson, John
Housser and Stephen Miller.


A Hong Kong resident, Mr. Cheng is Executive Director of Top Cheers Ltd, Export
Finance Solutions. Top Cheers Ltd. provides asset base lending and project
financing in Mainland China. Prior to forming Top Cheers Ltd. in 2008, Mr. Cheng
was Chief Executive Officer of East Asia Heller a joint venture between GE
Capital and the Bank of East Asia.


Update 

In addition to the above announcement, the Company wishes to provide the
following update.


On February 4th, 2011, the TSX Ventures compliance group began an investigation
under the Continuous Disclosure Regulations. Since that time, the Company has
been cooperating fully with the TSX in regards to this investigation.


On April 27th, 2011 the Company announced that the release of the financial
statements for the year ended December 31, 2010 was being delayed as the Company
completes investigations with regards to a number of transactions that were
identified by management during the course of the year-end audit work. The
internal investigation into these transactions is proceeding and the Company is
working closely with its auditors and legal counsel to arrive at a definite
conclusion with regards to the transactions being investigated. The
investigations have yet to be completed and the Company cannot comment further
as to the outcome of these matters.


On June 30th, 2011, the Ontario Securities Commission ("OSC") announced the
beginning of investigations of several listed companies with China connections,
including Cathay Forest. The investigations are being carried out under the
Continuous Disclosure regulations. The Company is cooperating fully with the OSC
staff in the investigation process. Responses to OSC requests are prepared and
submitted on a timely basis. The investigation involving the Company is still at
an early stage but the Company fully intends to continue its cooperation with
the OSC on this matter.


A class action lawsuit has been commenced against the Company, certain of its
current directors and officers as well as certain former directors. This matter
is in its preliminary stages but the Company fully intends to defend its action
in this matter.


The Company's stock continues to be under cease trade order. It is unknown at
this time when trading might be permitted to resume. The Company is committed to
diligently work closely with the OSC, the TSX and its professional advisors in
order to restore trading.


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.

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