HARBIN, China, Nov. 17, 2008 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, announced today that it has signed a letter of intent with a Chinese citizen to acquire user rights to an additional 933 hectares of forest near Shangzhi city in Heilongjiang Province.
The forest has wood reserves of approximately 60,000 cubic meters, and is subject to a user rights certificate until 2055. The Company has negotiated a purchase price of $1,350 per hectare for a total cost of $1.26 million for the forest user right certificate.
Commenting on the Company's LOI, Mr. Yuan Tian, CEO of CHFY, stated, "I am delighted to reach such a favorable purchase price for forest in Heilongjiang Province. Given the limited access to forest investments in China and the high value of timber from Heilongjiang Province, we feel this investment deserves a premium valuation for our shareholders. Based on Company research of international forest prices and recent acquisition prices paid by North American listed forest companies operating in the U.S. and China, we believe there is strong justification for a minimum valuation of $3,000 per hectare for this investment opportunity."
"We will seek to conclude our due diligence as quickly as possible while we search for new acquisition targets. This LOI is a good example of our management team's dedication to acquiring valuable forest resources for our shareholders," said Mr. Tian.
About China Forestry Inc.:
China Forestry Inc. (OTCBB:CHFY) is a timber investment group formed in the Peoples Republic of China to conform to State laws that prohibit non-PRC ownership of forest lands. The Company's strategy is to capitalize on the Central Government's decision to promote sustainable forest management through land tenure reforms that include the transferability of forest user right certificates to PRC entities. The Company's current holdings include ownership of four user right certificates representing 1,561 hectares of State forest assets in China's northeastern Heilongjiang Province, home to China's most valuable timber and one of the most distinctive temperate forests in the world due to its rare biodiversity. For more information, please visit the Company's website at: http://www.chinaforestryinc.com.
Safe Harbor Statement:
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.