HARBIN, China, Jan. 28, 2009 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, announced today that the Company has signed a letter of intent with a Chinese citizen to acquire a forest user right certificate representing an additional 1,333 hectares of forest near the Xiaohe Village, Wama Town, Longyang District, Baoshan City, Yunnan Province. The certificate represents forest user rights until 2033 for over 10,000 pieces of landscape plants of over 50cm in diameter and over 150,000 cubic meters of timber.
Known as the "kingdom of plants," Yunnan Province has the largest diversity of plant life in China and 24.2 million hectares of its forest lands, with vast amounts that are undeveloped and predominately owned by individuals through user rights certificates.
Commenting on the Company's interest in Yunnan Province, Mr. Yuan Tian, CEO of CHFY, stated, "Forest plantations in Southern China will provide us the opportunity to replant with species such as bamboo that have much faster growth cycles than our current timber holding in northeastern Heilongjiang Province."
"In addition to faster investment returns from species with faster growth cycles, we are confident that Yunnan Province will provide ample opportunities for expansion given that there are large amounts of virgin forest and that 74% of its forests land are owned through collectives," 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.
Forward Looking 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.