HARBIN, China, Dec. 11, 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 second letter of intent with a Chinese citizen to acquire user rights to an additional 233 hectares of forest near Shangzhi city in Heilongjiang Province.
The forest has wood reserves of approximately 33,392 cubic meters, and is subject to user rights certificates until July 7, 2051. The Company has negotiated a purchase price of $4,728 per hectare for a total cost of $1.1 million for the forest user right certificates.
Commenting on the LOI, Mr. Yuan Tian, CEO of CHFY, stated, "With this new agreement, we now have two LOI represents 1,166 hectares of forest near Shangzhi city to add to our existing ownership of user rights to 1,561 hectares of forest in Heilongjiang Province."
"Our long-term strategy is to have our timber certified and we are actively seeking investments to expand our existing locations to make forest certification more economical," 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.
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