Poplar Plantations Standing Timber - China Standing Timber - Russia Roundwood Trading       Log Trading in Northern China Cathay Forest has been supplying China with roundwood sourced from Russia since 2005. This trading operation in China help Cathay to establish themselves as a reliable, international supplier of wood fiber. Simultaneously, the Company built a great deal of goodwill in Russia as a reputable Chinese forestry company. We have traditionally used the Trans-Siberian railway to import roundwood from Russia into China. In 2007, we added shipping via barges on the River Amur, which significantly increased our importing volume. Going forward, Cathay Forest will continue to increase trading volumes and diversify into other timber-related products and services. We have demonstrated an ability to adapt quickly to change, and implement flexible strategies in an ongoing effort to become a world class forestry company.