Controlling Shareholder Signs Capital Boost Agreement

According to a notice received on 4 Sept 2008 from Jilin Forestry Industry Group Co., Ltd., the company's controlling shareholder, China Forestry Group Corp. signed a framework agreement with the State-owned Assets Supervision and Administration Commission of the Jilin Provincial Government (SASAC Jilin) and Jilin Forestry Group on 3 Sept 2008, to boost the registered capital of Jilin Forestry Group by RMB 100 mln as well as other non-currency capital contributions, including certain operating and resource assets of the Leizhou Forestry Bureau, which belongs to China Forestry Group. The boost will be conducted on the basis of holding proportions of shareholders of Jilin Forestry Group, with the assessed value of non-currency capital contributions based on the audit result of related intermediaries. Following the boost, Jilin Forestry Group's total equity will be RMB 800 mln, of which a 45% stake, a 30% stake and a 25% stake will be respectively held by SASAC Jilin, China Forestry Group and Jilin Forestry Group.

Board of Directors
4 Sept 2008


Source: Shanghai Stock Exchange

Date: 5 Sept 2008

CN01/NW/DM/BT/KM