Sino-Forest Corporation releases 2007 independent forest asset valuation report conducted by Poyry Forest Industry Ltd.

Apr 01, 2008. /Lesprom.com/. Sino-Forest Corporation released its yearly forestry valuation report conducted by Poyry Forest Industry Ltd, a reputable international consulting firm. Poyry has estimated the valuation of Sino-Forest's 312,000 hectares of forest assets to be $1.2 billion as at December 31, 2007. The 35% increase in appraisal value from $0.9 billion in 2006 to $1.2 billion in 2007 was attributable to the following factors: an increase in average tree maturity resulting from 2007 tree acquisitions, from biological growth within plantations under management and from a different mix of species, despite an 11% decline in Sino-Forest's total forest asset area; revision of current and future log price estimates. The valuation takes into account revenues and costs of re-establishing and maintaining the forest plantations for a 60-year period. Based on the valuation report, the total merchantable standing volume as at year end 2007, excluding 45,000 hectares of trees less than 4 years, was 31.3 million cubic metre, compared to 27.4 million cubic metre in 2006, representing a 14% increase in wood fibre. The volume increase is attributable primarily to higher yield obtained from trees acquired and biological growth of trees under management. Overall the average yield improved 15% from 86.7 cubic metre per hectares in 2006 to 100.5 cubic metre per hectares in 2007. Sino-Forest Chairman & CEO Allen Chan said, "This independent valuation confirms that our strategic plantations acquisition plan substantially increased our average yield per hectare, total merchantable volume of fibre and its estimated market value within our plantation area under management over the past year. We look forward to further building our inventory of fibre this year with the expansion of our operations in Hunan, Yunnan and Guangxi Provinces." Poyry Forest Industry Ltd is an independent management consulting company within the Poyry Group and is recognised as one of the world's leading advisors to the global forestry industry cluster. Sino-Forest Corporation is a leading commercial forestry plantation operator in China. The Canadian company started its operations in 1994 and was the first foreign and privately managed operator involved in forest products in China.