Sep 28, 2006. /Lesprom Network/. Sino-Forest Corporation, a leading commercial forestry plantation operator in China, announced that one of its wholly-owned subsidiary, Sino-Panel (Asia) Inc. has entered on Septmber 28 into a master agreement for acquisition of pine and fir forest with Hongjiang city Forestry Technology Integrated Development Services Company, a state-owned enterprise in the People's Republic of China appointed to act as the authorized agent for the original plantation rights holders. Under the agreement, Sino-Panel will purchase approximately 100 000 hectares of plantation trees in Hongjiang city, Hunan province for $328.3 million to $393.9 million over a 14-year period. The average purchase price per cubic meter is $32.8. The number of hectares of plantations to be acquired each year will be determined by Sino-Panel's PRC subsidiaries by entering into specific plantation purchase agreements with Hongjiang City Forestry. The agreement also provides Sino-Forest the right of first refusal to lease the land for 50 years after harvesting. The final terms of the lease are to be negotiated with Hongjiang City Forestry upon the authorization of the original plantation rights holders. The agreement is a first step in securing a further 300 000 hectares of plantation trees in Hunan. With the signing of the additional 300 000 hectares, Sino-Forest is expected to have secure over 40 million cubic meters of long-term wood fibre, over a 14-year period. Agreement for the purchase of the additional 300 000 hectares of plantations is expected to be signed before the end of 2006. Signing of this agreement brings Sino-Forest one step closer to reaching its medium term goal of attaining annual wood fibre output of 15-20 million cubic meters. Hunan province is located in the centre of China and is considered as the gateway to south-western part of China. The province has a forest area of 12.7 million hectares with standing timber covering 8.7 million hectares of forested land. Sino-Forest is the leading, foreign-owned, commercial forestry plantation operator in China in terms of plantation area. The corporation cultivates trees for sale as standing timber and wood chips, and is involved in the trading and manufacturing of wood chips, logs and engineered wood products for the pulp & paper, furniture, construction and decoration industries. Sino-Forest is a Canadian corporation with executive offices in Hong Kong and operations in southern China. It operates mainly through three wholly-owned subsidiaries - Sino-Wood Partners Limited, Sino-Panel Holdings Limited and Sino-Global Holdings Inc. The Corporation's common shares trade on the Toronto Stock Exchange since 1995.