Nov 17, 2008. /Lesprom.com/. China Forestry Inc., a timber investment group in the People's Republic of China, announced that it has signed a letter of intent with a Chinese citizen to acquire user rights to an additional 933 hectares of forest near Shangzhi city in Heilongjiang Province. The forest has wood reserves of approximately 60,000 cubic meters, and is subject to a user rights certificate until 2055. The Company has negotiated a purchase price of $1,350 per hectare for a total cost of $1.26 million for the forest user right certificate. Commenting on the Company's LOI, Mr. Yuan Tian, CEO of CHFY, stated, ''I am delighted to reach such a favorable purchase price for forest in Heilongjiang Province. Given the limited access to forest investments in China and the high value of timber from Heilongjiang Province, we feel this investment deserves a premium valuation for our shareholders. Based on Company research of international forest prices and recent acquisition prices paid by North American listed forest companies operating in the U.S. and China, we believe there is strong justification for a minimum valuation of $3,000 per hectare for this investment opportunity.'' ''We will seek to conclude our due diligence as quickly as possible while we search for new acquisition targets. This LOI is a good example of our management team's dedication to acquiring valuable forest resources for our shareholders,'' said Mr. Tian.