Court Approves Sino-Forest’s Plan of Compromise and Reorganization

TORONTO, Dec. 10, 2012 /PRNewswire/ – Sino-Forest Corporation (“Sino-Forest” or
the “Company”) announced today that the Ontario Superior Court of
Justice has approved the Company’s Plan of Compromise and
Reorganization pursuant to the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) and the Canada Business Corporations Act dated December 3, 2012 (the “Plan”). The Plan is designed to facilitate
the completion of a restructuring transaction concerning, affecting and
involving Sino-Forest under which, among other things, Sino-Forest will
transfer substantially all of its assets, other than certain excluded
assets, to a newly formed entity to be owned by the affected creditors
of Sino-Forest.

Court approval of the Plan satisfies a key condition precedent to
implementation of the Plan.  If the remaining conditions precedent set
out in the Plan are satisfied or waived within the time frames
anticipated, Sino-Forest intends to implement the Plan as soon as
possible and not later than January 15, 2013.

Further information concerning the Plan is available on the Monitor’s
website at http://cfcanada.fticonsulting.com/sfc, the Company’s website
at www.sinoforest.com, and on SEDAR at www.sedar.com.

This news release contains forward-looking information within the
meaning of applicable securities laws (“forward-looking statements”),
including forward-looking statements relating to Sino-Forest’s
intention to implement the Plan as soon as possible and not later than
January 15, 2013. The forward looking statements expressed or implied
by this news release are subject to important risks and uncertainties.
Forward-looking statements are based on estimates and assumptions made
by the Company in light of its experience and its perception of
historical trends, current conditions and expected future developments,
as well as other factors that the Company believes are appropriate in
the circumstances. The results or events predicted in these statements
may differ materially from actual results or events and are not
guarantees of future performance of Sino-Forest. Factors which could
cause results or events to differ from current expectations include,
among other things: Sino-Forest’s ability to complete the Plan in the
time period contemplated, if at all, which is dependent on its ability
to comply with the closing conditions to the Plan, many of which are
significant and beyond the control of Sino-Forest, including the
approval of securities and other regulatory authorities; actions taken
by the Company’s noteholders, lenders, creditors, shareholders, and
other stakeholders to enforce their rights; actions taken against the
Company by governmental agencies and securities and other regulators;
actions taken by the Monitor; the outcome of examinations and
proceedings currently underway by law enforcement and securities
regulatory authorities; the outcome of class action or other
proceedings which have been or may in future be initiated against the
Company; and the Company’s ability to continue to operate without
former senior management, almost all of whom have ceased to employed by
the Company; and other factors not currently viewed as material that
could cause actual results to differ materially from those described in
the forwarding-looking statements. Sino-Forest Corporation disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law.

SOURCE Sino-Forest Corporation