Flakeboard or particle board panels and other composite articles made from wood flakes or other particulate lignocellulosic materials having a relatively high internal bond and improved resistance to moisture are made from flakes or particles which have a moisture content of at least 15%. A catalyst capable of accelerating the reaction between the flakes or particles, the binder and water is applied to the flakes or particles prior to the addition of a moisture-tolerant particle board binder, such as an organic polyisocyanate. A mat of the resulting furnish is compression shaped under pressure and at a temperature less than 250.degree. F. for a time period sufficient to form a composite article of the desired shape and/or dimensions.