Yalian Steel Corporation announced its financial and operating results for the three and nine months ended June 30, 2011. The Company or Yalian refers to Yalian Steel Corporation and its subsidiary, Yangzhou Yalian Steel Pipe Co Ltd which operates primarily within the People Republic of China.

For the three months ended June 30 2011, Yalian reported revenues of CAD 10,715,000, cost of sales of CAD 9,865,000, operating expenses of CAD 756,000 and other expenses of CAD 385,000. Net loss for the three months ended June 30 2011 was CAD 292,000.

For the nine months ended June 30 2011, Yalian reported revenues of CAD 23,630,000, cost of sales of CAD 22,087,000, operating expenses of CAD 2,150,000 and other expenses of CAD 640,000. Net loss for the nine months ended June 30 2011 was CAD 1,247,000.

During the quarter ended June 30, 2011, the Company manufactured and delivered a significantly higher number of sales orders. In terms of volume total sales orders manufactured and delivered amounted to 11,434 tonnes for the three months ended June 30 2011 as compared to 9,243 for the second three-month period ended March 31 2011 and 4,130 tonnes for the first three months ended December 31 2010. As a result, the company reported a positive gross income from its sales.

Construction for the new anti corrosion coating line is progressing well, with the plant building now completed and the installation of the production line scheduled to begin shortly. Total cost of the project is estimated to be approximately CAD 8,000,000 and completion is expected to be September 2011.

During the quarter, the Company successfully completed the certification process and thus was added to the Pre Approved Suppliers List of CNPC a major Chinese oil company. This enables the Company to bid for projects conducted by CNPC and its related companies.