Yalian Steel Corporation announces that it has obtained a short term credit facility for up to CNY 20 million from Industrial Bank Co Ltd of People Republic of China.

This credit facility will be mainly used for issuance of bankers' acceptance notes which are financial instruments commonly used in China for purchase settlements. Up to date, CNY 20 million has been earmarked for obtaining CNY 40 million bankers' acceptance notes from Industrial Bank Co Ltd.

The bankers' acceptance notes have a term of six months maturing in December 2012. An interest rate of 0.05% per day will be charged on the amounts to be advanced by Industrial Bank Co Ltd when the bankers' acceptance notes mature and are presented to the bank for payments. In connection with the issuance of the bankers' acceptance notes, CNY 20 million cash deposits have been placed with Industrial Bank Co Ltd as collateral.

Source - Yalian Steel Corporation

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