Yalian Steel Corporation announces that it has obtained a CNY 10 million short term loan from China CITIC Bank.

The loan matures on February 17 2012 and carries an interest rate of 7.872% which was fixed at 120% of the prevailing benchmark rate in China. The loan will be used to fund working capital requirements of Yangzhou Yalian Steel Pipe Co Ltd a wholly owned subsidiary in China.

The loan is secured by Yangzhou Yalian machinery and equipment.