Yalian Steel Corporation announces that it has secured a CNY 25 million line of credit from China Merchants Bank.

The line of credit is available for drawdown for a period of 12 months, from June 15 2011 to June 14 2012. Each drawdown carries a one-year term and the interest rate will be fixed at the prevailing benchmark rate plus 20%. The loans will be used to fund working capital requirements of Yangzhou Yalian Steel Pipe Co Ltd a wholly-owned subsidiary in China.

The credit facility is collateralized with Yangzhou Yalian inventory.