Yalian Steel Announces Change of Auditor

Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") announces
that its former auditor, KPMG LLP ("KPMG"), has resigned effective July 3, 2012,
at the request of the Company, and MNP LLP ("MNP") has been appointed as the
successor auditor. In accordance with National Instrument 51-102, the Company
has filed the attached Change of Auditor Notice on SEDAR, together with letters
from KPMG and MNP, each confirming that it is in agreement with the statements
contained in the notice, as applicable.


About Yalian Steel Corporation

Yalian Steel Corporation is a British Columbia corporation focused on the
production of high quality Longitudinally Submerged Arc Welded (LSAW) steel pipe
to service Asia's rapidly growing energy transportation infrastructure market.
The Company has recently completed construction of its initial manufacturing
facility in city of Yangzhou, in the Jiangsu province of China. The first
production line has a capacity of up to 200,000 metric tons per year. The
Yangzhou Yalian plant utilizes the JCOE (J-ing, C-ing, O-ing, Expanding)
process, an advanced method of LSAW pipe production that involves the bending
and shaping of X-80 grade steel.


This press release contains forward-looking statements based on current
expectations. These forward-looking statements entail various risks and
uncertainties that could cause actual results to differ materially from those
reflected in these forward-looking statements. Risks and uncertainties about
Yalian's business are more fully discussed in the Company's disclosure materials
filed with the securities regulatory authorities in Canada and which may be
found under the Company's SEDAR profile at www.sedar.com. All amounts are stated
in Canadian dollars unless noted otherwise.