Yalian Steel Clarifies the Interest Rate on the New RMB 25 Million Line of Credit from China Merchants Bank

Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") wishes to
clarify the interest rate on the new RMB 25 million (CAD $3.8 million) line of
credit from China Merchants Bank.


Further to the news release on June 28, 2011, the Company clarifies that the
interest rate will be fixed at 120% of the prevailing benchmark rate at the time
of drawdowns. Based on 6.31%, the last reported benchmark interest rate in
China, this means that the interest rate on a current drawdown would be 7.57%.


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-70 and higher grade steel.


For further company information please access our website: www.yaliansteel.com.

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. All amounts are
stated in Canadian dollars unless noted otherwise.