Yalian Steel Obtained RMB 40 Million Bankers' Acceptance Notes From Industrial Bank Co., Ltd

Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") announces
that it has obtained a short term credit facility for up to RMB 20 million
(CAD$3.2 million) from Industrial Bank Co., Ltd of People's 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, RMB 20 million has been earmarked for obtaining RMB 40
million (CAD $6.4 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, RMB 20 million (CAD $3.2 million) cash deposits
have been placed with Industrial Bank Co., Ltd as collateral. 


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 tonnes 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.


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.