Yalian Steel Obtains US$5 Million Loan

Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") announces
that it has obtained a US$5 million (CDN$5.1 million) loan from Beidahuang
Agricultural Development Limited, an unrelated company in China.


The loan matures on December 6, 2012, and carries an interest rate of 7%. The
loan will be first used to repay the $4,701,734 aggregate principal and interest
remaining on the US$4.7 million loan from Bank of China with an original due
date of December 25, 2011. The remaining balance will be used to fund working
capital requirements of Yalian's head office in Vancouver. The loan is
guaranteed by Yangzhou Yalian Steel Pipe Co., Ltd., a wholly-owned subsidiary in
China.


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.