Yalian Steel Secures RMB 25 Million Line of Credit From China Merchants Bank

Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") announces
that it has secured a RMB 25 million (CAD $3.8 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. ("Yangzhou Yalian"), a wholly-owned subsidiary in China. The credit
facility is collateralized with Yangzhou Yalian's inventory.


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.