Yalian Steel Secures RMB 30 Million Trade Finance From Industry and Commercial Bank of China

Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") announces
that it has obtained a trade finance for RMB 30 million (CAD $4.8 million) from
the Industry and Commercial Bank of China ("ICBC") to fund the working capital
requirements of Yangzhou Yalian Steel Pipe Co., Ltd ("Yangzhou Yalian"), a
wholly-owned subsidiary of the Company in China Availability of such trade
finance further enhances the Company's ability to secure contracts in the
future.


ICBC advanced RMB 30 million to Yangzhou Yalian on May 17, 2012 to meet its cash
needs arising from filling several sales orders recently obtained by Yangzhou
Yalian. The loan matures on August 19, 2012 and carries an annual interest rate
of 6.71%, which was fixed at 110% of the prevailing benchmark rate in China. The
loan is secured by Yangzhou Yalian's accounts receivables for which collection
proceeds are insured by Ping An Property & Casualty Insurance Company of China
Ltd. Funds collected from these pledged accounts receivables will be used to
repay the loan principal and interest. 


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 the 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, 0-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 available at
www.sedar.com. All amounts are stated in Canadian dollars unless noted
otherwise.