Yalian and 0957703 B.C. Ltd. Announce Completion of Compulsory Acquistion

Yalian Steel Corporation ("Yalian") (TSX VENTURE:YL) and 0957703 B.C. Ltd. (the
"Offeror"), a wholly-owned company of Mr. Xin Duo Yu ("Mr. Yu"), today announced
that the Offeror has completed its compulsory acquisition ("the Compulsory
Acquisition") of 865,730 common shares of Yalian ("Common Shares"), at a price
of $0.40 in cash per Common Share pursuant to the Notice of Compulsory
Acquisition made under Section 300 of the Business Corporations Act (British
Columbia) and mailed to holders of Common Shares who did not accept its offer
dated January 14, 2013. 


Yalian intends to apply to the TSX Venture Exchange to delist the Common Shares
from trading. In addition, Yalian intends to file with the applicable securities
regulatory authorities in British Columbia and Alberta (where Yalian is a
reporting issuer) the necessary documentation in order to cease to be a
reporting issuer in both jurisdictions as soon as reasonably practicable. 


Should Yalian shareholders have any questions, please contact the Depositary and
Transfer Agent, Computershare Trust Company of Canada, toll-free in North
America at 1-800-564-6253, 1-514-982-755 outside North America or by email at
[e-mail].


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 operates a manufacturing facility in city of Yangzhou, in the
Jiangsu province of China. The Company's production line has a rated capacity of
up to 200,000 metric tons per year, depending on product and mix specifications.
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. The Company's Yangzhou plant also
has an anti-corrosion line to provide external and internal 3PE, 3PP, FBE/DFBE
coating service with annual capacity of 2,500,000 square meters for external
coating products and 2,000,000 square meters for internal coating products. 


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

This news release contains forward-looking information and forward-looking
statements (collectively "forward-looking statements"), within the meaning of
applicable securities laws, with respect to the ability of the Company to secure
additional loans and other financings, the completion of the anti-corrosion line
and the Company's ability to execute its business plan. Such forward looking
statements are based upon assumptions, and estimates made by management in light
of its experience, current conditions and its expectations of future
developments as well as other factors which it believes to be reasonable and
relevant. These assumptions include those concerning the availability of
financing and no significant decline in existing general business and economic
conditions. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results to differ
materially from those expressed or implied in the forward looking statements
and, accordingly, readers should not place undue reliance on those statements.
Risks and uncertainties that may cause actual results to vary include, but are
not limited to, the Company's limited financial resources and the availability
of financing alternatives; changes in general economic conditions or conditions
in the financial market; that the Company will be able to establish and/or
maintain relationships with key suppliers, customers and strategic partners; and
that the construction of the new anti-corrosion coating line will be completed
in a timely manner and on budget as well as other risks and uncertainties which
are more fully described in the Company's Management's Discussion and Analysis
for the 2010 fiscal year and in other Company filings with securities and
regulatory authorities which are available at www.sedar.com. Should one or more
risks and uncertainties materialize or should any assumptions prove incorrect,
then actual results could vary materially from those expressed or implied in the
forward looking statements and accordingly, readers should not place undue
reliance on those statements. Readers are cautioned that the foregoing lists of
risks, uncertainties, assumptions and other factors are not exhaustive. The
forward looking statements contained in this news release are made as of the
date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking statements contained herein or in any other documents
filed with securities regulatory authorities, whether as a result of new
information, future events or otherwise, except in accordance with applicable
securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Yalian Steel Corporation
Xia Xu
Acting CEO and Vice President, Operations
[phone]
www.yaliansteel.com