SOURCE: Armco Metals Holdings, Inc.

Armco Metals Holdings, Inc.

April 04, 2016 08:00 ET

Armco Metals Update on OTO Platform e-Payment System

SAN MATEO, CA--(Marketwired - Apr 4, 2016) - Armco Metals Holdings, Inc. ("Armco Metals" or "the Company") (NYSE MKT: AMCO), a distributor of imported metal ores and a steel recycler in China, today announced that Shanghai Meng Yi Network Technology Co., Ltd.("Meng Yi") has signed a platform payment/settlement service agreement with China Merchants Bank Co., Ltd. Shanghai Branch("China Merchants Bank")and China Payment & Clearing Network Co., Ltd. ("CPCN").

According to the service agreement, China Merchants Bank would work with CPCN to provide the e-Payment Platform service for the website: www.ezhangyu.com, created by MengYi operating as OTO platform for online trading business for various materials including iron ore, coal, steel scrap and steel products etc. in the steel industry. The e-Payment Platform would provide Meng Yi with all e-payment/settlement related technical services such as transaction details enquiry, reconciliation and Error handling service, network transmission encryption channel, including software interface specification for the order information transmission and configuring secure transport protocol as well as other technical supports, including supports for system going on-line and supports for system upgrade in the future.

"This is an important progress of our OTO platform construction and a great progress in our application and implementation of e-commerce strategy for business transition." Commenting on the announcement, Kexuan Yao, Chairman and CEO of Armco Metals Holdings, stated, "China Payment & Clearing Network Co., Ltd. ("CPCN") is a leading online third party payment/settlement services provider in China created and operated under instruction of China central bank. CPCN has accepted Mengyi as its institution member, and is establishing the payment/settlement rules for Mengyi's operating website ezhangyu.com and creating a platform online payment/settlement system for ezhangyu.com. This will ensure the safety of online payment and funds of all participants/traders on ezhangyu.com. In addition, the most advantage of the payment system is that there is no amount limitation on transactions on ezhangyu.com for traders and it enable China Merchant Bank to issue money order in accordance with invoices of transactions associated which is required by China tax administration. This also enables ezhangyu.com to completely meet requirements of trading terms for bulk commodities in China while other regular e-payment systems like Alipay could not perform. Management is excited about the progress and continuing to work on the business transition and will provide further updates when available."

ABOUT ARMCO METALS HOLDINGS, INC.
Armco Metals Holdings, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals, wood, and barley throughout China and is in the recycling business in China. Armco Metals' customers include some of the fastest growing steel producing mills and foundries throughout China. Raw materials are acquired from a global group of suppliers located in various countries, including, but not limited to, Brazil, India, Indonesia, Ukraine and the United States. Armco Metals' product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore, steel billet, recycled scrap metals, raw wood and barley. For more information about Armco Metals, please visit www.armcometals.com.

SAFE HARBOR STATEMENT
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Armco Metals Holdings, Inc., is hereby providing cautionary statements identifying certain important factors that could cause our actual results to differ materially from those projected in forward-looking statements. Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") are forward-looking and involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding the expected benefits of the corporate restructure, the ability to benefit from the changes in the tax laws in the PRC, our net revenues and production related to our scrap metal recycling operations, including our ability to operate the facility efficiently and profitability, the sufficiency of our working capital, pricing and volatile demand for our product lines, the extent of government imposed energy and monetary policy restrictions and resulting blackouts and associated impact on our trading and recycling operations. We caution that investors should not place undue reliance on any forward-looking statements herein. Further, any forward-looking statement speaks only as of the date on which such statement is made. We qualify all of our forward-looking statements in this press release by these cautionary statements including those made in Part I. Item 1A. Risk Factors appearing in our Annual Report on Form 10-K for the year ended December 31, 2014 and our other filings with the Securities and Exchange Commission. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

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