Yalian Steel Corporation

Yalian Steel Corporation

July 04, 2011 09:00 ET

Yalian Steel Clarifies the Interest Rate on the New RMB 25 Million Line of Credit from China Merchants Bank

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 4, 2011) - Yalian Steel Corporation (TSX VENTURE:YL) ("Yalian" or the "Company") wishes to clarify the interest rate on the new RMB 25 million (CAD $3.8 million) line of credit from China Merchants Bank.

Further to the news release on June 28, 2011, the Company clarifies that the interest rate will be fixed at 120% of the prevailing benchmark rate at the time of drawdowns. Based on 6.31%, the last reported benchmark interest rate in China, this means that the interest rate on a current drawdown would be 7.57%.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Yalian Steel Corporation
    Lan Shangguan
    Chief Financial Officer
    (604) 696-6388