Yalian Steel Secures CAD $27.5 Million Credit Facility

    --Draws down CAD $6.5 million to fund plant completion--

    VANCOUVER, June 17 /CNW/ - Yalian Steel Corporation (TSX-V: YL) ("Yalian"
or the "Company") today announced that it has arranged a RMB170 million (CAD
$27.5 million) credit facility (the "Credit Facility") with the Agricultural
Bank of China. The Credit Facility has a three-year term, and carries an
interest rate of 5.4 percent. Funds drawn down from the Credit Facility will
be secured by land use rights and/or other physical assets as required. Yalian
has received an initial RMB40 million (CAD $6.5 million) draw down, which will
be utilized to fund the final phase of construction of the Company's
Longitudinally Submerged Arc Welded Pipe (LSAW) production plant in Yangzhou,
Jiangsu Province, China.
    The Yangzhou plant is scheduled to be completed in late 2009 with an
expected annual output for the first twelve months following completion of
110,000 metric tons of up to X-80 grade LSAW steel pipe. The plant is designed
to eventually produce 150,000 to 200,000 metric tons per year and the steel
pipe produced by Yalian will target the high-pressure oil and gas transmission
markets in China. The government of China continues to make significant
investments to support the growing demand for energy and therefore the company
feels the market for its products will be extremely robust for the foreseeable

    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 is currently completing construction of its initial
manufacturing facility in City of Yangzhou, in the Jiangsu province of China.
Completion of the first production line, with a rated capacity of up to
200,000 metric tons per year, is scheduled for the fall of 2009. The Yangzhou
Yalian plant will utilize 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-80 grade steel.

    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

    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 except for noted otherwise.

For further information:

For further information: YALIAN STEEL CORPORATION: Hong (Iris) Duan,
Chief Financial Officer, Tel. No. (604) 696-6388

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