China Armco Metals Secures Ongoing Supply of up to 37,000 Metric Tons of Scrap Metal per Month From Local Suppliers

SAN MATEO, CAâ€"(Marketwire - 04/27/10)â€"China Armco Metals, Inc. (AMEX:CNAM - News), a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in China, today announced that Armet Renewable Resourced Co., Ltd., the Company's wholly owned subsidiary, has entered into contracts with several domestic suppliers to secure an ongoing supply of scrap metal of up to 37,000 tons per month for the remainder of 2010.

The scrap metal will be processed at China Armco's new facility in Lianyungang, China, which entered into production in the second quarter of 2010. As previously announced, China Armco secured a contract to deliver approximately 23,000 metric tons of processed scrap metal per month for a period of 10 months to a major steel producer in 2010, valued at approximately $100 million based on the spot price of scrap metal in March of 2010. These new sourcing contracts will provide China Armco with the raw materials to meet its commitment to this major steel producer, as well as provide additional inventory to support its sales efforts to other customers.

Commenting on the supply contracts, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, “We are very pleased to have secured a sizable and consistent scrap metal supply. This is an important step forward as we ramp up production at our newly constructed metal recycling facility in Lianyungang. The infusion of capital from our recent equity raise, coupled with the exercise of options and warrants, has provided us with the added financial flexibility to secure favorable long-term supply contracts to accelerate our growth plans for 2010 and beyond. We now have the ability to look to take advantage of numerous opportunities before us and we intend to work diligently to aggressively expand our operations for the benefit of our shareholders.”

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the recent launch of operations of a one million ton per year shredder and recycler of metals located on 32 acres of land acquired by China Armco. China Armco maintains customers throughout China, which includes the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, and the Philippines. China Armco's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore, and steel billet. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year, which will position China Armco as one of the 10 largest recyclers of scrap metal in China. China Armco estimates the recycled metal market as 70 million metric tons.

Source: http://finance.yahoo.com/news/China-Armco-Metals-Secures-iw-1459761503.html?x=0&.v=1