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China Gerui Advanced Materials Group Limited Announces Increase in International Customers

      China Gerui Advanced Materials Group Limited Announces Increase in
                           International Customers

PR Newswire

ZHENGZHOU, China, April 22, 2013

ZHENGZHOU, China, April 22, 2013 /PRNewswire-FirstCall/ -- China Gerui
Advanced Materials Group Limited (NASDAQ: CHOP) ("China Gerui," or the
"Company"), a leading high precision, cold-rolled steel producer in China,
today announced that it has made steady progress in marketing internationally
with three customers placing regular commercial orders for its high-end and
narrow-strip steel. Since the international marketing initiatives began in
June 2012, the Company has captured three new customers, with two customers in
India and one customer located in Turkey. Additionally, three potential
customers are currently engaged in trials with China Gerui's specialized steel
products in three other countries.

Two of the three initial customers began testing China Gerui's products before
committing to becoming ongoing, regular customers. The current three customers
are purchasing both wide- and narrow-strip high-precision, chromium-plated,
cold-rolled strip steel. The initial application is for insulating wire and
cable manufactured for the telecommunications industry with an average
thickness of 0.15 mm and with widths ranging from 610 mm to 810 mm. Based on
current order levels, it is estimated that the annual order requirements will
total approximately 3,000 tons of this higher-margin product.

India and Turkey are both viewed as growth markets for steel. The World Steel
Association indicated steel demand is expected to increase in India by 5.9% to
75.8 million tons in 2013 following 2.5% growth in 2012. Further, the Turkish
Iron & Steel Producers Association (DCUD) stated steel consumption in Turkey
is expected to rise 5.3% to 30 million tons in 2013 compared with 2012. The
management of China Gerui believes its specialized, high-quality steel will
meet limited competition and achieve a foothold in both markets.

"With a focus on balancing our business mix from the current heavy
concentration in the Chinese market, and to build our presence in
higher-growth markets, our strategic shift to enhance our exports is expected
to broaden our customer base, strengthen our capacity utilization, and
increase our return on investment to build value for our shareholders. We
anticipate that exports will be the fastest growth driver of sales over the
next few years with a long-term goal of exports potentially matching domestic
sales levels over time," commented Mr. Mingwang Lu, Chairman and Chief
Executive Officer of China Gerui. "Exports represent another opportunity to
leverage our products' value-to-price ratio both in emerging and
well-developed markets as we increase our customers' profitability and
competitiveness. Emerging markets are ideal targets for China Gerui as they
possess limited domestic production of high-precision, cold rolled products
requiring imported products, and our high-quality, diversified product line
offers more comprehensive solutions. On the other hand, well-developed markets
present the opportunity to quickly take advantage of our lower cost and
pricing structure to generate relatively larger orders and improve our
customers' success."

Two potential customers, one in Thailand and one in Armenia, have placed
orders to test the Company's high precision, chromium-plated, cold-rolled
strip steel for application in the local telecommunications industry. Another
U.S.-based potential customer is intensively testing the Company's products
for application in the large food and beverage packaging industry, another
higher-margin segment for China Gerui that could facilitate higher volume
demand.

Sales terms to new export customers are consistent with the current domestic
model whereby an initial cash deposit is pre-paid when an order is signed and
the outstanding receivable is backed with a letter of credit upon product
delivery.

Mr. Lu continued, "In addition, we have been adding new products such as
laminated steel and chromium-plated steel, to our product portfolio to provide
broader solutions to meet more of our customers' requirements and improve our
competitiveness in both the domestic and foreign markets. We are also adding
personnel and support resources to build our export marketing programs into a
powerful brand building and sales tool. We believe these initiatives will
enable China Gerui to evolve into a world-class, international metals
processor committed to building shareholder value."

About China Gerui Advanced Materials Group Limited

China Gerui Advanced Materials Group Limited is a leading niche and high
value-added steel processing company in China. The Company produces high-end,
high-precision, ultra-thin, high-strength, cold-rolled steel products that are
characterized by stringent performance and specification requirements that
mandate a high degree of manufacturing and engineering expertise. China
Gerui's products are not standardized commodity products. Instead, they are
tailored to customers' requirements and subsequently incorporated into
products manufactured for various applications. The Company primarily sells
its products to domestic Chinese customers with an emerging presence with
international customers in a diverse range of industries, including the food
and industrial packaging, construction and household decorations materials,
electrical appliances, and telecommunications wires and cables. For more
information, please visit http://www.geruigroup.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking
statements" within the meaning and protections of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended, or the Exchange Act. Forward-looking statements
include statements with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and other
factors, which may be beyond our control, and which may cause the actual
results, performance, capital, ownership or achievements of the Company to be
materially different from future results, performance or achievements
expressed or implied by such forward-looking statements. All statements other
than statements of historical fact are statements that could be
forward-looking statements. You can identify these forward-looking statements
through our use of words such as "may," "will," "anticipate," "assume,"
"should," "indicate," "would," "believe," "contemplate," "expect," "estimate,"
"continue," "plan," "point to," "project," "could," "intend," "target" and
other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are
expressly qualified in their entirety by this cautionary notice, including,
without limitation, those risks and uncertainties described in our annual
report on Form 20-F for the year ended December 31, 2011 and otherwise in our
SEC reports and filings, including the final prospectus for our offering.
Such reports are available upon request from the Company, or from the SEC,
including through the SEC's Internet website at http://www.sec.gov. We have no
obligation and do not undertake to update, revise or correct any of the
forward-looking statements after the date hereof, or after the respective
dates on which any such statements otherwise are made.



Company Contact:         Investor Relations Contacts:
Email:                   Vivian Chen              Kevin Theiss
investors@geruigroup.com
Website:                 Managing Director        Account Director
www.geruigroup.com
                         Grayling                 Grayling
                         Phone: 646-284-9427      Phone: 646-284-9409
                         Email:                   Email:
                         vivian.chen@grayling.com kevin.theiss@grayling.com

SOURCE China Gerui Advanced Materials Group Limited

Website: http://www.geruigroup.com
 
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