Armco Metals Holdings, Inc. and Midland Resources Enter Into Steel Scrap Supply Agreement

Armco Metals Holdings, Inc. and Midland Resources Enter Into Steel Scrap Supply 
SAN MATEO, CA -- (Marketwired) -- 04/01/14 --  Armco Metals Holdings,
Inc. ("Armco Metals") (NYSE MKT: AMCO), a distributor of imported
metal ores and a steel recycler in China, today announced that it
entered into a steel scrap supply agreement with Midland Resources
(China) Company Limited ("Midland"), a Hong Kong-based joint venture
with Shagang Steel Group ("Shagang Steel"). Midland serves as the
exclusive agent for Shagang Steel for the sale of its steel products
in the Hong Kong markets. Midland fulfilled the sale of over 400,000
tons of steel products for Shagang Steel in 2013. Shagang Steel ranks
as one of the largest importers of steel scrap in China. 
Under the terms of the agreement, Armco Metals will act as a sourcing
agent for Midland to import steel scrap into China. The agreement
also enables Midland to utilize its import licenses and financing
capabilities to import steel scrap for direct processing by Armco
Metals. Processing under this method would substantially improve
Armco Metal's cash flow and expand its processing capabilities. Armco
Metals sees this as a significant first step in becoming a processing
base for both Midland and Shagang Steel.  
Commenting on the agreement, Kexuan Yao, Chairman and CEO of Armco
Metals, stated, "Steel scrap is the only raw material in short supply
in the steel industry, however, the challenges faced by declining
steel prices has placed a huge burden on the whole industry supply
chain. This situation has severely hampered our working capital in
second half of 2013 as we were faced with customer defaults and
declining inventory values. Our management team has reacted by
implementing a strategic plan to establish a 'platform strategy' to
help stabilize margins and achieve sustained profitability. Our
profits, by nature, are mainly generated from scrap processing fees
at our plant and this agreement with Midland allows for our new
partner to manage much of the cash outlay for the importing and
transportation of the steel scrap so we can increase our throughput
in a far more profitable way. We believe that this importing
partnership with Midland will be a win-win scenario for both
companies for years to come. Additionally, we are seeking
environmental regulatory approval to increase our importing license
from 5,000 tons to 20,000 which we expect to receive in 2014. We see
this as an important move for future expansion when steel markets
cyclically recover and our cash flow improves."  
 Armco Metals Holdings is engaged
in the sale and distribution of metal ore and non-ferrous metals
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 and recycled scrap metals. For more
information about Armco Metals, please visit 
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 important
factors that could cause our actual results to differ materially from
those projected in forward-looking statements (as defined in such
act). 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 our revenues and production related to our scrap metal
recycling operations, pricing and demand for our product lines and
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,
and we undertake no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which
such statement is made or to reflect the occurrence of anticipated or
unanticipated events or circumstances. This press release is
qualified in its entirety by the following, including, but not
limited to, any expectations with respect to the Company's revenues
and operations, institution of governmental regulations relating to
our businesses and the international economic climate, and the
cautionary statements and risk factor disclosure contained in our
Securities and Exchange Commission filings, including our Annual
Report on Form 10-K for the year ended December 31, 2012, and our
subsequent filing with the Securities and Exchange Commission. 
Armco Metals Holdings, Inc.
Christina Xiong
Office: 650.212.7620
Ripple Zhang
Office: 86-21-62375286
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