China Armco Arm Signs Strategic Partnership With Broker

Deal Will Give Access to Supply Contracts

Armco & Metawise (H.K.), Ltd, a subsidiary of US-based metal importer, China Armco Metals, Inc. has established a strategic partnership with Asian commodity broker, TCG Commodity Management.

TCG will source a number of high demand minerals as part of the Company's recent strategy to seek longer term supply contracts for distribution in China and has agreed to provide A&M preferential access to supplies of Manganese, Pig Iron and Iron Ore from Brazil, and Coal from Colombia.

Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc. said, "There is currently a supply-demand imbalance in China, with many core industrial minerals and metals. While this is largely attributable to China's strong growth, there are a number of other factors that contribute to this problem including market inefficiencies, differences in business culture and communication challenges. We believe these factors are very prominent in South America where a vast supply of these materials can be sourced into China. This is why we are convinced this partnership opens the door to a very large opportunity for us. First, TCG is unique because it has deep experience in Asia, with a management team that has been financing trades in the Asia region for decades, coupled with an established infrastructure in Brazil. TCG has a wealth of business relationships in Brazil in marketing, banking, and legal and has facilitated billions of dollars worth of international commodities transactions in numerous countries. We know of no other company with this particular balance. Second, TCG has direct access to mines and can enable us to obtain product without having to build our own origination system in South America."

Van Carter, Chairman and CEO of TCG Commodity Management, LLC, said "This business is dependent upon four factors. First is the ability to bridge the differences in business culture, communication and regulation that exist between China and Brazil. Second is the ability within Brazil, to establish deep personal and professional relationships to secure access to mineral products. Third is the ability to secure favourable pricing and delivery terms, which is a direct function of our access to capital. Through our relationship with A&M, we now have direct access to end-users in China, which is the fourth essential element of a successful business. This is a win-win for both companies."