NYSE AMEX: CNAM

Strategic Partnership Could Mean New Long Term Supply Contracts

	LATEST NEWS RELEASE

China Armco Metals Forms Strategic Partnership with TCG Commodity Management to Acquire Supplies of High Demand Minerals

SAN MATEO, CA--(Valuepresswire)—April 7, 2010 -- China Armco Metals, Inc. (AMEX CNAM - News), a distributor of imported metal ore and growing scrap metal recycler, today announced that Armco & Metawise (H.K.), Ltd. (“A&M”), the Company's wholly owned subsidiary, has established a strategic partnership with TCG Commodity Management, LLC (“TCG”), a leading international market maker supplying high demand minerals and commodities to companies throughout Southeast Asia, to 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.

Following TCG’s commitment to sell a total of 800,000 metric tons of Manganese, the two companies began talks to pursue a partnership to secure a number of additional commodities for distribution into China resulting in today’s announcement. Under the framework of this strategic partnership, TCG has agreed to provide A&M preferential access to additional supplies of Manganese as well as Pig Iron and Iron Ore from Brazil, and Coal from Colombia.

Commenting on this partnership, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc. stated “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 American 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.”

According to Van Carter, Chairman and CEO of TCG Commodity Management, LLC, , “our initial focus is on Manganese and Pig Iron from Brazil and Coal from Colombia.” He explained that “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 favorable 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.”

Investors are urged to monitor the progress of the company!

	Why Consider CNAM?

China's market for steel scrap offers excellent investment opportunity

Full year 2009 revenue reaches a record $86.9 million, up 57% from 2008

Full year 2009 net income increases to $5.1 million, up 54% from 2008

China consumes over 500 million tons of steel annually

Only 100 million tons of steel scrap are utilized in China per year, China currently has an estimated 40 million ton shortage in supply of steel scrap

China's 10% annual economic growth ensures the steady growth of the steel industry

Armco's steel scrap recycling project is located in Jiansu Province, China Iron & Steel Association and China Scrap Steel Application Association have designated the area as the pilot zone for steel scrap processing

The Chinese government intends to make Jiangsu province the premier location for steel scrap recycling in China. The Chinese central and Jiangsu provincial governments are issuing preferential tax treatment for steel scrap recyclers to operate their business.

China has a remarkable growth opportunity for the steel scrap usage in steel making

Recently reported a substantial increase in revenues and net income for its 2009 second quarter.

Revenues increased 71.8% to $22.5 million
GAAP EPS increased 38% to $0.33
Calculated tax-adjusted non-GAAP EPS increased 250% to $0.21

China Armco should directly benefit from the China stimulus plan. On July 16, 2009 China released figures stating that GDP growth for the 2009 second quarter came in at 7.9%, easily surpassing expectations and giving some indication that the government's quick and aggressive response to the global recession is taking hold.*

Favorable industry trends as discussed in the China Armco's filings: Steel - We believe that domestic steel production will continue to witness significant growth as China continues to grow. The steel industry is an important basic industry of the national economy of China, and plays a vital role in the recent industrialization efforts of the country. Production volume in China has more than doubled within the past five years. China’s share of the world's steel production continued to grow in 2008 representing 38% of the world's total crude steel production.*

Recycling - The energy saved by recycling reduces the annual energy consumption of the industry by approximately 75%, which supports the government's energy conservation goals. The PRC identified the scrap metal recycling industry as a way to minimize the use of scarce natural resources and reduce energy consumption and emissions in the steel manufacturing industry. In China, the scrap metal recycling industry is highly fragmented with no dominant player.*

* SOURCE: GeoTeam.

A Low Cost Provider in the Industry

One of the core competitive advantages of Armco is its ability to provide low cost products to their customers. This is a direct result of its excellent sourcing and vender management capabilities. After the completion of recycling metal project Armco will further strengthen its low cost position by investing in advanced technology, controlling raw materials cost, increasing supplier base, lowering logistics expense, broaden economy of scales, and enhance automated production lines. Its value is derived from both low cost and superior quality.

	Company Snapshot

Business Summary

China Armco Metals, Inc., through its subsidiaries, imports, sells, and distributes metal ores and non-ferrous metals to the metal refinery industry in China. The company imports metal ores from suppliers in Brazil, India, South America, Oman, Turkey, Iran, Libya, Nigeria, Indonesia, and the Philippines, and resells the metal ores in China. It sources a range of raw materials, which include iron ore, coal, chrome ore, nickel ore, copper ore, scrap metal, and manganese ore. The company sells its products to steel producing mills, steelmakers, and foundries, as well as to brokers who aggregate materials for other users. It also engages in the recycling of scrap steel. The company was founded in 2001 and is based in San Mateo, California.

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This advertisement is provided by Wall Street Enews, a division of Stock Market Alerts LLC, an electronic broadcaster and publisher of this release, and hereafter referred to as "the company". The company also maintains a contractual, working relationship with Wall Street Capital Funding LLC. and its' Wall Street News Alert brand. For current services performed for China Direct Industries, Inc. ("China Direct Industries") (NasdaqGM: CDII), Sunwin International Neutraceuticals, Inc. (OTCBB: SUWN), Dragon Capital Group Corp (OTC: DRGV), China America Holdings (OTCBB: CAAH), China Armco Metals, Inc. (OTCBB: CNAM) and Dragon International Group Corp. (OTCBB: DRGG), the company has been compensated a total of Three Hundred Thousand Dollars (Two Hundred and Fifty Thousand dollars for current services and Fifty Thousand dollars for previous services) by China Direct Investments Inc., a Florida corporation, and a wholly owned subsidiary of China Direct. The company does not hold any shares of the stock. Because the company received compensation for its services, there is an inherent conflict of interest in the company statements and opinions and such statements and opinions cannot be considered independent.

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Corporate Profile

China Armco Metals Forms Strategic Partnership with TCG Commodity Management to Acquire Supplies of High Demand Minerals

China's market for steel scrap offers excellent investment opportunity

China has a remarkable growth opportunity for the steel scrap usage in steel making

Recently reported a substantial increase in revenues and net income for its 2009 second quarter.

A Low Cost Provider in the Industry

Business Summary