China Armco Metals Updates on Trading Business

China Armco Metals, Inc. (NYSE Amex: CNAM) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler with a new state of the art scrap metal recycling facility in China, today provided an update on its trading business.

Through November 30, 2010, China Armco has secured and shipped three orders to deliver iron ore to trading firms serving iron and steel producers in China. The orders include a combined volume of 112,000 tons with an aggregate value of approximately $17.1 million.

"We are seeing a steady progress in our trading business," said Mr. Kexuan Yao, Chairman and CEO of China Armco. "With iron prices stabilizing in recent months, steady industrial production growth in China, and the ending of current power conservation plans enacted by the government for the steel industry, we are cautiously optimistic about the recovery. Our diverse and stable supply of metal ores and non-ferrous metals from 10 international suppliers, our more than 10 years of experience and strong relationships with over 150 customers in China position us well to capitalize on the long term secular growth of the Chinese steel industry."

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