Replies to post #48513 on China Growth Stocks

[viking86]

CNAM: IR reply re. the cutters

Thank you for your inquiry. To answer your question, the recycling facility uses a state of the art Lindemann Texas Shredder. This shredder has a 1 million ton annual processing capacity. We made the following 10Q disclosure:

In June 2010 we purchased an additional nine cutting machines for a total of approximately $138,000 to expand the scrap metal processing capacity at our recycling facility from approximately 800,000 metric tons per year to approximately 850,000 metric tons per year.

The 800,000 metric ton capacity figure prior to the nine cutting machines is calculated based on an estimated utilization rate of 80% for the Texas Shredder. This rate maybe higher or lower. The 3 cutting machines they had prior were not factored into the 800,000 metric ton figure primarily because they were mainly used as backup. The 9 cutters they brought online will be used simultaneously alongside the shredder adding extra 50,000 annual capacity.

I hope this clarifies your concern.

Best regards,

Lillian WongChina Armco Metals, Inc.
U.S. IR Representative
954.363.7333 ext. 317