China Armco Metals Secures $13 Million Line of Credit From the Bank of China for Its Scrap Metal Recycling Project

SAN MATEO, CA--(Marketwire - August 18, 2009) - China Armco Metals, Inc. (OTCBB: CNAM), a
distributor of imported metal ore with plans to launch a new state of the
art scrap metal recycling facility in China, today announced that Armet
Renewable Resources Co, Ltd. ("Armet"), the Company's wholly owned
subsidiary, received a $13 million 3-year Line of Credit from the Bank of
China on August 11, 2009. The terms of the credit line allow for
approximately $2.9 Million to be used for working capital for the operation
of its metal recycling operations with the balance to be used for fixed
asset purchases associated with its recycling project.

Management anticipates it will commence operations at its 1 million ton
recycling facility in the fourth quarter of 2009. It is anticipated that
the metal recycled by Armet will be sold for use in the production of steel
within China. China is currently the largest producer and consumer of steel
in the world.

Kexuan Yao, Chairman and CEO of China Armco Metals, Inc., commented, "We
are extremely pleased to have secured this $13 million line of credit for
our metal recycling project. With this additional capital we plan to
become one of the largest providers of scrap metal to the steel industry in
China. We look forward to the planned commencement of operations in the
fourth quarter and to the completion of our roadmap to reach two million
metric tons of annual capacity in the future."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal
ore and non-ferrous metals throughout the PRC and has entered the recycling
business with the Company's acquisition of 22 acres of land for the
construction and operation of a 1-million ton per year shredder and
recycler of metals. The Company maintains customers throughout China which
include the fastest growing steel producing mills and foundries in the PRC.
Raw materials are supplied from global suppliers in India, Hong Kong,
Nigeria, Brazil, Turkey, the Philippines and Libya. The Company's product
lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel
ore, copper ore, manganese ore and steel billet. Beginning in the fourth
quarter 2009, the Company expects to begin operations in its steel
recycling and scrap metal supply. The recycling facility is expected to be
capable of recycling one million metric tons of scrap metal per year which
will position the Company as one of the top 10 largest recyclers of scrap
metal in China. ARMCO estimates the recycled metal market as 70 million
metric tons.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, China Armco Metals, 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") may be forward-looking and may 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 guidance and expectations regarding
revenues, net income and earnings. In addition, any such statements are
qualified in their entirety by reference to, and are accompanied by, the
following key factors that have a direct bearing on our results of
operations: Our ability to successfully complete construction of our
proposed scrap steel recycling facility, or, even if constructed, our
ability to operate the proposed recycling facility at expected capacity
levels and at a profit.

We caution that the factors described herein could cause actual results to
differ materially from those expressed in any forward-looking statements we
make and that investors should not place undue reliance on any such
forward-looking statements. 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. New
factors emerge from time to time, and it is not possible for us to predict
all of such factors. Further, we cannot assess the impact of each such
factor on our results of operations or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from
those contained in any forward-looking statements. This press release is
qualified in its entirety by 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,
2008.