China Gerui Advanced Materials Group Limited Announces Introduction of a New Laminated Steel Processing Line

ZHENGZHOU, China, January 29, 2013 /PRNewswire-FirstCall/ -- China Gerui Advanced Materials Group Limited (NASDAQ: CHOP) ("China Gerui," or the "Company"), a leading high precision, cold-rolled steel producer in China, today announced the introduction of a new laminated steel processing line at its existing production facilities in Zhengzhou, China. The new laminated steel processing production line is estimated to be completed, tested and to begin commercial production in the second quarter of 2013.

"With the addition of the new laminated steel production line, we are broadening our product mix by providing a value-added, high-margin, cold-rolled steel product," said Mr. Mingwang Lu, Chairman and Chief Executive Officer of the Company. "This new capability is consistent with our strategy to broaden our product offerings and enhance our competitive profile in order to reach more customers with an expanded range of end-use products and materials."

Mr. Lu continued, "We are looking to migrate further up the specialized cold-rolled steel sector value chain with this new specialized steel material and will continue to work on additional product initiatives that involve technologies and end-use applications that appeal to both existing and new customers. We believe that the new laminated steel production line will further solidify our competitive edge as a leading specialized cold-rolled steel materials producer in China."

The new laminated production line will utilize the Company's cold-rolled steel as a raw material to produce a specialized steel material that will be primarily marketed to the industries of food and beverage packaging, electrical appliances, and construction and decoration. These markets are expected to experience continued growth stimulated by rising domestic consumption within the next few years. The new laminated production line is designed to produce up to 30,000 tons per year of laminated steel sheets, although there is room for further capacity expansion pending market demand.

Historically, China's domestic food and beverage industry has relied heavily on imported food-grade metal packing materials. Thus, China's 15^th five-year plan encourages domestic development and production of toxic-free, environmentally-friendly, food-grade packing materials. China Gerui's growth strategy of replacing imports with precision, high-end cold-rolled steel products is consistent with the government's goals.

The laminating process requires a strictly controlled manufacturing process to achieve strong adhesion between the laminating film and the cold-rolled steel sheet. The Company expects to produce a highly stable, adaptable and top quality product using the latest quality control instruments under a high-level clean room environment. China Gerui has adopted the advanced technology in this new production line, which also includes standards and guidelines that ensure environmentally-friendly production processes.

About China Gerui Advanced Materials Group Limited

China Gerui Advanced Materials Group Limited is a leading niche and high value-added steel processing company in China. The Company produces high-end, high-precision, ultra-thin, high- strength, cold-rolled steel products that are characterized by stringent performance and specification requirements that mandate a high degree of manufacturing and engineering expertise. China Gerui's products are not standardized commodity products. Instead, they are tailored to customers' requirements and subsequently incorporated into products manufactured for various applications. The Company sells its products to domestic Chinese customers in a diverse range of industries, including the food and industrial packaging, construction and household decorations materials, electrical appliances, and telecommunications wires and cables. For more information, please visit http://www.geruigroup.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2011 and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or on the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.