ats PLLC

At Low
Attorneys
~sflu.demua l1iam in1'eniam auffaciam
WSWILLmTHBRPlND AWli:/. 08.MAXB om
100 CIiuIdl SIRIIIC.
NewYarlr..
"1'Iuur
NY .11lIlO7

s......
, J. BarkatJ, Esq.
PhoDe:~7007
Fax: 64U01-S~
E.ll18il: sbarkats@lsMl'kaa.com

June2S.2010

Action Stock Transrer Corp

7069 S. Hi,hland Dr
Suite 300
Salt Lake CilY~UT 84121
Attn: Justeen Blankship

Re: China Armco Metal$. Inc.

Dear Sir or Madam:

We have rteeived notiflC8.tion from Ed Funnan (the ~, as bl'Oker for China Armco Metalst Inc., a
Nevada corporation (the "Company"), and Mr. Kcxulll Y8IJ. tbe CEO of the Company (the
"Stodcho1de(), with respect to 11'IeStoekholder's pledp of 1,300,000 shares of common stook of the
CompllJI)' (the '1Ilml,,) to Crisnic Punlit S.A. (the "EYruI"). In connection therewith. we have been
uleed whether the pledge of the Sheres by the S1oclcb.okk:r to the Fund may be ctTcctcd without
registration und&r the Securities Act of 1933, as amended (the ..~.

We have, without Independent investigation, _umcd the c;oinjnuing accuracy of, and relied IiOlely upon,
the follOwing doc:uments, coptes of which arc anncx.el1 MJUo:

1. The letter from the StocIdtolder. elated June 25, 20 10, containing certD.in
representations (';(Jnoeming the Stockholder and the Shares. (the: "StocIcbo1defs
RC!P'l!§!!ntation Letter") <Sml Anue,t A);

2. The IcUer from tho Broker, dated June 25. 20 10. containing certain represen1lltioni
concerning the Stockholder, the Shares and the pledge of the Shares (lbe "'BroW',
Rpprgcotation Letter"') (St& Annex B);

www.JSBllbfs.com
 Attorneys At law
PaBe2of2

3. Copies; of the trontand back gfltock certificate nO.1391, dated April 13. :UlIO.
representing 1,000,000 oftbc Shares ~ Annex C) and stock Qertificat.e no. 1330,
dated January 11,2010, representing 300,000 of the Share$ <SB Annex D).

Further, we have been assuted by the Company, but without investigation, that the Sham are duly
authorized. legally issued. fully paid and non-assessable. We have also assumed the genuineness of all
$ianatures. the authenticity of all documents submitb:d to us as originals and the conformity to original
documents submitkld to us as certified or photostatic copies.

Based upon the foregoins. and solely on the foregoing. ~ understand 1Ilat at leut one year has elapsed
sinee the date that (0 (A) an option for the Shares was acquired by the StoclchQlder fi'om ar.other affiliate
of the Company and (B) the Stockholder exercised a portion of such option, resulting in the issuance of
the Shares by the Company to the Stockholder, and (Ii) the fuJi purcIlae price 01' other consideruion was
paid therefor. as calculated in acCOTdlJJce with Rule J4"Cd).

Saaed upon the. foregoing, and solely on the foregoing, it i$ our opinion that (i) the Stodcbolder may
plcd&e the S~ wltbout rqistnation under the Act by reason of the exemption provided. by RuJe 144(k)
and (ii) followins the pledge oftbe Sbarcst a new cenitic:ate Or certificates evidencing the Shares may be
issued without a restrict1ve Jeeend reflecting the absence of registration under the Act.

Should you become aware that any statements in any of the documents annexed hereto or iny of' the
BSSumptiODlthat fonn the basis of this opinion ate no longer valid, you should immediately place a stop
tran5fer order on the. Ccmpany·s transfer records with respect to the Share$.

We express no opinion as to any Jaws other than the Act. Without limiting the foregoing, we express no
opinion witb respeQt to the applicability or effect of any other &detallaVIS of dIe United States or the laws
of any other jurisdiction. including any state securities laws.

This opinion letter is being delivered to you in connection with the pledge oftbe S~
by the Stockholder and may not be relied on or othcrwi$C u.d by all)' other peraon or by you for any
other purpose.

VCIY truly yours.

~
ANNEXA
 KtXUANYAO
ONe WATERS PARK DRIVE
S1JITE98
SAN MANTEO, CA 94483

June 25,2010

PLLC
JSlIII1'IuIb
200 Church Street, SillFloor
New York. NY 10001

To Wbotn 1t May Omcern:

I am the beneficial owner of an agsrcgatc lt300,OOO shares of common ~ $.001 par 'Value
per share (the ~ of CbiDa Armco Mera1s. Inc.• a Nevada corporation (~~
as evidenced in Certificate No. 1330 for the amoum: of300.000 Shares lind Certificate No. 1391
for the amount of 1,000.000 Shares, copies ofwbicl! MIll atIlmhad hE:rE:l:ll,and hereby mab the
following repre8eI11aticms to yOU as of (i) the date of this letter and (ii) the date of the isswmcc of
your opiniOD Ietta' (the ~ the ~ ofwhieh is the basis fOr this letter:
1. I BIO the CEO ofdIe Company and havo beneficially owned the Simes mr a period of
at least one year as the n:sWtof1hc following:

Ca) my acquisition on January 7,2009 ofMs. Feng Gao's ("Ms. Gao") option to
pun:hase 5.300,000 shares oCtile Com~s common S1OCk. (tbo ~"Qption"'.
which I acquired as the result of my exen:ise of my call right pul1UIIft to and. in
~ with that ~ Call Option Agreemen~ dated June rt,2008, by and.
between myself and Ms. Feug Gao, as amended by that certain Amendment to
Call Option Aareement, dated December 18,2008, by ad between myself aDd
M& Gao (together, tho "Can Al!I!eI!IeIIt"1 to purchase -&om. Ms. Gao the Options;
and

(b) myexercise ofpartofthe Opti_ in the amouut of 1,300.000 shues, which

constiIuta the ~ on January 7t 2009;

2. I fully paid ibr the Shates in cash in the anlOWlt of $.00I pet share an J8D1I8I)' 7,
2009;
 J. The CbOIpIDy is a~ issuer .. ifI.- __ Ara poriodor. Jcaa CJO
_1IIb,Iect Ia .. fIIlIXIIII ~ oCSccUcIII3 or l!1(d).ttS ScaIricies
~l\tI.of 1934. asllladal (1bt 'i1s!!!!!!: 6a");
4. 'thIlI~ _m-I III fI!IIII*ed ........ S!cdall tlor 15(d) or.- ~
Act._ ~bbIo. durinJtIIe pNCGdiq l~ ......

S. Attllelilni.oflhc
~~P&edF"
pkdp, .P""'*7 -=r,... ....
afro I%of
che ..... oflhll
the J ntomtm
Cam~'~ CGtlmatI staIft~
__ t pob.IiIhtd by 1M
_.WIt
by tho IIIIIIC IIII:CIII MpacI IX'
Conapaay «(il., ....
o( I.,. «die ... f'IIPIld*f
weekly-ilia '101_ oIthe ~'. GGIIIIIIIIR ltadtaa dIGNYSE AMEX duriq
lhalllurcaleldllrMlb pnc.ediDa _fJiqaf'd,;'l'll:lCiccof_- Fcmal44;

" t~dD_ etot ... ~,, ___

__ 11I1IIb 1Im:r, ., ~ _1IDJd1llrmlcll ...... PU.C1IIII ill
lIfIItIataand
....
dw:It~.--. .......
puma..-, rejII'SIIIIIIMI_
aftIccn.~tqUitj.w.a.
............ lIIlt4tCS.
"IRHIIes.$ht,~""""""'j""""""(Woadias
RicllllllalIIIIIf~
1Ii'........
___
I
....,.
cIiIIIIIa).""""'' ' 'UIJ'CIIim,
--.CCIItI_.,_~
~t_). __
Gf~
..
....... ..
-
III--...,_ur
IIIIIfmnrI thin.I...v IO""..w._.rat..dlorlllY~1Ir
_, __ CI' to~lrIIb.,. __ 1lIdIIiMd1Olllt.1dIt.

1. AI.., .... allli ... JwIII~whII F......... ~_ ....

i~ ~limilllioa. a. 1-44lid _af&~ '44;MCI
. ~...-
I. 1ama.wwellld ........
P__
JOU will ~
1n ~&)'OIII'OpiIiua.
$Oldy." I..--_QfMr. &I.md

l1tiJlCUWI$iauod iI\ ~wiIIllII)' mpstto1he ...... otdllCatPploy

II) _ die IalZ'idiTClcpnd bat dllCeIIftJAIIs"'may bit D:1iId 1IIl." ~ In 1110lMuIIK:e
oryolllllpl optafon 1Q MII .. tIIr ....
ANNEXB
 EDFVRMAN
SAJ, Inc
38 BemIdette Road
Morpaville. NJ 07751

June 2S, 2010

JSIJtri4I6 PLLC
200 Church Street, saI1 Floor
New York. NY 10007

To Whom It May Concern:

I have been enpaecl to _ililate the pIedae of 1300.000 shan:& (the~) of tho common stock of
ChiDaAnnco Metals. Inc... a Ncvada corporation (1be4'ComQ!!l!Y"'). hold by Mr.lC~ YIIO.tbeCEOof
the Compall1 (tbe "Slwebplde('). 10 Crimic Puud. SA (1bc ""l!!!!!M iD COIIIICICtion wkh thai c:cnain
Struotunxl1iaosaclloo Agreement. dated a ofJune 11. 2Oto. by and Imveeo the Shattbolder and tbe .
Fund.

~.~~
III connection with tile Sbalcs and in"cmIer to pernUllhe pledp of the Shares. 1 hmeb)' represent,. wettant
.
1. I will comply with aU Ipplbble Pedal 806 state $8CUritie:s Jaws, includln& without limitation,
Rule 144;

2. 1'heI'e are no c:inmmsCances indk:atiug that 1ht Shattmolder is an underwritot (within the DlCIDing
offhaSeeurides Act of 1934, IS IIDIClded) and that the conten1phded pledge is part 01&
diatribudon oftbe CompIIn)'~

3. In my opinicm. tho plodp is pcnniUecl undat Rule 144;

4. 1'bs Company is a repoIting iuuer u.:lls, and bas been for a period of at loast 90 days,
or
subject to the .report1ng nquimmems ofSectiOll f3 15(d) oftbe Securities Exchauage
Act. of 19~ ... amended (the "6G'wnse Acf')i

s. The Company has filed all requited reportS under Section 13 Of tS(d) otthe Exchange
Act. as IIPPlicablc. during the preceding 12 months:

6. At the time oftbe pledge, the pledp 8IlCl any otbeI' tnmsfet during the 3 anontbs
preceding the pledge does not exceed the pater of (i) 1% oft. shares ofthe
Company's COJnDlCll stock. outstancfiDs, 88 shown by the most recent report or statement
publiahed by the Company or (ti) the p*« of 1% Or the IIVetIIF reported wee1dy
 uading volume of1he Company's ~ stock on the NYSE AMEX during the four
eaIendar weeks preceding the slins of the notice orsale on Fonn 144;

7. I undenland" meaning and legal COIIIIequem;es of tho NpICSOI2taticos and wammdes eoDtllincd
in this letter, and agree to indemnifY 8I1Clbold barml_ ~ PLLC II1CIiIs affiliates ad
their RSpeOtive dite«ot.s. maDIJCIS, officers. employees, equI1¥ holders. mcmbenl. partners.
aaems. reprCISCIltatlycs, S~ and assigns..at an)' 81ld all ~ liabilities. claims,
obligations. dcficlcncies, ~Judptcn1s. damap!s ('mduding iImidemal * CQlIIIqUBDlial
damages), inleRat. Ca_ penalties, claims. sui1&. aotiDIII, cat1SCIS of BCdon, assessments, awards.
COIIWIlJd eqeoses (Includin& costs af~ md dahsc and.uomsys' and oti1et
proCessiooals' feas). or Il.rJ dlmlnudon in value. wbctber or not invo1v1a&a. third party cIalm. due
10 or arisin,g out ofa bread! ofany n:pn:seDtation or warranty. or breech or fitilun: to comply with
any covenant contairu:d in dlilletter;_

8. I am aW8lfl and agree that you will «:ly solely on this letter and that oftbe Simeholder in
renderiog your Opinion.

This I., is issued in conuec:cion wifh the Shareholder' IJ request that you provide an
opinion of the transfer agent of the Company to remove the rcsUictiw legend from Certificate
No. 1330 issued to the Sbateholder by the Company inthe amount of 300.000 Shares and
. __. .. Certificate No. 1391 issued to Shareholder by tbe Cornpan)"for1be amount of 1,000.000 Shares
Certificates and may be retied on by YOI1 in the issuanCe of your legal opinion to such transfer
agent.

Sincerely,