General Steel Holdings Inc.

Subsidiaries Overview

Shaanxi Longmen Steel Co., Ltd. (Longmen Joint Venture)

Longmen Steel Key Facts

·Established: 1958

·JV Established: June 2007

·Type: Fully-integrated steel production
and processing facility

·Location: Hancheng city, Longmen county,
Shaanxi province

·Main Products:                    Reinforced bar steel (rebar), roundbar,
                                             infrastructure and construction related
                                              products

·Capacity: 4.0 million tons crude steel annually

·Shipment Volume: 2.0 million tons rebar (2008)

·Employees: 4000 full-time, 2000 part-time

·Ownership: Joint Venture – 60% ownership position

Longmen Steel Summary

Longmen Steel is a Joint Venture between Shaanxi Longmen Iron & Steel Group Co., Ltd. and General Steel Holdings, Inc., invested through our subsidiaries Tianjin Daqiuzhuang Metal Sheet Co., Ltd. and Tianjin Qiu Steel Investment Co., Ltd. Through these subsidiaries, we collectively hold 60% of the Joint Venture. The Joint Venture assumes existing operations of the Long Steel Group. The Long Steel Group contributed 80% of its working assets to the Joint Venture. As a fully-integrated steel production and processing facility, the Joint Venture has an annual production capacity of 3 million tons of crude steel. Main products focus on rebar, roundbar and infrastructures related steel products. We sell them regionally through a network of 27 agents and 2 corporate sales offices. We are the largest steel producer in the province and, by our own estimate, have a 72% market share of all heavy construction and infrastructure projects in Xi’an city and the surrounding 15 largest cities.

Longmen Steel Advantages

l Location - Positioned at the bridge head for development in China’s Western region

l Transportation - Decided product-to-market transportatio cost advantage over competitors for projects within a

250 km radius of Xi’an city

l Current Demand - Shaanxi province has approximately 10 million tons unmet demand for infrastructure steel

products

l Future Demand - Development of China’s Western region is one of the top 5 priorities of the central

government's 11^th Five-Year Plan for National Economic and SocialDevelopment .

l Raw Materials - Abundant supply of water, electricity, coke, coal in close proximity. Long Steel Group has

mineral rights for 300 million ton reserve iron ore mine.

l Market Position - Dominant market leader in Shaanxi province, estimated 72% market share of all heavy

construction and infrastructure projects in Xi’an city and surrounding 15 cities.

General Steel (China) Co., Ltd (Formly known as Tianjin Daqiuzhuang Metal Sheet Co., Ltd.)

General Steel (China) Key Facts

·Location: Jinghai country – 20 miles SW of Tianjin
Municipality

·Products: Hot-rolled carbon and silicon steel sheets,

0.7- 2.0mm

·Land: 740 hectares

·Facilities: 30,000 sq. meters

·Capacity: 400,000 tons annually

·Production: 10 production lines

·Shipment Volume: 0.2 million tons (2008)

·Ownership: 100% wholly-owned subsidiary

General Steel (China) Summary

General Steel (China) is the leading domestic producer of high-quality hot-rolled steel sheets used in the construction of small agricultural vehicles. Since 1988, it has expanded its operation to ten production lines capable of processing 400,000 tons of 0.7-2.0mm hot-rolled carbon and silicon sheets annually. It sells its products through a nation-wide distribution network of 35 distributors and 3 regional sales offices. With 2006 sales exceeding US$139 million, it is the largest producer in its product category in China. General Steel Holdings, Inc. owns 100% of this subsidiary. On March 31, 2010, General Steel (China) entered into a lease agreement to lease its workshops, land, equipment and other facilities to Tianjin Daqiuzhuang Steel Plates Co., Ltd. This agreement reduces overhead costs while providing a recurring monthly revenue stream resulting from payments due thereunder.

General Steel (China) Advantages

l Experience – 19 years operating experience, China's first privately owned steel company.

l Management – Solid management team, China’s first steel company to successfully list on a US stock exchange (2004).

l Product Distinction – Through special processing, products are thinner, lighter and more durable than typical

hot-rolled sheets, thus providing a cost-effective substitute for more expensive cold-rolled sheets

l Pricing – Owing to the unique product attributes, pricing can be above traditionally processed carbon sheets and

also below more expensive cold-rolled sheets.

l Market Position – At 400,000 tons annual capacity, it commands a 50% niche market share and is 150,000 tons

larger in capacity than its nearest competitor: allows a price leadership role within the market.

l Technology – 4 new, state-of-the art production lines installed in 2006 as part of a US$12 million facility

modernization.

l Distribution – Established sales and distribution network: 35 distributors, 3 regional sales offices, 9 provinces.

l Transportation – Located in Tianjin, Northeast China's transportation hub, costs for bringing goods to market are

lower than in-land competitors

l Strong YoY Performance: Sales increased 55% and Shipments increased 68% from 2005 to 2006

Baotou Steel-General Steel Special Steel Joint Venture Co., Ltd. (Baotou Steel)

Baotou Steel Key Facts

·Established: June 2007

·Location: Baotou city, Kundulun District,

Inner Mongolia province

· Products: Double spiral weld pipe

· Product

· Specifications: 219-1420mm diameter, 6-13mm
thickness, 1-12m length

· Steel Varieties: Carbon and low alloy steel
(X60, X70 pipeline)

· Facilities: 40,000 sq. meters

· Capacity: 100,000 tons annually

. Shipment Volume: 34,009 tons (2008)

· Production: 4 production lines (Phase I)

· Ownership: Joint Venture – 80% final ownership

position

Baotou Steel Summary

Baotou Steel is a Joint Venture between Baotou Iron and Steel Group Co., Ltd., and General Steel Holdings, Inc., invested through our wholly-owned subsidiary, Tianjin Daqiuzhuang Metal Sheet Co., Ltd. The Joint Venture currently produces seamed double spiral weld pipes for use in the energy sectors of oil, natural gas and boiler. Additional special steel products, including seamless pipes, with current capacity of 100,000 tons. Baoutou Steel sells its products using in-house sales efforts and targets customers in Inner Mongolia and China’s Northwestern region.

Baoutou Steel Advantages

l Raw Materials - Proximity to ample sources of raw materials (largest coal mine in China), Baotou Steel Group

controls a large iron ore mine 150km from the mill.

l Transportation - Baotou Steel Group has proprietary railroad lines and cars to bring iron ore from the mine

source to the production area and its product to market.

l Rare Earth Minerals - 50% of the world’s supply of rare earth minerals is located in China with the majority

found in Inner Mongolia. Rare earth minerals in iron ore make steel suitable for products exposed to extreme stress and pressure.

l Product Demand - Solid demand for product as China’s demand for energy continues to increase.

Maoming Hengda Steel Group Ltd. (Maoming)

Maoming Key Factos

·Established: November 2003

·Location: Industrial Zone of BoHe Port, Maoming City

Guangdong Province

·Main Products: Reinforced bar

·Capacity: 1.8Mton (1Mton of high speed wire, 0.8Mton of rebar)

·Type: Steel processor

·Production: 2 production lines

.Shipment Volume: 48,147 tons (2008)

·Market Scope: Guang Xi and West of Guangdong

·Ownership position: 99%

Maoming Summary

Maoming is the domestic processor of high quality high-speed wire and rebar used in the construction industry. Since 2003, it has expanded its operation to capable of processing 1,800,000 tons annually. Currently, it sells its products through local distribution network of 9 distributors.

Maoming Advantage

l Product Demand - Guangdong is the largest consumer market of steel products in China. The well developed

Pearl River Delta area as the center of manufacturing business drives the high demand for steel products within the province.

l Transportation - Hengda Steel is located in coastal areas with deep-water ports, at Huizhou, Zhanjiang, and

Guangzhou Nansha which easily the delivery of billet at lower cost.

l Technology - Hengda Steel has very new and advanced automation System andprocessing equipment imported

from Europe and US

l Future Development - Guangdong is the center of the Southeast Asian economic circle. The steel companies

in Guangdong are benefited from the high demand of steel products in Hong Kong, Macao, Vietnam, Malaysia and other countries in Southeast Asia and have many new opportunities to explore the export business in the near future.