China Precision Steel Announces Resignation of Director

SHANGHAI--Aug. 16, 2012: China Precision Steel, Inc. ("China Precision Steel" or the "Company"), a niche precision steel processing Company principally engaged in producing and selling high precision, cold-rolled steel products, announced today the resignation of Che Kin Lui from the Board of Directors, effective August 8, 2012, due to personal reasons.

"We appreciate the years of service Mr. Lui has provided China Precision Steel as a member of our Board of Directors," commented Mr. Hai Sheng Chen, CEO of China Precision Steel. "Mr. Lui has been a valuable asset to our Company and his guidance and stewardship will be sorely missed."

About China Precision Steel Inc.

China Precision Steel Inc. is a niche precision steel processing company principally engaged in the production and sale of high precision cold-rolled steel products and provides value added services such as heat treatment and cutting medium and high carbon hot-rolled steel strips. China Precision Steel's high precision, ultra-thin, high strength (7.5 mm to 0.05 mm) cold-rolled steel products are mainly used in the production of automotive components, food packaging materials, saw blades and textile needles. The Company primarily sells to manufacturers in the People's Republic of China as well as overseas markets such as Nigeria, Thailand, Indonesia and the Philippines. China Precision Steel was incorporated in 2002 and is headquartered in Sheung Wan, Hong Kong. Additional information can be found at the Company's website China Precision Steel.