Chris Ryan

From: Chris Ryan

Sent: Tuesday, October 05, 2010 6:38 PM
To: 'lrothstein@cdii.net'; 'info@cdii.net'
Cc: 'Info@ArmcoMetals.com'
Subject: Lazarus Rothsteing- Identification of China Armcometals, Inc.- FRAUD - REQUEST MR
WILLIAM THOMSON Email and Phone number immediately
Attachments: China Armco Proof of Service 9-20-2010.pdf; Shaw v China Armco.pdf

Lazarus, it seems like you are purposely stonewalling me in an attempt to delay and frustrate my delivery to Mr. William
Thomson (Audit Committee Director of China Armcometals) a Certified Fraud Report concerning previously discussed
frauds that I discussed with you this morning.

I am shocked that you would not only blow this off, but actual hinder my ability to notify the Audit Committee Director
of my findings.

In my possession I have an certified fraud examiner report pertaining to China Armcometals and I will direct you to the
SEC Filing China Armcometals, Inc file on April 30, 2010
http://sec.gov/Archives/edgar/data/1410711/000144878810000098/cnamproxy.htm

On page 5 of this filing please note “…You may also contact individual directors by calling our principal executive offices
at (650) 212-7620….”

Yesterday I called this number and was refused by three employees of China Armco, all on the basis I needed to talk to
you. So now I am formally demanding the contact information of Mr. William Thomson for the sole purpose of
delivering the Certified Fraud Report pertaining to Fraud which has been uncovered between Kexuan Yao and the Board
of Directors of China Armcometals.

Also based upon what is in this report I am sure Mt Thomson will want to conduct an internal investigation into the
affairs of China Direct Industries and how they played into this massive internal system failure. On that note allow this
email to serve as formal notice not to spoilate, tamper or destroy and records, email, faxes, privilege logs etc regarding
China Armco contract and work product with China Direct Industries, including all subsidiaries and affiliate relationships.

This includes but is not limited to:

1. All translation work and original correspondence;
2. All accounting work, work papers and correspondence;
3. All investor relations work correspondence of same;
4. All legal advice, work product, privilege logs, coming in the capacity of China Direct Industries and from you
personally Mr. Lazarus Rothstein.

Last please provide me with your legal justification why China Armcometals has not filed an 8K with the Securities and
Exchange Commission pertaining to the lawsuit titled Shaw v China Armcometals filed in the United States District Court
–District of Nevada Case No: 2-10-cv-1581. For your records I am attaching the initial complaint with the proof of
service showing China Armco has had knowledge of this suit for more than 15 days.

Sincerely

Chris Ryan
Editor
Newswire

1
From: Jim Schneider [mailto:Jim@SWBLAW.net]
Sent: Tuesday, October 05, 2010 3:28 PM
To: Chris Ryan
Subject: RE: China Armcometals, Inc. FRAUD Lawsuit and NO SEC Disclosure- Please investigate and Get Back to Me

We are not corporate counsel from CNAM as we serve in a more limited role and this matter is being handled by other
counsel. Suggest you speak with Laz Rothstein who I believe you may have previously been in contact with. Jim
Schneider

o: Jim Schneider
Steven Weinberger
Roxanne K Beilly
Securities Counsel
China Armcometals, Inc.

From: Chris Ryan

Editor
Newswire

I am reaching out to you as Corporate Counsel of China Armcometals. I want to afford you the opportunity to explain
your legal position why China Armcometals, Inc has not filed an 8K with the Securities and Exchange Commission
concerning:

A Lawsuit filed by Crawford Shaw v China Armco Metals Case No: 2:10-cv-1581 Filed in the United States District Court-
District of Nevada on September 17, 2010. (attached please find the initial complaint and proof of service)

/s/Chris Ryan

Editor
Newswire
(310) 746-5917