E-Mail from the CEO of Alloy Steel International, Inc.

During the current market downturn, shares of Alloy Steel International, Inc. (OTC BB: AYSI.OB), have sunk recently along with the shares of other companies in the metals sector. I have had a GTC limit order in for a few days to buy a few more shares below $1, but it hasn't been filled yet. I asked the following questions of the company via e-mail early this morning:

Can you provide an update on the construction of your second mill? If memory serves, you expected to have it in operation by September.

Also, have you succeeded in hiring the sales persons you were recruiting over the summer?

Is your planned joint venture in Mongolia still on track?

I received the following response from Alloy Steel's CEO, Gene Kostecki,

Thank you for your continuing Interest in AYSI. We are about to make a press statement on the company, we were just waiting to get the accounts finished for the 3rd Quarter. I think that every one will be in for a pleasant surprise. We have shelved Mongolia for at least 6 Months till this madness subsides. The 2nd mill is a few weeks behind schedule before we start calibrating and software checking. We are continuing to steer a steady course for the company.

At its current price of $1 per share, Alloy Steel is trading at 6.62x its earnings over the trailing twelve months.