China geruisept12presentation

September 2012

2

Safe Harbor

This presentation includes or incorporates by reference statements that constitute "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2011 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

3

Capital Markets Summary

(1)1Figures are adjusted for the one-time warrant exercise expenses incurred in the first quarter of 2011.(2) Analyst FY2012E EPS guidance of $0.75 per share.(3)GGrowth rate provided by Thomson One.

Price (9/11/12): $2.02Price (9/11/12): $2.02

Revenues (ttm): $338.5 millionRevenues (ttm): $338.5 million

Net Income (ttm) (1): $58.2 million Net Income (ttm) (1): $58.2 million

Diluted EPS (ttm) (1): $1.01Diluted EPS (ttm) (1): $1.01

Market Capitalization: $117.6 millionMarket Capitalization: $117.6 million

Price/Book (ttm): 0.37xPrice/Book (ttm): 0.37x

2012E P/E (2): 2.69x2012E P/E (2): 2.69x

PEG Ratio (3): 0.38PEG Ratio (3): 0.38

4

The Leading High-Precision Steel Processing Company in China

● Headquartered in Zhengzhou, Henan Province, China● Approximately 1,100 employees as of June 2012● Annual capacity of 500K tons by Q2 of 2012, including 50% chromium plating capacity● Serves over 200 customers in China in consumer spending and construction industries

Company Overview

China Gerui is a leading niche and high-value added metal processing company that utilizes advanced technology to produce specialty, cold-rolled steel products in China

Raw Materials

Hot Rolled Steel

Cold Rolled Steel Processing

(Narrow + Wide Strip)Manufacturers

End Applications

5

1 Focus on customized, high value-added, high margin steel production

2 Leading position in robust niche market in China

3 Unique business model with defendable barriers to entry

4 Proven track record of strong financial performance and profitability

5 Defined long-term growth strategy

7

Seasoned management with local market knowledge

Investment Highlights

Diversification of revenue stream via new technologies and exports

6

6

In-House Value Chain

Hot Rolled

Coil

Initial Cutting

Acid Pickling

Cold Rolling

Annealing

Temper Rolling/

Stretching

Cold Rolled Steel Strips

(Narrow + Wide)

Chromium Plated Steel

Production Process

Leve

l of C

ompl

exity

Finished Product

Input Factor Value Creators

7

Defining Our Market

● For CRS products, the thickness can range between 0.05mm up to 7.5mm● China Gerui specializes in ultra-thin, high precision products with

thicknesses mostly from 0.05mm to 0.5, width up to 1200mm, tolerance +/-0.003mm

● Typical thickness of CHOP raw material HRC: 3mm● Five series and over twenty types of high precision strip steel products

0.05mm 0.5mm 7.5 mm

CHOP Commodity-type producers

8

Revenue by Industry Application

China Gerui produces high precision steel products tailored to meet exact customer specifications

Food and industrial packaging

49%

Construction and

household decorations

materials19%

Electrical appliances

24%

Telecom wires and

cables8%

2010

Food and industrial packaging

52%

Construction and

household decorations

materials34%

Electrical appliances

6%

Telecom wires and

cables8%

2011

9

Economics of CHOP’s Business Model

Made- to- order production

High Inventory Turnover

Low A/R

No Long-Term Debt

Customer Survey/Order

Secure Raw Material

Receive 30% down payment

Processing 70% Balance

Collected Upon Delivery

Cost-plus method of pricing

● Not a commodity business: focused on customized high margin steel production● Products meet stringent performance and specification requirements● Supplier of choice when our existing customers develop new products

10

Outpacing the Competition

● Limited domestic supply because PRC manufacturers lack the equipment and expertise to produce high end specialty cold rolled steel

● Steel industry is highly capital intensive: Capital requirements prevent newcomers or smaller players without sufficient funds from entering the market

CHOP International Companies

Domestic Companies

Strategic Focus

First Mover Advantage

Brand Recognition

Nationwide Distribution

Local Market Knowledge

High Product Quality

Financial Resources

11

$218.9$253.9

$341.8

$86.1 $76.8

0

50

100

150

200

250

300

350

400

2009 2010 2011 Q2 2011 Q2 2012

$43.4$47.1

$57.6

$14.0 $10.3

19.8% 18.5%

$16.9

16.3%13.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

010203040506070

2009 2010 2011 Q2 2011 Q2 2012

Net Income Net Margin

$33.8 $36.5

$56.2

$40.6

$25.0

0

10

20

30

40

50

60

2009 2010 2011 Q2 2011 Q2 2012

Strong Financial Performance

USD million

Total Revenue

Net Profit Operating Cash Flow

USD million USD million

USD million

$65.8$76.0 $101.6

$23.6 $19.8

30.0% 29.9% 30.4%

27.4%

25.8%

23.0%24.0%25.0%26.0%27.0%28.0%29.0%30.0%31.0%

0

20

40

60

80

100

120

2009 2010 2011 Q2 2011 Q2 2012

Gross profit Gross margin

Gross Profit 2012

Outlook

Revenue

$290 MMto

$305 MM

Diluted EPS

$0.75to

$0.85

12

Healthy Balance Sheet

Condensed Balance Sheet(USD 000’s)

June-30-2012(Unaudited)

December-31-2011(Audited)

Cash $282,840 $246,601Restricted cash 144,919 118,130Accounts receivable 3,650 6,383Inventories 23,516 24,463Current assets 539,767 445,186Total assets 688,553 601,076Notes Payable 246,183 204,881Term Loan 46,907 44,170Current liabilities 369,270 302,648Total liabilities 369,270 302,648Total stockholders’ equity 319,282 298,428

Working capital 170,497 142,538Inventory turnover days 15.3 14.0Days sales outstanding 3.9 6.8

13

2.7x

11.2x

8.9x10.4x 10.0x

17.4x

(a)0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

CHOP WOR MUSA RS ZEUS CAS AKS

Attractive Valuation

Notes: US Metals Processors consist of Worthington Industries, Metals USA Holdings, Reliance Steel & Aluminum, Olympic Steel, Castle and AK Steel. All pricing information is of 9/11/12; all financial information is of 6/30/12 except for WOR which is 5/31/12.

(a) Negative EPS

Source: Company Filings, Thomson One

US Metals Processors

Mean: 11.6x

2012E P/E

0.0%

10.0%

20.0%

30.0%

CHOP WOR MUSA RS ZEUS CAS AKS

20.0%

US Metals Processors

Mean: 19.0%

TTM Gross Margins

15.6%

20.4%

24.6%

29.9%

25.9%

7.3%

14

Disciplined Growth Strategy

Double capacity to 500K tons with 50% chromium plating capabilities

Broaden product portfolio and mix by expanding into plated steel production

Expand technical expertise and control cost

Develop disciplined acquisition strategyand pursue strategic partnership with industry leaders

Expand sales channelsand product offeringsPursue Acquisitions &

Strategic Partnership

Improve Efficiency

Broaden Product Portfolio

Expand Market Share

Double Capacity

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Production Capacity to Double by 2012

250K                100% Utilization

400K

500K

250K 250K

Wide Strip

Narrow Strip

Chromium Plating

Capacity50K

150K tons in Q2 2011 with 75% utilization within six months

100K tons added in Q4 2011 with 75% utilization within six months

Phase I Capex $42MPhase II Capex $12M- all provided for

Increase of Chromium plating capacity from 50K tons to 250K tons or 50% of total capacity today

050

100150200250300350400450500

2010 2011 2012

250 250 250

150250

Tons

(000

)

0

50

100

150

200

250

2010 2011 2012

50 50

250200

Tons

(000

)

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● Mingwang Lu, Chairman of the Board and Chief Executive Officer– Over 20 years of steel industry experience

– CEO of the Company since 2000

– Held various management positions at Zhengzhou No.2 Steel Plant from 1995 to 2000

– Elected as a member of the 9th, 10th and 11th National People’s Congress in Henan Province

– Awarded Excellent Director/Manager in Henan Province, National Excellent Township Entrepreneur and Expert in Steel Industry of Henan Province

● Edward Meng, Chief Financial Officer – Joined China Gerui in April 2009, residing in Zhengzhou, China

– Former CFO/Director of the Board of a number of U.S.-listed companies

– Former CFO of MNCs in China (Shell/Koch/Terex)

– Georgetown University MBA, U.S. CPA, experienced in PRC & U.S. GAAP

Seasoned Management Team

17

Investment Highlights

1 Focus on customized, high value-added, high margin steel processing

2 Leading position in robust niche market in China

3 Unique business model with defendable barriers to entry

4 Proven track record of strong financial performance and profitability

5 Defined long term growth strategy

6 Seasoned management with local market knowledge

18

Contact Information

This Presentation of China Gerui Advanced Materials Group Limited was developed by the Company and CCG and is intended solely for informational purposesand is not to be construed as an offer to sell or the solicitation of an offer to buy the Company’s stock. This presentation is based upon information available to thepublic, as well as other information from sources which management believes to be reliable, but is not represented by China Gerui Advanced Materials GroupLimited or CCG as being fully accurate nor does it purport to be complete. Opinions expressed herein are those of management as of the date of publication andare subject to change without notice.

Company Contact: CCG Investor Relations:

Email: [email protected] David Rudnick, Account Manager

Website: www.geruigroup.com Phone: 1-646-626-4172

Email: [email protected]

September 2012