Alloy Steel Australia Pty Ltd, a wholly owned subsidiary of Alloy Steel International Inc., has signed a long term strategic supply agreement with BHP Billiton to supply Arcoplate Wear Resistant Super Alloy Wearplate for iron ore mining operations in Western Australia. The initial product taken will be for the multi-million dollar expansion of their operations in the Pilbara area of Western Australia. The first product releases issued by BHP have been for value in excess of USD 5 million in the past 7 weeks. It is anticipated that over the next five years the value of Wearplate could be in excess of USD 50 million. Since commissioning the new Arcoplate mill it has been working at full capacity satisfying the demand for the new 3/4in or 20mm material whilst the other Arcoplate mill has been fully utilized with the ongoing demand for the thinner overlay materials. As a result of the increased level of interest in Alloy Steel’s Arcoplate product by local and international mining companies, the Directors of Alloy Steel are planning for a further two production mills with substantially increased capacity to come on line in early 2010.