Fortescue Metals Group (FMG) has continued its preference for the use of ARCOPLATE in all their mining operations with placement of an order for $1,800,000 worth of product. ARCOPLATE was used predominately in the construction of their current mining operations in Northern Western Australia (Cloudbreak mine); the value of product utilised in Cloudbreak mine by FMG was $5.5 million making total purchases of ARCOPLATE $7.3 million by FMG. Part of this order is for their existing operation and the balance is for the start of the fit out of their second mine which is currently under construction. Alloy Steel International Inc. has been advised it is preferred supplier for this second mine´s wear plate requirements. The final order value is expected to be approximately $630,000.

The board of directors of Alloy Steel International Inc. received notice that Grant Thornton WA Partnership would resign as its independent auditor. On January 29, 2008, the board engaged UHY Haines Norton to serve as its independent auditor for fiscal year ending September 30, 2008.

On 12/20/2007, Alloy Steel International Inc. announced that they will be unable to file their next 10-K by the deadline required by the SEC.