exhibit 5 kexuan yao fraudlent legal opinion

8/8/2019 Exhibit 5 KEXUAN YAO FRAUDLENT LEGAL Opinion

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atsPLLC

Attorneys A t L o w~sf lu .demua l 1i am in1 'en iam a u f f a c i a mWSWILLmTHBRPlND AWli:/. 08.MAXB om

1 0 0 CIiuIdl S I R I I I C . " 1 ' I u u rNewYarlr.. NY .11lIlO7s......J.BarkatJ, Esq.PhoDe:~7007Fax: 64U01-S~E.ll18il: sbarkats@lsMl'kaa.com

June2S.2010

Act ion Stock T r a n s r e r Corp7069 S . Hi,hland DrS uite 3 00S alt L ak e C ilY ~U T 8 41 21Attn : Justeen Blankship

Re: China A r m c o M e ta l$ . Inc.Dear S ir o r Madam:W e h av e rte eiv ed n otif lC 8.tio n f ro m E d F unn an (the ~, a s b l 'Oke r fo r China Armco M e ta l st Inc., aNe v ad a c o rp o ra tio n (the "C o m pa ny "), a nd Mr. Kcxulll Y 8IJ. tb e CE O of th e C om p any (the"Stodcho1de(), with respect to 11'IeStoekholder's pledp of 1 ,300,000 shares of com mon stook o f th eCompll J I) ' ( the '1Ilml,,) to Crisnic P u n l i t S .A . (the "EYruI"). In connection therewith. w e have beenuleed w h e t h e r th e pledge o f t h e S heres b y th e S 1 o c l c b . o k k : r to th e Fund m ay be ctTcctcd withou tregistration u n d & r th e Securities Act of 1933, as amended (the ..~.W e h av e, w ith ou t Independent invest iga t ion, _umcd th e c ;o in jn uin g a cc urac y o f, a nd re lie d I iO l ely u p on ,th e follOwing doc:uments , c optes o f which arc anncx.el1 MJU o :

1 . The letter from the StocIdtolder. e l a t e d Ju ne 2 5, 2 0 1 0, c ontaining c ertD .inrepresentations (';(Jnoeming the Stockholder and t he S hare s. (the: "StocIcbo1defsRC!P'l!!!ntationLetter") < S m l Anu e,t A );

2. The I cU e r f rom t ho B ro k er , dated June 25. 20 10. conta in ing ce rt a in repre sen1 l lt ioniconcerning th e Stockholder , the S h are s an d the p le dg e o f the S h are s (lb e " 'BroW ' ,Rpprgcota t ion Letter"') ( St& Ann ex B);

www.JSBl lb f s . c om


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Attorneys A t lawPaBe2of2

3. C o p i e s ; of the trontand back gfltock certificate nO.1391, dated A pril 13. : U l I O .represen ting 1,000,000 oftbc S hares ~ A nnex C ) a nd stock Q e r t i f i c a t . e n o . 1330 ,dated January 11,2010 , representing 300 ,000 of th e Share$ < S B Annex D).F urther, w e hav e b e e n assuted by t he C ompa ny , but without investigation, that th e Sham ar e dulyau th o ri ze d . l eg a ll y issued. fu lly paid and non-assessable . W e have also assum ed the genuineness of all$ i a n a t u r e s . t he a ut he nt ic ity o f a ll d oc um e nts s ubm it b: d to u s a s o rig in als a nd the conformity to originald o cumen t s s u bmi tkl d to us as certified o r pho to sta ti c copies.B ased up on th e foregoins. an d solely on the fo re go in g. ~ u nd ers ta nd 1Ilat at leu t on e year has elapseds in ee t he date that (0 (A ) a n o ptio n fo r th e Shares was acquired by th e Stoc lchQlder f i' om ar .o the r affiliateof th e Company an d (B) t he S to ck ho ld er e xe rc is ed a p or tio n of s u c h o ptio n, re su ltin g in th e is su an ce o ft he S ha re s by th e Company to t he S t oc kh o ld e r, a nd (Ii) th e f u J i purcI lae price 01' o the r cons ide ru ion wasp a i d therefor . as c a l c u l a t e d in a c C O T d l J J c e with R u le J 4 "C d ).S aa ed u po n t h e . foregoing, an d s ole ly o n th e f or eg oin g, it i$ o ur o pin io n th at (i) th e S to dc bo ld er m ayplcd& e t he S ~ w ltbout rqistnation under the A ct by reason of th e exem ption provided . b y Ru Je 14 4( k)an d (ii) fo l lowins th e pled ge o ftbe S barcst a new cen it ic :a te Or certificates evidencing the Shares m ay bei ss u ed w i th o ut a r es tr ic t1v e J e e e n d reflecting the a b s e n c e o f r eg is tr at io n u nd er t he Act.S hould y ou becom e a w a r e t ha t an y s t a t e m e n t s in a n y o f th e d oc um e nts a nn ex ed hereto or in y o f ' t h eBSSumptiODl t h a t fonn the basis of this opinion ate n o lo ng er valid, y ou s ho uld immediately p lac e a sto ptran5fer o rd er o n the . Ccmpany s t ra ns fe r r ec or ds w i t h respec t to the Share$.W e express no opinion as to an y Jaw s o th er th an th e A c t. Wi th ou t lim it in g th e f or eg oin g, we e x p r e s s noopinion witb re sp eQ t to th e a pp lica bility o r e ffe ct o f an y o th er &detal laVIS of d Ie U n ite d S ta te s o r th e lawso f an y o t he r j u ri sd ic ti on . in clu din g a ny s ta te securities laws.

Th is o pin io n l et te r is b ein g d eliv er ed to y o u in c on ne ct io n with the pled ge oftbe S ~by th e S to ck ho ld er an d m a y n ot be r eli ed o n o r o th crw i$Cu.db y all)' o th er p er ao n o r by y ou for an yo t he r pu rpo s e.

VCIY truly yours .

~


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ANNEXA


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KtXUANYAOONe WATERS PARK DRIVES1J ITE98SAN M ANTEO, C A 94483

June 25,2010JSlIII1'IuIb PLLC2 00 C h u r c h Street, S i l l F l o o rNew York . NY 10001To W bo tn 1 t May Omcern:I am th e b enef ic ia l owne r of an agsrcgatc l t 3 0 0 , O O O s h a r e s of common ~ $ . 0 0 1 pa r 'Valueper share (the ~ o f Cb iDa Armco M e r a 1 s . In c . a N ev ad a c orp ora tio n (~ ~as ev idenced in Certificate N o. 1 33 0 fo r the amoum: o f3 00 .0 00 S ha res lin d Cert i f icate No. 1391fo r the am oun t o f 1 ,0 0 0 .0 0 0 S h a r e s , c op ie s o f w b ic l! MIll a t I l m h a d h E : r E : l : l l ,an d hereby mab th efo l lowing r e p r e 8 e I 1 1 a t i c m s to yOU as of (i) th e date of this let ter and (ii) th e d a te of th e i ss wmcc o fyour o p i n i O D Ietta' (the ~ the ~ ofw hieh is th e b a s i s fO r this letter:

1 . I BIO th e CEO o fd Ie Company and havo bene fi ci a ll y owned th e Simes mr a per iod ofat least on e year a s the n:sWtof1hc fo l lowing:Ca) my a cq ui si ti on o n J an ua ry 7,2009 o fMs . Feng Gao's ("Ms. Gao") option to

p u n : h a s e 5.300 ,000 shares oCtile Com~s common S 1 O C k . ( tbo ~"Qp t ion" '.w hich I a cq u ir ed a s the re su lt o f my e xe n:i se o f my cal l right pul1UIIft to a n d . in~ w ith th at ~ Cal l Opti on Agreemen~ dated June rt,2008 , by a n d .between mysel f a nd M s . F eug Gao , a s a m e n d e d b y that certain Amendmen t toCa l l Op ti o n Aa re ement, d a t e d December 18 ,2008 , b y ad b etw een myse l f aD dM& Gao ( to g eth er , th o "Can Al!I!eI!IeIIt"1 to purcha se - & o m . M s. Gao th e Options;an d

(b) my exercise o fpa r to f the Opti_ in th e amouu t o f 1 ,300 .000 shues, wh ichconstiIuta the ~ on January 7t 2009 ;

2. I fully paid ibr the Shates in c a s h in th e anlOWlt of $.00Iet share an J8D1I8I)' 7,2009;


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J. The C b O I p I D y is a~ i ss u er . . ifI.-__ Ara p o r i o d o r . Jcaa C J O_ 1 I I b , I e c t Ia . . f I I l I X I I I I ~ oCSccUcI I I 3 or l!1(d).ttS S c a I r i c i e s~l\tI.of 1 9 3 4 . asllladal (1bt ' i 1 s ! ! ! ! ! ! : 6a");

4. 'thIlI~ _m-I II I f I ! I I I I * e d . . .. . .. . S!cdal l tlor 15 (d )o r . - ~Act._ ~bbIo. d u r i n J t I I e p N C G d i q l~ ......

S. Attllelilni .oflhc pkdp, .P"" '*7 -=r,....... the J n t o m t m~~P&edF" che . . .. . afro I%of oflhllCam~'~ CGtlmatI staIft~ _ . W I t by t h o I I I I I I C IIII:CIII MpacI IX'__ t pob.Ii Ihtd by 1M C o n a p a a y (il.,.... o( I., . die ... f ' I I P I l d * fweekly-il ia ' 1 0 1 _ o I th e ~ ' . GGIIIIIIIIR ltadtaa d IG N Y S E A M E X duriql ha l l l u rca l e ld l l rMlb p n c . e d i D a _fJiqaf'd,;'l'll:lCiccof_- Fcmal44;

" t~dD_ e to t . . . ~ ,, ____ _ 1 1 I1 I I b 1Im:r , ., ~ _1 IDJd1 ll rmlc ll . . .. . . P U . C 1 I I I I illl I f I I t I a t a a n d d w : I t ~ . - - . . . . . . . . aftIccn.~tqUitj .w.a..... puma..-, rejII'SIIIIIIMI_ ............ lIIlt4tCS."IRHIIes.$ht,~""""""'j""""""(WoadiasRicllllllalIIIIIf~ c I i I I I I I a ) . " " " " ' ' ' ' ' ' ' ' C I I i m , . . . . . . . -I i ' . . . . . . . . I --.CCIItI_.,_~ Gf~ ..___ ....,. ~t_). .. U I J _ _ III--...,_urIIIIIfmnrI t h i n . I . . . v IO""..w._.rat..dlorlllY~1Ir_, __ CI' to~lrIIb.,. __ 1lIdIIiMd1Olllt.1dIt.

1. AI.., ....a l l l i . . . JwII I~whI I F......... ~_ ....i~ ~limill l ioa. a.1-44lid _af&~ ' 4 4 ; M C I .~..-

I. 1 ama .wwe l ll d . .. .. .. . JO U w i l l ~ $ O l d y . " I..--_QfMr. &I.mdP _ _ 1 n ~&)'OIII'OpiIiua.l1t i J lCUWI$iauod iI\ ~wiII l l I I) ' mpstto1he ...... otdllCatPploy

II)_ die IalZ'idiTClcpnd batdl lCeIIft JAIIs" 'may bit D:1iId 1 IIl." ~ In1110MuIIK:eoryolllllpl o p t a f o n 1Q MII.. t I Ir . . ..


6/8

ANNEXB


7/8

EDFVRMANSAJ, Inc

38 BemIdet t e RoadMorpavi l l e . N J 07751

J u n e 2S, 2010JSIJtri4I6 P L L C2 00 C hu rc h S tre et , s a I 1 FloorNew Y ork . N Y 10007To Whom It M a y Concern:I h a v e b e e n enpaecl to_ililate the pIedae of 1300.000 s h a n : & (the~) of th o common stock ofC h i D a A n n c o M e t a l s . Inc... a Ncv ad a c o rp o ra tio n (1 b e4 ' Com Q !! l !Y" ' ) . holdby Mr.lC~ YIIO.tbeCEOofthe Compall1 (tbe "Slwebplde('). 10Crimic Puud. SA (1bc " " l ! ! ! ! ! M iD CO I I I I C I C t i o n wkh thai c:cnainStruotunxl1iaosaclloo Agreement. da t e d a ofJun e 11. 2O to . by an d Imveeo th e Shattbolder a n d tbe .F u n d .I I I connec t ion with tile Sbalcs an d in"cmIer to pernUllhe pledp o f the Shares. 1 hmeb) ' represent , . wettant~.~~ .

1. I will comp ly with a U Ipplbble Ped al 806 state $8CUritie:s Jaws , i n c l u d l n & w i th o ut li m it at io n ,R u l e 144;

2. 1 ' h e I ' e a re n o c : i n m m s C a n c e s indk:atiug t h a t 1h t S h a t t m o l d e r is a n u n d e r w r i t o t (w i th i n the Dl C I DingoffhaSeeurides Act o f 1 93 4, IS I I D I C l d e d ) a n d th at th e conten1phded pledge is p ar t 01&diatribudon of tbe CompIIn)'~

3. In my opinicm. th o plodp is p c n n i U e c l undat Rule 144;4. 1 ' b s Company is a r e p o I t i n g iuuer u.:lls, a n d b as b ee n for a period of at lo as t 9 0 days,subject to th e . r e p o r t 1 n g n q uimmem s o fS ect iO ll f3 o r 15(d) oftbe Secur it ie s Exchauage

A c t . of 19~ ... a m e n d e d (the "6G'wnse Acf')is. The Company h a s f ile d a ll r eq uited reportS u n d e r S ect io n 1 3 Of tS(d) otthe E x c h a n g e

A c t . as IIPPlicablc. during th e preceding 12 months:6 . A t th e tim e o ftb e pledge, th e pledp 8 I l C l any otbeI ' t n m s f e t during th e 3 a n o n t b sp receding the pledge does n o t e x c e e d thepater of (i ) 1% oft. shares ofthe

Company ' s COJnDlCll sto ck. o u t s t a n c f i D s , 88 s h o w n b y th e mos t r ec en t repor t o r s t a t e m e n tpub li ah ed by th e Company o r (ti) t h ep*f 1% O r the IIVetIIF repor ted wee1dy


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uad ing vo lum e o f1he C om pany 's ~ sto c k on th e N YSE A MEX during th e f o u rea Ienda r weeks preceding th e sl ins of th e n o tic e o rs a le o n Fonn 1 44;

7. Iundenland" mean i n g an d l e g a l C O I I I I e q u e m ; e s o f th o N p I C S O I 2 t a t i c o s and wammdes eoDt l l i ncdin this l e t t er , an d agree to indemni fY 8 I1C l o ld ba rm l_ ~ PLLC II1C I Is aff i l ia tes adt he i r R S p e O t i v e diteot.s . maDIJCIS, o f f i c e r s . emp l o y e e s , e q u I 1 h o ld e rs . m cm b e n l. p a rt ne rs .a a e m s . r e p r C I S C I l t a t l y c s , S~ an d assigns..at an)' 81 ld a ll ~ l iabil it ies. c laims,ob l i ga t io n s . d c f ic l c n c ie s , ~ J u d p t c n 1 s . d amap ! s ( 'mdud ing i Imidemal*Q l I I I q U B D l i a ld amag e s ) , i n l e R a t . Ca_ pena l t ies , c la ims . s u i 1 & . aot iDIII , c a t 1 S C I S o f B C d o n , a ss es sm e n ts , a w ar ds .C O I IW I lJ d eqeoses ( I n c l u d i n & cos t s af~ md dahsc and.uomsys' and o t i 1 e tp ro C e ss io o a l s' f e a s) . o r I l . r J d lm l n u d on i n va lue . wbc t b e r o r no t i n v o 1 v 1 a & a . th i rd pa r t y c I a lm . due1 0 o r aris in,g out o fa b r e a d ! ofany n :pn :seDtat ion o r war r an t y . o r breech o r fitilun: to c omp l y withan y covenan t conta iru:d in dlilletter;_

8. I am aW8 lfl an d agree t h a t y o u will :ly s o l e l y o n th is letter and t h a t o f tbe Simeholder inr en d er io g y o ur Op in i on .

This I. , is i ssued in conuec :c ion wifh th e Sha r eho l d e r ' IJ r equ e s t that y ou p ro vide ano pin io n o f th e tran sfe r agen t o f th e Compan y to r emove th e rcsUic t iw l egend f rom Cert i f icateN o . 1330 i s s u e d to th e Sbateholde r by th e C om pa ny in t h e a m ou nt o f 3 00.000 S ha re s a n d

. _ _ . . . C e rt if ic ate N o. 1391 i s s u ed to Shareho lde r b y tb e Cornpan)" for1be amoun t of 1 ,000.000 Sha r e sCer t i f i ca tes and m a y be re tied on by YOI1 in th e i s s u a n C e of y o ur le ga l o pin io n to s uc h t ra ns fe rag en t .

S i n c e r e l y ,

exhibit 5 kexuan yao fraudlent legal opinion

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