|  Nevada                                                        |  13-3140715                                                  |
|---------------------------------------------------------------------|-------------------------------------------------------------------|
|  (State or other jurisdiction of incorporation ororganization) |  (I.R.S. Employer Identification No.)    |

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|   | · | Our consolidated balance sheets as of March 31, 2010 and December 31, 2009 by decreasing consolidated total assets by $3,264,729 and increasing consolidated total assets by $2,561,059, respectively; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our consolidated statements of income for the three months ended March 31, 2010 and 2009 by increasing consolidated net income by $1,701,779 and decreasing consolidated net income by $1,823,005, respectively. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| FUSHI COPPERWELD, INC. AND SUBSIDIARIES              |
|------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                          |
| AS OF MARCH 31, 2010 AND DECEMBER 31, 2009(RESTATED) |
|                                                 |   |

|                                                                                                                                                                                 |   | March 31, |                  |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------------------|--------|--------------|--------|
|                                                                                                                                                                                 |   | 2010      |                  |   | 2009         |   |
|                                                                                                                                                                                 |   | Unaudited |                  |   |         |   |
| ASSETS                                                                                                                                                                               |   |      |                  |   |         |   |   |   |
| CURRENT ASSETS:                                                                                                                                                                      |   |      |             |   |         |   |    |   |
| Cash                                                                                                                                                                                 |   | $         | 78,536,226            |   |         | $      | 60,597,849 |   |
| Accounts receivable, trade, net of allowance of bad debt of $1,024,684 as of March 31, 2010 and December 31, 2009                                                                    |   |      | 56,966,163            |   |         |   | 67,284,600 |   |
| Inventories                                                                                                                                                                          |   |      | 17,589,604            |   |         |   | 10,875,782 |   |
| Notes receivables                                                                                                                                                                    |   |      | 196,222               |   |         |   | 122,972 |   |
| Other receivables and prepaid expenses                                                                                                                                               |   |      | 1,285,661             |   |         |   | 1,137,566 |   |
| Advances to suppliers                                                                                                                                                                |   |      | 20,438,121            |   |         |   | 8,582,346 |   |
| Deposit in derivative hedge                                                                                                                                                          |   |      | -                     |   |         |   | 1,000,000 |   |
| Total current assets                                                                                                                                                                 |   |      | 175,011,997           |   |         |   | 149,601,115 |   |
|                                                                                                                                                                                 |   |      |                  |   |         |   |   |   |
| PLANT AND EQUIPMENT, net                                                                                                                                                             |   |      | 121,844,394           |   |         |   | 117,385,566 |   |
|                                                                                                                                                                                 |   |      |                  |   |         |   |   |   |
| OTHER ASSETS:                                                                                                                                                                        |   |      |             |   |         |   |    |   |
| Advances to suppliers, non-current                                                                                                                                                   |   |      | 970,356               |   |         |   | 1,356,404 |   |
| Notes receivables, non-current                                                                                                                                                       |   |      | 679,106               |   |         |   | 699,106 |   |
| Intangible asset, net of accumulated amortization                                                                                                                                    |   |      | 13,495,302            |   |         |   | 11,924,056 |   |
| Goodwill                                                                                                                                                                             |   |      | 567,892               |   |         |   | - |   |
| Deferred loan expense, net                                                                                                                                                           |   |      | -                     |   |         |   | 2,045,349 |   |
| Deferred tax assets                                                                                                                                                                  |   |      | 15,168,955            |   |         |   | 14,283,528 |   |
| Total other assets                                                                                                                                                                   |   |      | 30,881,611            |   |         |   | 30,308,443 |   |
| Total assets                                                                                                                                                                         |   | $         | 327,738,002           |   |         | $      | 297,295,124 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                           |   |      |                  |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                 |   |      |             |   |         |   |    |   |
| Accounts payable, trade                                                                                                                                                              |   | $         | 6,224,215             |   |         | $      | 4,002,773 |   |
| Notes payable, current                                                                                                                                                               |   |      | -                     |   |         |   | 10,000,000 |   |
| Revolver line of credit                                                                                                                                                              |   |      | -                     |   |         |   | 4,033,783 |   |
| Other payables and accrued liabilities                                                                                                                                               |   |      | 3,328,446             |   |         |   | 3,928,374 |   |
| Derivative instrument settlement payable, net                                                                                                                                        |   |      | 5,650,000             |   |         |   | - |   |
| Taxes payable                                                                                                                                                                        |   |      | 2,209,696             |   |         |   | 2,599,055 |   |
| Cross currency hedge payable                                                                                                                                                         |   |      | -                     |   |         |   | 436,702 |   |
| Obligation under capital lease, current                                                                                                                                              |   |      | 74,030                |   |         |   | 71,503 |   |
| Total current liabilities                                                                                                                                                            |   |      | 17,486,387            |   |         |   | 25,072,190 |   |
| LONG-TERM LIABILITIES:                                                                                                                                                               |   |      |                  |   |         |   |   |   |
| Notes payable, non-current                                                                                                                                                           |   |      | -                     |   |         |   | 25,000,000 |   |
| Obligation under capital lease, non-current                                                                                                                                          |   |      | 132,517               |   |         |   | 153,626 |   |
| Deferred tax liabilities                                                                                                                                                             |   |      | 260,853               |   |         |   | - |   |
| Fair value of derivative instrument                                                                                                                                                  |   |      | -                     |   |         |   | 7,532,527 |   |
| Total long-term liabilities                                                                                                                                                          |   |      | 393,370               |   |         |   | 32,686,153 |   |
|                                                                                                                                                                                 |   |      |                  |   |         |   |   |   |
| Total liabilities                                                                                                                                                                    |   |      | 17,879,757            |   |         |   | 57,758,343 |   |
|                                                                                                                                                                                 |   |      |                  |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                        |   |      | 4,819,107   |   |         |   |   |   |
|                                                                                                                                                                                 |   |      |                  |   |         |   |   |   |
| SHAREHOLDERS ’ EQUITY:                                                                                                                                                         |   |      |             |   |         |   |    |   |
| Preferred stock, $0.001 par value, 5,000,000 shares authorized, none issued or outstanding as of March 31, 2010 and December 31, 2009                                                |   |      | -                     |   |         |   | - |   |
| Common stock, $0.006 par value, 100,000,000 shares authorized, March 31, 2010: 37,248,672 shares issued and outstanding; December 31, 2009: 29,772,780 shares issued and outstanding |   |      | 223,493               |   |         |   | 178,638 |   |
| Additional paid in capital                                                                                                                                                           |   |      | 162,050,378           |   |         |   | 105,540,676 |   |
| Statutory reserves                                                                                                                                                                   |   |      | 17,566,294            |   |         |   | 16,282,793 |   |
| Retained earnings                                                                                                                                                                    |   |      | 100,101,318           |   |         |   | 92,312,280 |   |
| Accumulated other comprehensive income                                                                                                                                               |   |      | 25,097,655            |   |         |   | 25,222,394 |   |
| Total shareholders’ equity                                                                                                                                                     |   |      | 305,039,138           |   |         |   | 239,536,781 |   |
| Total liabilities and shareholders’ equity                                                                                                                                     |   | $         | 327,738,002           |   |         | $      | 297,295,124 |   |

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|                                                             |   | 2010   |       |   | 2009   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| REVENUES                                                         |   | $      | 59,549,842 |   |   | $      | 35,256,536 |   |
|                                                             |   |   |       |   |   |   |   |   |
| COST OF GOODS SOLD                                               |   |   | 41,728,576 |   |   |   | 26,317,161 |   |
|                                                             |   |   |       |   |   |   |   |   |
| GROSS PROFIT                                                     |   |   | 17,821,266 |   |   |   | 8,939,375 |   |
|                                                             |   |   |       |   |   |   |   |   |
| OPERATING EXPENSES                                               |   |   |       |   |   |   |   |   |
| Selling expenses                                                 |   |   | 1,251,962  |   |   |   | 1,202,147 |   |
| General and administrative expenses                              |   |   | 3,722,550  |   |   |   | 3,0 70,242 |   |
| Total operating expenses                                         |   |   | 4,974,512  |   |   |   | 4,272,389 |   |
|                                                             |   |   |       |   |   |   |   |   |
| INCOME FROM OPERATIONS                                           |   |   | 12,846,754 |   |   |   | 4,666,986 |   |
|                                                             |   |   |       |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                           |   |   |       |   |   |   |   |   |
|                                                             |   |   |       |   |   |   |   |   |
| Interest income                                                  |   |   | 192,790    |   |   |   | 83,617 |   |
| Interest expense                                                 |   |   | (508,482   | )      |   |   | (1,470,868 | ) |
| Change in fair value of derivative instrument                    |   |   | 882,527    |   |   |   | (2,762,129 | ) |
| Loss on cross currency hedge                                     |   |   | (753,666   | )      |   |   | (166,410 | ) |
| Loss on debt extinguishment                                      |   |   | (2,395,778 | )      |   |   | - |   |
| Change in fair value of derivative liability - warrants          |   |   | -          |   |   |   | (63,238 | ) |
| Change in fair value of derivative liability - conversion option |   |   | -          |   |   |   | (539,037 | ) |
| Other expense, net                                               |   |   | (141,072   | )      |   |   | (106,349 | ) |
| Total (loss) other expense, net                                  |   |   | (2,723,681 | )      |   |   | (5,024,414 | ) |
|                                                             |   |   |       |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                                |   |   | 10,123,073 |   |   |   | (357,428 | ) |
|                                                             |   |   |       |   |   |   |   |   |
| Deferred income tax benefit                                      |   |   | (885,427   | )      |   |   | (2,565,651 | ) |
| Current income tax expenses                                      |   |   | 1,935,961  |   |   |   | 930,311 |   |
| Total income tax expenses (benefit), net                         |   |   | 1,050,534  |   |   |   | (1,635,340 | ) |
|                                                             |   |   |       |   |   |   |   |   |
| NET INCOME                                                       |   |   | 9,072,539  |   |   |   | 1,277,912 |   |
|                                                             |   |   |       |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS)                                |   |   |       |   |   |   |   |   |
| Foreign currency translation adjustment                          |   |   | (124,739   | )      |   |   | (393,908 | ) |
| COMPREHENSIVE INCOME                                             |   | $      | 8,947,800  |   |   | $      | 884,004 |   |
|                                                             |   |   |       |   |   |   |   |   |
| EARNINGS PER SHARE:                                              |   |   |       |   |   |   |   |   |
| Basic                                                            |   | $      | 0.26       |   |   | $      | 0.05 |   |
| Diluted                                                          |   | $      | 0.26       |   |   | $      | 0.05 |   |
|                                                             |   |   |       |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES:                                         |   |   |       |   |   |   |   |   |
| Basic                                                            |   |   | 34,673,692 |   |   |   | 27,563,478 |   |
| Diluted                                                          |   |   | 35,309,847 |   |   |   | 27,695,464 |   |

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|                                                                            |   | 2010   |        |    | 2009   |   |
|---------------------------------------------------------------------------------|--------|--------|-------------|---------|--------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                           |   |   |        |    |   |   |
| Net income                                                                      |   | $      | 9,072,539   |    |   | $      | 1,277,912 |   |
| Adjustments to reconcile net income provided by (used in) operating activities: |   |   |        |    |   |   |   |   |
| Change in fair value of derivatives instrument                                  |   |   | (882,527    | )       |   |   | 2,762,129 |   |
| Recovery of bad debt                                                            |   |   | -           |    |   |   | (33,391 | ) |
| Reserve for inventories                                                         |   |   | 61,000      |    |   |   | - |   |
| Write-off of non-current advances to suppliers                                  |   |   | 525,445     |    |   |   | - |   |
| Depreciation                                                                    |   |   | 2,727,425   |    |   |   | 2,097,208 |   |
| Deferred taxes                                                                  |   |   | (885,427    | )  |   |   | (2,565,651 | )  |
| Amortization of intangible assets                                               |   |   | 122,487     |    |   |   | 119,076 |   |
| Amortization of loan commission                                                 |   |   | 249,571     |    |   |   | 272,450 |   |
| Amortization of stock compensation expense                                      |   |   | 193,057     |    |   |   | 590,868 |   |
| Loss on cross currency hedge                                                    |   |   | 753,666     |    |   |   | 166,410 |   |
| Loss on debt extinguishment                                                     |   |   | 2,395,778   |    |   |   | - |   |
| Change in fair value of derivative liability - conversion option                |   |   | -           |    |   |   | 539,037 |   |
| Change in fair value of derivative liability - warrants                         |   |   | -           |    |   |   | 63,238 |   |
| Change in operating assets and liabilities                                      |   |   |        |    |   |   |   |   |
| Accounts receivable                                                             |   |   | 12,546,261  |    |   |   | 5,377,902 |   |
| Inventories                                                                     |   |   | (5,335,454  | )       |   |   | (12,585,925 | ) |
| Other receivables and prepayments                                               |   |   | (162,514    | )       |   |   | (168,913 | ) |
| Notes receivables                                                               |   |   | (53,235     | )       |   |   | 73,884 |   |
| Advances to suppliers – current                                           |   |   | (11,388,801 | )       |   |   | 5,880,363 |   |
| Accounts payable                                                                |   |   | 126,673     |    |   |   | (1,814,721 | ) |
| Other payables and accrued liabilities                                          |   |   | (1,670,908  | )       |   |   | (2,094,857 | ) |
| Taxes payable                                                                   |   |   | (506,088    | )       |   |   | (975,566 | ) |
| Net cash provided by (used in) operating activities                             |   |   | 7,888,948   |    |   |   | (1,018,548 | ) |
|                                                                            |   |   |        |    |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                           |   |   |        |    |   |   |   |   |
| Payment for purchase of Jinchuan                                                |   |   | (5,075,000  | )       |   |   | - |   |
| Cash acquired from acquisition of Jinchuan                                      |   |   | 859,264     |    |   |   | - |   |
| Payments on cross currency hedge payable                                        |   |   | (1,190,368  | )       |   |   | (114,580 | ) |
| Purchases of property and equipment                                             |   |   | (1,262,493  | )       |   |   | (715,104 | ) |
| Net of payments on prepayment of equipment                                      |   |   | -           |    |   |   | (4,715,293 | ) |
| Net cash used in investing activities                                           |   |   | (6,668,597  | )       |   |   | (5,544,977 | ) |
|                                                                            |   |   |        |    |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                           |   |   |        |    |   |   |   |   |
| Net payments on revolver line of credit                                         |   |   | (9,513      | )       |   |   | (586,809 | ) |
| Payoff of revolver line of credit                                               |   |   | (4,024,270  | )       |   |   | - |   |
| Payments on short-term bank loans                                               |   |   | -           |    |   |   | (17,553,600 | ) |
| Payment on capital lease obligation                                             |   |   | (18,582     | )       |   |   | - |   |
| Payment of high yield notes payable                                             |   |   | (35,600,000 | )       |   |   | - |   |
| Proceeds on issuance of common stock and warrants                               |   |   | 56,361,500  |    |   |   | 1,920,000 |   |
| Net cash provided by (used in) financing activities                             |   |   | 16,709,135  |    |   |   | (16,220,409 | ) |
|                                                                            |   |   |        |    |   |   |   |   |
| EFFECT OF EXCHANGE RATE ON CASH                                                 |   |   | 8,891       |    |   |   | (110,978 | ) |
|                                                                            |   |   |        |    |   |   |   |   |
| CHANGE IN CASH                                                                  |   |   | 17,938,377  |    |   |   | (22,894,912 | ) |
|                                                                            |   |   |        |    |   |   |   |   |
| CASH, beginning of period                                                       |   |   | 60,597,849  |    |   |   | 65,611,770 |   |
|                                                                            |   |   |        |    |   |   |   |   |
| CASH, end of period                                                             |   | $      | 78,536,226  |    |   | $      | 42,716,858 |   |
|                                                                            |   |   |        |    |   |   |   |   |
| Supplemental cash flow disclosures:                                             |   |   |        |    |   |   |   |   |
| Interest paid                                                                   |   | $      | 1,395,799   |    |   | $      | 1,950,860 |   |
| Income tax paid                                                                 |   | $      | 1,802,931   |    |   | $      | 1,002,178 |   |

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|            |   | March 31,2010 |       |   | March 31,2009 |   |
|-----------------|--------|--------------------|------------|--------|--------------------|--------|
|            |   | (Unaudited)        |       |   | (Unaudited)        |   |
| China           |   | $                  | 45,693,565 |   |               | $      | 25,541,567 |   |
| USA             |   |               | 10,024,017 |   |               |   | 7,306,836 |   |
| Europe          |   |               | 2,189,236  |   |               |   | 1,478,246 |   |
| Other countries |   |               | 1,643,024  |   |               |   | 929,887 |   |
| Total sales     |   | $                  | 59,549,842 |   |               | $      | 35,256,536 |   |

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|                           |   | Estimated Useful Life |
|--------------------------------|--------|---------------------------------|
| Buildings and improvements     |   | 20-39.5 years                   |
| Machinery and equipment        |   | 7-15 years                      |
| Office furniture and equipment |   | 3-5 years                       |
| Transportation equipment       |   | 3-5 years                       |

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|                           |   | March 31,2010 |       |   | December 31,2009 |   |
|--------------------------------|--------|--------------------|------------|--------|-----------------------|--------|
|                           |   | (Unaudited)        |       |   |                  |   |
| Trade accounts receivable      |   | $                  | 57,990,847 |   |                  | $      | 68,309,284 |   |
| Allowance for bad debts        |   |               | (1,024,684 | )      |                  |   | (1,024,684 | ) |
| Trade accounts receivable, net |   | $                  | 56,966,163 |   |                  | $      | 67,284,600 |   |

| Allowance for doubtful accounts at December 31, 2008          |   | $      | 318,529   |   |
|---------------------------------------------------------------|--------|--------|-----------|--------|
| Recovery of bad debt                                          |   |   | (33,391   | )      |
| Accounts receivable write off                                 |   |   | -         |   |
| Effect of foreign currency translation                        |   |   | 5,200     |   |
| Allowance for doubtful accounts at March 31, 2009 (Unaudited) |   |   | 290,338   |   |
| Additional reserves                                           |   |   | 739,216   |   |
| Accounts receivable write off                                 |   |   | -         |   |
| Effect of foreign currency translation                        |   |   | (4,870    | )      |
| Allowance for doubtful accounts at December 31, 2009          |   |   | 1,024,684 |   |
| Additional reserves                                           |   |   | -         |   |
| Accounts receivable write off                                 |   |   | -         |   |
| Effect of foreign currency translation                        |   |   | -         |   |
| Allowance for doubtful accounts at March 31, 2010 (Unaudited) |   | $      | 1,024,684 |   |

|                                  |   | March 31,2010 |       |   | December 31,2009 |   |
|---------------------------------------|--------|--------------------|------------|--------|-----------------------|--------|
|                                  |   | (Unaudited)        |       |   |                  |   |
| Raw materials                         |   | $                  | 9,361,606  |   |                  | $      | 5,137,002 |   |
| Work in process                       |   |               | 3,042,451  |   |                  |   | 2,777,890 |   |
| Finished goods                        |   |               | 5,292,936  |   |                  |   | 3,007,279 |   |
| Totals                                |   |               | 17,696,993 |   |                  |   | 10,922,171 |   |
| Less allowance for obsolete inventory |   |               | (107,389   | )      |                  |   | (46,389 | ) |
| Totals                                |   | $                  | 17,589,604 |   |                  | $      | 10,875,782 |   |

| Allowance for obsolete inventory at December 31, 2008          |   | $      | 160,487 |   |
|----------------------------------------------------------------|--------|--------|---------|--------|
| Additional reserves                                            |   |   | -       |   |
| Recovery of reserve                                            |   |   | (46,776 | )      |
| Effect of foreign currency translation                         |   |   | -       |   |
| Allowance for obsolete inventory at March 31, 2009 (Unaudited) |   |   | 113,711 |   |
| Additional reserves                                            |   |   | -       |   |
| Reserves write off                                             |   |   | (67,322 | )      |
| Effect of foreign currency translation                         |   |   | -       |   |
| Allowance for obsolete inventory at December 31, 2009          |   |   | 46,389  |   |
| Additional reserves                                            |   |   | 61,000  |   |
| Recovery of reserve                                            |   |   | -       |   |
| Effect of foreign currency translation                         |   |   | -       |   |
| Allowance for obsolete inventory at March 31, 2010 (Unaudited) |   | $      | 107,389 |   |

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|                          |   | March 31, 2010 |        |   | December 31,2009 |   |
|-------------------------------|--------|--------------------------|-------------|--------|-----------------------|--------|
|                          |   | (Unaudited)              |        |   |                  |   |
| Land                          |   | $                        | 100,726     |   |                  | $      | 100,726 |   |
| Buildings and improvements    |   |                     | 61,379,011  |   |                  |   | 43,665,594 |   |
| Transportation equipment      |   |                     | 4,177,943   |   |                  |   | 4,177,943 |   |
| Machinery and equipment       |   |                     | 77,210,048  |   |                  |   | 74,463,717 |   |
| Office furniture              |   |                     | 1,230,539   |   |                  |   | 1,172,121 |   |
| Construction in progress      |   |                     | 6,101,868   |   |                  |   | 19,449,384 |   |
| Totals                        |   |                     | 150,200,135 |   |                  |   | 143,029,485 |   |
| Less accumulated depreciation |   |                     | (28,355,741 | )      |                  |   | (25,643,919 | ) |
| Totals                        |   | $                        | 121,844,394 |   |                  | $      | 117,385,566 |   |

| No.    |   | Project Description                                     |   | March 31,2010 |      | CommencementDate |     | Expectedcompletiondate |      |
|--------|--------|--------------------------------------------------------------|--------|--------------------|-----------|------------------|----------|------------------------|-----------|
|   |   |                                                         |   |               |      |             |     |                   |      |
| 1      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   | $                  | 3,245,052 |             | Dec 2007 |                   | Jun, 2010 |   |
| 2      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   |               | 2,766,237 |             | Dec 2009 |                   | Mar, 2011 |   |
| 3      |   | Manufacturing machinery and equipment for CCA                |   |               | 90,579    |             | Oct 2009 |                   | Sep, 2010 |   |
|   |   | Total                                                        |   | $                  | 6,101,868 |             |     |                   |      |   |

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| No.    |   | Project Description                                     |   | December 31,2009 |       | CommencementDate |     | Expectedcompletion date |      |
|--------|--------|--------------------------------------------------------------|--------|-----------------------|------------|------------------|----------|------------------------------|-----------|
|   |   |                                                         |   |                  |       |             |     |                         |      |
| 1      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   | $                     | 4,276,753  |             | Dec 2007 |                         | Mar, 2010 |   |
| 2      |   | Corporation administration office building                   |   |                  | 13,144,394 |             | May 2003 |                         | Dec, 2010 |   |
| 3      |   | Manufacture building (Dalian)                                |   |                  | 630,389    |             | Jan 2008 |                         | Jun, 2010 |   |
| 4      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   |                  | 1,322,848  |             | Dec 2009 |                         | Mar, 2011 |   |
| 5      |   | Manufacturing machinery and equipment for CCA                |   |                  | 75,000     |             | Oct 2009 |                         | Mar, 2010 |   |
|   |   | Total                                                        |   | $                     | 19,449,384 |             |     |                         |      |   |

|                                      |   | Plant andequipment |        |
|-------------------------------------------|--------|-------------------------|-------------|
| Balance as of December 31, 2009           |   | $                       | 143,029,485 |   |
| Acquired through acquisition of Jinchuan  |   |                    | 6,132,168   |   |
| Acquired through cash payment             |   |                    | 408,436     |   |
| Acquired from advanced payments           |   |                    | 854,057     |   |
| Acquired from accounts payable            |   |                    | 974         |   |
| Fixed assets transferred from CIP         |   |                    | 13,771,961  |   |
| CIP transferred to fixed assets           |   |                    | (13,771,961 | ) |
| VAT claimed on purchase of capital assets |   |                    | (124,811    | ) |
| FX rate effect                            |   |                    | (100,174    | ) |
| Balance as of March 31, 2010 (Unaudited)  |   | $                       | 150,200,135 |   |

----

|                                       |   | March 31,2010 |       |   | December 31,2009 |   |
|--------------------------------------------|--------|--------------------|------------|--------|-----------------------|--------|
|                                       |   | (Unaudited)        |       |   |                  |   |
| Advances for inventories – current   |   | $                  | 20,438,121 |   |                  | $      | 8,582,346 |   |
| Advances for equipment – non current |   |               | 970,356    |   |                  |   | 1,356,404 |   |
| Total advances to suppliers                |   | $                  | 21,408,477 |   |                  | $      | 9,938,750 |   |

|                           |   | March 31,2010 |       |   | December 31,2009 |   |
|--------------------------------|--------|--------------------|------------|--------|-----------------------|--------|
|                           |   | (Unaudited)        |       |   |                  |   |
| Patents                        |   | $                  | 1,754,270  |   |                  | $      | 1,754,270 |   |
| Land use rights                |   |               | 14,343,380 |   |                  |   | 12,472,131 |   |
| Total:                         |   |               | 16,097,650 |   |                  |   | 14,226,401 |   |
| Less: accumulated amortization |   |               | (2,602,348 | )      |                  |   | (2,302,345 | ) |
| Intangible assets, net         |   | $                  | 13,495,302 |   |                  | $      | 11,924,056 |   |

----

| March 31 , |       | Amount |       |
|------------|--------------------------------|--------|------------|
| 2011       |                           | $      | 516,276    |   |
| 2012       |                           |   | 515,996    |   |
| 2013       |                           |   | 466,586    |   |
| 2014       |                           |   | 372,295    |   |
| 2014       |                           |   | 372,295    |   |
| Thereafter |                           |   | 11,251,854 |   |

|                |   | March 31,2010 |      |   | December 31,2009 |   |
|---------------------|--------|--------------------|-----------|--------|-----------------------|--------|
|                |   | (Unaudited)        |      |   |                  |   |
| Income tax          |   | $                  | 2,020,166 |   |                  | $      | 1,796,019 |   |
| VAT provision       |   |               | 53,720    |   |                  |   | 769,025 |   |
| Others              |   |               | 135,810   |   |                  |   | 34,011 |   |
| Total taxes payable |   | $                  | 2,209,696 |   |                  | $      | 2,599,055 |   |

|                     |   | March 31,2010 |    |   | December 31,2009 |   |
|--------------------------|--------|--------------------|---------|--------|-----------------------|--------|
|                     |   | (Unaudited)        |    |   |                  |   |
| Deferred tax liabilities |   | $                  | 260,853 |   |                  | $      | - |   |

|                             |      |   | 2010      |   |   | 2010      |   |   | 2009      |   |   | 2009      |   |
|----------------------------------|-----------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
| Entities                         |      |   | Statutory |   |   | Income    |   |   | Statutory |   |   | Income    |   |
|                             |      |   | Income    |   |   | Tax       |   |   | Income    |   |   | Tax       |   |
|                             |      |   | Tax Rate  |   |   | Exemption |   |   | Tax Rate  |   |   | Exemption |   |
| Fushi International              | China (a) |   |      | 25     | %      |      |   | 12.5   | %         |   |   | 25        | %      |   |   | 12.5 | % |
| Dalian Fushi                     | China (a) |   |      | 25     | %      |      |   | -      |      |   |   | 25        | %      |   |   | - |   |
| Jinchuan                         | China (a) |   |      | 25     | %      |      |   | -      |      |   |   | N/A       |   |   |   | N/A |   |
| Copperweld UK                    | UK (b)    |   |      | 21     | %      |      |   | -      |      |   |   | 21        | %      |   |   | - |   |
| Fushi, Fushi holding, Copperweld | US (c)    |   |      | 34     | %      |      |   | -      |      |   |   | 34        | %      |   |   | - |   |
| Copperweld US                    | State     |   |      | 6.5    | %      |      |   | -      |      |   |   | 6.5       | %      |   |   | - |   |

----

|                                 |   | March 31,2010 |      |    | March 31,2009 |   |
|--------------------------------------|--------|--------------------|-----------|---------|--------------------|--------|
|                                 |   | (Unaudited)        |      |    | (Unaudited)        |   |
| Provision for China income taxes     |   | $                  | 1,935,961 |    |               | $      | 930,311 |   |
| Deferred income taxes                |   |               | (885,427  | )  |               |   | (2,565,651 | )  |
| Provision (Benefit) for income taxes |   | $                  | 1,050,534 |    |               | $      | (1,635,340 | )  |
| Effective income tax rate            |   |               | 10.4      | %       |               |   | 457.5 | % |

----

----

| The deferred tax activity consisted of the following: |   |   |       |
|-------------------------------------------------------|--------|--------|------------|
| Deferred tax assets at December 31, 2008              |   | $      | 9,292,233  |   |
| Additions to deferred tax assets                      |   |   | 4,991,295  |   |
| Deferred tax assets at December 31, 2009              |   | $      | 14,283,528 |   |
| Additions to deferred tax assets                      |   |   | 885,427    |   |
| Deferred tax assets at March 31, 2010 (unaudited)     |   | $      | 15,168,955 |   |

----

| Name of lender               |   | March 31,2010 |   |   | December 31,2009 |   |
|----------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|
|                                   |   | (Unaudited)        |   |   |                  |   |
| Wells Fargo Bank revolving credit line |   | $                  | -      |   |                  | $      | 4,033,783 |   |
| Total                                  |   | $                  | -      |   |                  | $      | 4,033,783 |   |

----

|                                                                   |   | March 31, 2010 |   |   | December 31, 2009 |   |
|------------------------------------------------------------------------|--------|--------------------------|--------|--------|-----------------------------|--------|
|                                                                   |   | (Unaudited)              |   |   |                        |   |
| Guaranteed senior secured floating rate notes (“HY Notes”) |   |                     | -      |   |                        |   | 35,000,000 |   |
|                                                                   |   |                     |   |   |                        |   |   |   |
| Less current portion                                                   |   |                     | -      |   |                        |   | 10,000,000 |   |
|                                                                   |   |                     |   |   |                        |   |   |   |
|   Total notes payable, noncurrent                            |   | $                        | -      |   |                        | $      | 25,000,000 |   |

----

|                           |   | March 31, 2010 |    |   | December 31, 2009 |   |
|--------------------------------|--------|--------------------------|---------|--------|-----------------------------|--------|
| Plant facility                 |   | $                        | 266,598 |   |                        | $      | 266,598 |   |
| Less: accumulated depreciation |   |                     | (15,552 | )      |                        |   | (8,887 | ) |
| Net leased plant facility      |   | $                        | 251,046 |   |                        | $      | 257,711 |   |

----

| Year ending March 31,           |   | Minimum leasePayment |    |
|------------------------------------------------|--------|---------------------------|---------|
| 2011                                           |   | $                         | 92,561  |   |
| 2012                                           |   |                      | 100,976 |   |
| Thereafter                                     |   |                      | 42,073  |   |
| Total minimum lease payments                   |   |                      | 235,610 |   |
| Less: interest *1                              |   |                      | (29,063 | ) |
| Present value of net minimum lease payments *2 |   | $                         | 206,547 |   |

----

|                                                           |   | March 31,2010 |       |   | March 31,2009 |   |
|----------------------------------------------------------------|--------|--------------------|------------|--------|--------------------|--------|
|                                                           |   | (Unaudited)        |       |   | (Unaudited)        |   |
| Net income for basic and diluted earnings per share            |   | $                  | 9,072,539  |   |               | $      | 1,277,912 |   |
|                                                           |   |               |       |   |               |   |   |   |
| Weighted average shares used in basic computation              |   |               | 34,673,692 |   |               |   | 27,563,478 |   |
| Dilutive effect of warrants, options and convertible note      |   |               | 636,155    |   |               |   | 131,986 |   |
| Weighted average shares used in diluted  computation |   |               | 35,309,847 |   |               |   | 27,695,464 |   |
|                                                           |   |               |       |   |               |   |   |   |
| Earnings per share                                             |   |               |       |   |               |   |   |   |
| Basic                                                          |   | $                  | 0.26       |   |               | $      | 0.05 |   |
| Diluted                                                        |   | $                  | 0.26       |   |               | $      | 0.05 |   |

| Dateissued/granted       |   | Nature   |   |       Excise price       |        |   | Shares excludedfor year dilutedEPS calculation |   |   Reason for  exclusion |   |
|--------------------------|--------|----------|--------|-------------------------------------------------------------------------------------------|-------------|--------|--------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                     |   |     |   |                                                                                      |        |   |                                                               |   |                                             |   |
| 11/31/2007               |   | Warrants |   | $                                                                                         | 16.80       |   |                                                               |   | 100,000                                          |   | Anti-dilutive |   |
| 05/21/2007 to 11/13/2007 |   | Options  |   | $                                                                                         | 11.75-20.94 |   |                                                               |   | 553,333                                          |   | Anti-dilutive |   |
| 04/10/2008 to 6/25/2008  |   | Options  |   | $                                                                                         | 15.04-23.25 |   |                                                               |   | 144,000                                          |   | Anti-dilutive |   |

----

| ExercisePrice |   |   | Number |   |    | AverageRemaining Life(years) |   |
|---------------|--------|--------|--------|--------|---------|-----------------------------------|--------|
|          |   |   |   |   |    |                              |   |
| $             | 3.11   |   |   |   | 279,772 |                              |   |   | 1.75 |   |
| $             | 16.80  |   |   |   | 100,000 |                              |   |   | 1.65 |   |
| $             | 5.25   |   |   |   | 100,000 |                              |   |   | 0.29 |   |
| $             | 5.50   |   |   |   | 100,000 |                              |   |   | 0.29 |   |
| $             | 6.00   |   |   |   | 100,000 |                              |   |   | 0.79 |   |
|          |   |   |   |   | 679,772 |                              |   |   | 1.17 |   |

----

|                                   |   | Number ofWarrantsOutstanding |    |   | Weighted-AverageExercisePrice |   | AverageRemainingContractualLife |   |
|----------------------------------------|--------|-----------------------------------|---------|--------|-------------------------------|--------|---------------------------------|--------|
| Balance, at December 31, 2008          |   |                              | 432,124 |   |                          | $      | 6.28                            |   | 2.92 years |   |
| Granted                                |   |                              | 300,000 |   |                          | $      | 5.58                            |   |   |   |
| Forfeited                              |   |                              | -       |   |                          |   |                            |   |   |   |
| Exercised                              |   |                              | -       |   |                          |   |                            |   |   |   |
| Balance, at March 31, 2009 (unaudited) |   |                              | 732,124 |   |                          | $      | 5.99                            |   | 2.05 years |   |
| Granted                                |   |                              | -       |   |                          |   |                            |   |   |   |
| Forfeited                              |   |                              | -       |   |                          |   |                            |   |   |   |
| Exercised                              |   |                              | (52,352 | )      |                          | $      | 3.11                            |   |   |   |
| Balance, at December 31, 2009          |   |                              | 679,772 |   |                          | $      | 6.22                            |   | 1.24 years |   |
| Granted                                |   |                              | -       |   |                          |   |                            |   |   |   |
| Forfeited                              |   |                              | -       |   |                          |   |                            |   |   |   |
| Exercised                              |   |                              | -       |   |                          |   |                            |   |   |   |
| Balance, at March 31, 2010 (unaudited) |   |                              | 679,772 |   |                          | $      | 6.22                            |   | 1.17 years |   |

| GrantYear |   | Granted Options (Shares) |      |   | Forfeited and expired Option(Shares) |   |       Exercise Price      Option($) |   |
|-----------|--------|------------------------------------|-----------|--------|-----------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|
| 2007      |   |                               | 335,000   |   |                                                |   | 190,000                                                                                              |   | $ 16.44-$20.94 |   |
| 2008      |   |                               | 151,000   |   |                                                |   | 7,000                                                                                                |   | $ 15.04-$23.25 |   |
| 2009      |   |                               | 688,000   |   |                                                |   | 149,300                                                                                              |   | $ 4.95-$7.93 |   |
| 2010      |   |                               | 156,530   |   |                                                |   | 14,000                                                                                               |   | $ 8.61 |   |
| Total     |   |                               | 1,330,530 |   |                                                |   | 360,300                                                                                              |   |   |   |

----

| GrantYear |   | GrantedRestricted Stock(Shares) |    |   | Forfeited andexpired Restricted Stock(Shares) |   |   | VestedRestricted stock(Shares) |   |   | Grant date Fairmarket value($) |   |
|-----------|--------|--------------------------------------|---------|--------|--------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|-----------------------------------------------|--------|
| 2009      |   |                                 | 50,000  |   |                                                         |   | -      |                                |   |   | -                                             |   |   | $ | 8.08 |   |
| 2010      |   |                                 | 51,000  |   |                                                         |   | -      |                                |   |   | 12,750                                        |   |   | $ | 8.61 |   |
| Total     |   |                                 | 101,000 |   |                                                         |   | -      |                                |   |   | 12,750                                        |   |   |   |   |   |

|                                           |   | Year ended,2010 |   | Year ended,2009 |   |     Year ended    2008 |   |     Year ended    2007 |   |
|------------------------------------------------|--------|----------------------|--------|----------------------|--------|---------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|
| Risk-free interest rate (1)                    |   | 0.87                 | %      | 0.78%-2.2            | %      | 1.84%-2.82                                                          | %      | 3.54%-4.57                                                          | %      |
| Expected dividend yield (2)                    |   | -                    |   | -                    |   | -                                                                   |   | -                                                                   |   |
| Expected option life (3)                       |   | 2 Years              |   | 2-5 Years            |   | 0.5-2 Years                                                         |   | 2 Years                                                             |   |
| Expected stock price volatility (4)            |   | 60                   | %      | 60                   | %      | 50                                                                  | %      | 50                                                                  | %      |
| Weighted average fair value of options granted |   | $                    | 2.88   |                 | $      | 2.77                                                                |   | $                                                                   | 4.57   |   | $ | 4.08 |   |

| (1) | Risk-free interest rate – Risk-free interest rate is based on US Treasury zero-coupon issues with maturity terms similar to the expected term on the expected life of the option. An increase in the risk-free interest rate will increase compensation expense. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Expected dividend yield – The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. The Company has no plans to pay any dividend in the foreseeable future. Therefore, the Company considers the dividend yield to be zero. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Expected option life – Because the Company has no historical share option exercise experience to estimate future exercise patterns, the expected life was determined using the simplified method as these awards meet the definition of “plain-vanilla” options under the rules prescribed by Staff Accounting Bulletin No. 107. An increase in expected life will increase compensation expense. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4) | Expected stock price volatility – This is a measure of the amount by which a price has fluctuated or is expected to fluctuate. As a forward-looking measure, the Company uses implied volatility of Company’s 225 days call options with strike price of $5.00 on March 7, 2009 (source: Morningstar.com), adjusted by the 2-year historical volatility of the Company’s stock as well as 2-year historical volatilities of the Company’s comparable public companies, to calculate the expected stock price volatility. An increase in the expected volatility will increase compensation expense. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | Number ofOptionsOutstanding |      |   | Weighted-AverageExercisePrice |   |   | AggregateIntrinsicValue |   |
|-------------------------------------|--------|----------------------------------|-----------|--------|-------------------------------|--------|--------|-------------------------|--------|
| Balance, December 31, 2008          |   |                             | 1,067,333 |   |                          | $      | 14.9   |                    |   |   | - |   |
| Granted                             |   |                             | 388,000   |   |                          | $      | 4.95   |                    |   |   | - |   |
| Forfeited                           |   |                             | (36,000   | )      |                          | $      | 4.95   |                    |   |   | - |   |
| Exercised                           |   |                             | -         |   |                          |   | -      |                    |   |   | - |   |
| Balance, March 31, 2009 (unaudited) |   |                             | 1,419,333 |   |                          | $      | 12.41  |                    |   |   | - |   |
| Granted                             |   |                             | 300,000   |   |                          | $      | 6.19   |                    |   |   | - |   |
| Forfeited                           |   |                             | (13,050   | )      |                          | $      | 4.95   |                    |   |   | - |   |
| Expired                             |   |                             | (95,000   | )      |                          | $      | 17.19  |                    |   |   | - |   |
| Exercised                           |   |                             | (13,000   | )      |                          | $      | 4.95   |                    |   |   | - |   |
| Balance, December 31, 2009          |   |                             | 1,598,283 |   |                          | $      | 11.38  |                    |   | $ | 2,383,162 |   |
| Granted                             |   |                             | 156,530   |   |                          | $      | 8.61   |                    |   |   | - |   |
| Forfeited                           |   |                             | (114,250  | )      |                          | $      | 7.65   |                    |   |   | - |   |
| Expired                             |   |                             | (275,000  | )      |                          | $      | 12.30  |                    |   |   | - |   |
| Exercised                           |   |                             | (1,750    | )      |                          | $      | 4.95   |                    |   |   | - |   |
| Balance, March 31, 2010 (unaudited) |   |                             | 1,363,813 |   |                          | $      | 11.19  |                    |   | $ | 3,061,170 |   |

| Outstanding Option |           | Exercisable Options |   |
|-------------------------|----------------|--------------------------|--------|
| ExercisePrice           |           |                     | Number |   | AverageRemainingContractualLife |   | AverageExercisePrice |   |   | Number |   |   | WeightedAverageExercisePrice |   |
| $                       | 12.30          |                     |   |   | 133,333 |   | 2.14 years |   | $ | 12.30 |   |   |   | 133,333 |   |   | $ | 12.30 |   |
| $                       | 11.75          |                     |   |   | 150,000 |   | 2.26 years |   | $ | 11.75 |   |   |   | 150,000 |   |   | $ | 11.75 |   |
| $                       | 13.70          |                     |   |   | 125,000 |   | 1.49 years |   | $ | 13.70 |   |   |   | 125,000 |   |   | $ | 13.70 |   |
| $                       | 16.44 to 20.94 |                     |   |   | 135,000 |   | 1.87 years |   | $ | 18.69 |   |   |   | 135,000 |   |   | $ | 18.69 |   |
| $                       | 16.36          |                     |   |   | 10,000 |   | 1.62 years |   | $ | 16.36 |   |   |   | 10,000 |   |   | $ | 16.36 |   |
| $                       | 23.25          |                     |   |   | 77,000 |   | 1.75 years |   | $ | 23.25 |   |   |   | 77,000 |   |   | $ | 23.25 |   |
| $                       | 15.04          |                     |   |   | 17,000 |   | 2.03 years |   | $ | 15.04 |   |   |   | 17,000 |   |   | $ | 15.04 |   |
| $                       | 20.04          |                     |   |   | 50,000 |   | 3.14 years |   | $ | 20.04 |   |   |   | 45,309 |   |   | $ | 20.04 |   |
| $                       | 4.95           |                     |   |   | 323,950 |   | 2.75 years |   | $ | 4.95 |   |   |   | 323,950 |   |   | $ | 4.95 |   |
| $                       | 7.93           |                     |   |   | 200,000 |   | 9.62 years |   | $ | 7.93 |   |   |   | - |   |   | $ | 7.93 |   |
| $                       | 8.61           |                     |   |   | 142,530 |   | 6.75 years |   | $ | 8.61 |   |   |   | 19,566 |   |   | $ | 8.61 |   |
| Total                   |           |                     |   | 1,363,813 |   |   |   |   |   |   |   |   | 1,036,158 |   |   |   |   |   |

----

----

|                                                                |                                                |   | As of February 5, 2010 |       |
|---------------------------------------------------------------------|-----------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                |                                                |   |                                       | USD        |   |
| Consideration                                                       |                                                |   |                                       |       |   |
| Cash                                                                |                                                |   |                                       | 5,075,000  |   |
| Contingent consideration                                            |  (i)        |   |                                       | 4,819,107  |   |
|                                                                |                                                |   |                                       | 9,894,107  |   |
|                                                                |                                                |   |                                       |       |   |
| Fair values of identifiable assets acquired and liabilities assumed |                                                |   |                                       |       |   |
| Cash                                                                |                                                |   |                                       | 859,243    |   |
| Other current assets                                                |                                                |   |                                       | 3,879,155  |   |
| Property and equipment                                              |                                                |   |                                       | 6,132,168  |   |
| Land use right                                                      |                                                |   |                                       | 1,693,759  |   |
| Current liabilities                                                 |                                                |   |                                       | (2,977,257 | ) |
| Non-current deferred income tax liabilities                         |                                                |   |                                       | (260,853   | ) |
| Total identifiable assets acquired and liabilities assumed          |                                                |   |                                       | 9,326,215  |   |
| Goodwill                                                            |                                                |   |                                       | 567,892    |   |
|                                                                |                                                |   |                                       | 9,894,107  |   |

| (i) | On February 5, 2010, the Company estimated the possibility that Jinchuan would meet the performance target was 100% and the expected payment date was one year after the acquisition date. Thus the fair value of the contingent consideration arrangement was determined at $4,819,107 by using an annual discount rate of 5.31%.  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   | For the threemonths endedMarch 31, 2010 |       |   | For the threemonths endedMarch 31, 2009 |   |
|-------------------------------|--------|------------------------------------------------------------------|------------|--------|------------------------------------------------------------------|--------|
|                          |   | (Unaudited)                                                      |       |   | (Unaudited)                                                      |   |
| Sales                         |   | $                                                                | 61,560,191 |   |                                                             | $      | 39,427,807 |   |
| Cost of Goods Sold            |   |                                                             | 43,326,407 |   |                                                             |   | 29,679,300 |   |
| Gross Profit                  |   |                                                             | 18,233,784 |   |                                                             |   | 9,748,507 |   |
| Operating Expenses            |   |                                                             | 5,022,587  |   |                                                             |   | 4,416,733 |   |
| Income from Operations        |   |                                                             | 13,211,198 |   |                                                             |   | 5,331,774 |   |
| Other Expense, net            |   |                                                             | (2,731,646 | )      |                                                             |   | (5,024,414 | ) |
| Income before Income Tax      |   |                                                             | 10,479,552 |   |                                                             |   | 307,360 |   |
| Income tax expenses (benefit) |   |                                                             | 1,141,164  |   |                                                             |   | (1,469,143 | ) |
| Net Income                    |   | $                                                                | 9,338,388  |   |                                                             | $      | 1,776,503 |   |

----

|              |   | For the three monthsended March 31, 2010 |      |   | For the three monthsended March 31, 2009 |   |
|-------------------|--------|------------------------------------------------------------------------|-----------|--------|------------------------------------------------------------------------|--------|
| Revenue           |   | $                                                                      | 1,150,303 |   |                                                                   | $      | 696,720 |   |
| Net income (loss) |   |                                                                   | 32,442    |   |                                                                   |   | (29,256 | ) |

----

|   |   | March 31, 2010 |      |   | December 31, 2009 |   |
|--------|--------|--------------------------|-----------|--------|-----------------------------|--------|
| Assets |   | $                        | 2,877,783 |   |                        | $      | 2,673,254 |   |

| For the three months ended March 31, 2010     |   |   |       |   |   |   |       |      |   |   |         |   |   |
|-----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-----------|--------|--------|--------------|--------|--------|
|                                                                        |   | PRC    |       |   | US     |   |       | Corporate |   |   | Eliminations |   |   | Total |   |
|                                                                        |   |   |       |   |   |   |       |      |   |   |         |   |   |   |   |   |   |   |   |   |
| Revenues                                                                    |   | $      | 47,364,786 |   |   | $      | 13,306,004 |      |   | $      | -            |   |   | $ | (1,120,948 | ) |   | $ | 59,549,842 |   |
|                                                                        |   |   |       |   |   |   |       |      |   |   |         |   |   |   |   |   |   |   |   |   |
| Gross Profit                                                                |   |   | 16,014,292 |   |   |   | 1,806,974  |      |   |   | -            |   |   |   | - |   |   |   | 17,821,266 |   |
| Selling, general and administrative expenses                                |   |   | 2,634,936  |   |   |   | 1,336,866  |      |   |   | 1,002,710    |   |   |   | - |   |   |   | 4,974,512 |   |
| Operating income (loss)                                                     |   |   | 13,378,356 |   |   |   | 470,108    |      |   |   | (1,002,710   | )      |   |   | - |   |   |   | 12,846,754 |   |
| Capital expenditures                                                        |   |   | 1,246,914  |   |   |   | 15,579     |      |   |   | -            |   |   |   | - |   |   |   | 1,262,493 |   |
| Depreciation expense (Included in cost of goods sold and Operating expense) |   | $      | 2,238,983  |   |   | $      | 488,442    |      |   | $      | -            |   |   | $ | - |   |   | $ | 2,727,425 |   |

----

| For the three months ended March 31, 2009     |   |   |       |   |   |   |       |      |   |   |         |   |
|-----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-----------|--------|--------|--------------|--------|
|                                                                        |   | PRC    |       |   | US     |   |       | Corporate |   |   | Eliminations |   |   | Total |   |
|                                                                        |   |   |       |   |   |   |       |      |   |   |         |   |   |   |   |   |   |   |   |   |
| Revenues                                                                    |   | $      | 26,337,445 |   |   | $      | 8,770,228  |      |   | $      | -            |   |   | $ | 148,863 |   |   | $ | 35,256,536 |   |
|                                                                        |   |   |       |   |   |   |       |      |   |   |         |   |   |   |   |   |   |   |   |   |
| Gross Profit                                                                |   |   | 8,659,235  |   |   |   | 280,140    |      |   |   | -            |   |   |   | - |   |   |   | 8,939,375 |   |
| Selling, general and administrative expenses                                |   |   | 1,663,817  |   |   |   | 1,596,048  |      |   |   | 1,012,524    |   |   |   | - |   |   |   | 4,272,389 |   |
| Operating income (loss)                                                     |   |   | 6,995,418  |   |   |   | (1,315,908 | )         |   |   | (1,012,524   | )      |   |   | - |   |   |   | 4,666,986 |   |
| Capital expenditures                                                        |   |   | 5,253,033  |   |   |   | 177,364    |      |   |   | -            |   |   |   | - |   |   |   | 5,430,397 |   |
| Depreciation expense (Included in cost of goods sold and Operating expense) |   | $      | 1,733,885  |   |   | $      | 363,323    |      |   | $      | -            |   |   | $ | - |   |   | $ | 2,097,208 |   |

|                               |   | PRC    |        |   | US     |   |       | Corporate |   |   | Total      |   |
|------------------------------------|--------|--------|-------------|--------|--------|--------|------------|-----------|--------|--------|------------|--------|
| As of March 31, 2010               |   |   |        |   |   |   |       |      |   |   |       |   |
| Property, plant and equipment, net |   | $      | 110,232,771 |   |   | $      | 11,611,623 |      |   | $      | -          |   |   | $ | 121,844,394 |   |
|                               |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Total assets                       |   | $      | 275,079,781 |   |   | $      | 28,467,340 |      |   | $      | 24,190,881 |   |   | $ | 327,738,002 |   |
|                               |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| As of December 31, 2009            |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Property, plant and equipment, net |   | $      | 105,190,257 |   |   | $      | 12,195,309 |      |   | $      | -          |   |   | $ | 117,385,566 |   |
|                               |   |   |        |   |   |   |       |      |   |   |       |   |   |   |   |   |
| Total assets                       |   | $      | 254,054,799 |   |   | $      | 25,902,180 |      |   | $      | 17,338,145 |   |   | $ | 297,295,124 |   |

----

|                                                                                                                                                                               |   | March 31, |        |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|--------------|--------|
|                                                                                                                                                                               |   | 2010      |        |   | 2009         |   |
|                                                                                                                                                                               |   | Unaudited |        |   |         |   |
| ASSETS                                                                                                                                                                             |   |      |        |   |         |   |
| CURRENT ASSETS:                                                                                                                                                                    |   |      |        |   |         |   |
| Cash                                                                                                                                                                               |   | $         | 9,021,926   |   |         | $      | 98,839 |   |
| Deposit in derivative hedge                                                                                                                                                        |   |      | -           |   |         |   | 1,000,000 |   |
| Total current assets                                                                                                                                                               |   |      | 9,021,926   |   |         |   | 1,098,839 |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| OTHER ASSETS:                                                                                                                                                                      |   |      |        |   |         |   |   |   |
| Investments in subsidiaries                                                                                                                                                        |   |      | 306,454,376 |   |         |   | 290,640,043 |   |
| Deferred loan expense, net                                                                                                                                                         |   |      | -           |   |         |   | 1,955,778 |   |
| Deferred tax assets                                                                                                                                                                |   |      | 15,168,955  |   |         |   | 14,283,528 |   |
| Total other assets                                                                                                                                                                 |   |      | 321,623,331 |   |         |   | 306,879,349 |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| Total assets                                                                                                                                                                       |   | $         | 330,645,257 |   |         | $      | 307,978,188 |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                               |   |      |        |   |         |   |   |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                               |   |      |        |   |         |   |   |   |
| Notes payable, current                                                                                                                                                             |   | $         | -           |   |         | $      | 10,000,000 |   |
| Other payables and accrued liabilities                                                                                                                                             |   |      | 1,132,161   |   |         |   | 2,609,037 |   |
| Cross currency hedge payable                                                                                                                                                       |   |      | -           |   |         |   | 436,702 |   |
| Derivative instrument settlement payable, net                                                                                                                                      |   |      | 5,650,000   |   |         |   | - |   |
| Total current liabilities                                                                                                                                                          |   |      | 6,782,161   |   |         |   | 13,045,739 |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| LONG-TERM  LIABILITIES:                                                                                                                                                  |   |      |        |   |         |   |   |   |
| Intercompany payables                                                                                                                                                              |   |      | 18,823,958  |   |         |   | 22,863,141 |   |
| Notes payable, non-current                                                                                                                                                         |   |      | -           |   |         |   | 25,000,000 |   |
| Fair value of derivative instrument                                                                                                                                                |   |      | -           |   |         |   | 7,532,527 |   |
| Total long-term liabilities                                                                                                                                                        |   |      | 18,823,958  |   |         |   | 55,395,668 |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| Total liabilities                                                                                                                                                                  |   |      | 25,606,119  |   |         |   | 68,441,407 |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                                                      |   |      |        |   |         |   |   |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| SHAREHOLDERS' EQUITY:                                                                                                                                                              |   |      |        |   |         |   |   |   |
| Preferred stock,$0.001 par value, 5,000,000 shares authorized, none issued or outstanding as of March 31, 2010 and December 31, 2009                                               |   |      | -           |   |         |   | - |   |
| Common stock,$0.006 par value, 100,000,000 shares authorized, March 31, 2010: 37,248,672 shares issued and outstanding December 31, 2009: 29,772,780 shares issued and outstanding |   |      | 223,493     |   |         |   | 178,638 |   |
| Additional paid in capital                                                                                                                                                         |   |      | 162,050,378 |   |         |   | 105,540,676 |   |
| Statutory reserves                                                                                                                                                                 |   |      | 17,566,294  |   |         |   | 16,282,793 |   |
| Retained earnings                                                                                                                                                                  |   |      | 100,101,318 |   |         |   | 92,312,280 |   |
| Accumulated other comprehensive income                                                                                                                                             |   |      | 25,097,655  |   |         |   | 25,222,394 |   |
| Total shareholders' equity                                                                                                                                                         |   |      | 305,039,138 |   |         |   | 239,536,781 |   |
|                                                                                                                                                                               |   |      |        |   |         |   |   |   |
| Total liabilities and shareholders' equity                                                                                                                                         |   | $         | 330,645,257 |   |         | $      | 307,978,188 |   |

----

|                                               |   | Three months ended March 31, |       |
|----------------------------------------------------|--------|------------------------------|------------|
|                                               |   | 2010                         |       |   | 2009 |   |
|                                               |   | Unaudited                    |       |   | Unaudited |   |
| OPERATING EXPENSES                                 |   |                         |       |   |   |   |
|                                               |   |                         |       |   |   |   |
| General and administrative expenses                |   | $                            | 1,002,710  |   |   | $ | 1,012,524 |   |
| Total operating expenses                           |   |                         | 1,002,710  |   |   |   | 1,012,524 |   |
|                                               |   |                         |       |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                             |   |                         |       |   |   |   |   |   |
|                                               |   |                         |       |   |   |   |   |   |
| Interest and other expense, net                    |   |                         | (458,056   | ) |   |   | (1,373,843 | ) |
| Loss on cross currency hedge                       |   |                         | (753,666   | ) |   |   | (166,410 | ) |
| Loss on debt extinguishment                        |   |                         | (2,395,778 | ) |   |   | - |   |
| Change in derivative liability - warrants          |   |                         | -          |   |   |   | (63,238 | ) |
| Change in derivative liability - conversion option |   |                         | -          |   |   |   | (539,037 | ) |
| Change in fair value of derivative instrument      |   |                         | 882,527    |   |   |   | (2,762,129 | ) |
| Total other expense, net                           |   |                         | (2,724,973 | ) |   |   | (4,904,657 | ) |
|                                               |   |                         |       |   |   |   |   |   |
| EQUITY INCOME EARNINGS OF SUBSIDIARIES             |   |                         | 11,914,795 |   |   |   | 4,629,441 |   |
|                                               |   |                         |       |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                  |   |                         | 8,187,112  |   |   |   | (1,287,740 | ) |
|                                               |   |                         |       |   |   |   |   |   |
| BENEFIT FOR INCOME TAXES                           |   |                         | 885,427    |   |   |   | 2,565,651 |   |
|                                               |   |                         |       |   |   |   |   |   |
| NET INCOME                                         |   |                         | 9,072,539  |   |   |   | 1,277,911 |   |
|                                               |   |                         |       |   |   |   |   |   |
| OTHER COMPREHENSIVE INCOME (LOSS):                 |   |                         |       |   |   |   |   |   |
| Foreign currency translation adjustment            |   |                         | (124,739   | ) |   |   | (393,908 | ) |
|                                               |   |                         |       |   |   |   |   |   |
| COMPREHENSIVE INCOME                               |   | $                            | 8,947,800  |   |   | $ | 884,003 |   |

----

|                                               |   | Unaudited |        |   | Unaudited |   |
|----------------------------------------------------|--------|-----------|-------------|--------|-----------|--------|
|                                               |   | 2010      |        |   | 2009      |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:              |   |      |        |   |      |   |
| Net Income                                         |   | $         | 9,072,539   |   |      | $      | 1,277,911 |   |
| Adjustments to reconcile net loss                  |   |      |        |   |      |   |   |   |
| used in operating activities:                      |   |      |        |   |      |   |   |   |
| Change in fair value of derivative instrument      |   |      | (882,527    | )      |      |   | 2,762,129 |   |
| Equity in earnings of subsidiaries                 |   |      | (11,914,795 | )      |      |   | (4,629,441 | ) |
| Deferred taxes                                     |   |      | (885,427    | )      |      |   | (2,565,651 | ) |
| Amortization of loan commission                    |   |      | 160,000     |   |      |   | 262,497 |   |
| Amortization of stock compensation expense         |   |      | 193,057     |   |      |   | 590,868 |   |
| Loss on cross currency hedge                       |   |      | 753,666     |   |      |   | 166,410 |   |
| Loss on debt extinguishment                        |   |      | 2,395,778   |   |      |   | - |   |
| Change in derivative liability - warrants          |   |      | -           |   |      |   | 63,238 |   |
| Change in derivative liability - conversion option |   |      | -           |   |      |   | 539,037 |   |
| Change in operating assets and liabilities:        |   |      |        |   |      |   |   |   |
| Other payables and accrued liabilities             |   |      | (1,476,876  | )      |      |   | (2,225,024 | ) |
| Net cash used in operating activities              |   |      | (2,584,585  | )      |      |   | (3,758,026 | ) |
|                                               |   |      |        |   |      |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:              |   |      |        |   |      |   |   |   |
| Investment in subsidiaries                         |   |      | (4,024,277  | )      |      |   | (2,630,753 | ) |
| Payments on cross currency hedge payable           |   |      | (1,190,368  | )      |      |   | (114,580 | ) |
| Net cash used in investing activities              |   |      | (5,214,645  | )      |      |   | (2,745,333 | ) |
|                                               |   |      |        |   |      |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:              |   |      |        |   |      |   |   |   |
| Intercompany payables                              |   |      | (4,039,183  | )      |      |   | 4,574,775 |   |
| Payment of high yield notes payable                |   |      | (35,600,000 | )      |      |   | - |   |
| Proceeds on issuance of common stock and warrants  |   |      | 56,361,500  |   |      |   | 1,920,000 |   |
| Net cash provided by financing activities          |   |      | 16,722,317  |   |      |   | 6,494,775 |   |
|                                               |   |      |        |   |      |   |   |   |
| CHANGE IN CASH                                     |   |      | 8,923,087   |   |      |   | (8,584 | ) |
|                                               |   |      |        |   |      |   |   |   |
| CASH, beginning of period                          |   |      | 98,839      |   |      |   | 30,414 |   |
|                                               |   |      |        |   |      |   |   |   |
| CASH, end of period                                |   | $         | 9,021,926   |   |      | $      | 21,830 |   |
|                                               |   |      |        |   |      |   |   |   |
| SUPPLEMENTAL CASH FLOWS DISCLOSURE:                |   |      |        |   |      |   |   |   |
| Interest paid                                      |   | $         | 1,343,849   |   |      | $      | 1,852,432 |   |

----

| 1.   | Basis of presentation |
|----------------|-----------------------|

| 2.   | Restricted Net Assets |
|----------------|-----------------------|

| 3.   | Notes payable consisted of the following: |
|----------------|-------------------------------------------|

|                                                                   |   | March 31, 2010 |   |   | December 31,2009 |   |
|------------------------------------------------------------------------|--------|--------------------------|--------|--------|-----------------------|--------|
|                                                                   |   |                     |   |   |                  |   |
| Guaranteed senior secured floating rate notes (“HY Notes”) |   |                     | -      |   |                  |   | 35,000,000 |   |
| Less current portion                                                   |   |                     | -      |   |                  |   | 10,000,000 |   |
| Total notes payable, noncurrent                                        |   | $                        | -      |   |                  | $      | 25,000,000 |   |

----

| 4.   | Derivative instrument |
|----------------|-----------------------|

| 5.   | Subsequent events |
|----------------|-------------------|

| Balance Sheet sheet items |   | March 31 |        |   | March 31 |   |        | December 31 |   |   | December 31 |   |
|------------------------------------------|--------|---------------|-------------|--------|---------------|--------|-------------|------------------|--------|--------|------------------|--------|
|                                     |   | 2010          |        |   | 2010          |   |        | 2009             |   |   | 2009             |   |
|                                     |   | Restated      |        |   | Original      |   |        | Restated         |   |   | Original         |   |
|                                     |   |          |        |   |          |   |        |             |   |   |             |   |
| Plant and Equipment, net                 |   | $             | 121,844,394 |   |          | $      | 125,677,015 |             |   | $      |             |   |   | $ |   |   |
| Goodwill                                 |   |          | 567,892     |   |          |   | -           |             |   |   |             |   |   |   |
| Deferred tax assets                      |   |          |        |   |          |   |        |             |   |   | 14,283,528       |   |   |   | 11,722,469 |   |
| Deferred Tax Liabilities                 |   |          | 260,853     |   |          |   | -           |             |   |   |             |   |   |   |   |   |
| Commitment and Contingencies             |   |          | 4,819,107   |   |          |   | 5,075,000   |             |   |   |             |   |   |   |   |   |
|                                     |   |          |        |   |          |   |        |             |   |   |             |   |   |   |   |   |
| Retained earnings                        |   |          | 100,101,318 |   |          |   | 103,371,007 |             |   |   | 92,312,280       |   |   |   | 97,283,748 |   |
| Accumulated other comprehensive income   |   |          |        |   |          |   |        |             |   |   | 25,222,394       |   |   |   | 17,689,867 |   |
| Total shareholders' equity               |   |          | 305,039,138 |   |          |   | 308,308,827 |             |   |   | 239,536,781      |   |   |   | 236,975,722 |   |
| Total Assets                             |   | $             | 327,738,002 |   |          | $      | 331,002,731 |             |   | $      | 297,295,124      |   |   | $ | 294,734,065 |   |

| Income Statement item                            |   | FOR THE THREE MONTHS ENDED MARCH 31, |      |
|------------------------------------------------------------|--------|--------------------------------------------------------------------|-----------|
|                                                       |   | 2010                                                               |      |   | 2010 |   |   | 2009 |   |   | 2009 |   |
|                                                       |   | Restated                                                           |      |   | Original |   |   | Restated |   |   | Original |   |
|                                                       |   |                                                               |      |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                        |   | $                                                                  | 3,722,550 |   |   | $ | 3,757,874 |   |   | $ |   |   |   | $ |   |   |
| Acquisition gain                                           |   |                                                               | -         |   |   |   | 3,305,013 |   |   |   |   |   |   |   |
| Loss on extinguishment of derivative instrument            |   |                                                               | -         |   |   |   | (6,650,000 | ) |   |   |   |   |   |   |
| Change in fair value of derivative instrument- gain/(loss) |   |                                                               | 882,527   |   |   |   | - |   |   |   | (2,762,129 | ) |   |   | - |   |
|                                                       |   |                                                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred income tax expense (benefit)                      |   |                                                               | (885,427  | ) |   |   | (3,446,486 | )  |   |   | (2,565,651 | ) |   |   | - |   |
| Net Income                                                 |   |                                                               | 9,072,539 |   |   |   | 7,370,760 |   |   |   | 1,277,912 |   |   |   | 3,100,917 |   |
| Other Comprehensive Income                                 |   |                                                               | (124,739  | ) |   |   | 7,407,788 |   |   |   | (393,908 | ) |   |   | (3,156,037 | ) |
| Comprehensive Income                                       |   | $                                                                  | 8,947,800 |   |   | $ | 14,778,548 |   |   | $ | 884,004 |   |   | $ | (55,120 | ) |
|                                                       |   |                                                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                        |   |                                                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                      |   | $                                                                  | 0.26      |   |   | $ | 0.21 |   |   | $ | 0.05 |   |   | $ | 0.11 |   |
| Diluted                                                    |   | $                                                                  | 0.26      |   |   | $ | 0.21 |   |   | $ | 0.05 |   |   | $ | 0.11 |   |

----

----

|   | · | Investing in organic and inorganic growth in both infrastructure-based and fast-growing markets; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Focusing on new, higher-margin products, applications and markets through investment into new machinery and research and development; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Improving business processes throughout the Company by focusing on key performance indicators and operational excellence; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | Strategically hiring and developing  talent, to improve the effectiveness of our performance management processes; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | Protecting and enhancing the Fushi Copperweld brand. |
|--------|--------|------------------------------------------------------|

----

|   | · | GAAP net income increased 610.0% to $9.1M or $0.26 per diluted share compared to the three months ended March 31, 2009, adjusted net income increased 148.3% to $10.2M or $0.29 per diluted share; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Metric tons of volume shipped from our PRC segment increased 13.3% compared to the first quarter of 2009; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | Closed acquisition of Dalian Jinchuan Power Cable; |
|--------|--------|----------------------------------------------------|

|   | · | Operating income margin increased 840 basis points from 13.2% to 21.6% of revenues; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Returned to profitability at Fayetteville facility; generated approximately $0.3 million of net income; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | Generated $7.9 million of cash flow from operations in the quarter compared to a deficit $1.0 million in the same period of 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | 3G in China and continued growth in demand for CCA-based telecommunication products; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Government stimulus packages focused on infrastructure: high-speed railways, transmission and distribution and power grid build out; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continued strength of the grounding wire market; |
|--------|--------|--------------------------------------------------|

----

|   | · | Worldwide underlying long-term growth trends in the electric utility and infrastructure markets; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | Continuing demand for cost effective, energy saving alternatives. |
|--------|--------|-------------------------------------------------------------------|

|                                         |   | Three Months Ended |   |    |           |   |
|----------------------------------------------|--------|------------------------------|--------|---------|----------------|--------|
|                                         |   | March 31,               |   |    | March 31, |   |   | Change |   |
|                                         |   | 2010                         |   |    | 2009           |   |   | % |   |
|                                         |   |                         |   |    |           |   |   |   |   |   |   |   |
| Revenues                                     |   |                         | 59.5   |    |           |   | 35.3 |   |   |   | 68.9 | % |
| Gross Profit                                 |   |                         | 17.8   |    |           |   | 8.9 |   |   |   | 99.4 | % |
| Selling, general and administrative expenses |   |                         | 5.0    |    |           |   | 4.3 |   |   |   | 16.3 | % |
| Operating Income                             |   |                         | 12.8   |    |           |   | 4.7 |   |   |   | 172.3 | % |
| Income Before Taxes                          |   |                         | 10.1   |    |           |   | (0.3 | )  |   |   | -2932.2 | % |
| Benefit for income taxes                     |   |                         | (1.0   | )  |           |   | 1.6 |   |   |   | -164.2 | % |
| Net Income                                   |   |                         | 9.1    |    |           |   | 1.3 |   |   |   | 610.0 | % |

----

|            |   | Net Sales                                   |   |   |                    |   |   |   |   |
|-----------------|--------|--------------------------------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
|            |   | Three Months Ended March 31, |   |   |                    |   |   |   |   |
|            |   | 2010                                             |   |   | 2009                    |   |   |   |   |   |   |   |
|            |   | Amount                                           |   |   | % of NetSales |   |   | Amount |   |   | % of NetSales |   |   | DollarChange |   |   | % Change |   |
| PRC             |   | $                                                | 46.2   |   |                    |   | 77.6   | %      |   | $ | 26.4 |   |   |   | 74.8 | % |   | $ | 19.8 |   |   |   | 75.0 | % |
| US              |   | $                                                | 13.3   |   |                    |   | 22.4   | %      |   | $ | 8.9 |   |   |   | 25.2 | % |   | $ | 4.4 |   |   |   | 49.4 | % |
| Total net sales |   | $                                                | 59.5   |   |                    |   | 100.0  | %      |   | $ | 35.3 |   |   |   | 100.0 | % |   | $ | 24.2 |   |   |   | 68.9 | % |

|               |   | Metric Tons Sold                       |   |   |                   |   |   |   |   |
|--------------------|--------|--------------------------------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|               |   | Three Months Ended March 31, |   |   |                   |   |   |   |   |
|               |   | 2010                                             |   |   | 2009                   |   |   |   |   |   |   |   |
|               |   | MT                                               |   |   | % of MTSales |   |   | MT     |   |   | % of MTSales |   |   | TonnageChange |   |   | % Change |   |
| PRC *              |   |                                             | 6,669  |   |                   |   | 73.3   | %      |   |   | 5,886 |   |   |   | 73.7 | % |   |   | 783 |   |   |   | 13.3 | % |
| US                 |   |                                             | 2,431  |   |                   |   | 26.7   | %      |   |   | 2,096 |   |   |   | 26.3 | % |   |   | 335 |   |   |   | 16.0 | % |
| Total sales volume |   |                                             | 9,100  |   |                   |   | 100.0  | %      |   |   | 7,982 |   |   |   | 100.0 | % |   |   | 1,118 |   |   |   | 14.0 | % |

----

|              |   | Net Sales                                   |   |   |                    |   |   |   |   |
|-------------------|--------|--------------------------------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
|              |   | Three Months Ended March 31, |   |   |                    |   |   |   |   |
|              |   | 2010                                             |   |   | 2009                    |   |   |   |   |   |   |   |
|              |   | Amount                                           |   |   | % of NetSales |   |   | Amount |   |   | % of NetSales |   |   | DollarChange |   |   | % Change |   |
| Telecommunication |   | $                                                | 25.1   |   |                    |   | 42.2   | %      |   | $ | 14.3 |   |   |   | 40.5 | % |   |   | 10.8 |   |   |   | 75.5 | % |
| Utility           |   |                                             | 29.5   |   |                    |   | 49.6   | %      |   |   | 18.9 |   |   |   | 53.6 | % |   |   | 10.6 |   |   |   | 56.1 | % |
| Transportation    |   |                                             | 0.6    |   |                    |   | 1.0    | %      |   |   | 0.4 |   |   |   | 1.1 | % |   |   | 0.2 |   |   |   | 50.2 | % |
| Other             |   |                                             | 4.3    |   |                    |   | 7.2    | %      |   |   | 1.7 |   |   |   | 4.8 | % |   |   | 2.6 |   |   |   | 152.9 | % |
| Total net sales   |   | $                                                | 59.5   |   |                    |   | 100.0  | %      |   | $ | 35.3 |   |   |   | 100.0 | % |   |   | 24.2 |   |   |   | 68.9 | % |

|               |   | Three Months Ended March 31, |   |   |                   |   |   |   |   |
|--------------------|--------|--------------------------------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|               |   | 2010                                             |   |   | 2009                   |   |   |   |   |   |   |   |
|               |   | MT                                               |   |   | % of MTSales |   |   | MT     |   |   | % of MTSales |   |   | TonnageChange |   |   | % Change |   |
| Telecommunication  |   |                                             | 4,351  |   |                   |   | 47.8   | %      |   |   | 3,468 |   |   |   | 43.4 | % |   |   | 883 |   |   |   | 25.5 | % |
| Utility *          |   |                                             | 3,703  |   |                   |   | 40.7   | %      |   |   | 4,026 |   |   |   | 50.5 | % |   |   | (323 | ) |   |   | -8.0 | % |
| Transportation     |   |                                             | 74     |   |                   |   | 0.8    | %      |   |   | 61 |   |   |   | 0.8 | % |   |   | 13 |   |   |   | 21.3 | % |
| Other              |   |                                             | 972    |   |                   |   | 10.7   | %      |   |   | 427 |   |   |   | 5.3 | % |   |   | 545 |   |   |   | 127.6 | % |
| Total sales volume |   |                                             | 9,100  |   |                   |   | 100.0  | %      |   |   | 7,982 |   |   |   | 100.0 | % |   |   | 1,118 |   |   |   | 14.0 | % |

----

|   |   | Three Months Ended March 31, 2010 |   |
|--------|--------|------------------------------------------------------------|--------|
|   |   | PRC *                                                 |   |   | US |   |
|   |   | Capacity(MT)                                               |   |   | Output(MT) |   |   | Capacity(MT) |   |   | Output(MT) |   |
| CCA    |   |                                                       | 10,000 |   |   |   | 7,039 |   |   |   | 3,100 |   |   |   | 794 |   |
| CCS    |   |                                                       | 200    |   |   |   | 12 |   |   |   | 4,075 |   |   |   | 1,606 |   |
| Total  |   |                                                       | 10,200 |   |   |   | 7,051 |   |   |   | 7,175 |   |   |   | 2,400 |   |

|            |   | Metric Tons Sold                       |   |   |                   |   |   |   |   |
|-----------------|--------|--------------------------------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|            |   | Three Months Ended March 31, |   |   |                   |   |   |   |   |
|            |   | 2010                                             |   |   | 2009                   |   |   |   |   |   |   |   |
|            |   | MT                                               |   |   | % of MTSales |   |   | MT     |   |   | % of MTSales |   |   | TonnageChange |   |   | % Change |   |
| CCA             |   |                                             | 7,330  |   |                   |   | 80.5   | %      |   |   | 6,323 |   |   |   | 79.2 | % |   |   | 1,007 |   |   |   | 15.9 | % |
| CCS             |   |                                             | 1,619  |   |                   |   | 17.8   | %      |   |   | 1,585 |   |   |   | 19.9 | % |   |   | 34 |   |   |   | 2.1 | % |
| Others *        |   |                                             | 151    |   |                   |   | 1.7    | %      |   |   | 74 |   |   |   | 0.9 | % |   |   | 77 |   |   |   | 104.1 | % |
| Total net sales |   |                                             | 9,100  |   |                   |   | 100.0  | %      |   |   | 7,982 |   |   |   | 100.0 | % |   |   | 1,118 |   |   |   | 14.0 | % |

|               |   | Three Months Ended March 31, |   |   | Change |   |
|--------------------|--------|--------------------------------------------------|--------|--------|--------|--------|
| (in millions) |   | 2010                                             |   |   | 2009   |   |   | Dollar |   |   |      %      |   |
| Gross Margin       |   | $                                                | 17.8   |   |   | $      | 8.9 |   |   | $ | 8.9 |   |   |   | 99.4 | % |
| Gross Margin       |   |                                             | 29.9   | %      |   |   | 25.4 | % |   |   |   |   |   |   | 4.5 | % |

----

|                         |   | Three Months Ended March 31, |   |   | Change |   |
|------------------------------|--------|--------------------------------------------------|--------|--------|--------|--------|
| (in millions)           |   | 2010                                             |   |   | 2009   |   |   | Dollar |   |   |      %      |   |
| Selling Expenses             |   | $                                                | 1.3    |   |   | $      | 1.2 |   |   | $ | 0.1 |   |   |   | 8.3 | % |
| as a percentage of net sales |   |                                             | 2.2    | %      |   |   | 3.4 | % |   |   |   |   |   |   | -1.2 | % |

|                                |   | Three Months Ended March 31, |   |   | Change |   |
|-------------------------------------|--------|--------------------------------------------------|--------|--------|--------|--------|
| (in millions)                  |   | 2010                                             |   |   | 2009   |   |   | Dollar |   |   |      %      |   |
| General and Administrative Expenses |   | $                                                | 3.7    |   |   | $      | 3.1 |   |   | $ | 0.6 |   |   |   | 19.4 | % |
| as a percentage of net sales        |   |                                             | 6.3    | %      |   |   | 8.8 | % |   |   |   |   |   |   | -2.5 | % |

|                   |   | Three Months Ended March 31, |   |   |                     |   |   |   |   |
|------------------------|--------|--------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------|
|                   |   | 2010                                             |   |   | 2009                     |   |   |   |   |   |   |   |
|                   |   | Amount                                           |   |   | % ofOperatingincome |   |   | Amount |   |   | % ofOperatingincome |   |   | DollarChange |   |   | % Change |   |
| PRC                    |   | $                                                | 13.3   |   |                     |   | 103.9  | %      |   | $ | 7.0 |   |   |   | 148.9 | % |   | $ | 6.3 |   |   |   | 90.0 | % |
| US                     |   | $                                                | 0.5    |   |                     |   | 3.9    | %      |   | $ | (1.3 | )  |   |   | -27.7 | % |   | $ | 1.8 |   |   |   | -138.5 | % |
| Corporate              |   | $                                                | (1.0   | )      |                     |   | -7.8   | %      |   | $ | (1.0 | ) |   |   | -21.2 | % |   | $ | - |   |   |   | - |   |
| Total operating income |   | $                                                | 12.8   |   |                     |   | 100.0  | %      |   | $ | 4.7 |   |   |   | 100.0 | % |   | $ | 8.1 |   |   |   | 172.3 | % |

----

|                         |   | Three Months Ended March 31, |   |   | Change |   |
|------------------------------|--------|--------------------------------------------------|--------|--------|--------|--------|
| (in millions)           |   | 2010                                             |   |   | 2009   |   |   | Dollar |   |   |      %      |   |
| Interest Income              |   | $                                                | 0.2    |   |   | $      | 0.1 |   |   | $ | 0.1 |   |   |   | 100.0 | % |
| Interest Expense             |   | $                                                | (0.5   | )      |   | $      | (1.5 | ) |   | $ | 1.0 |   |   |   | -66.7 | % |
| Net Interest Expense         |   | $                                                | (0.3   | )      |   | $      | (1.4 | ) |   | $ | 1.1 |   |   |   | -78.6 | % |
| as a percentage of net sales |   |                                             | -0.5   | %      |   |   | -4.0 | % |   |   |   |   |   |   | 3.5 | % |

|                            |   | Three Months Ended March 31, 2010 |   |
|---------------------------------|--------|------------------------------------------------------------|--------|
|                            |   | PRC                                                        |   |   | US |   |   | Parent Company |   |   | Consolidated |   |
| Profit (Loss) before income tax |   | $                                                          | 10.2   |   |   | $ | 0.4 |   |   | $  | (0.5 | ) |   | $  | 10.1 |   |
| Income tax expense (credit)     |   | $                                                          | 1.9    |   |   |   | - |   |   |   | (0.9 | ) |   |   | 1.0 |   |
| Profit (loss) after income tax  |   | $                                                          | 8.3    |   |   | $ | 0.4 |   |   | $ | 0.4 |   |   | $ | 9.1 |   |

|                         |   | Three Months Ended March 31, |   |   | Change |   |
|------------------------------|--------|--------------------------------------------------|--------|--------|--------|--------|
| (in millions)           |   | 2010                                             |   |   | 2009   |   |   | Dollar |   |   |      %      |   |
| Net Income Before Taxes      |   | $                                                | 10.1   |   |   | $      | (0.3 | ) |   | $ | 10.4 |   |   |   | -3466.7 | % |
| Benefit for Income Taxes     |   | $                                                | 1.0    |   |   | $      | (1.6 | ) |   | $ | 2.6 |   |   |   | 162.5 | % |
| Net Income After Taxes       |   | $                                                | 9.1    |   |   | $      | 1.3 |   |   | $ | 7.8 |   |   |   | 600.0 | % |
| as a percentage of net sales |   |                                             | 15.2   | %      |   |   | 3.6 | % |   |   |   |   |   |   | 11.6 | % |

----

|                                      |   | Three Months Ended March 31 |       |
|-------------------------------------------|--------|-------------------------------------------------|------------|
|                                      |   | 2010                                            |       |   | 2009 |   |
|                                      |   | Unaudited                                       |       |   | Unaudited |   |
| Net Income for Basic Earnings Per Share   |   | $                                               | 9,072,539  |   |   | $ | 1,277,912 |   |
| Basic Weighted Average Number of Shares   |   |                                            | 34,673,692 |   |   |   | 27,563,478 |   |
| Net Income per Share – Basic        |   | $                                               | 0.26       |   |   | $ | 0.05 |   |
| Net Income for Diluted Earnings Per Share |   | $                                               | 9,072,539  |   |   | $ | 1,277,912 |   |
| Diluted Weighted Average Number of Shares |   |                                            | 35,309,847 |   |   |   | 27,695,464 |   |
| Net Income per Share – Diluted      |   | $                                               | 0.26       |   |   | $ | 0.05 |   |

|                     |   | Selected Balance Sheet Data |   |
|--------------------------|--------|--------------------------------------------|--------|
|                     |   | March 31,2010,                        |   |   | December 31, 2009 |   |   | Change |   |
| (in millions)       |   | Unaudited                                  |   |   |   |   |   | Dollar |   |   |      %      |   |
| Cash                     |   | $                                          | 78.5   |   |   | $ | 60.6 |   |   | $ | 17.9 |   |   |   | 29.5 | % |
| Accounts Receivable, net |   | $                                          | 57.0   |   |   | $ | 67.3 |   |   | $ | (10.3 | )  |   |   | -15.3 | % |
| PP&E                 |   | $                                          | 121.8  |   |   | $ | 117.4 |   |   | $ | 4.4 |   |   |   | 3.7 | % |
| Total Assets             |   | $                                          | 327.7  |   |   | $ | 297.3 |   |   | $ | 30.4 |   |   |   | 10.2 | % |
| Short Term Debt          |   | $                                          | 6.2    |   |   | $ | 14.0 |   |   | $ | (7.8 | ) |   |   | -55.7 | % |
| Long Term Debt           |   | $                                          | -      |   |   | $ | 25.0 |   |   | $ | (25.0 | ) |   |   | -100.0 | % |
| Shareholders' Equity     |   | $                                          | 305.0  |   |   | $ | 239.5 |   |   | $ | 65.5 |   |   |   | 27.3 | % |

----

|                          |   | March 31, 2010 |        |   | December 31, 2009 |   |
|-------------------------------|--------|--------------------------|-------------|--------|-----------------------------|--------|
|                          |   | (Unaudited)              |        |   |                        |   |
| Land                          |   | $                        | 100,726     |   |                        | $      | 100,726 |   |
| Buildings and improvements    |   |                     | 63,563,230  |   |                        |   | 43,665,594 |   |
| Transportation equipment      |   |                     | 4,177,943   |   |                        |   | 4,177,943 |   |
| Machinery and equipment       |   |                     | 77,787,498  |   |                        |   | 74,463,717 |   |
| Office furniture              |   |                     | 1,267,021   |   |                        |   | 1,172,121 |   |
| Construction in progress      |   |                     | 6,101,868   |   |                        |   | 19,449,384 |   |
| Totals                        |   |                     | 152,998,286 |   |                        |   | 143,029,485 |   |
| Less accumulated depreciation |   |                     | (31,153,892 | )      |                        |   | (25,643,919 | ) |
| Totals                        |   | $                        | 121,844,394 |   |                        | $      | 117,385,566 |   |

|   |   |                                                         |   | March 31, 2010 |      | Commencement |   | Expected             |   |
|--------|--------|--------------------------------------------------------------|--------|--------------------------|-----------|--------------|--------|----------------------|--------|
| No.    |   | Project Description                                     |   | (Unaudited)              |      | Date         |   | completion date |   |
| 1      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   | $                        | 3,245,052 |         | Dec-07 |                 | Jun-10 |   |
| 2      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   |                     | 2,766,237 |         | Dec-09 |                 | Mar-11 |   |
| 3      |   | Manufacturing machinery and equipment for CCA                |   |                     | 90,579    |         | Oct-09 |                 | Sep-10 |   |
|   |   | Total                                                        |   | $                        | 6,101,868 |         |   |                 |   |   |

| No.    |   | Project description                                     |   | December 31,2009 |       | Commencementdate |   | Expectedcompletion date |   |
|--------|--------|--------------------------------------------------------------|--------|-----------------------|------------|------------------|--------|------------------------------|--------|
| 1      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   | $                     | 4,276,753  |             | Dec-07 |                         | Mar-10 |   |
| 2      |   | Corporation administration office building                   |   |                  | 13,144,394 |             | May-03 |                         | Dec-10 |   |
| 3      |   | Manufacture building (PRC)                                   |   |                  | 630,389    |             | Jan-08 |                         | Jun-10 |   |
| 4      |   | Manufacturing machinery and equipment for CCA/CCS (Multiple) |   |                  | 1,322,848  |             | Dec-09 |                         | Mar-11 |   |
| 5      |   | Manufacturing machinery and equipment for CCA                |   |                  | 75,000     |             | Oct-09 |                         | Mar-10 |   |
|   |   | Total                                                        |   | $                     | 19,449,384 |             |   |                         |   |   |

----

|                                                |   | Three Months Ended March 31, |   |
|-----------------------------------------------------|--------|--------------------------------------------------|--------|
| (in millions)                                  |   | 2010                                             |   |   | 2009 |   |
| Net cash provided by (used in) operating activities |   | $                                                | 7.9    |   |   | $ | (1.0 | ) |
| Net cash used in investing activities               |   | $                                                | (6.7   | ) |   | $ | (5.5 | ) |
| Net cash provided by (used in) financing activities |   | $                                                | 16.7   |   |   | $ | (16.2 | )  |
| Effect of exchange rate on cash                     |   | $                                                | 0.0    |   |   | $ | (0.1 | )  |
| Cash and cash equivalents at beginning of period    |   | $                                                | 60.6   |   |   | $ | 65.6 |   |
| Cash and cash equivalents at end of period          |   | $                                                | 78.5   |   |   | $ | 42.7 |   |

----

|                  |   | Year ended December 31, 2009                |   | Three months ended March 31, 2010      |
|-----------------------|--------|-----------------------------------------------------------------|--------|-----------------------------------------------------------------|
| Customer Payment Term |   | Payment in advance up to 120 days |   | Payment in advance up to 120 days |
| Supplier Payment Term |   | Payment in advance up to 30 days  |   | Payment in advance up to 30 days  |

|                |   | March 31, 2010 |       |   | December 31, 2009 |   |
|---------------------|--------|--------------------------|------------|--------|-----------------------------|--------|
|                |   | (Unaudited)              |       |   |                        |   |
| 1-30 days           |   | $                        | 21,688,608 |   |                        | $      | 19,055,520 |   |
| 31-60 days          |   |                     | 34,743,613 |   |                        |   | 17,199,485 |   |
| 61-90 days          |   |                     | 1,345,563  |   |                        |   | 15,029,899 |   |
| 91-180 days         |   |                     | 208,627    |   |                        |   | 12,776,229 |   |
| 180-365 days        |   |                     | 4,436      |   |                        |   | 4,027,988 |   |
| Over 365 days       |   |                     | -          |   |                        |   | 220,163 |   |
| Bad debts allowance |   |                     | (1,024,684 | )      |                        |   | (1,024,684 | ) |
| Total               |   | $                        | 56,966,163 |   |                        | $      | 67,284,600 |   |

----

| Contractual obligations                                     |   | Total |      |   | Payment due byless than 1 year |   |      | 2 – 3 years |   |   | 4-5 years |   |   | More than 5years |   |
|------------------------------------------------------------------|--------|-------|-----------|--------|---------------------------------------------------------|--------|-----------|----------------------------------|--------|--------|----------------|--------|--------|----------------------------|--------|
| Contingent second installment payment for Jinchuan acquisition * |   | $     | 4,819,107 |   |                                                    | $      | 4,819,107 |                             |   | $      | -              |   |   | $                          | -      |   |   | $ | - |   |
| Capital lease obligation                                         |   | $     | 206,547   |   |                                                    | $      | 74,030    |                             |   | $      | 132,517        |   |   | $                          |   |   |   | $ |   |   |
| Total                                                            |   | $     | 5,025,654 |   |                                                    | $      | 4,893,137 |                             |   | $      | 132,517        |   |   | $                          | -      |   |   | $ | - |   |

----

| ·   | Insufficient competent accounting personnel in applying U.S. GAAP in our financial reporting process |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | Insufficient competent accounting personnel in determination of the measurement of derivative financial instruments and assets acquired and liabilities assumed in business combination |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | Changes in Internal Control over Financial Reporting |
|----|------------------------------------------------------|

| ExhibitNo. |   | Document Description                                                                                                                                                                                          |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                               |
| 31.1       |   | Certification of the Principal Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
|       |   |                                                                                                                                                                                                               |
| 31.2       |   | Certification of the Principal Accounting and Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|       |   |                                                                                                                                                                                                               |
| 32.1       |   | Certification of the Principal Executive Officer and of the Principal Accounting and Financial Officer pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002).                                 |

----

|                | FUSHI COPPERWELD, INC.                                                     |
|---------------------|----------------------------------------------------------------------------|
|                |                                                                       |   |
| Date: April 4, 2011 | By:                                                              | /s/ Craig H. Studwell |
|                | Name: Craig H. Studwell                                                    |
|                | Title: Chief Financial Officer(Principal Accounting and Financial Officer) |

----

| ExhibitNo. |   | Document Description                                                                                                                                                                                          |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                               |
| 31.1       |   | Certification of the Principal Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
|       |   |                                                                                                                                                                                                               |
| 31.2       |   | Certification of the Principal Accounting and Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|       |   |                                                                                                                                                                                                               |
| 32.1       |   | Certification of the Principal Executive Officer and of the Principal Accounting and Financial Officer pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002).                                 |

----