****Exhibit 2.2****

****AGREEMENT AND PLANOF MERGER****

 

This Agreement and Plan of Merger, dated as of November 16, 2007, is byand between China Precision Steel, Inc., a Colorado corporation (the “Company”),and China Precision Steel, Inc., a wholly-owned Delaware subsidiary of theCompany, formed solely for the purpose of reincorporating the Company in theState of Delaware (“CPSL - Delaware”).

 

The Company owns all of the issued and outstanding shares of capitalstock of CPSL - Delaware. In consideration of the mutual promises, covenantsand agreements contained herein, the Company and CPSL - Delaware, intending tobe legally bound, hereby agree as set forth below.

 
|   | 1. | ****Merger of the Company with and into China Precision  Steel.****  At the Effective Time, as defined in Section 4 herein, (a) the Company shall  merge with and into CPSL - Delaware (the “Merger”), (b) the separate  existence of the Company shall cease to exist and (c) CPSL - Delaware shall  be the surviving corporation in the Merger (the “Surviving Corporation”)  and shall continue its existence under Delaware law. |
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|   | 2. | ****Certificate of Incorporation and Bylaws of the  Surviving Corporation.**** The Certificate of Incorporation and Bylaws of CPSL  - Delaware at the Effective Time shall continue to be the Certificate of Incorporation  and Bylaws of the Surviving Corporation, subject to any future amendments or  deletions thereto in accordance with applicable law. |
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|   | 3. | ****Cancellation, Conversion and Continuance of Shares.**** |
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|   | (a) | China Precision Steel Shares. At the Effective Time, all shares of  capital stock of CPSL - Delaware owned by the Company immediately prior to  the consummation of the Merger shall be cancelled. |
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|   | (b) | Company Shares. Each issued and outstanding share, and each share  then held in the treasury, of the common stock of the Company shall, by  virtue of the Merger and without any action on the part of the holder  thereof, be automatically converted at the Effective Time into one share of  common stock of the Surviving Corporation. The terms and conditions of each  stock option and warrant to purchase shares of the Company’s common stock  outstanding immediately prior to the consummation of the Merger shall remain  the same, except that such option or warrant shall be an option or warrant,  as the case may be, to purchase shares of the common stock of the Surviving  Corporation. |
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|   |   | The consummation of the Merger shall not be deemed a  transaction that constitutes a “change of control,” as such term is defined  in the stock option plans or agreements of the Company under which options to  purchase shares of its common stock have been granted. Accordingly, the terms  of outstanding stock options of the Company shall not be affected as a result  of the Merger. |
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|   |   | It will not be necessary for stockholders of the  Company to exchange their existing stock certificates representing shares of  common stock of the Company for stock certificates representing shares of  Surviving Corporation common stock. In the event, however, such stockholders  decide to effect such an exchange, they shall receive shares of Surviving  Corporation common stock possessing, subject to differences in applicable  law, the same general rights as the common stock of the Company. |
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|    | 4. | ****Approval, Filing and Effective Time.**** This Agreement and Plan of Merger  shall be adopted and approved by CPSL - Delaware and the Company in the  manner required by the Delaware General Corporation Law, as amended (the “DGCL”),  and the Colorado Business Corporation Act, as amended (the “CBCA”),  respectively. After this Agreement and Plan of Merger has been adopted and  approved, and so long as it has not been terminated pursuant to Section 5  hereof, the Company and CPSL - Delaware, upon obtaining the requisite Company  stockholder approval under the CBCA, shall file a certificate of merger with  the Secretary of State of Colorado and a certificate of ownership and merger  with the Secretary of State of the State of Delaware. The Merger shall become  effective upon the filing of such certificate with the Secretary of State of  Delaware (the “Effective Time”). |
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|   | 5.     | ****Amendment; Termination.**** This Agreement and Plan of Merger may  be amended or terminated at any time prior to the Effective Time by action of  the Board of Directors of both the Company and CPSL - Delaware, except as otherwise  prohibited by the CBCA or the DGCL, notwithstanding the adoption or approval  contemplated by Section 4 hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|   | 6.     | ****Further Assurances.**** From time to time, as and when  required by the Surviving Corporation or its successors or assigns, there shall  be executed and delivered on behalf of the Company such documents and other  instruments, and there shall be taken or caused to be taken by it all such  further and other action, as shall be appropriate, advisable or necessary to:  (i) cause the Surviving Corporation to have its common stock registered with  the Securities and Exchange Commission under Section 12(b) of the Securities  Exchange Act of 1934, as amended, and to have its common stock listed on The  NASDAQ Capital Market, (ii) vest, perfect or confirm, of record or otherwise,  in the Surviving Corporation, the title to and possession of all property,  interests, assets, rights, privileges, immunities, powers, franchises and  authority of the Company and (iii) otherwise carry out the purposes of this Agreement  and Plan of Merger. The executive officers and directors of the Surviving  Corporation are fully authorized in the name and on behalf of the Company or  otherwise, to take any and all such action and to execute and deliver any and  all such deeds and other instruments. |

 
|   | 7. | ****Service of Process; Appointment of Agent.**** The Surviving Corporation hereby  agrees that it may be sued in the State of Colorado for any prior obligation  of the Company, any prior obligation of any constituent foreign corporation qualified  under Section 7-115-105 of the CBCA, and any obligations hereafter incurred  by the Surviving Corporation, so long as any liability remains outstanding  against the Company in the State of Colorado, and it hereby irrevocably  appoints the Secretary of State of Colorado as its agent to accept service of  process in any action for the enforcement of any such obligation, including  taxes. |
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IN WITNESS WHEREOF, the Company and CPSL - Delawarehave executed this Agreement and Plan of Merger as of the day and year firstabove written.

 
|   |   |                                                 |              |   |
|--------|--------|------------------------------------------------------|-------------------|--------|
|   |   | CHINA PRECISION STEEL, INC.(A Colorado  corporation) |
|   |   |                                                 |              |   |
|   |   | By:                                                  | /s/ Wo Hing Li    |   |
|   |   |                                                 | Wo Hing Li        |   |
|   |   |                                                 |              |   |
|   |   | Title:                                               | President and CEO |   |
|   |   |                                                 |              |   |

 
|   |   |                                                 |               |   |
|--------|--------|------------------------------------------------------|--------------------|--------|
|   |   | CHINA PRECISION STEEL,  INC.(A Delaware corporation) |
|   |   |                                                 |               |   |
|   |   | By:                                                  | /s/  Wo Hing Li    |   |
|   |   |                                                 | Wo  Hing Li        |   |
|   |   |                                                 |               |   |
|   |   | Title:                                               | President  and CEO |   |
|   |   |                                                 |               |   |
|        |        |                                                      |                    |        |  |  |

 

 

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