On December 18, 2008, China Armco Metals, Inc. (the "Company", "we", "us" or "our") entered into an employment agreement (the "Employment Agreement") with Mr. Kexuan Yao, our Chief Executive Officer and Chairman of the Board of Directors, for a term of thirty-six (36) months commencing January 1, 2009. The Employment Agreement stipulates that Mr. Yao will receive a base salary at the annual rate of $73,000 and will be eligible to receive interim and/or annual bonuses as may be determined by the Board of Directors of the Company. In addition, Mr. Yao will receive certain allowances and other benefits provided by the Company. The full text of the Employment Agreement is attached hereto as Exhibit 10.1 to this Form 8-K.

In addition, on December 18, 2008 Mr. Yao entered into an Amendment to the Call Option Agreement with Feng Gao (the "Amendment to Call Option Agreement"). Under the terms of the Amendment to Call Option Agreement, (i) the definition of Condition 3 was amended to "Armco and its Subsidiaries achieving not less than $4,000,000 in pre-tax profits, as determined under United States Generally Accepted Accounting Principles consistently applied ("US GAAP") for the nine month period year ending September 30, 2008"; and (ii) the definition of Condition 4 was amended to "Armco and its Subsidiaries achieving not less than $40,000,000 in Gross Revenues, as determined under US GAAP for the nine month period year ending September 30, 2008". All other terms and conditions of the June 27, 2008 Call Option Agreement remain in full force and effect. The full text of the Amendment to Call Option Agreement is attached hereto as Exhibit 10.2 to this Form 8-K.

(d) Exhibits.

   Number    Description

               Employment Agreement between the China Armco Metals, Inc. and Mr.
    10.1     Kexuan Yao, dated December 18, 2008
               Amendment to Call Option Agreement between Mr. Kexuan Yao and Ms. Feng
    10.2     Gao, dated December 18, 2008