The paper presents observations on the mechanical properties characterizing low-carbon steel subjected to deformation by the dual rolls equal channel extrusion (DRECE) method and annealed for 60 min in different temperature variants in the range of 450–700°C. The DRECE process was carried out up to seven passes at ambient temperature. The investigations carried out revealed that the strength of the steel strips increases corresponding to the rise in the number of DRECE passes applied. The yield strength (YS) after seven passes is >2.5 times higher compared to the material in the initial state (before the deformation process). However, the tensile ductility decreased significantly after the DRECE. In order to obtain favorable mechanical properties, the steel strips were subjected to annealing. Our study demonstrates that after being processed by the DRECE method, low-carbon steel can be subjected to low-temperature annealing to ensure that it is endowed with high strength, while maintaining the characteristic good ductility of the material. The results of the research were analyzed in the context of an investigation into the microstructure change, assessed by scanning transmission electron microscopy (STEM), induced in low-carbon steel subjected to the DRECE process and low-temperature annealing.