King Stone Energy Group Limited board of directors announced that based on preliminary review of the unaudited management accounts of the Group, it is expected the Group will record a decrease in profit or to record a loss for the six months period ended June 30, 2012 as compared to the corresponding period in 2011 as a result of reduction in revenue due to decreases in both the coal output and the average price of coal and possible impairment loss made on certain assets during the period.