The board of directors of Kiu Hung Energy Holdings Limited informed the shareholders of the company and potential investors that based on the information currently available, the group is expected to record a substantial increase in loss for the year ended 31 December 2012 as compared to the loss for the year ended 31 December 2011. Based on the information currently available to the group, the anticipated substantial increase in loss was mainly attributable to a significant increase in impairment loss of the exploration and evaluation assets of the group.