Nan Nan Resources Enterprise Limited announced that with reference to the profit warning announcement dated 16 April 2014, one of the factors causing the expected significant increase in the net loss of the Group for the year ended 31 March 2014 as compared to the net loss for the year ended 31 March 2013 is the increase in loss arising from the change of the fair value of convertible loan notes. According to the draft valuation report of the convertible loan notes and the draft management account of the Company as well as the recent discussion among the management of the Company and its valuers, the board of directors of the Company expects that the loss arising from the change in fair value of the company's convertible loan notes for the year ended 31 March 2014 is expected to be approximately HKD 15,373,000, as compared to the gain of HKD 24,031,000 arising from the change in fair value of the Company's convertible loan notes for the year ended 31 March 2013.