The board of directors of APAC Resources Limited informed the shareholders of the company and potential investors that the annual results of the Company and its subsidiaries for the year ended 30 June 2012 are expected to record
a loss as compared with a profit recorded for the eighteen months ended 30 June 2011. The loss is mainly attributable to (i) the unrealised fair value mark down on securities held for trading and investment; and (ii) the expected drop in the Group's share of profits (net of losses) of associates. Principal contributors to the loss of the Group are (i) weakening of the global natural resource sector resulting from the continued nervousness by the financial markets over the prolonged sovereign debt issues in the Eurozone region and concerns over Chinese economic growth; (ii) the significant downward adjustments in global iron ore prices since October 2011; and (iii) negative sentiment surrounding global economic growth.