The board of directors of L'sea Resources International Holdings Limited announced that based on the preliminary assessment of the Group's unaudited consolidated management accounts for the six months ended June 30, 2014 and information currently available to the Board, the company expects to have a significant profit deterioration of the Group for the six months ended June 30, 2014 as compared with the result for the corresponding period in 2013. Such deterioration is mainly due to the presence of a significant gain from the repurchase of convertible bonds at a discount to face value for the six months ended June 30, 2013 and the absence of such gain for the six months ended June 30, 2014. Based on the preliminary assessment of the information currently available to the Board and subject to the change of estimates of depreciation/amortization and exchange difference which are not yet finalized at the time of announcement, the estimated amount of the net loss of the Group for the six months ended June 30, 2014 is expected to be approximately HKD 27 million.