Newton Resources Ltd. board of directors expected that the Group will record a loss for the six months ending June 30, 2012 as compared to a profit for the six months ended June 30, 2011. Such estimated loss was mainly due to the Group's suspension of production of iron concentrates at the Yanjiazhuang Mine, and the absence of an exchange gain arose from the appreciation of Renminbi against the United States Dollar as recorded in the last corresponding period.