Yue Da Mining Holdings Limited inform the shareholders of the company and potential investors that it is expected that the unaudited results of the group for the six months ended June 30, 2012 may experience a substantial decline as compared to the profit for the six months ended June 30, 2011. Based on the information currently available, the Board considers that such decline is principally due to the following reasons: that, as disclosed in the interim report 2011 of the group, a fair value change in contingent consideration of RMB 44,186,000 was recognized as an item of other gains of the group for the six months ended June 30, 2011 arising from the profit guarantee given by Bright Harvest Holdings Limited to the group in relation to the performance of Tong Ling Guan Hua Mining Company Limited which is a subsidiary of the Group, where no such amount would be recognised in the current period; and the decrease in the production volume of the iron mine held by Tengchong Ruitu Mining and Technology Company Limited, a wholly-owned subsidiary of the Group, for the six months ended June 30, 2012 comparing with that of the corresponding period in 2011 due to the reasons disclosed in the announcement of the company dated July 5, 2012.