China Precious Metal Resources Holdings Co.,Ltd. announced its board of directors informed the shareholders and potential investors of the company that based on a preliminary assessment with reference to the unaudited consolidated management accounts of the Group for the year ended December 31, 2014 and information currently available to the Board, the Group is expected to record a net loss for the year ended December 31, 2014 as compared with a net profit for the year ended December 31, 2013. The Board considers that the loss of the Group for the year ended December 31, 2014 is mainly attributable to the estimated loss arising from changes in fair value of the derivative financial instruments of approximately HKD 49 million during the year ended December 31, 2014 with respect to the company's convertible bonds issued in 2013 based on the preliminary assessment by an independent firm of professional valuers; the loss arising from the one-off transaction relating to the early redemption of redeemable preferred shares together with warrants of HKD 155 million, details are set out in the company's interim report for the six months ended 30 June 2014; and drop in gold price and decrease in the Group's sales for the year ended December 31, 2014 as compared with the year ended December 31, 2013. Based on information currently available, the Board estimates that the amount of the net loss expected to be incurred by the Group for the year ended December 31, 2014 will be approximately HKD 170 million to HKD 180 million.