The Board of Directors of Morning Star Resources Ltd. announced that it is now expected that the results of the company and its subsidiaries (group) for the six months ended June 30, 2012 may show a loss. Such loss was mainly due to the impairment of cost of investment in Beijing Morning Star Travel Service Limited. As Beijing Morning Star had been making loss for some years, the Board is of the view that the probability of turnaround of Beijing Morning Star is remote and intends to cease the operation.