Based on the preliminary estimation by Courage Marine Group Ltd. announced that the company expects to record a net loss attributable to equity holders of the company for the six months ended 30 June 2012 as compared to the three months ended 31 March 2012. Based on the information currently available to the Company, the Board believes that the expected loss was mainly attributable to (i) the cumulative losses on disposal of vessels arising from the disposal of 4 of the Group's older vessels as earlier announced by the Company and (ii) the continuing challenging operating environment for cargo shipment, necessitating provisions for impairment losses of the Group's remaining vessels.