King Stone Energy (HKG:0663) announced that the reduction of share premium account was approved by the Court on 23 December 2011 and the sealed copy of the Court order was duly registered by the Registrar of Companies in Hong Kong on 29 December 2011. Accordingly, the reduction of share premium account has become effective on 29 December 2011.

On 12 May 2011, the company proposed the reduction of share premium account, i.e. reduction of share premium account by the sum representing the accumulated losses of the company and the application of the credit arising from such reduction to eliminate the accumulated losses. As at 31 December 2010, the amount standing to the credit of the share premium account and the accumulated losses of the company were HK$3.066 billion and HK$2.953 billion respectively, as shown in the audited financial statements of the company for the year ended 31 December 2010. It was proposed that the amount standing to the credit of the share premium account be reduced by the sum of HK$2.953 billion.