JIN - AGREEMENT SIGNED
DISPOSAL OF A VESSEL

The Board of Jinhui Shipping and Transportation Limited announces that Jinkang, a wholly-owned subsidiary of the Company, entered into a memorandum of agreement with the Purchaser on 2 June 2009 for the disposal of a Supramax for a consideration of US$26,800,000.

THE DISPOSAL

Vendor
Jinkang is a ship owning company and a wholly-owned subsidiary of the Company as at date of this announcement.

Purchaser
The Purchaser is a private company founded and registered in Switzerland. The principal activities of the Purchaser are ship owning, ship managing and ship trading. To the best of the Board’s knowledge, information and belief having made all reasonable enquiry, the Purchaser is an independent third party not connected with the directors, chief executive or substantial shareholders of the Company or its subsidiaries or any of their respective associates.

Consideration
Under the Agreement, Jinkang agrees to dispose of the Vessel for a consideration of US$26,800,000 payable by the Purchaser as follows:

(1) an initial deposit of US$5,360,000 will be payable by the Purchaser within three banking days from the date of signing of the Agreement to a bank account in the joint names of Jinkang and the Purchaser and will be released on the delivery of the Vessel; and

(2) the balance of US$21,440,000 will be payable on the delivery of the Vessel which will take place during the period between 1 July 2009 to 31 July 2009 at Jinkang’s option. The consideration of the Vessel was determined with reference to the prevailing market values, driven by supply and demand and based on arm’s length negotiations with the Purchaser.

Vessel
The Vessel is a Supramax of deadweight 52,454 metric tons, built in 2003 and registered in Hong Kong. Jinkang is a special purpose company for holding the Vessel. The Vessel has been owned by the Group since February 2009 and its net book value as at 30 April 2009 was approximately US$18,083,000. The net loss both before and after taxation and extraordinary items attributable to Jinkang for the period from 1 January 2009 to 30 April 2009 was approximately US$946,000.

Use of Payment Received
The Group intends to use the net sale proceeds received pursuant to the Agreement for the general working capital of the Group.

REASONS FOR THE DISPOSAL
The Group’s principal activities include international ship chartering and ship owning. The Directors continuously review the prevailing market conditions of the shipping industry and monitor and adjust the Group's fleet size as appropriate. The Directors believe that the Disposal will enable the Group to enhance its working capital position and to further improve its liquidity. The Group currently owns one modern Capesize, two modern Panamaxes, twenty one modern grabs fitted Supramaxes (including the Vessel and two Supramaxes which will be disposed by the Group later in 2009 as announced by the Company on 30 March 2009) and one Handymax. Taking into account all existing commitments to acquire and dispose of other vessels as announced by the Company previously, the Group will have additional seventeen newly built grabs fitted Supramaxes, two newly built Post-Panamaxes, one newly built Panamax and one newly built Handysize for delivery going forward, where four of which will be delivered in 2009, seven in 2010, six in 2011, three in 2012 and one in 2013. The Board believes that the Disposal will not have any material adverse effect on the operations of the Group.

The terms and conditions of the Agreement have been agreed on normal commercial terms following arm’s length negotiations with reference to the prevailing market values. The Board considers such terms and conditions are fair and reasonable and in the best interests of the Company and its shareholders as a whole.

Based on the net book value of the Vessel as at 30 April 2009 as described above, the Group would realize a total book gain, after estimated expenses, of approximately US$7.9 million on disposal of the Vessel. However, the actual book gain which the Group would realize upon completion of the Disposal will depend on the actual net book value of the Vessel as at date of delivery in accordance with the Group’s depreciation policy for its vessels as shown in the Company’s annual report.

Jinhui Shipping and Transportation Limited