Scorpio Tankers Inc. Announces Agreements to Purchase Two LR1 Product Tankers With Short-Term Time Charters

MONACO -- (Marketwire) -- 05/17/10 -- Scorpio Tankers Inc. (NYSE: STNG) (the "Company" or "Scorpio Tankers") announced today that it entered into agreements to purchase two LR1 ice class-1A product tankers (approximately 74,000 dead weight tons) each with an existing time charter contract. The aggregate purchase price of $92.0 million includes an estimated $2.5 million related to value of the time charter contracts. The two ships were built in 2008 and 2007 at the Onomichi Dockyard in Japan and are scheduled to be delivered by the end of June 2010.

The existing time charter contracts of $25,500 per day per ship plus 50% profit sharing over the base rate expire in October 2010 (plus or minus 30 days) for the vessel built in 2007 and January 2011 (plus or minus 30 days) for the vessel built in 2008. The time charters, which were signed in 2007, are with a related party of Scorpio Tankers.

Emanuele Lauro, the CEO of Scorpio Tankers, commented, "We are excited about early delivery of the LR1 product tankers, which will provide significant cash flow during the traditionally weak summer season. Since our initial public offering six weeks ago, we have been executing our plan with the agreements to purchase four Handymax vessels and two LR1s for an aggregate purchase price of approximately $190 million. Upon delivery of the six ships, the average age of our fleet will be approximately 5.5 years."

About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns two LR1 product tankers and one post-Panamax tanker, with an average age of 6.9 years and has signed agreements to purchase four Handymax tankers and two LR1 ice class-1A product tankers. Additional information about the Company is available at the Company's website www.scorpiotankers.com.

Scorpio Tankers Inc. press release