Mercator Lines (Singapore) Limited

Mercator Lines (Singapore) Limited announced that it has renegotiated its existing COA (Contract of
Affreightment) with Tata Power on new terms. Mercator had entered into a COA with Tata Power in October
2006 for transportation of approximately 1.9 million tons coal annually from Indonesia to India for a period of 4
years, Tata further had an option to increase the quantity and extend the contract period by 2 years. Based on
TATA’s growing demand for imported coal they have decided to renegotiate the existing contract on the basis
of new cargo quantity and freight rates. It has now further increased the quantity to a total of about 3.2 million
tons. Taking the option quantity of the first contract into consideration the new contract reflects an increase of
about 33% in quantity which will require about one and a half more additional vessels to service the contract.
The incremental business of the additional vessels is estimated at a Time Charter Equivalent (TCE) rate of
USD 54,000 per day for 4 years, taking the average vessel earning under this contract to a TCE rate of USD
33,000 per day from USD 24,000 previously. The total value of this 4 year contract, starting June 2008, based
on the new quantity and incremental rate is estimated to be US$ 320 Million .