15 DEC 2014

Subsequent to The National Shipping Company of Saudi Arabia (Bahri) announcement on 21 July 2014 relating to merging the Vela fleet and operations with Bahri, Bahri announces that (Aldebaran Star), one of the VLCCs in Vela fleet, was transferred to Bahri's ownership on Monday 15 December 2014 for a cash consideration of SAR 100,687,500 (equivalent to US$ 26,850,000) paid to Vela and her name was changed to (Khafji).The transfer of ownership was financed entirely by a Murabaha bridge financing signed and announced on Tadawul website on 22 June 2014. This marks the completion of transferring all Vela vessels to Bahri's ownership and the financial impact is expected during the fourth quarter of 2014. It is also worth mentioning that Bahri has performed on 18 August 2014 a valuation on the vessels that will be transferred and were transferred to Bahri's ownership through an international vessel broker, where it was valued at SAR 3.956 billion (equivalent to US$ 1.055 billion). This valuation shows the increase in the vessels value compared to the valuation performed in November 2012, which was stated in page 41 of the prospectus related to increasing Bahri's capital for the purpose of merging the fleet and operations of Vela with Bahri, from SAR 3.656 billion (equivalent to US$ 975 million) to SAR 3.956 billion (equivalent to US$ 1.055 billion), an increase by SAR 300 million (equivalent to US$ 80 million). As a result of the increase in the value of vessels, net fixed assets and intangible assets have changed by an amount equivalent to that increase to reflect the fair value of the assets at the date of receiving the first vessel, and its impact will be reflected on the fourth quarter consolidated balance sheet of Bahri, noting that the increase in vessels value doesn't impact the total non-current assets related to the transaction or the transaction value in general.