MLL announces its negotiation with Refined Success

Mumbai, Mar 25 (UNI) Mercator Lines Limited (MLL) has informed BSE about announcement submitted by its subsidiary, Mercator Lines (Singapore), to Singapore Stock Exchange on its negotiation with Refined Success Limited.

The Company has entered into a firm negotiation with Refined Success Limited, which is a subsidiary of PRC shipping conglomerate COSCO (HK) Shipping Company Limited (the "Charterer") for the time charter-out (the "Charter") of Geastiniono TBN, a gearless post panamax vessel of approximately 92,500 DWT.

This is a one-time charter for a period of about 35 to 37 months.

The charter-out rate will be USD 39,500 per day and the commencement date will be anytime between May 1, 2009 and September 30, 2009.

The above vessel has been taken by the Company on time charter-in basis at USD 25,300 per day for a period of five years and is expected to be delivered in June 2009.

The Charter is not expected to have any material impact on the net tangible assets per share, earnings per share and operating results of the Company for the current financial year.

The Charterers are unrelated to the directors and controlling shareholders of the Company. None of the directors and controlling shareholders of the Company has any interest, direct or indirect, in the Charter. No new directors will be appointed to the Board of Directors of the Company in connection with this Charter. The Charter is in the ordinary course of the Company's business, the Company stated.

UNI AR RN AG1937