Stellar Ocean Transport, LLC

HIGHLY CONFIDENTIALSUBJECT TO CHANGE

Stellar Ocean Transport, LLC

April 2013

Indian Coastal Barge Proposal

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Disclaimer

While this presentation has been prepared in good faith Stellar Ocean Transport, LLC (“SOT”) does not take responsibility for any third party representation or warranty, explicitly or implied, as to the truth, accuracy or completeness of the information in this presentation or any other information relating to it whether written, oral or in a visual or an electronic form. The presentation may include references to and summaries of valuations and reports prepared by third parties that have not been independently verified by or on behalf of SOT.

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Who we areUntangling Infrastructure Hurdles

About Stellar Ocean Transport (“SOT”)

Stellar Ocean Transport is a Owner/Manager of Dry bulk ships and barges. Our origins go back to 1989 when we started trading in commodities into India. After establishing ourselves as a major trading house, we decided to invest in our own fleet of ships to meet our tonnage requirements. In 2008, the ship management activity was made into an independent company called Stellar Ocean Transport.

SOT has a monopoly of owning a fleet of the biggest Self-Propelled barges (8,000+ dwt) in the Indian Sub-continent/Persian Gulf region and has indepth knowledge of managing similar operations.

Track record

SOT has prior experience managing a similar operation of barging containers between Nhava Sheva and Mumbai ports.

Our barges were employed by TATA Steel and S.A.I.L. to carry coal between Haldia and Visakapatnam/Paradip as they are more economical compared to ships or rail due to the falling draft at Haldia and shortage of rail rakes.

We serviced the Fujairah – Mesaieed Aggregate trade through Barges significantly increasing the quantity of cargo transported by circumventing the congestion for the bigger ships and exploiting efficiently the economies of scale

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BALTIC DRY INDEXES

SOT TRACK RECORD: Case Study Dry Bulk

FINANCIAL PERFORMANCE OF PAST DRY-BULK ASSETS

Performance of past shipping investments

Overview

In 2001, anticipating the forthcoming surge in market prices, SOT decided to invest aggressively in the dry bulk segment purchasing 6 vessels of different sizes.

Driven by a combination of supply and demand fundamentals in 2002 the indexes began its 6-year climb reaching the high levels seen in 2008. Understanding that the market had reached its peak SOT decided to begin a monetization process of all the assets under its management, successfully completing a full exit prior to the sudden drop experienced by the index in 2H 2008

Over the investment period of 6 years, spanning 2002 – 2008 SOT managed to operate its fleet of 6 vessels profitably and exit at very attractive price levels with returns averaging 1.3x capital

SOT exit window

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NET INCOME PER BARGE

SOT TRACK RECORD: Case Study BargesSuccessful Experience in owning, operating and exiting Barges

Overview of Barge Investments After an attentive and prudent analysis of shipping market opportunities, SOT

decided to deploy the capital gained in 2008 to purchase 3 new built Barges. Specification of the Barges and operations were:

- MV Royal Star : Capacity 8,000 MTOperated between UAE and Qatar| Cargo - Aggregate

- MV Majestic Star : Capacity 10,000 MTOperated between UAE and

Qatar| Cargo – Aggregate- MV Platinum Star : Capacity 10,000 MT

Operated in East Coast India | Cargo – Coal & Iron Ore

Deployment Strategy: Taking advantage of Market inefficiencies

Constraint: Fujeirah and Mesaieed Port | Aggregates Cargo Mesaieed Port had two berths :

- Berth A – 12.5 meter draughts - Berth B – 9.5 meter draughts

Serviced by Supramax vessels with 12.5 meter draughts Supramax had to perform lightering of cargo and shifting before completing discharge

due to lower draughts of the Port In addition to lightering, due to heavy congestion these Supramax had up to 25 days of

queuing

Opportunity: SOT Management decided to service this route with Barges and handy size vessel 9.5 meter draughts which was able to berth directly in Berth B and discharge the totality of the cargo in only 3 days.

Results: SOT increased significantly the number of trips and cargoes per year boosting the revenues and exploiting efficiently the economies of scale

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SOT – Who we areTeam Profile

Captain Anil Kumar Rathee, Chief Executive OfficerCaptain Rathee is a Master Mariner and MICS London certified Chartered Ship Broker. He has over 26 years of combined sailing and shore experience. Prior to joining SOT he had been working with M/s Apeejay Shipping Limited for over 8 years. He last held the position of General Manager – Commercial and was responsible for the activities pertaining to Ship Chartering, Sale and Purchase, Operations, Insurance and Claims.Captain Rathee is a member of Indian Council of Arbitration, the Institute of Chartered Ship Brokers and the London Maritime Arbitrator Association

Ihsan Habib, DirectorIhsan is a M.A. graduate from the University of Southern California and also holds a Bachelor of Business Administration in Finance and MIS from Boston University. Prior to joining Stellar he worked for an investment banking firm in midtown Manhattan in New York. He was responsible for utilizing various valuation techniques such as DCF, relative valuation using earnings multiples for strategic advisory pitches to Jewelry and discount retail companies. He is currently pursuing his CFA charter from the CFA Institute, USA.

Captain Arijit Mukherjee, Head of OperationsCaptain Mukherjee has over 25 years of sailing experience of which last 9 years as Captain of various types of ships. He is a member of the Institute of Chartered Shipbrokers. He has been a marine surveyor for 3 years prior to joining Stellar. As a marine surveyor, he was involved in various types of P&I, H&M and damage claims surveys.

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Unique DesignRegional Monopoly of such vessels

Self-Propelled Barges

Self-Propelled Barges (SPB) are versatile Vessels; their unrestricted deck space, shallow draft and propulsion system make them suitable for very different markets such as lighterage, project cargo, containers or even supply vessel for the offshore Oil & Gas industry. Self-Propelled Barges combines the speed and maneuverability of a ship and shallow draft of a Towed Barge. Unlike a Tug-and-Barge combo no survey is required prior to each sailing and they can berth/unberth anytime during the day resulting in many ports giving them berthing priority.

The proposed SPB to be acquired and operated is unique for the Indian Sub-continent and Persian Gulf region giving a first mover advantage.

Versatile design

Our SPBs can be easily modified to carry the following:•Dry Bulk•Liquid•Containers

Towed Barge

Self Propelled Barges

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QHSEFully insured, Safe, Environment friendly operation

Classed, Certified, Insurable Operation

Our Self-Propelled Barges are properly classed by an IACS member (American Bureau of Shipping) and fully insured from a IG Club member (North of England P&I). So, the container cargo carried onboard is also insurable.

SafetySelf-Propelled Barges are fitted with proper ballast system and therefore are more stable in rough weather with less rolling & pitching and risk of vessel capsizing is minimized. Also, being a single unit, risk of towline parting/cargo loss is eliminated.

Greatly reduced Emissions and Noise pollutionDue to their design, Self-Propelled Barges would deliver better fuel economy resulting in lower CO2/NO2 emissions per container

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Turn-Around-TimeHigher Productivity levels for cargo handling

Reliable service

Towed barges are slow and cannot provide weather-reliable transport, so schedule-wise are not dependable. Towed barges have historically been very vulnerable to weather-induced delays. In some operations in the US Gulf, annualized weather delays for long-term operations of some tug/barge fleets averaged 30% or more. In the US Northeast, it ran as high as 40 to 50%, especially in the winter.

24 hours x 365 days operation

Due to safety reasons, many ports restrict Barge movements are after sunset. However, being a ship-shaped vessel, our Self-Propelled Barges can berth/unberth at anytime. Being susceptible to weather, Barging may not provide uninterrupted service during the monsoon season.

Speed and Maneuverability

Our Self-Propelled Barges can deliver better speed and fuel economy compared to a barging operation. Also, being fitted with twin screw engines and bow-thruster, they are very maneuverable. So, may not require Tug-assistance and Pilot to berth and unberth. As a result, our vessels would deliver much shorter Turn-around-Time and a reliable service.

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DeploymentPrompt positioning, Immediate improvements

Reduced LagtimeDue to our fleet setup, proposal is based on a ready vessel and it can be positioned with little lagtime. No time lost for vessel construction, positioning or conversion.

Greatly Reduced EmissionsOur SPBs provide better speed and consumption compared to a Towed Barge arrangement and greatly reduce the fuel consumed per freight ton mile by as much as 50%

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Frees Terminal AssetsFewer Port resources required

Tug assistance & Pilotage not requiredTowed barges are slow and cannot provide weather-reliable transport, so are not dependable schedule-wise. Towed barges have historically suffered horrendously as far as weather-induced delays. In some operations in the US Gulf, annualized weather delays for long-term operations of some tug/barge fleets averaged 30% or more. In the US Northeast, it ran as high as 40 to 50%, especially in the winter.

Dedicated Barge jetty may not be requiredSOT has experience performing the intended trade previously in 2010 by lightering coal at Haldia anchorage for TATA Group of companies.

Since our SPBs are classified as Ocean Going Vessels, they can sail to the open sea to lighter from the Mothership at anchorage and directly deliver to the Haldia Docks

Documents

Stellar Ocean Transport, LLC