Jinhui Shipping and Transport Ltd.

Legal Proceedings Report • Dec 2, 2010

TERMINATION OF AN AGREEMENT

The board of directors of Jinhui Shipping and

Transportation Limited (the 'Company') announces that

a wholly-owned subsidiary of the Company has reached

an agreement with the Contractor on 1 December 2010

to cancel a construction and sale contract (the

'Contract') to acquire a Supramax newbuilding at a

purchase price of JPY5,100,000,000.

As a result of the cancellation, partial installment

of JPY510,000,000 shall be forfeited and the Contract

shall be terminated accordingly. The Group does not

expect significant financial impact due to the

cancellation of the Contract.

The announcement is available on the website of

the Company at [http://www.jinhuiship.com].

For details, please see attachment on

[http://www.newsweb.no].

This information is subject of the disclosure

requirements acc. to §5-12 vphl (Norwegian Securities

Trading Act).