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 Vendor on 4 December 2010 to

cancel a memorandum of agreement (the 'Agreement') to

acquire a Supramax newbuilding at a purchase price of

JPY5,350,000,000.

As a result of the cancellation, partial installment

of JPY535,000,000 shall be forfeited and the

Agreement shall be terminated accordingly. The Group

does not expect significant financial impact due to

the cancellation of the Agreement.

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).

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