Quintana Acquires a Newbuilding Capesize Bulk Carrier

Quintana Maritime Limited has agreed to acquire a newbuilding Capesize bulk carrier of 180,000 deadweight tons (dwt). The vessel will be constructed by Imabari Shipbuilding Co., Ltd., the largest shipyard in Japan, with expected delivery during the fourth quarter of 2008. The expected total cost at delivery, including contract costs and financing costs, will approximate $93 million. Quintana Maritime will make a down payment of $9.2 million in early May, followed by another installment of $9.2 million six months later. A further amount of approximately $28 million will be paid in June 2008 with the remaining balance of $46.6 million due at delivery of the vessel. The Company intends to finance the construction costs with existing cash, borrowings under its revolving credit facility, and cash flow from future operations. Furthermore, Quintana has secured the vessel under a five year time charter, from delivery, at a net daily rate of $ 39,000 with Transfield, a major operator in the Capesize market that operates in excess of 40 Capes. Once the company takes delivery of the vessel, as well as the other three recently contracted Capesize newbuildings for delivery 2010, Quintana's fleet will be one of the most modern in the industry with an average age of 2.5 years on a dwt-weighted average basis, consisting of 33 vessels in total, including 11 Panamaxes, 14 Kamsarmaxes and 8 Capesizes, with total cargo-carrying capacity of almost 3,366,043 dwt.