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March 18, 2013

Trading update

Far-Eastern Shipping Company plc ('FESCO' or the 'Group') announces a number of recent business developments and provides a trading update. This statement includes preliminary financial results for the year ended 31 December 2012. We expect to publish FESCO's financial statements as at and for the year ended 31 December 2012 in April 2013, followed by the Annual Report.

Adjusted Revenues in 2012 were approximately flat compared to 2011

- Outperformance of the Rail and Liner & Logistics Divisions was offset by lower revenue from Shipping (as adjusted for the disposal of vessels in 2012)

Adjusted EBITDA grew by 14% and margin expanded by 3% in 2012

- Performance of the Rail Division was supported by increased volumes in container transportation by block trains and growth in marginal income of Transgarant's railcar fleet

- Port Division's EBITDA increase was driven by improving container cargo throughput. The division's EBITDA was also supported by the positive effect of operational synergies arising from the ongoing merger of the Commercial Port of Vladivostok and VCT, following our acquisition of control of VMTP in March 2012

- In Liner & Logistics Division, the positive effect on EBITDA from volume growth was somewhat offset by increasing fuel and stevedoring services costs, with margins staying at normalized levels

- Shipping Division's performance was impacted by the decline in global time-charter rates and the disposal of 21 vessels in 2012. Following the significant reduction of fleet, the division's business model has evolved from ship ownership and ship management to a support function for the Liner & Logistics Division

FESCO Consolidated Group Financial Performance

(1) Adjusted for consolidation of VMTP, one-off transaction related expenses and compensation of insurance claims. 2012 figures also adjusted for the impact from disposal of 21 vessels
FESCO Consolidated Group Financial Position>

(2)Total borrowings exclude the $400m guarantee provided by certain subsidiaries of FESCO to its principal shareholders in respect of acquisition financing; include a $140m REPO loan against the shares of TransContainer

Divisional Financial Performance

(3) Adjusted for consolidation of VMTP
(4) 2012 figures adjusted for the impact from disposal of 21 vessels

Key Operational Data

This information is based on our preliminary financial results for the year ended 31 December 2012 that are not fully comparable with our audited consolidated financial statements or unaudited interim condensed consolidated financial statements. Such information has been prepared by, and is the responsibility of, our management, and has not been audited, reviewed or verified, nor have any procedures been completed by our auditors with respect thereto, and you should not place undue reliance thereon. It is subject to confirmation in our audited consolidated financial statements and annual report for the year ended 31 December 2012. This business update has neither been reviewed nor reported on by FESCO's external auditors.

These materials are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). These materials are not an offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. FESCO has not registered and does not intend to register any securities in the United States or to conduct a public offering of securities in the United States.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as 'relevant persons'). Any securities described herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

Information contained in this document is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in Russia or to or for the benefit of any Russian person, and does not constitute an advertisement of any securities in Russia. Any securities referred to herein have not been and will not be registered in Russia or admitted to 'placement' and/or 'public circulation' in Russia. Such securities are not intended for 'placement' or 'circulation' in Russia except and to the extent permitted by Russian law.

This press release may include 'forward-looking statements'. Such statements contain the words 'anticipate', 'believe', 'intend', 'estimate', 'expect', 'will', 'may', 'project', 'plan' and words of similar meaning. All statements included in this press release other than statements of historical facts, including, without limitation, those regarding financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding present and future business strategies and the relevant future business environment. These forward-looking statements speak only as of the date of this press release, and the Group expressly disclaims to the fullest extent permitted by law any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based

About FESCO

FESCO is one of the largest Russian port owners and operators with integrated rail and logistics businesses and primarily focused on intermodal deliveries of containerised cargo. The Group owns port, rail and shipping assets, which allow it to provide door-to-door logistics solutions and control almost all steps of the intermodal transportation value chain.

The majority of FESCO's operations are located in the Russian Far East and the Group benefits from growing trade volumes between Russia and Asian countries.

FESCO controls the Commercial Port of Vladivostok, which has throughput capacity of 3.9 million tons for general cargo and oil products, 150,000 vehicles and over 600,000 TEUs in containers following capital investments in 2013. FESCO is one of Russia's top 10 private railcar operators providing services under the Transgarant (100%) and Russkaya Troyka (50% JV with Russian railways) brands. Transgarant has approximately 16,200 units of rolling stock comprising of 12 different types of railcars, and Russkaya Troyka has approximately 1,570 fitting platforms. FESCO operates a container park of over 20,000 owned and leased containers with total capacity of over 33,000 TEUs. FESCO also has 26 ships mostly deployed through own line and logistics operations.