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FESCO ANNOUNCES CASH TENDER OFFERs FOR CERTAIN OUTSTANDING DEBT SECURITIES

Far-Eastern Shipping Company (the "Company", "FESCO") in order to optimize its liabilities profile announced today that it commenced a cash tender offer targeting its U.S.$550,000,000 8.00% Senior Secured Notes due 2018 (the "2018 Notes") and U.S.$325,000,000 8.75% Senior Secured Notes due 2020 (the "2020 Notes") together defined as "Notes".
The Offer is being conducted as a modified Dutch auction as detailed in the Offer to Purchase. The maximum payment Amount of U.S.$ 85 m for both issues of Notes is subject to the right of the Company to increase, decrease or otherwise modify the Maximum Payment Amount in its sole discretion.

The tender offer will be open for 20 US business days.

In addition FESCO informs that it will commence a Public tender offer for up to RUB 4bln in Rouble bonds series BO-02 (the «Rouble Bonds») at fixed price of 80. The Offer will be open for 2 days on April 15 and April 16.

Subject to certain conditions as set out in the Offer to Purchase, the tender offers are completely voluntary and open to all bondholders.

The cash tender offers are initiated by FESCO to efficiently use the opportune time and market conditions to reduce the overall leverage. In addition, the FESCO aims to improve the debt currency structure by raising Rouble financing for the transaction. The offer gives access to the cash liquidity for bondholders and offers a premium to the market price of traded securities.

"Cash tender offer is the next essential step of our liability management initiative which aimed to reduce the leverage, provide for a more optimal currency balance in the Company's debt structure and maximize the shareholder value"- said Viсtor Belyakov, the CFO of FESCO.

2018 Notes and 2020 Notes

Dealer Manager: Morgan Stanley

In Europe: +44 (0)20 7677 5040, liabilitymanagementeurope@morganstanley.com

In the United States: (800) 624-1808 (toll-free), (212) 761-1057 (collect)

Tender Agent: D.F. King

+44 207 920 9700 / +1 212 269 5550 / fesco@dfking.com

Rouble Bond BO-02

Agent - "Vneshprombank" Ltd

+7 (495) 645-36-51 / volgarev@feib.ru