Latest News from Yantai Raffles

Yantai Raffles Launches First Elevating Support Unit for Remedial Offshore Yantai Raffles Shipyard Limited (“Yantai Raffles”) has successfully executed the launch of its first Elevating Support Vessel for Remedial Offshore when the ESVTM unit was winched over rollers onto the launching barge. The launch ceremony celebrated a major milestone in construction of one of the world’s first ESV vessels. The innovative ESV design is optimized for well intervention in water depths to 325 feet. The ESV unit combines capabilities of a jack-up platform, an ocean-going vessel, workover drilling rig, heavy-lift cranes and an offshore accommodations platform in a single package. The project uses an industry-first design that allows elevated operations of up to 55 ft away from the well structure. The ESV hosts 1060 m2 available deck area for equipment rig-up, combined with a 280MT pedestal crane mounted on a moveable structure. There is also accommodation, available in 1-2 or 4-person cabins, for up to 120 personnel. The launching ceremony was attended by Mr. Malcolm Farquhar, Remedial Owner Representative and Senior Management of Yantai Raffles Shipyard Limited. “This marks a historic day for Yantai Raffles and creates an opportunity for us to expand upon our existing relationship with Remedial Offshore. We are extremely pleased with the progress made and the co-operation we have received during this project so far,” said Mr. Brian Chang, Yantai Raffles’ Deputy Chairman. ”It is extremely gratifying to reach this important milestone in the construction process,” said Svein Eggen, Remedial Chairman and CEO. “We are pleased with the build quality to-date and look forward to working with Yantai Raffles as we move towards successful completion.” Now that the ESV has been launched, it will be moored to enable completion of installation and commissioning of the jacking system. The next stage, which will commence next month, will be to move the unit alongside the 2000T shipyard crane and complete the leg installation process while continuing to outfit the vessel with pipes and cables. These are the final steps before the vessel enters into sea trials, with delivery to occur before the end of the year. YANTAI RAFFLES AND CHINA DEVELOPMENT BANK SIGN USD150,000,000 3-YEAR TERM LOAN FACILITY Yantai Raffles Shipyard Limited (“Yantai Raffles” or the ”Company”) announces it has signed a committed, 3-year Term Loan Facility with China Development Bank Corporation (“CDB”). The facility will be used primarily to retire more costly, existing bank debt and for working capital. Mr Mai Bo Liang, Chairman of Yantai Raffles’ Board said “Two of the priority objectives of the Company’s current Finance strategy are to establish and build upon key banking relationships in China, and to replace short-term bank lines with committed, longer term, competitively-priced funding arrangements. In securing this facility with CDB, Yantai Raffles has achieved an outcome that absolutely meets these two core objectives.” “Yantai Raffles is delighted to establish this business relationship with CDB and, with the ongoing commitment of Yantai Raffles’ two largest shareholders, Brian Chang and China International Marine Containers (Group) Co., Ltd (“CIMC”), is confident that there will be opportunities to develop further areas of mutual cooperation with CDB”. This transaction follows closely behind a Co-operation Agreement signed between CIMC and CDB in March 2009, in which CDB has provided CIMC with credit facilities of up to RMB 6.5billion (USD 1 billion). That facility supports CIMC’s future expansion plans in both domestic and international markets.