Adjustment to Conversion Price (CB stock code: 4573)

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in r

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

PB ISSUER (NO.3) LIMITED (the "Issuer")

(incorporated in the British Virgin Islands with limited liability)

US$123,800,000 1.875% Guaranteed Convertible Bonds due 2018 (the "Bonds") (Stock Code: 4573) convertible into ordinary shares of, and unconditionally and irrevocably guaranteed by (the "Guarantor") ADJUSTMENT TO CONVERSION PRICE The Issuer and the Guarantor jointly announce that the Conversion Price of the Bonds will be adjusted from HK$4.75 per Share to HK$3.58 per Share with effect from 30 May 2016.

Reference is made to the announcements of the Guarantor dated 20 September 2012 and 22 October 2012 for the issuance of the Bonds, and the subsequent Conversion Price adjustments dated 24 April 2013, 23 April 2014 and 27 April 2015. Unless otherwise defined here, terms used in this announcement shall have the meaning given to such terms in the Guarantor's announcement dated 20 September 2012.

The Issuer and the Guarantor jointly announce that the Conversion Price of the Bonds will be adjusted from HK$4.75 per Share to HK$3.58 per Share with effect from 30 May 2016. Such adjustment is the result of the issue of Shares by way of rights as approved at the adjourned special general meeting (the "Adjourned SGM") of the Guarantor held on 27 May 2016 which is regarded as a conversion price adjustment event under the terms and conditions of the Bonds.

The above adjustment to the Conversion Price shall become effective on the first date on which the Shares are traded ex-right. The above adjustment has been computed in accordance with the terms and conditions of the Bonds. Apart from the above adjustment, all other terms of the Bonds remain unchanged.

In the case of conversion of the Bonds, the Guarantor will utilise the specific mandate obtained from Shareholders at the Adjourned SGM to satisfy the issue of the Conversion Shares.

This announcement also serves as a notification to the Bondholders in respect of the adjustment to the Conversion Price as per the terms and conditions of the Bonds.

By order of the Board of Pacific Basin Shipping Limited MOK Kit Ting, Kitty

Company Secretary

Hong Kong, 30 May 2016

As at the date of this announcement, the Directors of the Issuer are Mats Henrik Berglund, Andrew Thomas Broomhead, Mok Kit Ting Kitty and Kong Hoi Yan Karen.

As at the date of this announcement, the Directors of the Guarantor are:

Executive Directors: David Muir Turnbull, Mats Henrik Berglund, Andrew Thomas Broomhead and Chanakya Kocherla

Independent Non-executive Directors: Robert Charles Nicholson, Patrick Blackwell Paul, Alasdair George Morrison, Daniel Rochfort Bradshaw and Irene Waage Basili