Rosbunker’s sole asset is an oil transhipment terminal, currently handling mazut and diesel, situated in the port of Baltysk, located at the mouth of the Pregol River in the Kaliningrad Oblast. Baltysk is a deep water port on the Baltic Sea itself and occupies a highly strategic position, as it is located on the promontory between the Gulf of Gdansk and Vislinskiy Zaliv, the channel of water that leads directly into Kaliningrad. Krutrade AG, a wholly owned subsidiary of Kuzbassrazrezugol, the largest Russian exporter of coal, who jointly operates the terminal with Baltic, holds the remaining 50% interest.

The consideration payable to the vendor, Goulding Partners Inc. (“Goulding”), is being satisfied through the issue of 4,337,625 new ordinary shares of 1p each in the Company (“Ordinary Shares”) and a cash payment of US$3.0 million (£1.5 million), financed through a vendor placing of 1,549,810 shares. Goulding is 100% owned by Mr. Vladimir Gavrilov who has been appointed to the Board of the Company as executive director effective from 15 January 2008.

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