THE PACIFIC INSPECTION J.

S COMPANY
Head : 71 & 73 Le Quoc Hung Street - District 4 - Hochiminh City -
ISO 9001 : Office Vietnam
2000 Tel: (84.8) 8.26.27.88 Fax: (84.8) E-mail: pico@ hcm.fpt.vn
8.26.27.99

PRELIMINARY REPORT Date: June 23, 2009

Applicant : SPICA SERVICES

For and on behalf of : SHIPOWNERS P & I CLUB
Attn. : Mr. Le Ha Binh
Your Ref. : SOP/TBA/09/VN/LHB
Fax/ E-mail : 8.232530
Our Ref. : 18752 M/HCM.
No. of pages : 9+

Subject: Tug Saigonpetro POWER IX / barge REP. 80 - Alleged contact and sunken to
local fishing boat ST-90667TS while en-route Can Tho, at 0300LT on Jun. 10, 2009

Dear Sir,

Upon receiving your instruction and contact concerned parties, we - on Jun. 22, 2009 did attend:

. Onboard the tug / barge SP POWER IX / REP. 80 while they were anchoring at Can Tho port
anchorage to carry out inspection & investigation on the alleged damages, interview the Master &
Chief Officer on the incident developments, taking sample of strange paint left onboard the barge,
etc.

. Togetther with the Master / Chief officer to attend onboard the fishing boat ST-90667 at Tran De,
Trung Binh village, Long Phu district, Soc Trang Province to carry out inspection and investigation
on the alleged matter, interview the Master of ST-90667 TS and witnesses, etc. to ascertain the
incident situation as well as extent of loss.

Hereunder are our findings:

1. Outline of incident:

1.1. As per declaration of Master of SP POWER IX:

The tug boat SP POWER IX and tow barge REP. 80 in empty condition sailed from Singapore on
Jun. 06, 2009 bound for Can Tho port of Viet nam for loading river sand in bulk.

On Jun. 10, 2009 at 0545 LT (Viet nam time) while appoaching to the anchorage of Can tho port,
one strang man was sudden found onboard the barge REP. 80, consequnetly the tug boat had to
 No. 18752M/HCM
Page 2

maneuver back close to the barge, pick up the strange man from barge onto the tug boat SP
POWER IX to check and investigate causation of his present onboard the barge. At the same time,
a Navtex notice to the sunken position of fishing boat ST-90667TS was received

The strange man had been taken onboard the tug boat, sailed to the inner pilot station of Dinh an
entrace, where he was delivered to the Border Station No. 634 of Soc Trang Province the tug and
barge continued to sail to drop anchor at Can tho port of Viet nam, ready to load sand in bulk.

Upon arrived Can tho port, it was advised that the Port Authority of Can tho had received a claim
file from the Owner of ST-90667TS, who annouced the tug/barge contacted to their fishing boat
caused to sunken the boat and one crew missing. That is why, an investigation of Can Tho Port
Authority (CTPA) had been done the Master had been invited to the office of CTPA to interview,
while the barge can not load sand, due to wait for clearance of CTPA

1.2. As the declaration of Master of fishing boat ST-90667TS:

According to the Master statement of fishing boat, we have learnt that:

- Master of fishing boat: Le Minh Khai Born in 1976 address: Tran De, Trung Binh village,
Long Phu district, Soc Trang Province. The fishing boat with 5 crews onboard departed from
Cua Tran De entrance, outbound registering at Border Guard Station No. 638

- On Jun. 10, 2009 while during May 21, 2009 at about 1000 LT, while it was heavy rain, and
most of crews under sleeping, the fishing boat was sailing under command of Master to change
fishing area, she was contacted by a foreign tug/barge, caused to fishing boat got sunken in some
minutes. All of crew were safely escaped / jumped into sea and then be rescued by the tug boat
SP POWER IX then 3 of them had been transferred to a neighbor fishing boat, and the rest of 4
crews went back Viet nam port onboard the tug boat SP POWER IX, which arrived Can Tho
port on May 23, 2009 at 0800LT to deliver to the Port Authority for incident investigation
formalities.

- The navigation course before incident is reportedly approx. 270 deg.

2. Results of survey, interview and investigation:

2.1. Inspection result:

Carry out survey on the tug boat and barge, we recorded:

- Tug boat: in normal condition

- Barge marine Power 3010: the barge hull is visually intact, except some traces of scratches left
on the bow plate of fore rake. The scratches are fresh traces longitudinally left on the bow plate,
with strange (light green) color.
 No. 18752M/HCM
Page 3

Please refer to our photo attached.

2.2. Interview the Master of SP POWER IX:

According to the results of interview, we recorded:

- The tug / tow condition prior to incident were reported: Speed from 7.5 to 8.6 kts / Length of
tow line: 260m / Weather: West wind bad weather, poor visibility, heavy raining / Course: 10
deg. / 2nd officer & A/B on bridge

- First observation: approx. 4 cables approaching to starboard bow

- Action: change course to port, give sound signal horn when detect approaching of fishing boat

- The fishing boat (port side) firstly contacted to the tow rope, then caught to area between bridle
lines, then capsized under press of bow plate while barge on forward movement, and sunken.

Further details can be found in our Master Interview & Incident sketch attached.

2.3. Interview the Master of fishing boat:

Perform interview the Master of fishing boat, we recorded:

- The Navigation course: Fishing boat 270 deg. / Tug & barge: 10 deg.

- Documents and COC of fishing boat: already sunken with boat loss

- Incident time: at 0945 LT (Viet nam time)

- Weather status: heavy rain, sea 4, poor visibility

- Condition: sailing to change the fishing field as it was heavy rain, all windows and door closed
and not detected the tug and barge (until contact)

- Action: no action, as not determine the closest status after contact: speed up engine to
overtake, but unsuccessfully

- Sound signal: no hear sound signal, as door / window closed and engine heavy noisy

- Contact position: the barge bow contacted to the port side stern quarter of the fishing boat
details as incident sketch attached

- Appearance: tug boat: red color / barge hull: black and red color

2.4. Description on the fishing boat:

Copy of Certificate of registration, where we noted:

- Registration number: BD-1745 TS

 No. 18752M/HCM
Page 4

- Owner: Le Thanh Vinh

- Registration at: Fish protection department of Binh Dinh province

- Type / occupation: Fishing boat

- Built / year: Hoai Nhon fishing boat yard / 1999

- Length / breadth / depth: 15.50 M / 4.30 M / 2.05 M

- Material / capacity: wooden hull / 28.70 cu.m

- Engine / Power / Made: 6 ISUZU / 60 HP / Japan

- Engine number: 225328

A copy of Owner statement on the incident was provided, where we can find the statement of boat
owner that certified by local authority: incident statement submitted at 0900 LT on May 22, 2009 by
Mr. Le Thanh Vinh, Owner of DB-1745 TS

Beside, we were supplied a Classification record book No. 1476/UB that recorded the boat is a
wooden hull fishing boat, built in 1999, main dimensions as above stated. Other navigation / fishing /
safety facilities were also recorded in this class book and occupation for fishing cuttle-fish

The last annual carried out on Aug. 17, 2008 and the next due date is Aug. 15, 2009 in brief, the
operation and class status of this boat is normal without limitation or remark. No copy of statutory
certificates, COC, etc. was supplied, as reportedly loss when the boat down

On May 26, 2009, we received a copy of Authorization letter signed by Mr. Le Thanh Vinh, who
authorized for Mr. Nguyen Can ID No. 210607125 HP No. 0984169072 to settle this incident.

2.5. Claim of fishing boat:

2.5.1. The first initial claim:

On May 26, 2009, we received a claim letter dated may 25, 2009 sign by Owner of ST-90667TS,
details as follows:

- Boat hull, main engine and generator: VND 600,000,000

- 2 set of cuttle-fish nets: VND 500,000,000

- Navigation & fishing facilities: VND 150,000,000

(2 VHF & 1 HF transceiver, 1 GPS, 1 fish scanner, net winched, fish trays, etc.)

- Provision and oil (6,000 L gas oil + 200 L lube oil + provision store + ice for fish freezer):
VND 100,000,000

- Fished product onboard: (200kg dried cuttle-fish, 5 tons of iced fish, and others) those valued
approx. VND 100,000,000
 No. 18752M/HCM
Page 5

- Loss of salary: 7 crews * 1 month (VND 3 mil/person): VND 21,000,000

- Total claim value: VND 1,450,000,000

- Equivalent to approx. USD 81,460 in sum

We right on site request the claimant to break down their claim, and then received the updated claim
on May 26, 2009 with details:

2.5.2. Updated claim value, adjust & comment:

On May 27, 2009, we did received a Claim latter dated may 26, 2009, signed by the Authorized
person Mr. Nguyen Can with the claim amount stated of VND 1,328,000,000 in sum. After
review on the claim items, basing on our experience for fishing boat field, we roughly adjusted the
claim value and would comment as follows:

No
. Descriptions Claim (VND) Estimated (VND)
1 Boat hull 400,000,000 364,418,440
2 Main engine 6 ISUZU 60 HP 150,000,000 140,000,000
3 Generator (AC genset - 30kW - Japan used type) 90,000,000 50,000,000
3a Battery charger (DC shaft generator) 25,000,000 18,000,000
3b 4 set of batteries * 200 Ah 10,000,000 10,000,000
4 One set of fishing rope 600 kg * VND 65,000/kg 39,000,000 39,000,000
5 Fishing net, copper rings: 405 kg * VND 85,000/kg 34,400,000 34,400,000
6 Japan fishing net: 2,000 kg * VND 140,000/kg 280,000,000 140,000,000
7 Lead mass of net (1,000 kg * VND 30,000/kg) 30,000,000 30,000,000
8 Net buoys: 2,000 pcs * 10,000 VND/pc 20,000,000 20,000,000
9 Cuttle fishing nets (light net for cuttle-fish) 30,000,000 30,000,000

A NAVIGATION / FISHING FACILITIES

1 2 sets of handheld VHF 7,000,000 7,000,000
2 1 set of HF transceiver 10,000,000 10,000,000
3 GPS / chart plotter set 9,000,000 9,000,000
4 Fishing net winch gear 40,000,000 25,000,000
5 Fish trays (1,000 trays * VND 40,000 per tray) 40,000,000 40,000,000

B EXPENSES OF PROVISION STORE AND OIL:

1 Gas oil 6,000 L * VND 10,000 per L 60,000,000 35,000,000
2 Lube oil: 200 L * VND 25,000/L 5,000,000 5,000,000
3 Ice cube: 500 cubes * VND 12,000/cube 6,000,000 6,000,000
4 Rice - 200 kg 2,500,000 2,500,000
 No. 18752M/HCM
Page 6

No
. Descriptions Claim (VND) Estimated (VND)
5 Food and vegetable 7,000,000 7,000,000
6 High power light (5 sets * VND 1 mil/set) 5,000,000 5,000,000

C FISH & CUTTLE FISH ONBOARD

1 Dried cuttle fish (300 kg * VND 200,000/kg) 60,000,000 24,000,000
2 Fish onboard (3,000 kg * VND 20,000/kg) 60,000,000 30,000,000

SUM OF CLAIM AMOUNT (MISTAKEN) 1,328,000,000 -

SUM OF CLAIM (CORRECTED) 1,419,900,000 1,081,318,440

Exchange rate (VND/US$) 17,800.0
Equivalent to USD 79,770.0 USD 60,748.0

Note:

- The claim value of the opponent may contain mistaken in calculation, where we re-calculated
the claim value to up to VND 1,419,900,000 or approx. USD 79,770 in stead of VND
1,328,000,000 as officially stated.

- Item 1: The cost to rebuild a similar hull had been calculated basing on local market prices,
details given in our appendix attached.

- Item 2: Engine cost, included the gear box apply local market price.

- Item 3: Claim by 30 kW AC generator, while recorded in the class book of 10 kW only thus
adjusted to local market price of used Japan generator, in good condition.

- Japan made fishing net: adjusted to the value of used net, same type

- Item B1: the gas oil used to sail from shore to the fishing field from May 14 to May 21, 2009 is
estimated approx. 2,500 L thus quantity remaining onboard estimated approx. 3,500 L that
unit priced VND 10,0000 per L, thus value estimated VND 35,000,000

- Item C1: Value of cuttle-fish onboard calculated on the estimated quantity of 200 kg and local
salable price of VND 120,000 per kg, and value estimated VND 24,000,000

- Item C2: Value of cuttle-fish onboard calculated on the estimated quantity of 2,000 kg and local
unit price of VND 15,000 per kg, thus value estimated VND 30,000,000

In brief, the claimant did not claim for loss of earning, but a number of claim items are likely being
flattened and need to be considered further. Our above-mentioned estimated is rough estimation
only.

2.5.3. Comment on the liability:

 No. 18752M/HCM
Page 7

Upon review on the incident status, we would comment as follows:

- The fishing boat had been contacted from her port side (red light), caused to capsize and sunken
in short. The contact point on barge is right on her bow plate, while the fishing boat approached
from the barges starboard side bow quarter (green light quarter) that contributed a disadvantage
point in contact incident liability apportionment when apply COLREG 72.

- The opponent fishing boat was fail in look-out, when the Master of fishing boat closed all the
door and window, steer in noisy condition, caused to unable to determine the horn sound signal
of tug, and negligent in look-out (incident was only determined after first contact). The entire
declaration of opponent Master had been recorded written in our Interview records attached

- Its necessary to apply a liability apportionment in settling this claim, either amicably or officially.
This apportionment need to be based on our results of recording / interviewing on site those
attached hereto.

2.1 Further information:

This claim case is now settling by Can Tho Port Authority: Mr. Tien, Manager of PSC division, HP:
+84. 918351985. Understand that PA of Can Tho port may retain the barge within 30 days for
incident investigation, thus it needs to be carefully considered before further act.

We are now waiting for the claimant to submit further supporting document prior to give further
investigation and comment.

Should you need further clarify or comment, please kindly advice.

Best regards,

Tran Thanh Danh & Hoang Van Thanh

Boarding surveyors