MT Pacific Valour

Attached is an executive summary of Watson Farley & William's (WFW) opinion
prepared by their partner, Neale Gregson.

Essentially, we have no case against Hyundai as Seller. We do have one cause
of action against the Owners : for failing to set out on the voyage in such
time that the vessel could reasonably be expected to arrive at loadport
within ETA.

Success of an action against the Owners depends very much on the question of
whether the Owners reasonably believed that the ETA they set was achievable
at the time they set it. If subsequent delays were in fact "unforseen", the
Owners would unlikely be held liable.

Russell has advised that, from his trading experience, delays in this case
may not be unforseen. His testimony in any action would be crucial.

I understand that the loss to ECTS is in the region of USD230,000. WFW
estimates proceedings (which entails arbitration in London and potentially an
arrest and related proceedings in Malaysia) to be in the region of
USD100,000. Further, as the action is fact dependant, success cannot be
predetermined with any degree of certainty.

I would advise that the commercial benefits of an action be carefully
considered before a decision to do so is made.

Regards

Matt