US$175,000,000 3% Guaranteed Convertible Bonds due 2025 - Adjustment to Conversion Price (CB Stock Code: 40097)

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PB ISSUER (NO.5) LIMITED (the "Issuer")

(incorporated in the British Virgin Islands with limited liability)

US$175,000,000 3% Guaranteed Convertible Bonds due 2025 (the "Bonds")

(Stock Code: 40097)

convertible into ordinary shares of, and unconditionally and irrevocably guaranteed by

(the "Guarantor")

ADJUSTMENT TO CONVERSION PRICE

Reference is made to the announcements of the Guarantor dated 31 October 2019, 10 December 2019 and 17 April 2020 for the issuance of the Bonds. Unless otherwise defined here, terms used in this announcement shall have the meanings given to such terms in the Guarantor's announcement dated 31 October 2019.

The Issuer and the Guarantor jointly announce that the Conversion Price of the Bonds will be adjusted from HK$2.34 per Share to HK$2.24 per Share with effect from 11 August 2021. Such adjustment is the result of the interim dividend of HK14 cents per Share for the six months ended 30 June 2021 (the "2021 Interim Dividend") payable on 25 August 2021 by the Guarantor with an ex-dividend date of 11 August 2021.

The above adjustment to the Conversion Price shall become effective on the first date on which the Shares are traded ex-dividend in relation to the 2021 Interim Dividend. 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 into Shares, the Guarantor will utilise the specific mandate obtained from Shareholders at the special general meeting of the Guarantor held on 2 December 2019 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, 11 August 2021

As at the date of this announcement, the Directors of the Issuer are Martin Fruergaard, Peter Schulz and Mok Kit Ting Kitty.

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

Executive Directors:

David Muir Turnbull, Martin Fruergaard and Peter Schulz

Independent Non-executive Directors:

Patrick Blackwell Paul, Robert Charles Nicholson, Alasdair George Morrison, Irene Waage Basili, Stanley Hutter Ryan, Kirsi Kyllikki Tikka and John Mackay McCulloch Williamson