In re M/V PACIFIC VIRGO

Per your request for an update:

1. ECT sent its insurance claim letter out to Underwriters' adjusters in
this matter last week. No reply has yet been received. We will monitor.

2. Mitsubishi has not pushed its demurrage claim of about $260,000. Our
solicitor, David Best, has had confirmed by our barrister that our time-bar
defense against the demurrage claim is strong.

3. We are paying joint testing invoices 100% and submitting them for 50 %
reimbursement to Mitsubishi. So far, despite its agreement to do so,
Mitsubishi has not reimbursed us at all. We suspect that if we push this,
Mitsubishi will start threatening to start up with the demurrage claim
again. At least until we find out what Underwriters' position will be, we do
not suggest pushing Mitsubishi on this.

I will keep you advised.

Britt