10:05     PACIFIC BASIN<02343> - Announcement (3)                             

    COMPLETION OF THE PLACING                                                 
                                                                              
    Completion of the placing of the Shares is expected to take place         
    on or around 31 January 2005, or such other date as may be agreed         
    by each of IDB, DBS and the Placing Agent. Further announcements          
    shall be made by the Company if the placing is terminated or does         
    not complete on or around 31 January 2005.                                
                                                                              
    GENERAL INFORMATION                                                       
                                                                              
    The Directors believe that the placing will not have any impact           
    on the business, management or operations of the Group. No changes        
    in the composition of the Board of Directors have occurred as a           
    result of the placing and the Directors appointed by IDB and DBS,         
    James John Dowling and Brian Paul Friedman, intend to remain as           
    Directors at this time.                                                   
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, unless the context otherwise requires, the          
    following terms shall have the following meanings:                        
                                                                              
    ``Controlling Group''   IDB, DBS, Plymouth Shipping Investments           
    Limited and Pembroke Shipping Limited and their respective                
    shareholders, and certain companies controlled by or in common            
    control with such shareholders;                                           
                                                                              
    ``Company'' or ``Pacific Basin''   Pacific Basin Shipping                 
    Limited, a limited company incorporated in Bermuda with limited           
    liability, whose Shares are listed on the Main board of the Stock         
    Exchange;                                                                 
                                                                              
    ``Directors''   means the directors of the Company;                       
                                                                              
    ``DBS''   Dry Bulk Shipping (BVI) Limited;                                
                                                                              
    ``IDB''   IDB Carriers (BVI) Limited;                                     
                                                                              
    ``Listing Rules''   The Rules Governing the Listing of                    
    Securities on the Stock Exchange;                                         
                                                                              
    ``Prospectus''   means the Company's prospectus dated 30 June             
    2004;                                                                     
                                                                              
    ``Placing Agent''   Goldman Sachs (Asia) L.L.C.;                          
                                                                              
    ``Placing Shares''   174,658,997 Shares to be sold by DBS and             
    145,549,437 Shares to be sold by IDB, together in aggregate,              
    representing approximately 25.3% of the issued share capital of           
    the Company;                                                              
                                                                              
    ``Placing Agreements''   a placing agreement dated 26 January             
    2005 between (1) IDB and the Placing Agent and (2) DBS and the            
    Placing Agent, and ``Placing Agreement'' shall, where the context         
    so requires, mean any one of such agreements;                             
                                                                              
    ``Shares''   ordinary shares of US$0.10 each in the share capital         
    of the Company;                                                           
                                                                              
    ``Stock Exchange''   The Stock Exchange of Hong Kong Limited.             
                                                                              
    By Order of the Board                                                     
    Andrew T. Broomhead                                                       
    Company Secretary                                                         
                                                                              
    Hong Kong, 26 January 2005                                                
                                                                              
    As at the date of this announcement, the executive directors of           
    the Company are Christopher Richard Buttery, Mark Malcolm Harris          
    and Paul Charles Over, the non-executive directors of the Company         
    are Lee Kwok Yin, Simon, James John Dowling and Brian Paul                
    Friedman, and the independent non-executive directors of the              
    Company are Robert Charles Nicholson, Patrick Blackwell Paul and          
    The Rt. Hon. The Earl of Cromer.                                          
                                                                              
    * For identification purposes only.