Scorpio Tankers Inc. announced today that it has signed a contract with Hyundai Mipo Dockyard Co., Ltd. of South Korea to construct a 52,000 DWT MR product tanker, entered into agreements to sell three of its Handymax vessels, and agreed to time charter-in two MR product tankers.

Newbuilding Vessel Agreement

The Company signed a contract with HMD to construct a newbuilding for $36.0 million, which is the Company’s seventh 52,000 DWT MR product tanker newbuilding with HMD. The seventh newbuilding is scheduled to be delivered to the Company in April 2013.

Vessel sales

The Company has entered into agreements to sell three of its Handymax vessels: the STI Conqueror for $21.0 million, the STI Gladiator for $16.2 million, and the STI Matador for $16.2 million. The sales of the three vessels are expected to close in April 2012.

Time charter-in agreements

The Company also announced that it has chartered-in two MR product tankers:

- The Pacific Duchess, a 2009 built MR product tanker (46,697 DWT), will be chartered-in for one year and is expected to be delivered in early March 2012. The agreement includes an option to extend the charter for an additional year.

- The Targale, a 2007 built MR product tanker (49,999 DWT), will be chartered in for two years and is expected to be delivered in May 2012. The agreement includes three consecutive options to extend the charter, each for an additional year.