SOURCE: Quintana Maritime Limited

January 25, 2007 09:00 ET

Quintana Maritime Limited Agrees to Acquire a 1999-Built Capesize and Secures a Three-Year Charter at a Net Daily Rate of $36,000

ATHENS, GREECE -- (MARKET WIRE) -- January 25, 2007 -- Quintana Maritime Limited (NASDAQ: QMAR), a leading international provider of dry bulk transportation services, announced today that it has agreed to acquire a 1999-built Capesize bulk carrier of 171,000 deadweight tons (dwt), named Lowlands Beilun. The vessel is expected to be delivered by the end of March 2007. The sellers are Coberfelt Bulk Carriers N.V., a Belgian shipping company.

The purchase price of the vessel is $73 million. Quintana Maritime has advanced the sellers a cash deposit of $7.3 million, or 10% of the agreed purchase price of the vessel, and intends to fund the balance of the purchase price, upon delivery of the ship in March 2007, with borrowings and cash on hand.

The vessel is currently operating on a five-year charter at a net daily rate of $36,000 per day with a first-class charterer. Quintana will earn the same rate of $36,000 net per day for the remaining three years from delivery in March 2007. Including the charter on Lowlands Beilun, the Company has secured approximately 93% of 2007 net operating days under time charter contracts, representing approximately $209 million in net revenues.

Stamatis Molaris, Chief Executive Officer and President of Quintana Maritime, commented: "We are happy to have concluded another Capesize acquisition that further enhances our presence in the Capesize sector, consistent with our articulated strategy. Our expansion in the Capesize sector is also coincided with a three-year charter at a very profitable rate expanding our long term cash flow visibility."

Once the company takes delivery of the Lowlands Beilun, the four remaining vessels in the Metrobulk fleet, and the newbuilding Capesize it recently agreed to acquire, Quintana's fleet will be one of the most modern in the industry with an average age of 3.8 years on a dwt-weighted average basis, consisting of 29 vessels in total, including 11 Panamaxes, 14 Kamsarmaxes and 4 Capesizes, with total cargo-carrying capacity of 2,644,881 dwt.

Status of Warrant Exercise

As of January 24th, 2007, approximately 2.45 million warrants have been exercised. In addition, our sponsors, which include affiliates of Corbin J. Robertson, Jr., First Reserve Corporation, and AMCI International, Inc., hold approximately 1.71 million warrants. The sponsors have expressed their intention to exercise their warrants prior to the delivery of Iron Miner, which is expected to occur in mid-March 2007. Certain factors, including a decline in the price of Quintana's common stock below the exercise price of the warrants prior to the delivery of the vessel, could cause the sponsors not to exercise their warrants.

Fleet Table as of January 25, 2007

                                                           TC Expiration
                                             Year   Age    Date (minimum
CURRENT FLEET           Type         DWT     Built (in yrs)   period)

Coal Hunter(A)        Kamsarmax     82,300   2006    0.1   December 2010
Pascha(A)             Kamsarmax     82,300   2006    0.1   December 2010
Coal Gypsy(A)         Kamsarmax     82,300   2006    0.2   December 2010
Iron Anne(A)          Kamsarmax     82,000   2006    0.3   December 2010
Iron Vassilis(A)      Kamsarmax     82,000   2006    0.5   December 2010
Iron Bill(A)          Kamsarmax     82,000   2006    0.7   December 2010
Santa Barbara(A)      Kamsarmax     82,266   2006    0.8   December 2010
Ore Hansa(A)          Kamsarmax     82,229   2006    0.9   December 2010
Iron Kalypso(A)       Kamsarmax     82,204   2006    1.0   December 2010
Iron Fuzeyya(A)       Kamsarmax     82,229   2006    1.0   December 2010
Iron Bradyn(A)        Kamsarmax     82,769   2005    1.9   December 2010
Grain Harvester(A)      Panamax     76,417   2004    2.4 September  2009
Grain Express(A)        Panamax     76,466   2004    2.8   December 2010
Kirmar(B)(E)           Capesize    165,500   2001    5.3   February 2007(C)
Iron Beauty(B)         Capesize    165,500   2001    5.5      April 2010
Coal Pride(F)           Panamax     72,600   1999    7.2   February 2007
Iron Man(C)             Panamax     72,861   1997    9.6      March 2010
Coal Age(C)             Panamax     72,861   1997    9.6       June 2007
Fearless 1(C)           Panamax     73,427   1997    9.7      March 2008
Barbara(D)              Panamax     73,390   1997   10.0       June 2007
Linda Leah(D)           Panamax     73,390   1997   10.0       June 2008
King Coal               Panamax     72,873   1997   10.1      March 2008
Coal Glory(C)           Panamax     73,670   1995   11.9       June 2008

Total Current Fleet  23 Vessels  1,973,552          avg (F)

                                             Year   Age     Delivery
FLEET TO BE DELIVERED   Type         DWT     Built (in yrs) Range

Iron Knight             Panamax     76,429   2004    2.6      Jan 07
Iron Lindrew          Kamsarmax     82,300      *             Jan-Feb 07
Iron Brooke           Kamsarmax     82,300      *             Mar 07
Iron Miner             Capesize    177,000      *             Mar 07
Lowlands Beilun        Capesize    171,000   1999    7.7      Mar 07
Iron Manolis          Kamsarmax     82,300      *             May 07

Total Fleet to be
 Delivered            6 Vessels    671,329

TOTAL FLEET          29 Vessels  2,644,881
* Under Construction

(A), (B), (C), and (D) indicate sister ships. As of January 25, 2007 Quintana had four sets of sister ships, including the vessels recently acquired from Metrobulk. All seventeen ships that are part of the Metrobulk acquisition are sister ships. Sister ships indicate vessels of the same class made in the same shipyard. The sister-ship concept further enhances our operational flexibility and efficiency.

(E) Kirmar's charter may be extended by up to six months, until September 2007, at the current rate of $26,500 per day at the charterer's option.

(F) Coal Pride has been entered into a time charter agreement commencing at the end of February 2007 for a period of 23-26 months at a gross daily rate of $26,500.

(G) On a dwt weighted average


Quintana Maritime Limited, based in Greece, is an international provider of dry bulk cargo marine transportation services. As of today, the company owns and operates a fleet of 23 vessels, including 11 Kamsarmax bulkers, 10 Panamax size vessels and 2 Capesize vessels with a total carrying capacity of 1,973,552 dwt and an average age of 4.3 years on a dwt weighted average. It has also entered into agreements to acquire 4 additional vessels, including 1 Panamax and 3 Kamsarmax bulkers with expected delivery between January and May 2007 and with an aggregate capacity of 323,329 dwt. In addition, Quintana has recently entered into an agreement to acquire 2 Capesize vessels of an aggregate 348,000 dwt with expected delivery between March and April 2007. Once all acquisitions are completed, Quintana will have a fleet of 29 dry bulk vessels, including 4 Capesize vessels, 11 Panamax vessels and 14 Kamsarmax vessels with a total capacity of 2,644,881 dwt and an average age of 3.8 years on a dwt weighted average.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenues and time charters. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

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