Sinwa Enters Shareholders? Agreement to Establish JV

Singapore, 4 July 2007

and logistics company Sinwa Limited (?Sinwa? or ?the Company?) today announced a

Shareholders? Agreement (?the Agreement?) with Mr Morten Innhaug (?Mr Innhaug?), the

sole shareholder of Nordic International Limited (?NIL?), to establish a three-year joint

venture (?the JV?).

Under the Agreement, Sinwa will inject US$2.0 million into NIL, a company incorporated

in the British Virgin Islands that is principally engaged in oil exploration and seismic

surveys.

Of the US$2.0 million, US$25,000 will be used to acquire 25,000 ordinary shares in NIL

from Mr Innhaug, giving Sinwa a 50 per cent stake in NIL. The remaining US$1,975,000

will be used as working capital by NIL to purchase, convert and equip a 2D seismic

vessel (?the Vessel?) for oil and gas exploration activities.

NIL, which owns the Vessel (registered under the Panama flag), has signed a 3-year

charterparty (the ?Charterparty?) for the employment of the Vessel, which will

commence upon the end of the Vessel?s conversion. The value of the Charterparty is

envisaged at approximately US$40,500,000 for the 3-year duration. In addition, NIL will

realise another US$5,000,000 on the sale of the Vessel to the charterer at the end of

the charter period.

?We are pleased to enter this Shareholders? Agreement with NIL,? said Mr Mike Sim,

Executive Chairman and Chief Executive Officer of Sinwa. ?The joint venture will benefit

Sinwa in the long term as the Company continues its expansion into the fast-growing oil

and gas industry. Sinwa will continue to seek out and develop more of such strategic