“LucySnug”AllegedCollisionwithFishingVessel–31stOctober2011.docVIP

Confidential and privileged Date 7 November 2011 To Deborah Yu The London PI Club From Edward Ma CC Subject “Lucy Snug” Alleged Collision with Fishing Vessel – 31st October 2011 Dear Deborah, We report in full on the results of our investigation on board the Lucy Snug and the on the case in general. Introduction It is alleged that on 31st October 2011, at about 0420 local time (GMT+8), at approximate position 30°52.0N/123.7°E, along the east coast of China, roughly to the east of Shanghai, M/V Lucy Snug collided with a local Chinese fishing boat ZHEPUYU 32165. As a result of the alleged collision, the owners of fishing boat and the local fishing administration claimed that the boat was capsized with all six fishermen on board missing. Upon instructions from the Club, Prof. Zhang Duo, our marine consultant, and Ms Liu Xiaowen, boarded M/V Lucy Snug on 3rd November 2011 in Qingdao port to investigate the alleged collision and to assist the master and the crew in the MSA investigation. The two ships involved in the alleged collision MV Lucy Snug The Lucy Snug, flying Italian flag, is a general cargo ship built in 2010 in China, of 22070 gross tonnage, 11930 net tonnage, with a length overall of 179.5 metres and a breath of 27.7 metres. The ship’s wheelhouse is extended to both sides, without the traditional open air bridge wings. Her hull above the waterline is painted dark blue. The ship bridge, situated aft, is fitted with modern navigational aids, including two ARPA radars, two GPS sets, two VHF radios, an AIS set and a gyrocompass with autopilot, etc. In particular, the ship is equipped with and operating an authorized ECDIS system instead of the traditional paper chart for their routine navigational purposes. All of the bridge equipments are in good operating condition and was operational at the time of the alleged collision. ZHEPUYU 32165 According to Mr. Hu Yimin, deputy director of maritime and fishery office of Putuo Distric