Mercantile Ports & Logistics Regulatory News (MPL)

09 February, 2018

Mercantile Ports & Logistics Limited

("MPL" or the "Company")

Progress Update

MPL, which is developing a modern port and logistics facility in Mumbai, India, is pleased to provide the following update.

As set out in its announcement of 22 December 2017, the facility has completed three berths that are capable of receiving vessels and, since that time, a series of berthing and unberthing tests have been carried out successfully.

The first customer has required longer than it originally envisaged to arrange the end to end logistics to be ready to dock and final customs approvals for the handling of international cargo will be received shortly. The Company, therefore, expects to start receiving its first revenues in a few weeks. In the meantime, the Company is pleased with the level of enquiries and traction that it has received from potential customers and this has further increased the Board's confidence in the prospects for the Company. Further announcements will be made in due course.

Previous announcements from MPL have referred to the Company seeking to optimise the configuration of the facility. Following consultation with the lead contractor and the Company's engineers, the Company is delighted to announce that it has been working to create an additional 200 meters of quay length on the east flank of the facility. The Company expects that this quay will be used exclusively for break bulk. With piling already completed and work progressing well, this additional berthing capacity is expected to be operational in two phases, with the first 100 meters expected to be able to take cargo in March 2018. The full 200 meters is expected to be operational in April 2018, taking the total quay length of the completed facility to 1,000 meters, with room for further expansion.

The additional quay length is shown in the Company's new corporate video, which has been uploaded to its website and provides an updated outline of what the facility will look like when it is completed and mature.