Company Update and Unaudited 29 February 2020 NAV

4 March 2020

Tufton Oceanic Assets Limited ("SHIP")

Company Update and Unaudited 29 February 2020 NAV

The Investment Manager (Tufton Oceanic Limited) has noted the share price movements of publicly traded shipping companies and would like to provide an update to investors. The Investment Manager is pleased that its strategy of portfolio diversification and strong charter coverage has insulated SHIP from the recent market volatility caused primarily by Covid-19.

As of 29 February 2020, the estimated unaudited NAV of SHIP was $0.976 per share compared to $0.992 per share as at 31 December 2019. Year to date, fair value losses in containerships and bulkers have been largely offset by fair value gains in tankers. The fair value decrease in the portfolio of $0.020 per share was more than offset by operating profit of $0.021 per share over the period. SHIP's dividend for the fourth quarter of $0.0175 per share was paid out on 21 February 2020 resulting in a small estimated decrease in NAV.

In line with our investment objectives, the average charter length of the portfolio is three years which minimises spot market exposure and portfolio volatility. Vessels which have charters expiring in the next six months represent only c14% of NAV.

Including the newly acquired product tanker, the Investment Manager recently fixed two tankers in the portfolio on time charters for a minimum of three years to a major commodity trading company at mid-teen yields. The Investment Manager also recently extended the employment of one containership (Kale) for 7 to 12 months, albeit at a lower yield than previously, without any void period between charters despite the vessel being positioned in Asia.

The Investment Manager continues to monitor the evolving situation but is very confident that its strategy will continue to result in low volatility of cash flow and NAV. With the transactions announced earlier this quarter, SHIP currently has approximately $20m of investible cash.

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About the Company

Tufton Oceanic Assets Limited invests in a diversified portfolio of secondhand commercial sea-going vessels with the objective of delivering strong cash flow and capital gains to investors. The Company's investment manager is Tufton Oceanic Ltd. The Company has raised a total of approximately $250m (gross) through its Initial Public Offering on the Specialist Fund Segment of the London Stock Exchange, on 20 December 2017, a subsequent placing and offer in October 2018, a placing in March 2019 and a placing in September 2019.