HispanicBusiness

Other operational gain amounting to $1.9 million during the quarter ended September 30, 2012, includes non-recurring revenue of $1.4 million, which represented a settlement of a commercial claim and a gain of $0.5 million regarding a hull and machinery claim. Other operational gain totaled to $0.2 million during the nine months ended September 30, 2011 related to a hull and machinery claim.

In September 2010, the Company has signed an agreement to sell a 45% interest in the future proceeds related to the settlement of certain commercial claims. As a result, in connection to the settlement amount of $1.4 million described in other operational gain above, during the quarter ended September 30, 2012, the Company incurred an expense of $0.7 million described in other operational loss. During the quarter ended September 30, 2011, no other operational loss was recorded.

Nine months ended September 30, 2012 and 2011 Results

For the nine months ended September 30, 2012, total voyage revenues amounted to $68.0 million compared to $78.4 million for the same period of 2011. This decrease was mainly due to lower charter rates for some of the vessels during 2012 compared to the same period of 2011. In addition, the Company for the nine months ended September 30, 2012 recorded lower revenue of $4.8 million associated with the amortization of fair value of above market acquired time charters attached to vessels acquired, compared to $0.6 million of lower revenue recorded for the nine months ended September 30, 2011. For the nine months ended September 30, 2012, voyage revenues were also affected by the Star Polaris' grounding and damage of main engine, which resulted in an off hire period of 142 days and $2.3 million in lost revenues. Operating loss amounted to $307.3 million for the nine months ended September 30, 2012 compared to an operating income of $2.9 million for the same period of 2011. Net loss for the nine months ended September 30, 2012 amounted to $313.1 million representing $58.09 loss per basic and diluted share based on 5,390,553 shares, which is the weighted average number of shares, basic and diluted, on a reverse split-adjusted basis. Net income for the nine months ended September 30, 2011 amounted to $0.4 million representing $0.08 earnings per basic and diluted share calculated on 4,525,501 and 4,528,822 weighted average number of shares, basic and diluted, respectively, on a reverse split-adjusted basis.

Net loss for the nine months ended September 30, 2012, includes the following non-cash items:

•Impairment loss of $303.2 million, or $56.25 per basic and diluted share, related to one of our Capesize vessels, Star Sigma, and the total fleet of our eight Supramax vessels.

•Amortization of fair value of above market acquired time charters of $4.8 million, or $0.88 per basic and diluted share, associated with time charters attached to vessels acquired in the third quarter of 2011, which are amortized over the remaining period of the time charter as a decrease to voyage revenue.

•Expenses of $1.5 million, or $0.27 per basic and diluted share, relating to the amortization of stock based compensation recognized in connection with the unvested restricted shares issued to directors and employees.

•Loss on sale of vessel of $3.2 million, or $0.59 per basic and diluted share, in connection with the sale of vessel Star Ypsilon that took place in first quarter of 2012.

•An unrealized gain of $0.1 million, or $0.02 per basic and diluted share, associated with the mark-to-market valuation of the Company's derivatives.