ULTRAPETROL (Bahamas) Limited: “Long-Term Prospects of The

ULTRAPETROL (Bahamas) Limited Smart Rivers 2011 Presentation “Long-term prospects of the Hidrovia Region in South America” New Orleans, LA September 15, 2011 Forward Looking Statements & EBITDA Our disclosure and analysis in this presentation concerning our operations, cash flows and financial position, including, in particular, the likelihood of our success in developing and expanding our business, include forward-looking statements. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as ‘‘expects,’’ ‘‘anticipates,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘believes,’’ ‘‘estimates,’’ ‘‘projects,’’ ‘‘forecasts,’’ ‘‘will,’’ ‘‘may,’’ ‘‘should,’’ and similar expressions are forward-looking statements. Although these statements are based upon assumptions we believe to be reasonable based upon available information, including projections of revenues, operating margins, earnings, cash flow, working capital, and capital expenditures, they are subject to risks and uncertainties. These forward-looking statements represent our estimates and assumptions only as of the date of this presentation and are not intended to give any assurance as to future results. As a result, you should not place undue reliance on any forward-looking statements. We assume no obligation to update any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors, except as required by applicable securities laws. Factors that might cause future results to differ include, but are not limited to, the following: – unexpected future operating or financial results – delays or increased costs in pending or recent acquisitions, deviations from our business strategy or unexpected increases in capital spending or operating expenses, including drydocking and insurance costs – changes in general market conditions and trends, including charter rates, vessel values, and factors affecting vessel supply and demand – our ability to obtain additional financing – changes in our financial condition and liquidity, including our ability to obtain financing in the future to fund capital expenditures, acquisitions and other general corporate activities – deviations from our expectations about the availability of vessels to purchase, the time that it may take to construct new vessels, or vessels’ useful lives – delays or defaults by our contract counter-parties in performing their obligations to us – loss of one or more key members of our management team – changes in governmental rules and regulations or actions taken by regulatory authorities – adverse weather conditions that can affect production of the goods we transport and navigability of the river system – the highly competitive nature of the oceangoing transportation industry – the loss of one or more key customers – unexpected fluctuations in foreign exchange rates and devaluations – liabilities from future litigation – other factors discussed in the section titled ‘‘Risk factors” in our annual report on form 20-F for the year ended December 31, 2010 – Adjusted EBITDA consists of net income (loss) prior to deductions for interest expense and other financial gains and losses related to the financing of the Company, income taxes, depreciation of vessels and equipment and amortization of drydock expense, intangible assets, financial gain (loss) on extinguishment of debt and a premium paid for redemption of preferred shares. We have provided Adjusted EBITDA in this report because we use it to, and believe it provides useful information to investors to evaluate our ability to incur and service indebtedness. We do not intend for Adjusted EBITDA to represent cash flows from operations, as defined by GAAP (on the date of calculation) and it should not be considered as an alternative to measure our liquidity. This definition of Adjusted EBITDA may not be comparable to similarly titled measures disclosed by other companies. Generally, funds represented by Adjusted EBITDA are available for management’s discretionary use. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of our results as reported. 2 Hidrovia Waterway System – Navigation Navigation in this river started in the 16 th century Commercial navigation in the Hidrovia picked up momentum as of the second half of the 19 th century Jesuitical Map 1667 3 Hidrovia Waterway System – Geography Flowing through Argentina, Brazil, Bolivia, Paraguay and Uruguay, the Hidrovia system is comprised by the Paraguay, Paraná and Uruguay rivers From Mato Grosso do Norte (Brazil) to Nueva Palmira (Uruguay) These rivers are the main transportation arteries in the region, vital for the development of mass production of bulk commodities Corumbá In 1992, Argentina, Brazil, Bolivia, Paraguay and Uruguay signed the Seasonal effect Hidrovia Treaty where the conditions for the utilization of the waterway were established The vast majority of the cargo carried through this river system is transshipped for export at the southern end GUYANA VENEZUELA SURINAME FRENCH GUIANA COLOMBIA ECUADOR PERU BRAZIL BOLIVIA PARAGUAY URUGUAY CHILE ARGENTINA 4 Hidrovia Waterway System – Navigation (cont’d) Puerto Ladario – Paraguay River 6,00 5,00 4,00 3,00 1998 1999 2,00 2000 2001 2002 2003 2004 2005 1,00 Mediana 2006 2007 2008 2009 2010 0,00 Asunción: Paraguay River Annual Levels (1911-2007) (1) Most of the river system is navigable (at full load) year-round except in the Upper Paraguay river (north of Maximum Asuncion) where the dry season between October and February Average Water levels (In cm) levels Water Minimum 5 (1) Source: “Estudio del Sistema de Transporte Fluvial de Granos y Productos Procesados en la Hidrovia Paraguay-Paraná”, CSI Ingenieros – July 2010 Hidrovia Waterway System – Comparable to Mississippi River Hidrovia Region Mississippi River Region BOLIVIA Commodities flowing through Corumba Wisconsin UABL Brazil BRAZIL the system include BRAZIL Minnesota Dry Cargo: Soybean and PARAGUAY soybean derivatives, B Asunción Iowa wheat, iron ore, maize, UABL Paraguay manganese ore, clinker, Illinois D Tres Fronteras cement, coal, cotton Wanda Dos Fronteras Missouri sunflower, forest San Gotardo Kentucky products, etc C Tennessee Liquid Cargo: Petroleum and petroleum Arkansas A derivatives, vegetable oils, etc ARGENTINA A 42 Barge Limit Mississippi URUGUAY B 16 / 20 Barge Limit Louisiana Buenos Aires C 16 / 20 Barge Limit UABL Argentina D 6 Barge Limit Number of Barges: ~1,900 Number of Barges (1) : ~21,000 Differences with Mississippi River System No buoys or navigational signals, no dredges or maintenance vs. highly developed Mississippi River System No locks in Hidrovia Over 200 locks in Mississippi River System Jumbo size barges of 2,500 tons versus Mississippi size barges of 1,500 tons The number of ports throughout the Mississippi system relative to those in the Hidrovia are approximately 2.5x 6 (1) Source: ACL 10-K filed on March 10, 2010. Hidrovia Waterway System – Road and Railway System Between Rosario and Confluencia the road and railway systems are significantly developed Confluencia Paraguay River (North of Asunción) shows no development in infrastructure Rosario Asunción 7 Hidrovia Waterway System – Ton movement and Production The Hidrovia region is currently estimated to increase its loadings by 1.0 million tons a year Over the last 10 years, both seeded area and production for soybean has had a Compounded Annual Growth Rate of approximately 9% Paraguayan Seeded Area & Production (1) 9 8,3 8 Seeded Area Production 6,9 7,2 7 5,9 6 5 4,5 3,9 4,0 4,0 4 3,5 3,5 3,6 3,0 3,0 2,9 2,8 2,7 2,6 2,7 2,8 3 2,2 2,4 2,4 2,4 1,8 1,9 2,0 2 1,6 1,4 1,4 1,6 1,0 1,0 1,1 1,1 1,0 1,1 1,2 1,2 1,2 0,6 Million Hectares MillionHectares & Tons 1 0,4 0,6 0 Hidrovia Regional Iron Ore Production (2) 7 6,0 6 5 4,6 4,2 4,4 4 3,5 3 2,3 1,8 1,9 2 1,6 1,3 1,1 1 Production(In MillionTons) 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 8 (1) Source: USDA Foreign Agricultural Service – Updated August 3, 2011 (2) Industry Sources Hidrovia Waterway System The Challenges 1. To find a solution for an efficient transportation system that can serve the entire region taking into account the physical and political barriers of the region 2. To create a business model that optimizes transportation solutions, reduces costs and is able to grow in parallel with demand on a sustainable basis 3. Sustainability of the business model as the basic element of long- term growth 9 Integrated River Business Model Re-engining to average 30% increase in power – Heavy fuel engines instead of Diesel Lowest Pushboats fuel cost per ton achievable Inland Transshipment Load Ports Fleet Logistics Sustainable pricing Export Freights adjust for fuel increases / decreases and costs but otherwise the company keeps pricing at a level that does not create incentives for excess capacity Barges Ramallo repair facility 2010 New Building Yard Largest in the River System Fully automated and the most modern in South America 2 Floating drydocks Currently producing 2 jumbo 16 slots for major repairs 2,500 ton barges per week 10 3 Fronteras Terminal 11 2 Fronteras Terminal 12 Zonda I, 8,300 HP heavy-fuel pushboat 13 42-barge tow Ramallo repair facility Punta Alvear barge-building facility Robotic Welding Gantry Alianza G2 Transshipment Station Typical Cargo Mix and Market Share Our Average Typical Cargo Mix (1) UABL’s Market Share (2) Petroleum Other Products

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