Diana Shipping Inc., a global shipping company specializing in the ownership and operation of dry bulk vessels, announced that it has entered into a time charter contract with Cargill International S.A., Geneva, through a separate wholly-owned subsidiary, for one of its Panamax dry bulk carriers, the m/v Erato. The gross charter rate is US$6,500 per day, minus a 5% commission paid to third parties, for a period of minimum eighteen (18) months to maximum twenty-four (24) months. The charter is expected to commence at the middle of January 2013.

This employment is anticipated to generate approximately US$3.5 million of gross revenue for the minimum scheduled period of the charter.

The Erato is a 74,444 dwt Panamax dry bulk vessel built in 2004.

Diana Shipping Inc.'s fleet currently consists of 30 dry bulk carriers (17 Panamax, 3 Post-Panamax, 8 Capesize and 2 Newcastlemax), as well as 1 new-building Kamsarmax vessel expected to be delivered to the Company during the first quarter of 2013 and 2 new-building Ice Class Panamax vessels expected to be delivered to the Company during the fourth quarter of 2013.