DIVIDEND POLICY

The Company may approve an allocation of up to 60% of cash flow from operations less debt amortization, less maintenance/upgrade CAPEX less any deficit of cash below $2.1 million per owned vessel (“Cash Flow”), towards quarterly shareholder dividends. Any remaining Cash Flow to be allocated, at the Company’s discretion, to:

1. Share repurchases: Buybacks will be prioritized when the share price is trading at a significant discount to the estimated net liquidation value of the Company’s hard assets
2. Growth Opportunities: Cash Flow may be also used for opportunistic vessel acquisitions and investments that will create enhanced returns over time and for general corporate purposes

Since Star Bulk is a holding company with no material assets other than the shares of its subsidiaries through which it conducts its operations, Star Bulk’s ability to pay dividends will depend on its subsidiaries distributing their earnings and cash flow to it. Any future dividends declared will be at the discretion and remain subject to approval of our Board each quarter, after its review of our financial condition and other factors, including but not limited to our earnings, prevailing charter market conditions, capital requirements, limitations under our debt agreements and applicable provisions of Marshall Islands law, which generally prohibits the payment of dividends other than from operating surplus or while a company is insolvent or would be rendered insolvent upon the payment of such dividend. Star Bulk’s dividend policy and declaration and payment of dividends may be changed at any time and are subject to legally available funds and the Board’s determination that each declaration and payment is at the time in the best interests of Star Bulk and its shareholders after its review of our financial performance. There can be no assurance that our Board will declare or pay any dividend in the future.