Fjord Defence Group ASA

AGM Information • Apr 25, 2019

INNKALLING TIL

ORDINÆR GENERALFORSAMLING

I

SONGA BULK ASA

(Org.nr. 917 811 288) ("Selskapet")

Aksjeeierne i Songa Bulk ASA innkalles til ordinær generalforsamling mandag, 16. mai 2019 kl. 10:00 i Selskapets forretningskontorer i c/o Arne Blystad AS, Haakon VIIs gate 1, 0161 Oslo.

Dagsorden Agenda

• 1. Åpning av møtet ved styrets leder og registrering av fremmøtte aksjeeiere
• 2. Valg av møteleder. Styret foreslår at møtet ledes av advokat Dag Erik Rasmussen, eller den han utpeker
• 3. Valg av en person til å medundertegne protokollen 3. Election of a person to co-sign the minutes
• 4. Godkjennelse av innkalling og dagsorden 4. Approval of the notice and the agenda
• 5. Orientering om driften i Selskapet, herunder om aktuelle saker (ingen votering)
• 6. Godkjennelse av årsregnskap og årsberetning for 2018 for Songa Bulk ASA og konsernet
• 7. Behandling av styrets redegjørelse for foretaksstyring (ingen votering)
• 8. Styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte
• 12. Godkjennelse av fusjonsplan med Axxis Geo Solutions AS

NOTICE OF

ANNUAL GENERAL MEETING

IN

SONGA BULK ASA

(Reg. no. 917 811 288) (the "Company")

The shareholders of Songa Bulk ASA are called to the annual general meeting on Monday, 16 May 2019 at 10:00 (CET) at the Company's offices at c/o Arne Blystad AS, Haakon VII's gate 1, N-0161 Oslo, Norway.

Styret har foreslått følgende The board has proposed the following

• 1. Opening of the meeting by the chairman of the board and registration of attending shareholders
• 2. Election of a chair of the meeting. The board proposes that attorney at law Dag Erik Rasmussen, or a person appointed by him, chairs the meeting
• 5. Presentation of the Company's business, including of matters of current interest (no voting)
• 6. Approval of the 2018 annual accounts and the board's report for Songa Bulk ASA and the group
• 7. Consideration of the board's statement on corporate governance (no voting)
• 8. The board's declaration on determination of salary and other remuneration for senior management
• 9. Godkjennelse av revisors honorar for 2018 9. Approval of the auditor's remuneration for 2018
• 10. Godtgjørelse til styrets medlemmer 10. Remuneration to the members of the board
• 11. Valg av medlemmer til styret 11. Election of members to the board
  • 12. Approval of the merger plan with Axxis Geo Solutions AS
• 13. Aksjespleis med tilhørende vedtektsendring 13. Reverse share split and accompanying amendment

• 15. Fullmakt til styret til å forhøye aksjekapitalen i forbindelse med opsjonsprogram
• 16. Fullmakt til styret til å forhøye aksjekapitalen

Registrering Registration

Aksjeeiere som ønsker å delta på generalforsamlingen, personlig eller ved fullmakt, bes melde dette ved å returnere vedlagte påmeldings-/fullmaktsskjema innen 14. mai 2019 kl. 15:30.

Aksjeeiere som ikke har registrert sin deltakelse innen fristen kan nektes adgang i henhold til Selskapets vedtekter § 6 annet ledd.

Påmelding kan gjøres elektronisk via www.songabulk.no, via VPS' Investortjenester, ved epost til genf@dnb.no eller ved post til:

DNB Bank ASA

c/o Songa Bulk ASA Verdipapirservice Postboks 1600 Sentrum 0021 Oslo, Norge

Fullmakt Proxy

Aksjeeiere som ikke selv har anledning til å delta på generalforsamlingen kan gi fullmakt til styrets leder, Arne Blystad, eller andre til å stemme for deres aksjer. Fullmakt kan registreres elektronisk via VPS' Investortjenester eller ved å fylle ut og returnere vedlagte fullmaktsskjema (med eller uten stemmeinstruks) til DNB Bank ASA. Fullmakten må være registrert eller mottatt av DNB Bank ASA innen 14. mai 2019 kl. 15:30.

Dersom det i fullmaktsskjemaet ikke oppgis navn på fullmektigen, vil fullmakten anses som gitt styrets leder eller den han bemyndiger. Dersom det i fullmaktsskjemaet med stemmeinstruks ikke krysses av i rubrikken "for", "mot" eller "avstå", vil dette anses som en instruks om å stemme for styrets forslag til beslutninger.

to the articles of association

• 14. Øvrige vedtektsendringer 14. Other amendments to the articles of association
  • 15. Authorisation to the board to increase the share capital in connection with option scheme
  • 16. Authorisation to the board to increase the share capital

Shareholders who wish to attend the general meeting, in person or by proxy, are asked to notify the Company by completing and returning the attached attendance or proxy form no later than 14 May 2019 at 15:30 (CET).

Shareholders who have not registered attendance by this deadline may be denied access pursuant to § 6 second paragraph of the Company's articles of association.

Attendance may be registered electronically via www.songabulk.no; via VPS' Investor Services; by e-mail to genf@dnb.no or by regular mail to:

DNB Bank ASA

c/o Songa Bulk ASA Registrars' Department P.O. Box 1600 Sentrum N-0021 Oslo, Norway

Shareholders who cannot participate at the general meeting may authorise the chairman of the board, Arne Blystad, or another person to vote for their shares. The proxy may be registered electronically via VPS' Investor Services or by completing and returning the attached proxy form (with or without voting instructions) to DNB Bank ASA. The proxy form must be registered or received by DNB Bank ASA no later than 14 May 2019 at 15:30 (CET).

If the proxy form does not state the name of the proxy holder, the proxy will be deemed given to the chairman of the board or the person authorised by him. If the sections "for", "against" or "abstention" in the proxy form with voting instructions are left blank, this will be deemed as an instruction to vote in favour of the board's proposed resolutions.

Stemmer og stemmerett Votes and voting rights

Per datoen for denne innkallingen er Selskapets aksjekapital NOK 1.000.000 fordelt på 35.860.000 aksjer hver pålydende NOK 0,027886224. Hver aksje gir rett til én stemme. Selskapet eier ingen egne aksjer.

Alle aksjeeiere har rett til å stemme på generalforsamlingen i henhold til det antall aksjer som vedkommende aksjeeier er registrert som eier av i VPS.

Med hensyn til forvalterregistrerte aksjer, er det Selskapets syn at verken den reelle eieren eller forvalteren har rett til å stemme for slike aksjer. Den reelle eieren kan imidlertid stemme for aksjene hvis vedkommende godtgjør at han har tatt nødvendige skritt for å avslutte forvalterregistreringen av aksjene, og at aksjene overføres til en ordinær VPS-konto som står i eierens navn. Hvis eieren kan godtgjøre at han har tatt slike skritt og at han har en reell aksjeeierinteresse i Selskapet, kan han etter Selskapets oppfatning stemme for aksjene. Beslutninger om stemmerett for aksjeeiere og fullmektiger treffes av møteåpner, hvis beslutning kan omgjøres av generalforsamlingen med alminnelig flertall.

Alle aksjeeiere har rett til å møte på generalforsamlingen, personlig eller ved fullmakt etter eget valg. Aksjeeiere har rett til å fremsette forslag til beslutning i de saker som generalforsamlingen skal behandle. Aksjeeiere har rett til å ta med rådgiver på generalforsamlingen og kan gi talerett til én rådgiver.

En aksjeeier kan kreve at styremedlemmer og daglig leder gir tilgjengelige opplysninger om forhold som kan innvirke på bedømmelsen av saker som er forelagt aksjeeierne til beslutning. Det samme gjelder opplysninger om Selskapets økonomiske stilling og andre saker som generalforsamlingen skal behandle, med mindre de opplysninger som kreves ikke kan gis uten uforholdsmessig skade for Selskapet, jf. allmennaksjeloven ("asal.") § 5-15.

At the date of this notice, the Company's share capital is NOK 1,000,000 divided on 35,860,000 shares, each with a par value of NOK 0.027886224. Each share carries one vote. The Company does not hold treasury shares.

All shareholders are entitled to vote at the general meeting according to the number of shares of which the shareholder in question is registered as owner with the VPS.

With respect to custodian registered shares, it is the Company's view that neither the beneficial holder nor the custodian is entitled to vote for such shares. However, the beneficial holder of the shares may vote for the shares provided that he proves that he has taken the necessary steps to terminate the custodian registration of the shares, and that the shares will be transferred to an ordinary VPS account registered in the name of the holder. If the holder can prove that such steps have been taken and that he has a de facto shareholder interest in the Company, he may, in the Company's opinion, vote for the shares. Decisions regarding voting rights for shareholders and proxy holders are made by the person opening the meeting, whose decisions may be reversed by the general meeting by simple majority.

Møterett Right to attend

All shareholders have the right to attend the general meeting in person or by proxy of their choice. Shareholders have the right to propose resolutions under the matters to be resolved by the general meeting. Shareholders may bring one or more advisers to the meeting and may give one advisor a right to speak on their behalf.

A shareholder may require that the board members and the CEO provide available information on facts which may affect the assessment of matters to be resolved by the general meeting. The same applies to information regarding the Company's financial position and other items to be considered at the general meeting, unless the required information cannot be disclosed without disproportionate harm to the Company, cf. section 5-15 of the Norwegian Public Limited Liability Companies Act (the "NPLCA").

I samsvar vedtektene § 6 tredje ledd sendes ikke In accordance with § 6 third paragraph of the articles of

vedleggene til innkallingen med post til aksjeeierne. Enhver aksjeeier kan likevel kreve at vedleggene sendes vederlagsfritt til vedkommende med post. Slik henvendelse kan rettes til Selskapet per e-post til tr@blystad.no.

Innkallingen med vedlegg er tilgjengelig på www.newsweb.no under Selskapets utsteder-ID "SBULK" og på www.songabulk.no. Selskapets vedtekter, sist endret 5 juni 2018, er tilgjengelige på https://www.songabulk.no/articles-of-association/.

Vedlegg 1:	Styrets forslag til beslutninger	Appendix 1:	The board's proposed resolutions
Vedlegg 2:	Styrets forslag til fusjonsplan	Appendix 2:	The board's proposed merger plan
Vedlegg 3:	Påmeldings- og fullmaktsskjema	Appendix 3:	Notice of attendance and proxy

association, the appendices to the notice are not sent by post to the shareholders. A shareholder may nonetheless require that the appendices are sent to him by post free of charge. Such request may be addressed to the Company by email to tr@blystad.no.

This notice with appendices is available at www.newsweb.no under the Company's ticker "SBULK" and on www.songabulk.no. The Company's articles of association, last amended 5 June 2018, are available at https://www.songabulk.no/articles-of-association/.

Vedlegg 1: Styrets forslag til beslutninger Appendix 1: The board's proposed resolutions Vedlegg 2: Styrets forslag til fusjonsplan Appendix 2: The board's proposed merger plan

25 April 2019

The board of directors of

Songa Bulk ASA

SAK 6: GODKJENNELSE AV ÅRSREGNSKAP OG ÅRSBERETNING FOR 2018 FOR SONGA BULK ASA OG KONSERNET

Styrets forslag til årsregnskap og årsberetning for 2018, samt revisors beretning, er tilgjengelig på https://www.songabulk.no/annual-and-quarterly-reportsoslo-axess-bonds/.

Styret foreslår at generalforsamlingen treffer følgende beslutning:

Årsregnskapet og styrets årsberetning for 2018 for Songa Bulk ASA og konsernet godkjennes.

SAK 7: BEHANDLING AV STYRETS REDEGJØRELSE FOR FORETAKSSTYRING (INGEN VOTERING)

I henhold til asal. § 5-6 (4) skal den ordinære generalforsamlingen behandle styrets redegjørelse for foretaksstyring utarbeidet i tråd med regnskapsloven § 3-3b. Redegjørelsen er tilgjengelig på https://www.songabulk.no/corporate-governance/.

SAK 8: STYRETS ERKLÆRING OM FASTSETTELSE AV LØNN OG ANNEN GODTGJØRELSE TIL LEDENDE ANSATTE

Styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte er tilgjengelig på https://www.songabulk.no/corporate-governance/.

Generalforsamlingens godkjennelse av retningslinjene er veiledende for styret. Godkjennelse av retningslinjer som gjelder godtgjørelse i form av aksjer, tegningsretter, opsjoner og andre former for godtgjørelse som er knyttet til aksjer eller utviklingen av aksjekursen i Selskapet eller andre selskaper innenfor konsernet, er derimot bindende for styret, jf. asal. § 5-6 (3) tredje punktum, jf. § 6-16a (2) fjerde punktum. Selskapet har for tiden ingen slike aksjerelaterte incentivordninger for ledende ansatte, men vil overta den opsjonsordning som eksisterer i AGS dersom Fusjonen gjennomføres.

APPENDIX 1: THE BOARD'S PROPOSED RESOLUTIONS

ITEM 6: APPROVAL OF THE 2018 ANNUAL ACCOUNTS AND THE BOARD'S REPORT FOR SONGA BULK ASA AND THE GROUP

The board's proposal for the annual accounts and the board's report for 2018, as well as the auditor's report, are available at https://www.songabulk.no/annual-andquarterly-reports-oslo-axess-bonds/.

The board proposes that the general meeting passes the following resolution:

The annual accounts and the board of directors' report for 2018 for Songa Bulk ASA and the group are approved.

ITEM 7: CONSIDERATION OF THE BOARD'S STATEMENT ON CORPORATE GOVERNANCE (NO VOTING)

Pursuant to section 5-6 (4) of the NPLCA, the annual general meeting shall consider the board's statement on corporate governance prepared in accordance with section 3-3b of the Norwegian Accounting Act. The statement is available at https://www.songabulk.no/corporategovernance/.

ITEM 8: THE BOARD'S DECLARATION ON DETERMINATION OF SALARY AND OTHER REMUNERATION FOR SENIOR MANAGEMENT

The board's declaration on determination of salary and other remuneration for senior management is available at https://www.songabulk.no/corporate-governance/.

The general meeting's approval of the guidelines is advisory to the board. The approval of the guidelines regarding remuneration in the form of shares, subscription rights, options, and other forms of remuneration linked to shares or the development of the share price in the Company or in other group companies, is on the other hand binding to the board, cf. section 5-6 (3) third sentence, cf. section 6-16a (2) fourth sentence of the NPLCA. Currently, the Company does not have any such share linked incentive programs for members of the senior management, but will assume the obligations under AGS' option scheme upon completion of the Merger.

Styret foreslår at generalforsamlingen treffer The board proposes that the general meeting passes the

følgende beslutning hva gjelder hhv. de veiledende og de bindende retningslinjene:

(a) Veiledende retningslinjer (a) Advisory guidelines

Generalforsamlingen gir sin tilslutning til de veiledende retningslinjene i styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte i henhold til allmennaksjeloven § 6-16a.

(b) Bindende retningslinjer (b) Binding guidelines

Generalforsamlingen godkjenner de bindende retningslinjene i styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte i henhold til allmennaksjeloven § 6-16a.

SAK 9: GODKJENNELSE AV REVISORS HONORAR FOR 2018

Styret forslår at generalforsamlingen treffer følgende beslutning:

Revisors honorar på NOK 372.000 eks. mva for revisjonen av årsregnskapet for 2018, samt NOK 143.055 eks. mva for revisjonsrelaterte tjenester, godkjennes.

SAK 10: GODTGJØRELSE TIL STYRETS MEDLEMMER

Styret forslår at generalforsamlingen treffer følgende beslutning:

For perioden fra ordinær generalforsamling i 2018 til ordinær generalforsamling i 2019 skal styrets medlemmer godtgjøres som følger:

Arne Blystad, styreleder	NOK
Magnus Roth, styremedlem	NOK
Christine Rødsæther, styremedlem	NOK
Vibeke Fængsrud, styremedlem	NOK

SAK 11: VALG AV MEDLEMMER TIL STYRET ITEM 11: ELECTION OF MEMBERS TO

Styret vil foreslå kandidater til styret i det fusjonerte selskapet samråd med hovedeierne i Selskapet og eierne i AGS innen dato for generalforsamling. Styrevalget foreslås å være betinget av og ha virkning fra og med tidspunktet for gjennomføringen av Fusjonen, se sak 12 nedenfor.

following resolution with regard to the advisory and the binding guidelines, respectively:

The general meeting endorses the advisory guidelines in the declaration by the board on determination of salary and other remuneration for senior management pursuant to section 6-16a of the NPLCA.

The general meeting approves the binding guidelines in the declaration by the board on determination of salary and other remuneration for senior management pursuant to section 6-16a of the NPLCA.

ITEM 9: APPROVAL OF THE AUDITOR'S REMUNERATION FOR 2018

The board proposes that the general meeting passes the following resolution:

The remuneration to the auditor of NOK 372,000 ex. VAT for the audit of the 2018 annual accounts, and NOK 143,055 ex. VAT for audit related services, is approved.

ITEM 10: REMUNERATION TO THE MEMBERS OF THE BOARD

The board proposes that the general meeting passes the following resolution:

For the period from the annual general meeting in 2018 to the annual general meeting in 2019, the remuneration to the members of the board is determined as follows:

Arne Blystad, styreleder	NOK 100,000	Arne Blystad, chairman	NOK 100,000
Magnus Roth, styremedlem	NOK 100,000	Magnus Roth, board member	NOK 100,000
Christine Rødsæther, styremedlem	NOK 100,000	Christine Rødsæther, board member	NOK 100,000
Vibeke Fængsrud, styremedlem	NOK 100,000	Vibeke Fængsrud, board member	NOK 100,000

THE BOARD

The board will, after discussions with the key shareholders of the Company and AGS, propose candidates for the board of the combined company. The proposal is expected to be made conditional on and with effect from and including the time of completion of the Merger, cf. item 12 below.

7

SAK 12: GODKJENNELSE AV FUSJONSPLAN MED AXXIS GEO SOLUTIONS AS OG KAPITALFORHØYELSE VED UTSTEDELSE AV VEDERLAGSAKSJER

Styret foreslår at Selskapet fusjonerer med Axxis Geo Solutions AS ("AGS"), med Selskapet som det overtakende selskapet ("Fusjonen"). Ved gjennomføring av Fusjonen, vil Selskapet gå fra å være et tomt selskap uten operativ virksomhet til å bli et seismikkselskap. For en nærmere beskrivelse av Fusjonen vises det til styrets forslag til fusjonsplan som er vedlagt innkallingen som Vedlegg 2.

AGS ble stiftet 16. oktober 2006 og drifter skip som leverer seismikktjenester til olje- og gassindustrien. AGS er morselskap i konsernet og har tre heleide datterselskaper, hvorav to av selskapene er inkorporert i Norge og ett er inkorporert i USA. I tillegg kontrollerer de 100 % av stemmene i et indonesisk datterselskap hvor de eier 49 % av aksjene. Vesentlige kontrakter og eiendeler er i hovedsak eiet av AGS. Basert på sist gjennomførte emisjon i AGS, er selskapet priset til ca. NOK 600 millioner.

Fusjonen innebærer at Selskapet overtar AGS sine eiendeler, rettigheter og forpliktelser. Som motytelse skal Selskapet utstede totalt 1.029.636.885 vederlagsaksjer, før en eventuell aksjespleis i henhold til sak 13 nedenfor. Aksjeeierne i AGS vil motta 1,4 vederlagsaksje i Selskapet for hver aksje de eier i AGS.

Fusjonen representerer etter styrets oppfatning en fornuftig måte å realisere de gjenværende aksjonærverdiene i Songa Bulk, og representerer en mer attraktiv verdsettelse enn det Songa Bulk ville kunne realisere ved avvikling og utdeling av nettoverdier som et frittstående selskap.

Styret foreslår at generalforsamlingen treffer følgende beslutning:

I. Godkjennelse av Fusjonsplan

• 1. "Fusjonsplan datert 16. april 2019 ("Fusjonsplanen") for fusjon av Axxis Geo Solutions AS (som overdragende selskap) ved overføring av Axxis Geo Solutions AS sine eiendeler, rettigheter og forpliktelser som helhet til Songa Bulk ASA (som overtagende selskap) godkjennes."
• II. Kapitalforhøyelse og vedtektsendring

ITEM 12: APPROVAL OF THE MERGER PLAN WITH AXXIS GEO SOLUTIONS AS AND SHARE CAPITAL INCREASE BY ISSUANCE OF CONSIDERATION SHARES

The board of directors proposes to merge the Company with Axxis Geo Solutions AS ("AGS"), with the Company as the surviving entity (the "Merger"). The Company currently has no operating business, and by carrying out the Merger, the Company will assume operations in the seismic industry. For further information on the Merger, please refer to the board's proposed merger plan, enclosed to this notice as Appendix 2.

AGS was founded 16 October 2006 and operates vessels providing seismic services within the oil and gas industry. AGS is the parent company of the group and has three wholly-owned subsidiaries, of which two are incorporated in Norway and one is incorporated in the United States. In addition, AGS controls 100% of the votes in an Indonesian company by its ownership to 49% of the shares. The group's significant contracts and assets are mainly owned the AGS. Based on the latest private placement in AGS, the company is valued at approximately NOK 600 million.

As part of the Merger, the Company shall assume all assets, rights and obligations of AGS. In return, the Company shall issue a total of 1,029,636,885 consideration shares, prior to any reverse share split according to item 13 below. The shareholders of AGS will receive 1.4 consideration share for each share they hold in AGS.

In the opinion of the Board, the Merger represents an attractive opportunity to realise the remaining shareholder value of Songa bulk, and implies a higher value than Songa Bulk would be able to achieve as a stand-alone company through a dissolution and distribution of its net proceeds.

The board proposes that the general meeting passes the following resolution:

I. Approval of the merger plan

1. The merger plan dated 16 April 2019 for the merger of Axxis Geo Solutions AS (as the transferring entity) by the transfer of Axxis Geo Solutions AS' assets, rights and obligations in its entirety to Songa Bulk ASA (as the surviving entity), is approved.

II. Share capital increase with accompanying amendment to the articles of association

1. Aksjekapitalen forhøyes med NOK 28 712 684,8137722 fra NOK 1 000 000 til NOK 29 712 684,8137722 ved utstedelse av nye aksjer hver pålydende NOK 0,027886224.

Angivelsen av aksjekapitalen og aksjenes pålydende i vedtektenes § 4 endres tilsvarende.

• 2. Det skal betales NOK 0,5 (avrundet) for hver aksje. Samlet tegningsbeløp er dermed NOK 514 818 443 , hvorav NOK 28 712 684,8137722 er aksjekapital og NOK 486 105 758,1862280 som tilføres annen egenkapital. Fusjonen gjennomføres regnskapsmessig som en transaksjon, og samlet tegningsbeløp tilsvarer virkelig verdi av de eiendeler som tilføres Songa Bulk ASA.
• 3. Aksjonærene i Axxis Geo Solutions AS vil motta 1.4 aksjer i Songa Bulk ASA for hver aksje de eier i Axxis Geo Solutions AS per tidspunktet for gjennomføringen av Fusjonen. Kapitalforhøyelsen vedtas og anses tegnet ved generalforsamlingenes godkjennelse av fusjonsplanen. For å få riktig bytteforhold uten at aksjer må eies i sameie av aksjonærene, kan antall vederlagsaksjer til den enkelte aksjonær avrundes nedover til nærmeste antall hele aksjer.
• 4. Aksjeinnskuddsforpliktelsen skal gjøres opp ved overføring av de eiendeler, rettigheter og forpliktelser som er inntatt i Vedlegg 5 til Fusjonsplanen. Slik overføring skjer med virkning per den selskapsrettslige ikrafttredelsen av fusjonen.
• 5. De nye aksjene gir rett til utbytte som vedtas etter at kapitalforhøyelsen er registrert i Foretaksregisteret. Det gjelder ingen særlige vilkår for å utøve utbytteretten.
• 6. Aksjekapitalen anses økt når generalforsamlingen i fusjonspartene gyldig har godkjent Fusjonsplanen og fusjonen registreres gjennomført i Foretaksregisteret etter utløpet av kreditorfristen og innfrielse av øvrige vilkår for fusjonen.
• 7. Utgiftene til kapitalforhøyelsen er anslått til ca. NOK 30,000.

1. The share capital is increased by NOK 28,712,684.8137722, from NOK 1,000,000 to NOK 29,712,684.8137722, by issuance of new shares each with a par value of NOK 0.027886224.

The articles of association section 4 is amended accordingly.

• 2. The subscription price shall be NOK 0.5 (approx.) per share. Thus, the total subscription amount is NOK 514,818,443, of which NOK 28,712,684.8137722 is allocated to the share capital and NOK 486,105,758.1862280 is other equity. The Merger is completed as a transaction for accounting purposes and the subscription amount corresponds to the value received by Songa bulk ASA.
• 3. The shareholders in Axxis Geo Solutions AS will receive 1.4 shares of Songa Bulk ASA for each share of Axxis Geo Solutions AS at the time of completion of the Merger. The share capital increase is approved and subscribed by shareholder approval of the Merger. The number of consideration shares may be rounded down to avoid fractional shares.
• 4. The contribution is settled by the transfer of the assets, rights and obligation as set out in Appendix 5 to the merger plan. Such transfer is effective upon the commencement of the Merger.
• 5. The shares are equal with the Company's existing shares and carry dividend rights as from the time of registration of the capital increase with the Norwegian Register of Business Enterprises. There are no restrictions on the right to receive dividends.
• 6. The capital increase is considered completed upon the time of registration of the merger with the Norwegian Register of Business Enterprises upon expiry of the creditor notice period and completion of the conditions set out in the Merger Plan..
• 7. Expenditures of the capital increase is estimated to approximately NOK 30,000.

SAK 13: AKSJESPLEIS MED TILHØRENDE VEDTEKTSENDRING

Betinget av at Fusjonen gjennomføres, jf. sak 12 I) over, foreslår styret at det gjennomføres en aksjespleis i forholdet 1:50 for å tilrettelegge for en optimal kapitalstruktur etter gjennomføring av Fusjonen. Aksjesplitten omfatter også vederlagsaksjene utstedt i forbindelse med Fusjonen, jf. sak 12 II) over.

Aksjespleisen innebærer at aksjenes pålydende økes fra NOK 0,027886224 til NOK 1,394311 (avrundet), og at antall aksjer reduseres fra 1.065.496.885 til 21 309 937. Gitt dagens børskurs forventes aksjespleisen å resultere i en kurs på ca. NOK 25 per aksje.

Styret foreslår at aksjeeiere med en aksjebeholdning som ikke er delelig med 50 får beholdningen avrundet oppover til nærmeste nummer delelig med 50. Differanse gjøres opp ved å redusere antall aksjer tilhørende de største aksjonærene i det kombinerte selskapet.

Selskapet vil gi ytterligere informasjon om tidsplan for gjennomføring av aksjespleisen (herunder ex-dato) i forbindelse med utløp av kreditorperioden under Fisjonen.

Styret foreslår at generalforsamlingen treffer følgende beslutning:

• 8. Selskapet 1.065.496.885 aksjer slås sammen (spleises) i forholdet 1:50, slik at antallet aksjer reduseres til 21 309 937. Dermed økes aksjenes pålydende fra NOK 0,027886224 til NOK 1,394311.
• 9. Gjennomføring av aksjespleisen er betinget av generalforsamlingens godkjennelse av fusjonsplanen, jf. sak 12 I) over.
• 10. Det nærmere tidspunktet for gjennomføring av aksjespleisen fastsettes av styret, likevel innen 31. august 2019.

SAK 14: ØVRIGE VEDTEKTSENDRINGER ITEM 14: OTHER AMENDMENTS TO THE

Betinget av at Fusjonen gjennomføres, jf. sak 12 I) over, foreslår styret at generalforsamlingen treffer følgende

ITEM 13: REVERSE SHARE SPLIT AND ACCOMPANYING AMENDMENT TO THE ARTICLES OF ASSOCIATION

Subject to the completion of the Merger, cf. item 12 I) above, the board proposes to carry out a reverse share split in a ratio of 1:50 in order to achieve an optimal capital structure following completion of the Merger. The consideration shares issued in connection with the Merger, cf. item 12 II) above, will also be subject to the reverse share split.

The reverse share split involves that the par value of each share is increased from 0.027886224 to (approx.) NOK 1.394311, and that the number of shares is reduced from 1,065,496,885 to 21 309 937. Given today's trading price, this is expected to result in a trading price of approximately NOK 25 per share.

The board proposes that shareholdings not divisible by 50 are rounded up the nearest number divisible by 50. The difference will be made up reducing the shares owned by the largest shareholders of the combined company.

The Company will provide further details on the timeline for the completion of the reverse share split (including ex-date) in connection with the expiry of the statutory creditor notice period under the Merger.

The board proposes that the general meeting passes the following resolution:

• 1. The Company 1,065,496,885 shares are merged (reverse split) in the ratio 1:50, resulting in the number of shares being reduced to 21,309,937. Thus, the par value of each share is increased from NOK 0.027886224 to NOK 1.394311.
• 3. Completion of the reverse share split is conditional on the general meeting's approval of the merger plan, cf. item 12 I) above.
• 4. The board determines the time at which the reverse share split shall be carried out, however no later than on 31 August 2019.

ARTICLES OF ASSOCIATION

Subject to the completion of the Merger, cf. item 12 I) above, the board proposes that the general meeting passes

Betinget av og med virkning fra tidspunktet for gjennomføringen av Fusjonen, jf. sak 12 I) over, endres Selskapets vedtekter som følger:

Selskapets foretaksnavn er Axxis Geo Solutions ASA. Selskapet er et allmennaksjeselskap.

§ 2 Forretningskommune

Selskapet skal ha sitt forretningskontor i Bærum kommune.

Selskapets virksomhet er å eie og drive skip som leverer tjenester til olje- og gassindustrien, samt deltagelse i andre relaterte selskap og virksomheter.

Selskapets styre skal bestå av mellom tre (3) og syv (7) medlemmer som velges av generalforsamlingen.

Selskapets firma tegnes av to styremedlemmer i fellesskap eller daglig leder sammen mede et styremedlem.

SAK 15: FULLMAKT TIL STYRET TIL Å FORHØYE AKSJEKAPITALEN I FORBINDELSE MED OPSJONSPROGRAM

I forbindelse med gjennomføringen av Fusjonen vil Selskapet overta forpliktelsene under AGS' opsjonsprogram. Styret foreslår derfor at generalforsamling gir styret fullmakt til å utstede aksjer til bruk i opsjonsprogrammet.

Styret foreslår at generalforsamlingen treffer følgende beslutning:

• 1. Styret gis fullmakt til å forhøye Selskapets aksjekapital med maksimalt NOK 1 700 911 (beregnet etter gjennomføring av Fusjonen). Fullmakten kan brukes én eller flere ganger.
• 2. Fullmakten kan benyttes i forbindelse med Selskapets opsjonsprogram for styremedlemmer og ledende ansatte.

beslutning om endringer av Selskapets vedtekter: the following resolution as regards amendments to the articles of association:

Subject to and with effect from the time of completion of the Merger, cf. item 12 I) above, the Company's articles of association are amended as follows:

§ 1 Firma § 1 Company name

The Company's business name is Axxis Geo Solutions ASA. The company is a public limited liability company.

§ 2 Municipality

The company shall have its business offices in the municipality of Bærum.

§ 3 Selskapets virksomhet § 3 The business of the Company

The Company's business involves owning and/or operating vessels providing services to the oil and gas segment, including investment in other activities and entities related thereto.

§ 5 Styre og signatur § 5 Board and signatory powers

The board of the Company shall consist of between three (3) and seven (7) members elected by the general meeting.

The signatory powers are held, two board members jointly or by the general manager together with one board member.

Vedtektenes punkt 8 slettes. Item 8 of the Articles is deleted.

ITEM 15: AUTHORISATION TO THE BOARD TO INCREASE THE SHARE CAPITAL IN CONNECTION WITH OPTION SCHEME

As the Company assumes AGS' obligations under its option scheme as part of the Merger, the board proposes that the general meeting authorises the board to issue shares in connection with said option scheme.

The board proposes that the general meeting passes the following resolution:

• 1. The board of directors is authorised to increase the Company's share capital by maximum NOK 1 700 911 (calculated based on the share capital following completion of the Merger. The authorisation may be used one or several times.
• 2. The authorisation may be used in connection with the Company's option scheme for members of the board and the senior management.

• 3. Fullmakten gjelder frem til ordinær generalforsamling i 2020 og bortfaller i ethvert tilfelle 30. juni 2020.
• 4. Aksjeeiernes fortrinnsrett til å tegne aksjeri henhold til allmennaksjeloven § 10-4 kan fravikes, jf. § 10-5.
• 5. Fullmakten omfatter kapitalforhøyelse mot innskudd i andre eiendeler enn penger og rett til å pådra Selskapet særlige plikter, jf. allmennaksjeloven § 10-2.
• 6. Fullmakten omfatter ikke beslutning om fusjon etter allmennaksjeloven § 13-5.

SAK 16: FULLMAKT TIL STYRET TIL Å FORHØYE AKSJEKAPITALEN I DET KOMBINERTE SELSKAPET

AGS vurderer at det er mange attraktive prosjekter for selskapet i tiden fremover. For å benytte seg av og realisere disse kan det være selskapet må ha tilgang til egenkapitalmarkedet. Styret foreslår derfor, etter forslag fra AGS, at generalforsamling gir styret fullmakt til å utstede aksjer til å finansiere økt aktivitet i det kombinerte selskapet.

Styret foreslår at generalforsamlingen treffer følgende beslutning:

• 7. Styret gis fullmakt til å forhøye Selskapets aksjekapital med inntil NOK 13 155 431 (beregnet etter gjennomføring av Fusjonen). Fullmakten kan brukes én eller flere ganger. Registrering og bruk av fullmakten er betinget av gjennomføring av Fusjonen.
• 8. Fullmakten kan benyttes til å finansiere økt aktivitet eller nye seismikkprosjekter.
• 9. Fullmakten gjelder frem til ordinær generalforsamling i 2020 og bortfaller i ethvert tilfelle 30. juni 2020.
• 10. Aksjeeiernes fortrinnsrett til å tegne aksjeri henhold til allmennaksjeloven § 10-4 kan fravikes, jf. § 10-5.
• 11. Fullmakten omfatter kapitalforhøyelse mot innskudd i andre eiendeler enn penger og rett til å pådra Selskapet særlige plikter, jf. allmennaksjeloven
• 3. The authorisation is valid until the annual general meeting in 2020 and will in all cases expire on 30 June 2020.
• 4. The shareholders' preferential rights to subscribe for shares pursuant to section 10-4 of the NPLCA, may be waived, cf. section 10-5.
• 5. The authorisation includes share capital increases by contribution in kind and a right to inflict special obligations on the Company, cf. section 10-2 of the NPLCA.
• 6. The authorisation does not include resolutions on mergers pursuant to section 13-5 of the NPLCA.

ITEM 16: AUTHORISATION TO THE BOARD TO INCREASE THE SHARE CAPITAL IN the COMBINED COMPANY

AGS believes there are attractive prospects for the company going forward. To be able to realise these may require that the combined company has access to the equity capital markets. Consequently the board proposes, as requested by AGS, that the general meeting authorises the board to issue shares up to 44 % to finance increased activity in the combined company going forward.

The board proposes that the general meeting passes the following resolution:

• 7. The board of directors is authorised to increase the Company's share capital by up to NOK 13 155 431 (calculated based on the share capital following completion of the Merger). The authorisation may be used one or several times. Registration and use of the authorisation is conditional n completion of the Merger.
• 8. The authorisation may be used to finance a ramp-up of activities or new seismic projects
• 9. The authorisation is valid until the annual general meeting in 2020 and will in all cases expire on 30 June 2020.
• 10. The shareholders' preferential rights to subscribe for shares pursuant to section 10-4 of the NPLCA, may be waived, cf. section 10-5.
• 11. The authorisation includes share capital increases by contribution in kind and a right to inflict special obligations on the Company, cf. section 10-2 of the

12. Fullmakten omfatter ikke beslutning om fusjon etter allmennaksjeloven § 13-5.

* * * * * *

Det er ingen andre saker på dagsordenen. There are no other items on the agenda.

§ 10-2. NPLCA.

12. The authorisation does not include resolutions on mergers pursuant to section 13-5 of the NPLCA.

Fusjonsplan

FOR FUSJON AV

AXXIS GEO SOLUTIONS AS (SOM OVERDRAGENDE SELSKAP)

MED OVERFØRING TIL

SONGA BULK ASA (SOM OVERTAGENDE SELSKAP)

1. april 2019

Bilag
Bilag 1	Gjeldende vedtekter for Axxis Geo Solutions AS
Bilag 2	Gjeldende vedtekter for Songa Bulk ASA
Bilag 3	Songa Bulk ASAs årsregnskap, årsberetning og revisjonsberetning for regnskapsårene 2017 og 2016, samt halvårsrapport per 30. juni 2018
Bilag 4	Axxis Geo Solutions AS' årsregnskap, årsberetning og revisjonsberetning for regnskapsårene 2017, 2016 og 2015
Bilag 5	Mellombalanse for Axxis Geo Solutions AS
Bilag 6	Revisors bekreftelse av mellombalansen

Styret i Axxis Geo Solutions AS og Songa Bulk ASA har i dag inngått denne fusjonsplanen ("Fusjonsplanen").

1 OM FUSJONEN

1.1 Axxis Geo Solutions AS ("AGS"), forretningskommune Ulstein, med adresse Brendehaugen 20, 6065 Ulsteinvik, og organisasjonsnummer 921 350 775, som overdragende selskap,

fusjoneres med

Songa Bulk ASA ("Songa Bulk"), forretningskommune Oslo, med adresse Haakon VIIs gate 1, 0161 Oslo, og organisasjonsnummer 917 811 288, som overtagende selskap,

ved at AGS sine eiendeler, rettigheter og forpliktelser som helhet overdras til Songa Bulk mot at aksjeeierne i AGS får som fusjonsvederlag aksjer i Songa Bulk ved forhøyelse av aksjekapitalen i dette selskapet ("Fusjonen").

• 1.2 Fusjonen gjennomføres etter bestemmelsene i allmennaksjeloven kapittel 13, jf. § 13-1 første punktum og § 13-2 (1) nr. 1 og etter skattelovens regler om skattefri fusjon samt regnskapslovens bestemmelser.
• 1.3 AGS oppløses og slettes ved Fusjonens ikrafttredelse. Songa Bulk fortsetter som allmennaksjeselskap etter Fusjonen med de endringer som ellers nærmere spesifisert i denne Fusjonsplanen.

2 BAKGRUNN OG BEGRUNNELSE FOR FUSJONEN

• 2.1 Songa Bulk har siden september 2016 drevet virksomhet innen eierskap og drift av tørrbulkskip, og har vært notert på Oslo Axess siden 24. mai 2017. 6. juli 2018 varslet Songa Bulk markedet om gjennomføring av avtale med Star Bulk Carriers Corp. ("Star Bulk") om salg av samtlige av sine skip mot vederlag i kontanter og 13 688 000 aksjer i Star Bulk ("Star Aksjer"). Star Aksjene har i etterkant av gjennomføringen blitt delt ut til aksjeeiere i Songa Bulk gjennom utbytter og kapitalnedsettelse. Songa Bulk er i dag et selskap med begrensede finansielle eiendeler og uten operativ virksomhet, og har i etterkant av transaksjonen med Star Bulk vurdert ulike strategiske alternativer for selskapets videre drift.
• 2.2 AGS drifter som leverer seismikktjenester til olje- og gassindustrien.
• 2.3 AGS vil gjennom fusjonen oppnå børsnotering av sin virksomhet og en større aksjonærbase. For Songa Bulk vil fusjonen bidra til å realisere gjenværende aksjonærverdier i selskapet.

3 FUSJONSMETODE – VEDERLAG OG BYTTEFORHOLD

3.1 Fastsettelse av bytteforholdet - verdivurdering

3.1.1 Ved fastsettelsen av hva som er et rimelig bytteforhold for både Songa Bulk og AGS sine aksjeeiere har Partene tatt hensyn til flere faktorer, herunder underliggende verdier, regnskaper og balanseførte verdier, samt aksjenes markedsverdi basert på siste emisjonskurs og børskurs for henholdsvis AGS og Songa Bulk. Verdsettelsen er basert på et bytteforhold som er fremforhandlet av Selskapenes styrer i samråd med Selskapenes respektive finansielle rådgivere, dvs. mellom uavhengige parter, og er således fastsatt på markedsmessig vilkår.

• 3.1.2 Partene har videre gjennomført en juridisk due diligence av hverandre, med et for begge parter tilfredsstillende resultat.
• 3.1.3 På denne bakgrunn er Partene enige om følgende verdsettelse av de respektive Partene:

Songa Bulk NOK 17 930 000

AGS NOK 514 818 443

3.1.4 Partene anser verdsettelsen som rimelig og at Fusjonen vil være til fordel for Partene og deres aksjeeierne. Selskapenes styrer er av den oppfatning at ovenstående verdsettelser tilsvarer virkelig verdi av Selskapene per 16. april 2018 som er verdimålingstidspunktet lagt til grunn for Fusjonen.

3.2 Nærmere om bytteforholdet og antall vederlagsaksjer

• 3.2.1 Bytteforholdet mellom selskapene er som følge av overnevnte verdsettelser avtalt til at hver aksje i AGS gir rett 1.4 aksjer i Songa Bulk.
• 3.2.2 Det er i dag 35 860 000 aksjer i Songa Bulk, hver pålydende NOK 0.027886224. AGS har utstedt 735 454 918 aksjer , hver pålydende NOK 0,10.
• 3.2.3 Utover 35 067 112 opsjoner utstedt av AGS i forbindelse med sitt opsjonsprogram for ansatte, har ingen av partene utstedt tegningsretter, opsjoner, konvertible obligasjoner eller andre finansielle instrumenter som gir innehaverne rett til å kreve aksjer utstedt, eller andre særskilte rettigheter som nevnt i den norske allmennaksjeloven eller aksjeloven kapittel 11.
• 3.2.4 Utover det som fremgår av denne Fusjonsplan eller den annen Parts forutgående samtykke, skal ingen av Partene før Fusjonen trer i kraft foreta endringer i sin aksjekapital eller antallet aksjer, utstede tegningsretter, opsjoner eller tilsvarende instrumenter som gir innehaver rett til å kreve utstedt aksjer, eller erverve egne aksjer. Tilsvarende skal ingen av Partene frem til Fusjonen trer i kraft beslutte å utdele utbytte eller foreta andre utdelinger på aksjer.
• 3.2.5 Aksjekapitalen i Songa Bulk skal økes fra NOK 1 000 000 med NOK 28 712 684,81377224 til NOK 29 712 684,81377224 ved utstedelse av 1 029 636 885 nye aksjer hver pålydende NOK 0,027886224 som vederlag i Fusjonen. Aksjeinnskuddet utgjør NOK 514 818 443, hvorav NOK 28 712 684,8137722 er aksjekapital og NOK 486 105 758,186228 er overkurs. Aksjeinnskuddet gjøres opp ved overføring av de eiendeler, rettigheter og forpliktelser som Songa Bulk tilføres ved fusjonen. Tilleggsvederlag skal ikke utdeles.
• 3.2.6 Aksjeeierne i AGS vil samlet motta 1 029 636 885 nyemitterte aksjer i Songa Bulk som vederlag for sine aksjer i AGS. Aksjeeierne i AGS vil motta 1,4 vederlagsaksjer i Songa Bulk for hver aksje i de eier i AGS per ikrafttredelsen av Fusjonen. Ettersom aksjeeierne bare vil bli tildelt hele aksjer, vil det være behov for å foreta en avrunding. Det vil bli benyttet alminnelige avrundingsregler for fordelingen av vederlagsaksjene på aksjeeierne i AGS. Dette innebærer at aksjeeiere som har en beholdning av aksjer i AGS som gir minst 0,5 aksjer i Songa Bulk, i utgangspunktet vil motta én aksje i Songa Bulk for slik brøkdel. Aksjeeiere som har en beholdning aksjer i AGS som gir mindre enn 0,5 i Songa Bulk vil i utgangspunktet ikke motta vederlagsaksjer for slik brøkdel, dvs. at slike brøkdelsaksjer vil bli innløst uten noen form for kompensasjon.

4 AGS SINE EIENDELER, RETTIGHETER OG FORPLIKTELSER

4.1 Den virksomheten som fusjoneres inn i Songa Bulk fra AGS i og med Fusjonen omfatter samtlige av AGS sine balanseførte og ikke-balanseførte eiendeler, rettigheter og forpliktelser ("Virksomheten"). En detaljert spesifikasjon av Virksomheten per 28. februar 2019 fremgår av mellombalansen for AGS inntatt som vedlegg 5 ("Mellombalansen").

5 NÆRMERE OM ORGANISERINGEN AV SELSKAPENE ETTER FUSJONEN

• 5.1 I forbindelse med gjennomføring av Fusjonen vil Songa Bulk foreslå å endre sitt foretaksnavn til Axxis Geo Solutions ASA.
• 5.2 Det vil på den ekstraordinære generalforsamlingen i Songa Bulk som skal behandle Fusjonen også bli foretatt valg av nytt styre. Det nye styret velges med virkning fra gjennomføringstidspunktet for Fusjonen. I den forbindelse vil blant annet de største eierne i det fusjonerte selskapet konsulteres.
• 5.3 Alle ansatte i AGS overføres til Songa Bulk som en følge av Fusjonen. Songa Bulk har per datoen for denne Fusjonsplanen ingen ansatte. Selskapets ambisjoner om vekst vil skape nye muligheter for høyt kvalifiserte medarbeidere.
• 5.4 Ansatte fra AGS opprettholder sine ansettelsesforhold med uendrede lønns- og arbeidsvilkår. Opsjonsavtaler mellom AGS og ansatte i AGS skal endres slik at opsjonene gir rett til aksjer utstedt av det overtakende selskap, og antallet aksjer og vilkårene for opsjonene skal justeres ut fra bytteforholdet i Fusjonen slik at verdien av opsjonene ikke endres som følge av Fusjonen.

6 SELSKAPSRETTSLIGE BESLUTNINGER

6.1 Beslutning i AGS

Det forslås at generalforsamlingen i AGS fatter følgende beslutning:

"Fusjonsplan datert 16. april 2019 for fusjon av Axxis Geo Solutions AS (som overdragende selskap) ved overføring av Axxis Geo Solutions AS eiendeler, rettigheter og forpliktelser som helhet til Songa Bulk ASA (som overtagende selskap) godkjennes. Dette innebærer at Axxis Geo Solutions AS oppløses ved ikrafttredelse av fusjonen.

6.2 Beslutninger i Songa Bulk

Det forslås at generalforsamlingen i Songa Bulk fatter følgende beslutninger:

I. Godkjennelse av Fusjonsplan

"Fusjonsplan datert 16. april. mars 2019 ("Fusjonsplanen") for fusjon av Axxis Geo Solutions AS (som overdragende selskap) ved overføring av Axxis Geo Solutions AS sine eiendeler, rettigheter og forpliktelser som helhet til Songa Bulk ASA (som overtagende selskap) godkjennes."

II. Kapitalforhøyelse og vedtektsendring

1. Aksjekapitalen forhøyes med NOK 28 712 684,8137722 fra NOK 1 000 000 til NOK 29 712 684,8137722 ved utstedelse av nye aksjer hver pålydende NOK 0,027886224.

Angivelsen av aksjekapitalen og aksjenes pålydende i vedtektenes § 4 endres tilsvarende.

• 2. Det skal betales NOK 0,5 (avrundet) for hver aksje. Samlet tegningsbeløp er dermed NOK 514 818 443 , hvorav NOK 28 712 684,8137722 er aksjekapital og NOK 486 105 758,1862280 som tilføres annen egenkapital. Fusjonen gjennomføres regnskapsmessig som en transaksjon, og samlet tegningsbeløp tilsvarer virkelig verdi av de eiendeler som tilføres Songa Bulk ASA.
• 3. Aksjonærene i Axxis Geo Solutions AS vil motta 1.4 aksjer i Songa Bulk ASA for hver aksje de eier i Axxis Geo Solutions AS per tidspunktet for gjennomføringen av fusjonen. Kapitalforhøyelsen vedtas og anses tegnet ved generalforsamlingenes godkjennelse av fusjonsplanen. For å få riktig bytteforhold uten at aksjer må eies i sameie av aksjonærene, vil antall vederlagsaksjer til den enkelte aksjonær avrundes nedover til nærmeste antall hele aksjer.
• 4. Aksjeinnskuddsforpliktelsen skal gjøres opp ved overføring av de eiendeler, rettigheter og forpliktelser som er inntatt i Vedlegg 5 til Fusjonsplanen. Slik overføring skjer med virkning per den selskapsrettslige ikrafttredelsen av fusjonen.
• 5. De nye aksjene gir rett til utbytte som vedtas etter at kapitalforhøyelsen er registrert i Foretaksregisteret. Det gjelder ingen særlige vilkår for å utøve utbytteretten.
• 6. Aksjekapitalen anses økt når generalforsamlingen i fusjonspartene gyldig har godkjent Fusjonsplanen og fusjonen registreres gjennomført i Foretaksregisteret etter utløpet av kreditorfristen og innfrielse av øvrige vilkår for fusjonen, jf. allmennaksjeloven § 13-17.
• 1. Utgiftene til kapitalforhøyelsen er anslått til ca. NOK 30,000.

7 REGNSKAPSMESSIG OG SKATTEMESSIG BEHANDLING

7.1 Regnskapsmessige forhold

• 7.1.1 Fusjonen skal ha regnskapsmessig virkning fra Fusjonens selskapsrettslige ikrafttredelse. Alle transaksjoner, inntekter og kostnader knyttet til Virksomheten tilordnes Songa Bulk fra dette tidspunkt.
• 7.1.2 Fusjonen gjennomføres med regnskapsmessig som en transaksjon.

7.2 Skattemessige forhold

• 7.2.1 Fusjonen skal ha skattemessig virkning fra Gjennomføringstidspunktet.
• 7.2.2 Fusjonen gjennomføres med skattemessig kontinuitet i overensstemmelse med skatteloven kapittel 11. Således overtar Songa Bulk de skattemessige posisjoner i tilknytning til Virksomheten fra AGS. Fusjonen antas dermed ikke å utløse umiddelbare skattemessige konsekvenser.
• 7.2.3 Partene har ikke utredet om og eventuelt på hvilken måte fusjonen får skattemessige konsekvenser for aksjeeiere som er hjemmehørende utenfor Norge.

8 BETINGELSER FOR IKRAFTTREDELSE AV FUSJONEN

• 8.1 AGS' plikt til å gjennomføre Fusjonen er betinget av at:
• 8.1.1 Fusjonsplanen er godkjent med det nødvendige flertall i generalforsamlingene i Songa Bulk, herunder beslutning om å utstede vederlagsaksjene, samt at generalforsamlingen har truffet de beslutninger som er avtalt i Fusjonsplanen.
• 8.1.2 Lovgivningen ikke er til hinder for å registrere Fusjonen.
• 8.1.3 Partene oppnår samtykke fra kontraktsparter og offentlige myndigheter som er nødvendige for å gjennomføre Fusjonen.
• 8.1.4 Oslo Børs har ikke vedtatt eller varslet at Songa Bulk sin notering på Oslo Axess (eller Oslo Børs) ikke kan videreføres som følge av Fusjonen.
• 8.1.5 Songa Bulk godtatt at innehaverne av opsjoner i AGS får opsjoner utstedt av Songa Bulk, og vilkårene for opsjonene endres i tråd med denne Fusjonsplanen.
• 8.1.6 Fristen for innsigelser fra kreditorer etter allmennaksjeloven § 13-16 skal være utløpt for begge Parter, og forholdet til kreditorer som eventuelt har fremsatt innsigelser skal være avklart eller domstolen har besluttet at Fusjonen uansett kan gjennomføres og registreres i Foretaksregisteret.
• 8.1.7 Songa Bulk har ikke vesentlig misligholdt sine forpliktelser etter Fusjonsplanen.
• 8.1.8 Betingelsene i punkt 8.1.1 8.1.7 kan frafalles av AGS helt eller delvis.
• 8.2 Songa Bulks plikt til å gjennomføre Fusjonen er betinget av at:
• 8.2.1 Fusjonsplanen er godkjent med det nødvendige flertall i generalforsamlingene i AGS, samt at generalforsamlingen har truffet andre beslutninger som er avtalt i Fusjonsplanen.
• 8.2.2 Lovgivningen ikke er til hinder for å registrere Fusjonen.
• 8.2.3 Partene oppnår samtykke fra kontraktsparter og offentlige myndigheter som er nødvendige for å gjennomføre Fusjonen (inkludert samtykke/dokumentasjon knyttet til AGS som leverandør i ONGC-prosjektet).
• 8.2.4 Fristen for innsigelser fra kreditorer etter allmennaksjeloven § 13-16 skal være utløpt for begge Parter, og forholdet til kreditorer som eventuelt har fremsatt innsigelser skal være avklart eller domstolen har besluttet at Fusjonen uansett kan gjennomføres og registreres i Foretaksregisteret.
• 8.2.5 AGS har ikke vesentlig misligholdt sine forpliktelser etter Fusjonsplanen.
• 8.2.6 Betingelsene i punkt 8.2.1 8.2.5 kan frafalles av Songa Bulk helt eller delvis.
• 8.3 Dersom betingelsene for gjennomføring ikke er oppfylt eller frafalt innen 30. oktober 2019, bortfaller Fusjonen med mindre styrene i AGS og Songa Bulk innen fristen avtaler å forlenge fristen for gjennomføring.

9 FUSJONENS SELSKAPSRETTSLIGE IKRAFTTREDELSE

• 9.1 Fusjonen trer selskapsrettslig i kraft når seksukersfristen for å kreve innfrielse eller sikkerhetsstillelse er utløpt og melding om Fusjonens ikrafttredelse deretter er registrert i Foretaksregisteret, jf. allmennaksjeloven jf. 13-17 ("Gjennomføringstidspunktet"). Det tas sikte på registrering før 31. juni 2019.
• 9.2 På Gjennomføringstidspunktet inntrer følgende virkninger av Fusjonen:
  • (i) AGS er oppløst;
  • (i) aksjekapitalen i Songa Bulk er forhøyet;
  • (ii) AGS sine eiendeler, rettigheter og forpliktelser er overført til Songa Bulk;
  • (iii) aksjene i AGS er innløst og aksjonærene har fått aksjer utstedt av Songa Bulk; og
  • (iv) andre virkninger som i henhold til Fusjonsplanen skal inntre ved Fusjonens ikrafttredelse.

10 FORTSATT NOTERING PÅ OSLO AXESS

• 10.1 Etter Virkningsdagen vil Songa Bulk fortsette sin notering på Oslo Axess eller annen regulert markedsplass. Vederlagsaksjene opptas til notering så snart som mulig iht. verdipapirhandelloven og Oslo Børs' Løpende Forpliktelser.
• 10.2 Songa Bulk skal senest innen fem børsdager etter signering av Fusjonsplanen sende en redegjørelse om fortsatt notering til Oslo Børs, jf. punkt 12.1 i Oslo Børs' Løpende Forpliktelser.

11 RÅDIGHETSBEGRESNINGER I FORBINDELSE MED FUSJONEN

11.1 Hver av Partene skal fra dagens dato og frem til Gjennomføringstidspunktet utøve sin forretningsvirksomhet på ordinær måte. Verken AGS, Songa Bulk eller deres datterselskaper, skal fra inngåelsen av Fusjonsplanen opptre i strid med bestemmelsene i denne planen, eller uten den annen Parts forutgående skriftlige samtykke beslutte eller foreta vesentlige investeringer, salg av virksomhet (herunder aksjer eller andeler i selskaper) eller forandringer i sin virksomhet eller kapitalstruktur, eller andre disposisjoner som er av vesentlig betydning for Fusjonen eller som faller utenfor rammen av ordinær drift. Ingen av partene skal før gjennomføring av Fusjonen utdele utbytte, utstede nye aksjer eller kjøpe tilbake egne aksjer uten at det er skriftlig godkjent av den annen part (eller vedta eller inngå avtaler som går ut på dette).

11.2 Verken AGS eller Songa Bulk skal gjøre tiltak med sikte på at det skal bli fremsatt noe tilbud eller forslag som vil være til hinder for gjennomføring av Fusjonen eller redusere sannsynligheten for at Fusjonsplanen skal bli godkjent av deres respektive generalforsamlinger.

12 ENDRINGER

12.1 Styrene i selskapene kan i fellesskap, på vegne av generalforsamlingene, gjennomføre mindre endringer i Fusjonsplanen dersom dette er nødvendig eller ønskelig.

13 PARTENES INFORMASJONSPLIKT

13.1 Partene skal fram til Fusjonen trer i kraft holde hverandre informert om hverandres virksomhet og om andre forhold som kan være av betydning for Fusjonen. Partene skal, såfremt det er mulig i henhold til de lover og regler som gjelder for selskapenes informasjonsplikt, på forhånd informere hverandre om pressemeldinger og andre meddelelser i eller til massemedia, allmennheten eller til offentlige myndigheter som gjelder Fusjonen, eller som på annen måte kan ha betydning for virksomheten i Partene etter Fusjonen.

14 OPPHØR AV FUSJONSPLANEN

• 14.1 Fusjonsplanen opphører dersom den blir hevet som følge av at betingelsene for Fusjonen ikke lar seg oppfylle innen den frist som følger av punkt 8.3 eller på grunn av vesentlig mislighold.
• 14.2 Partene skal samarbeide om den informasjon som gis om et eventuelt opphør av Fusjonsplanen. Ved utforming og presentasjon av informasjon skal det tas hensyn til begge Parters synspunkter og interesser.

15 FUSJONSKOSTNADER

15.1 Dersom Fusjonen ikke gjennomføres skal hver av partene bære sine egne kostnader. Dersom Fusjonen gjennomføres, skal alle kostander og honorarer dekkes av det fusjonerte selskapet.

16 TVISTELØSNING

• 16.1 Denne avtalen er underlagt norsk rett.
• 16.2 Uenighet knyttet til Fusjonsplanen skal søkes løst i minnelighet. Tvister skal løses for de ordinære norske domstoler, med Oslo tingrett som verneting.

[SIGNATURSIDE FØLGER]

[SIGNATURSIDE FOR FUSJONSPLAN]

Ulsteinvik/Oslo, 16 april 2019

STYRET I SON GA BULK ASA

Arne Blystad Christine Redsrether Magnus Roth Vibeke Frengsrud

STYRET I AXXIS GEO SOLUTIONS AS

Bjarte Bruheim Jogeir Romestrand Fredrik Platou Ole Andre Heggheim

Njal Srevik Tore Redal

Signers:
Name	Method	Date
Platou, Fredrik	BANKID MOBILE	2019-04-15 23:06 GMT+2
Heggheim, Ole Andre	BANKID MOBILE	2019-04-15 23:07 GMT+2
Njal Sævik	BANKID MOBILE	2019-04-15 23:09 GMT+2
Rødal, Tore	BANKID	2019-04-15 23:11 GMT+2
Bruheim, Bjarte	BANKID	2019-04-15 23:23 GMT+2
Romestrand, Jogeir	BANKID	2019-04-15 23:36 GMT+2

VEDTEKTER FOR AXXIS GEO SOLUTIONS AS

28. februar 2019

§ 1

Selskapets foretaksnavn

Selskapets foretaksnavn er Axxis Geo Solutions AS.

§ 2

Forretningskommune

Selskapet har sitt forretningskontor i Ulstein kommune i Møre og Romsdal.

§ 3

Selskapets virksomhet

Selskapets virksomhet er å eie og drive skip som leverer tjenester til olje- og gassindustrien, samt deltagelse i andre relaterte selskap.

§ 4

Aksjekapital

Aksjekapitalen skal være på kr 73 545 491,80 fordelt på 735 454 918 aksjer hver pålydende kr 0,10.

§ 5

Styre og signatur

Styre skal ha fra tre til seks medlemmer. Selskapets firma tegnes av styrets leder og ett styremedlem i felleskap. Selskapet skal ha én daglig leder hvis styret beslutter det.

§ 6

Samtykke til aksjeerverv. Forkjøpsrett

Erverv av aksjer er betinget av samtykke fra styret. Slikt samtykke kan ikke nektes uten saklig grunn. Aksjeeierne har forkjøpsrett i henhold til bestemmelsene i aksjeloven, dog slik at fristen for å gjøre forkjøpsrett gjeldende etter lovens § 4-23 (1) og (2) settes til 14 dager.

§ 7

Ordinær generalforsamling

På den ordinære generalforsamling skal følgende saker behandles og avgjøres:

• 1. Godkjennelse av årsregnskap og årsberetning, herunder utdeling av utbytte;
• 1. Andre saker som etter loven eller vedtektene hører under generalforsamlingen.

Articles of Association

for Songa Bulk ASA

(Reg. no. 917 811 288) (as per 5 June 2018)

Selskapets foretaksnavn er Songa Bulk ASA. Selskapet er et allmennaksjeselskap.

§ 2 Forretningskommune § 2 Municipality

Selskapet skal ha sitt forretningskontor i Oslo kommune.

Selskapets virksomhet er investeringer (direkte eller indirekte) innen tørrbulk, drift av tørrbulkskip samt annen virksomhet som står i forbindelse med dette.

Selskapets aksjekapital er NOK 1.000.000 fordelt på NOK 35.860.000 aksjer hver pålydende NOK 0,027886224. Selskapets aksjer skal være registrert i Verdipapirsentralen ASA (VPS).

Selskapets styre skal ha inntil seks (6) styremedlemmer som velges av generalforsamlingen.

Selskapets firma tegnes av styrets leder alene, to styremedlemmer i fellesskap eller daglig leder alene.

§ 6 Generalforsamlingen – innkalling § 6 General meeting – summons

På den ordinære generalforsamling skal følgende saker behandles og avgjøres:

• 1. Godkjennelse av årsregnskapet og årsberetningen, herunder utdeling av utbytte;
• 1. Valg av styremedlemmer og revisor (dersom disse er på valg);
• 1. Andre saker som etter loven eller vedtektene hører under generalforsamlingen.

§ 1 Firma § 1 Company name

The Company's business name is Songa Bulk ASA. The company is a public limited liability company.

The company shall have its business offices in the municipality of Oslo.

§ 3 Selskapets virksomhet § 3 The business of the Company

The business of the company is investments (directly or indirectly) in dry bulk, operation of dry-bulk ships and other activities related thereto.

§ 4 Aksjekapital og aksjer § 4 Share capital and shares

The share capital of the company is NOK 1,000,000 divided into 35,860,000 shares each with a face value of NOK 0.027886224. The Company's shares shall be registered in the Norwegian Central Securities Depository ASA (VPS).

§ 5 Styre og signatur § 5 Board and signatory powers

The board of the company shall consist of up to six (6) board members elected by the general meeting.

The signatory powers are held by the chairman of the board separately, by two board members jointly or by the general manager separately.

The annual general meeting shall address and decide:

• 1. Approval of the annual accounts and the board's statement, including distribution of dividends;
• 1. Election of board members and auditor (if these are to be elected);
• 1. Any other business which by law or the Articles of Association is required to be dealt with by the general meeting.

Aksjonærer som ønsker å delta på generalforsamling skal gi selskapet melding om dette innen en frist som settes i innkallingen, som ikke kan være tidligere enn to virkedager før generalforsamlingen. Dersom slik melding ikke er gitt kan selskapet nekte aksjonæren å delta.

Når dokumenter som gjelder saker som skal behandles på generalforsamlingen, er gjort tilgjengelige for aksjeeierne på selskapets internettsider, gjelder ikke allmennaksjelovens krav om at dokumentene skal sendes til aksjeeierne. Dette gjelder også dokumenter som etter lov skal inntas i eller vedlegges innkallingen til generalforsamlingen.

Selskapet kan bruke elektronisk kommunikasjon når det skal gi meldinger, varsler, informasjon, dokumenter, underretninger ol. til aksjonærene etter allmennaksjeloven.

§ 8 Levetid – oppløsning § 8 Term – liquidation

Selskapet skal ha en levetid på inntil ti (10) år slik at selskapet skal oppløses senest innen 4. november 2026.

Shareholders that wish to attend a general meeting shall notify the company prior to a deadline, to be set out in the notice. The deadline cannot expire earlier than two business days before the general meeting. If a shareholder has not provided notice within the may attendance be denied.

When documents regarding matters which are to be dealt with at the general meeting have been made available on the internet site of the company, the requirements in the Norwegian Public Limited Liability Companies Act which state that these documents shall be sent to the shareholders, shall not apply. This exemption is also applicable with regards to documents which according to statutory law shall be included in or attached to the notice of the general meeting.

§ 7 Elektronisk kommunikasjon § 7 Electronic communication

The Company may use electronic communication to provide messages, notices, information, documents etc. pursuant to the Norwegian Public Limited Liability Companies Act to the shareholders.

The term of the Company is maximum ten (10) years, such that the Company shall the liquidated within 4 November 2026.

* * *

Songa Bulk ASA Financial Report Q2 2018

CONTENTS

SONGA BULK
SECOND QUARTER 2018 - TRANSACTION WITH STAR BULK
SECOND QUARTER 2018 FINANCIAL HIGHLIGHTS
FIRST QUARTER 2018 EVENTS
SECOND QUARTER 2018 RESULTS
THE FLEET
OUTLOOK AND STRATEGY
FORWARD-LOOKING STATEMENTS
RSKFACTORS
MAIN RISK FACTORS
RESPONSIBILITY STATEMENT
FINANCIAL INFORMATION
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
CONDENSED STATEMENT OF FINANCIAL POSITION
CONDENSED STATEMENT OF CHANGES IN EQUITY
CONDENSED STATEMENT OF CASH FLOWS
NOTES

SONGA BULK

Second Quarter 2018 Transaction, Highlights, Events, Results and Fleet

SECOND QUARTER 2018 – TRANSACTION WITH STAR BULK

• On 14 May 2018, the Company entered into an agreement with Star Bulk Carriers Corp. (Star Bulk) to sell all its vessels to Star Bulk against a consideration of 13 688 000 shares of Star Bulk and \$144.55 million in cash, with listing of the consideration shares on Oslo Stock Exchange through a dual listing of Star Bulk and a distribution of these shares to the shareholders of Songa Bulk ASA, with repayment of the bond loan with the cash proceeds at the mandatory prepayment price.
• On 5 June 2018, the annual general meeting of the Company approved the transaction.
• The transaction was completed on 6 July 2018.

SECOND QUARTER 2018 FINANCIAL HIGHLIGHTS

• The Company reports a net loss of \$3.2 million in Q2 2018 compared to net profit of \$1.6 million in Q1 2018. Net loss in Q2 2018 comprise of loss from discontinued operations of \$3.2 million. The main reason for the loss is financial expenses in connection with redemption of the Company's bond loan at 104% of nominal value. Gain from sale of vessels will be recognized in Q3 2018. The estimated gain from sale of vessels was approximately \$24 million.

SECOND QUARTER 2018 EVENTS

CORPORATE

• On 4 April 2018 a dividend of \$0.10 per share, \$3.6 million in total, was paid to the shareholders. The distribution was considered repayment of paid in capital.
• In the annual general meeting of the Company held on 5 June 2018, the shareholders resolved to reduce the share capital of the company by NOK 178 300 000 (approximately \$21 million). The amount will be distributed to the shareholders at a later stage, either in cash or as distribution in kind.

SUBSEQUENT EVENTS:

• On 6 July 2018 the transaction with Star Bulk was completed and all vessels were delivered to the new owner. The Company received 13 688 000 shares of Star Bulk and \$144.55 million in cash. The cash proceeds were used to repay the bond loan at 104% of nominal value plus accrued interests. In connection with completion the Board of Directors of the Company resolved to pay a dividend of \$151 million, equal to \$4.21 per share. The distribution was considered repayment of paid in capital.
• On 13 July 2018 a total of 10 929 550 shares of Star Bulk were distributed to the shareholders and an additional 169 365 shares were distributed on 17 August 2018. The distributions equals approximately \$148 million of the resolved dividend of \$151 million and was effected to shareholders who completed and submitted representation and warranties letters in accordance with instructions given. The remaining amount of about \$3 million will be distributed, mainly as distribution in kind, later upon receipt of representation and warranties letters from shareholders that did not yet submit such letter.
• On 29 August 2018 a total of 1 639 595 shares of Star Bulk were distributed to the shareholders in connection with commencement of the share capital reduction resolved on 5 June 2018. The distribution equals approximately \$20.7 million of the resolved amount of \$21 million and was effected to shareholders who completed and submitted representation and warranties letters in accordance with instructions given. The remaining amount of about \$0.3 million will be distributed, mainly as distribution in kind, later upon receipt of representation and warranties letters from shareholders that did not yet submit such letter.

SECOND QUARTER 2018 RESULTS

in \$ thousands
Financial performance	Q2 2018	Q1 2018
Loss from continuing operations	-50	-50
Profit (-loss) from discontinued operations	-3 171	1 678
Net profit (-loss)	-3 221	1 628
Financial position	30 June 2018	31 March 2018
Total assets	320 316	321 575
Cash and cash equivalents	16 113	16 290
Total equity	168 986	172 207
Cash flow statement	Q2 2018	Q1 2018
Net cash flow from operating activities from discontinued operations	5 633	3 829
Net cash flow used in investing activities from discontinued operations	-2 225	-28 556
Net cash flow from financing activities from discontinued operations	-3 586	-
Net change in cash and cash equivalents from discontinued operations	-178	-24 727

Financial performance

Net loss in Q2 2018 was \$3.2 million, compared to a profit of \$1.6 million in Q1 2018. Except for a small amount for general and administrative expenses, being the cost of owning and operating an empty company, all items are considered being results from discontinued operation and classified accordingly. The great difference between Q1 2018 and Q2 2018 is mainly financial expenses in connection with redemption of the Company's bond loan at 104% of nominal value. Gain from sale of vessels will be recognized in Q3 2018. The estimated gain from sale of vessels was approximately \$24 million.

Financial position

The Company's total assets amounted to \$320.3 million at 30 June 2018, more or less unchanged from the end of Q1 2018. Non-current assets are in Q2 2018 reclassified to assets held for sale.

Cash flow

Net cash flow from operating activities was \$5.6 million in Q2 2018. \$2.2 million were used in investment activities this quarter, being mainly dry-docking and upgrades on one of the vessels. \$3.6 million was paid to the shareholders as dividend. All cash flows, except from \$50 thousand outgoing on operating activities, were from discontinued operations. Cash and cash equivalents at the end of Q2 2018 were \$16.3 million.

THE FLEET

By the end of the second quarter 2018, the fleet consisted of 15 bulk carriers:

Vessel Name	Ex Name	Type	DWT	Built	Yard
Songa Glory	Equinox Glory	Supramax	58 680	2012	Nantong Cosco
Songa Wave	Xing Fu Hai	Ultramax	61 491	2017	Dalian Cosco
Songa Delmar	Delmar	Kamsarmax	81 501	2011	Hyundai Samho HI
Songa Devi	Goddess Santosh Devi Kamsarmax		81 918	2014	Tsuneishi Japan
Songa Flama	Flama	Kamsarmax	80 448	2011	STX South Korea
Songa Genesis	Maverick Genesis	Kamsarmax	80 705	2010	STX South Korea
Songa Grain	Nord Navigator	Kamsarmax	82 672	2008	Tsuneishi Japan
Songa Hadong	Hanjin Hadong	Kamsarmax	82 158	2012	Tsuneishi Japan
Songa Hirose	Harbor Hirose	Kamsarmax	83 494	2011	Sanoyas
Songa Maru	Ten Maru	Kamsarmax	82 687	2008	Tsuneishi Zhoushan
Songa Moon	Atlantic Moon	Kamsarmax	82 188	2012	Tsuneishi Japan
Songa Sky	Midland Sky	Kamsarmax	81 466	2010	Universal Shipbuilding
Songa Mountain	Mount Meru	Capesize	179 147	2009	Hyundai HI Korea
Songa Opus	Golden Opus	Capesize	180 716	2010	STX South Korea
Songa Claudine	Cape Claudine	Capesize	181 258	2011	STX South Korea

All vessels are classified as held for sale as at 30 June 2018. The vessels were delivered to Star Bulk Carriers Corp on 6 July 2018.

OUTLOOK AND STRATEGY

On the date of this report the remaining assets in the Company consist of approximately 700 000 shares of Star Bulk Carriers Corp, and an estimated cash balance by end of Q3 of \$9.5 million. The Company intends to distribute the remaining Star Bulk shares to the shareholders of Songa Bulk based on an interim financial statement as required by the Norwegian Public Limited Companies Act. The distribution is planned to be completed by the end of September 2018.

The Board of Directors is in the process of evaluating new business and strategies for the Company following the third and final distribution of shares. If no viable solution is found which supports the continuous listing on Oslo Axess, the Company will be dissolved and the remaining cash distributed to the shareholders.

FORWARD-LOOKING STATEMENTS

Forward-looking statements presented in this report are based on various assumptions. The assumptions were reasonable when made, but are subject to uncertainties and contingencies that are difficult or impossible to predict. Songa Bulk ASA cannot give assurances that expectations regarding the outlook will be achieved or accomplished.

RISK FACTORS

Risk Factors and Responsibility Statement

MAIN RISK FACTORS

The Company is through its ownership of shares in Star Bulk exposed to the dry bulk market. Other risks worth to mention is the risk of any unforeseen conditions resulting in claims either way from the transaction with Star Bulk. However, at the date of this report, there are no indications of such circumstances.

RESPONSIBILITY STATEMENT

We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2018 have been prepared in accordance with IAS 34 - Interim Financial Reporting, and gives a true and fair view of the Company's assets, liabilities, financial position and profit as a whole.

We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the second quarter of the financial year and their impact on the set of financial statements, and a description of the main risks and uncertainties going forward.

Oslo, 31 August 2018

The Board of Directors of Songa Bulk ASA

Arne Blystad Chairman

Herman Alf Billung

CEO

Magnus Leonard Roth Director

Vibeke Gwendoline Fængsrud Director

Christine Rødsæther Director

FINANCIAL INFORMATION

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

in \$ thousands	Note	Q2 2018	Q2 2017	YTD Q2 2018	YTD Q2 2017
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
General and administrative expenses		50	50	100	100
Total operating expenses		50	50	100	100
Operating profit (-loss)		-50	-50	-100	-100
Loss before taxes		-50	-50	-100	-100
Tax expense		-	-	-	-
Loss from continuing operations	4	-50	-50	-100	-100
Loss from discontinued operations		-3 171	-77	-1 493	-1 129
Net loss		-3 221	-127	-1 593	-1 229
Total comprehensive loss		-3 221	-127	-1 593	-1 229
Basic and diluted earnings from
discontinued operations – \$ per
share		-0.090	-0.003	-0.044	-0.040
Total basic and diluted earnings – \$
per share		-0.090	-0.003	-0.044	-0.040

CONDENSED STATEMENT OF FINANCIAL POSITION

in \$ thousands	Note	30 June 2018	31 December 2017
		(Unaudited)	(Audited)
Vessels		-	266 770
Deposit vessels		-	3 055
Total non-current assets	2	-	269 825
Inventories		-	2 233
Trade receivables		566	1 312
Other receivables		3 466	2 501
Cash and cash equivalents		16 113	41 017
Assets classified as held for sale	4	300 171	-
Total current assets		320 316	47 063
TOTAL ASSETS		320 316	316 888
Share capital		21 620	21 620
Share premium		150 033	153 619
Other paid-in capital		574	574
Accumulated deficit		-3 241	-1 648
Total equity	3	168 986	174 165
Interest-bearing debt	4	-	136 776
Financial liabilities at fair value through profit or loss		-	490
Total non-current liabilities		-	137 266
Trade payables		3 182	1 745
Income taxes payable		255	124
Dividends payable		-	-
Other liabilities		3 928	3 588
Liabilities related to assets held for sale	4	143 965
Total current liabilities		151 330	5 457
Total liabilities		151 330	142 723
TOTAL EQUITY AND LIABILITIES		320 316	316 888

CONDENSED STATEMENT OF CHANGES IN EQUITY

in \$ thousands	Share capital	Share premium	Other paid-in capital	Retained earnings	Total equity
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Incorporation	3	-	-	-	3
Share issuance 4 November 2016	9 082	65 188	-	-	74 270
Share issuance costs	-	-1 432	-	-	-1 432
Warrants issued to employees	-	-	400	-	400
Net loss 2016	-	-	-	-2 036	-2 036
Equity 31 December 2016	9 085	63 756	400	-2 036	71 205
Share issuance 31 January 2017	600	4 400	-	-	5 000
Share issuance 17 February 2017	11 935	88 311	-	-	100 246
Share issuance costs	-	-2 848	-	-	-2 848
Warrants issued to employees	-	-	174	-	174
Net profit 2017	-	-	-	388	388
Equity 31 December 2017	21 620	153 619	574	-1 648	174 165
Dividends	-	-3 586	-	-	-3 586
Net loss YTD Q2 2018	-	-	-	-1 593	-1 593
Equity 30 June 2018	21 620	150 033	574	-3 241	168 986

CONDENSED STATEMENT OF CASH FLOWS

in \$ thousands	YTD Q2 2018	YTD Q2 2017
	(Unaudited)	(Unaudited)
Loss before taxes	-1 593	-1 229
Depreciation	4 654	1 485
Change in inventories	-1 986	-990
Net change in trade receivables/payables	2 183	386
Employee benefit expenses in connection with issuance of warrants	-	174
Change in financial liabilities at fair value through profit or loss	-490	28
Change in amortized cost on bond loan	7 189
Net change in other current items	-495	142
Net cash flow from operating activities from discontinued operations*	9 462	-4
Purchase of vessels	-28 355	-114 399
Paid deposit on vessels	-	-9 897
Dry docking paid	-2 426	-397
Net cash flow used in investment activities from discontinued operations	-30 781	-124 693
Proceeds from share issuance	-	105 244
Share issuance costs	-	-2 848
Proceeds from issuance of debt	-	74 625
Debt issuance costs	-	-563
Paid dividends	-3 586
Net cash flow from financing activities from discontinued operations	-3 586	176 460
Net change in cash and cash equivalents	-24 904	51 763
Cash and bank deposits at beginning of period	41 017	57 688
Cash and bank deposits at end of period	16 113	109 451

*included in the net cash flow from operating activities from discontinued operations is \$100 thousand in operating expenses from continuing operations.

NOTES

Note 1 Accounting policies

These interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting.

The condensed consolidated interim financial reporting should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with IFRS, as adopted by the EU.

New accounting policies since annual financial statements

Non-current assets held for sale and discontinued operations

Non-current assets are classified as held for sale according to IFRS 5 if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met since the sale is highly probable within 12 months at June 30, and the asset is available for immediate sale in its present condition.

Non-current assets classified as held for sale are measured at the lower of the assets' previous carrying amount and fair value less costs to sell. A gain or loss not previously recognised by the date of the sale of a non-current asset (or disposal group) shall be recognised at the date of derecognition. Depreciation of the assets ceases once this classification has been made.

A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:

• Represents a separate major line of business or georgraphical area of operations
• Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations
• Or is a subsidiary acqueired exclusively with a view to resale

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit or loss.

Operating revenue

Voyage charter revenues are recognized using the percentage of completion method on a load-to-discharge basis, with cost related to fulfil the contract incurred prior to loading capitalized as mobilization costs and amortized over the associated period for which revenue is recognized, whilst voyage expenses incurred as repositioning for non-committed freight contracts expensed as incurred. Other revenue from services, such as demurrage, is recognized when earned and is included in freight revenue.

Financial instruments

IFRS 9 replaces the provisions of IAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.

The group adopted the simplified expected credit loss model for its trade receivables with only minor effects.

No assets held by the group were subject to reclassifications in IFRS 9.

New or amendments to standards

The following new or amendments to standards and interpretations have been issued and become effective during the current period. These include:

• IFRS 15 Revenue from contracts with customers, for periods beginning on or after 1 January 2018.
• IFRS 9 Financial instruments, for periods beginning on or after 1 January 2018.
• Amendments to IFRS 2 Share based payments for periods beginning on or after 1 January 2018.

Except for timing differences related to the period of which the revenue is recognized, the above pronouncements are not expected to have a material impact on the financial statements of the Group, beyond disclosures.

The following new or amendments to standards and interpretations have been issued and become effective in years beginning on or after 1 January 2019, assuming European Union adoption. The Group is evaluating the impact of these changes on the financial statements of the Group:

• IFRS 16 – Leases.

Note 2 Non-current assets

in \$ thousands	YTD Q2	2017
	2018
Closing balance previous period total non-current assets	269 825	14 963
Purchase price vessels delivered in the period and other additions	31 410	272 370
Paid deposits previous periods on vessels delivered in the period	-3 055	-3 855
Paid deposits on vessels for delivery in future periods	-	3 055
Book value of vessels sold in the period	-	-11 655
Dry-docking and other additions in the period	2 426	397
Depreciation in the period	-4 654	-5 450
Reclassified to assets held for sale	-295 952	-
Closing balance total non-current assets	-	269 825

Note 3 Share capital and shareholders

As at 30 June 2018, the Company's share capital consists of 35 860 000 shares, each at a nominal value of \$0.60 (NOK 5). All issued shares are fully paid.

In the annual general meeting of the Company held on 5 June 2018, the shareholders resolved to reduce the share capital of the company by NOK 178 300 000 (approximately \$21 million), from NOK 179 300 000 to NOK 1 000 000.

Note 4 Discontinued operation

On 14 May 2018, the Company entered into an agreement with Star Bulk Carriers Corp. (Star Bulk) to sell all its vessels to Star Bulk against a consideration of 13 688 000 shares of Star Bulk and \$144.55 million in cash. The vessels and associated assets and liabilities are consequently presented as held for sale.

Financial information relating to the discontinued operation:

	YTD Q2 2018	YTD Q2 2017
Operating income	29 942	6 342
Operating expenses	20 415	7 544
Operating profit	9 527	-1 202
Net financial income (-expenses)	-11 019	74
Profit (-loss) before taxes	-1 492	-1 129
Tax expense	-	-
Net loss of discontinued operation	-1 492	-1 129

Assets and liabilities of disposal group classified as held for sale:

Vessels held for sale	295 952	-
Inventory of bunkers and lube oil held for sale	4 219	-
Assets held for sale	300 171	-
Nominal value of issued bond	138 000	-
Call premium early redemption	5 520	-
Accrued interests	445	-
Liabilities related to assets held for sale	143 965	-

Note 5 Financial instruments

Set out below is a comparison by category for carrying amounts and fair values of all of the Company's financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.

	30 June 2018		31 December 2017
In USD	Carrying amount	Fair value	Carrying amount	Fair Value
Financial assets:
Trade receivables	566	566	1 312	1 312
Other receivables*	2 389	2 389	1 741	1 741
Cash and cash equivalents	16 113	16 113	41 017	41 017
Financial liabilities:
Interest-bearing debt**	-	-	138 000	138 000
Financial liabilities at fair value through
profit or loss	-	-	490	490
Trade payables	3 182	3 182	1 745	1 745
Income taxes payable	255	255	124	124
Other current liabilities*	1 810	1 810	2 665	2 665
Liabilities related to assets held for sale	143 965	143 965	-	-

*The difference between the balance sheet item other receivables and other receivables in the table above is prepaid expenses which are not considered a financial instrument. The difference between the balance sheet item other current liabilities and other current liabilities in the table above is prepaid revenues which are not considered a financial instrument.

**The difference between the balance sheet item Interest-bearing debt and the table above is debt issuance costs.

Fair value estimation

The different levels for fair value estimation have been defined as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Unobservable input for the asset or liability

Fair value equals carrying value for all financial instruments. Cash and cash equivalents are valued at level 1, Financial liabilities at fair value through profit or loss, which are warrants issued to shareholder, are valued at level 3.

Note 6 Related party transactions

The Company has purchased corporate services from Arne Blystad AS under the corporate service agreement as mentioned in the annual report for 2017.

The Company has purchased technical management services from Songa Shipmanagement Ltd for the vessels Songa Maru, Songa Genesis, Songa Delmar, Songa Hadong, Songa Opus, Songa Devi, Songa Mountain, Songa Sky and Songa Claudine under the technical management agreement as mentioned in the annual report for 2017.

Note 7 Subsequent events

On 6 July 2018 the transaction with Star Bulk was completed. The Company received 13 688 000 shares of Star Bulk and 144.55 million in cash. The cash proceeds were used to repay the bond loan at 104% of nominal value plus accrued interests. In connection with completion the Board of Directors of the Company resolved to pay a dividend of \$151 million, equal to \$4.21 per share. The distribution was considered repayment of paid in capital.

On 13 July 2018 a total of 10 929 550 shares of Star Bulk were distributed to the shareholders and an additional 169 365 shares were distributed on 17 August 2018. The distributions equals approximately \$148 million of the resolved dividend of \$151 million and was effected to shareholders who completed and submitted representation and warranties letters in accordance with instructions given. The remaining amount of about \$3 million will be distributed, mainly as distribution in kind, later upon receipt of representation and warranties letters from shareholders that did not yet submit such letter.

On 29 August 2018 a total of 1 639 595 shares of Star Bulk were distributed to the shareholders in connection with commencement of the share capital reduction resolved on 5 June 2018. The distribution equals approximately \$20.7 of the resolved amount of \$21 million and was effected to shareholders who completed and submitted representation and warranties letters in accordance with instructions given. The remaining amount of about \$0.3 million will be distributed, mainly as distribution in kind, later upon receipt of representation and warranties letters from shareholders that did not yet submit such letter.

Annual report 2018

CONTENTS

DRECTORS REPORT
SONGA BULK GROUP
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
NOTES - CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------------------------------------------------------------------------------------------------
SONGA BULK ASA
FINANCIAL STATEMENTS
Income Statement
Balance sheet - Assets
Balance sheet - Equity and Liabilities
Cash Flow Statement
NOTES - FINANCIAL STATEMENTS -------------------------------------------------------------------------------------------------------------------------------------------------

DIRECTORS' REPORT

SONGA BUI K

Songa Bulk ASA (the Company) was incorporated in August 2016. Songa Bulk ASA and its subsidiaries (The Group or Songa Bulk) was formed during fourth quarter the same year. The Company are traded on Oslo Axess, a platform on Oslo Stock Exchange.

THE BUSINESS

Songa Bulk was founded primarily as an investment vehicle to take exposure to fluctuating asset values of dry bulk vessels. In 2018, Songa Bulk sold its entire fleet to Star Bulk Carriers Corp.

TRANSACTION WITH STAR BULK CARRIERS CORP

On 14 May 2018, the Company entered into an agreement with Star Bulk Carriers Corp. (Star Bulk) to sell all its 15 vessels to Star Bulk against a consideration of 13 688 000 shares of Star Bulk (Consideration shares) and \$144.55 million in cash. In addition, Star Bulk acquired and cancelled the Company's outstanding warrant program for 37 000 shares of Star Bulk and \$450 000 in cash. The transaction was completed 6 July 2018.

Use of cash proceeds:

The Company used the cash proceeds from the transaction to repay the bond loan on 6 July 2018 was \$138 million. The Company was, under the bond terms, obliged to pay the bondholders the mandatory prepayment price for early redemption which was 104% of nominal value, a total of \$143.52 million.

Distribution of consideration shares:

The intention of the Company was to distribute all consideration shares to the shareholders of Songa Bulk. Distribution of shares to the Songa Bulk shareholders was conditional upon each shareholder having made representations and warranties to the Company and Star Bulk that such shareholder was, among other things, (i) an eligible shareholder, or (ii) an ineligible shareholder, through submitting a representation and warranties letter to the Company.

• On 5 June 2018, the General Meeting resolved to reduce the share capital of the Company by \$21.5 million.
• On 6 July 2018, the Board of Songa Bulk resolved to distribute an additional dividend of \$151 million.
• On 17 August 2018, the share capital reduction was carried out.
• On 3 October 2018, the General Meeting resolved to distribute an extraordinary dividend of \$10.5 million.

During 2018 a total of approximately \$13.64 million consideration shares were distributed to the shareholders in connection with the additional dividend, the share capital reduction and the extraordinary dividend. The remaining consideration shares were held at the Company's account on year end 2018 in anticipation of receipt of representation and warranties letter from shareholders that did not submit such letter prior to the communicated deadlines.

OTHER DISTRIBUTIONS

• On 22 March 2018 the General Meeting resolved to distribute a cash dividend of \$0.10 per share, a total of \$3 586 000.
• On 19 December 2018 the General Meeting resolved to distribute a cash dividend of \$0.26 per share, a total of \$9 323 600.

FINANCIALS

Discontinued operations

At the beginning of 2018 the fleet consisted of 14 bulk carrier vessels. Vessel number 15 January 2018. Up to 6 July 2018, when all vessels were delivered to Star Bulk, the fleet operated on short to medium term time charter parties, either on fixed hire rates or on hire rates related to dry bulk indexes. Three vessels operated in a pool. Results from these operations, as well as gain financial expenses in connection with the operations are classified as discontinued operations in 2018. The 2017 comparatives are classified accordingly.

Financial performance

The Group reports a net profit of \$22.5 million for the year 2018, compared to a net profit of \$0.4 million in 2017. Net profit in 2018 comprise profit from discontinued operations of \$22.7 million and loss from continuing operations of \$0.2 million. The corresponding amounts for 2017 was profit from discontinued operations of \$0.6 million and loss from continuing operations of \$0.2 million.

Loss from continuing operations are the yearly general and administrative expenses required to operate a publicly listed company with limited activities.

Profit from discontinued operations in 2018 comprise operating profit of \$33.9 million and net financial expenses of \$11.1 million. Included in operating profit is gain from sale of vessels of \$24.4 million.

Financial position

Through sale of vessels, repayment of the bond loan and distribution of consideration shares from the transaction, total assets of the Group were reduced from \$316.9 million per 31 December 2017 to \$11.2 million per 31 December 2018. Cash and cash equivalents were \$10.6 million on 31 December 2018.

Total equity was \$0.8 million as at 31 December 2018, down from \$174.2 million a year earlier through dividends and reduction of share capital.

The interest-bearing debt was repaid with cash proceeds from sale of vessels which contributed to the total decrease in liabilities from \$142.7 million on 31 December 2017 to \$10.4 million per 31 December 2018. Of the total liabilities at the end of 2018, \$9.7 million was dividends payable.

Cash flows

The balance of cash and cash equivalents was reduced from \$41.0 million at year end 2017, to \$10.6 million as at 31 December 2018. Net cash flow from investment activities was \$113.8 million, being proceeds from sale of vessels of \$144.5 million net after proceeds used on purchase of one vessel in January. Negative cash flow from financing activities was \$147.1 million through repayment of the bond loan including call redemption and a cash dividend.

HEALTH, SAFETY AND ENVIRONMENT (HSE)

The Company's objective in the period with active operations was to ensure safe and secure operations. The business operated in compliance with national requirements and regulations. There have been few work-related accidents to personnel on board in 2018. There have not been any pollution incidents related to the Company's vessels in 2018.

The work environment was considered good.

The Company focus continuously on being a workplace free from discriminate against any person on the basis of race, color, sex or sexual orientation, gender identity, religion, age, national or ethnic origin, political beliefs or disability in matters such as pay, promotion and recruitment. Songa Bulk offer equal opportunities for all. At year end 2018, the Group had no employees.

CORPORATE GOVERNANCE

The Company focus continuously on having good corporate governance to support achievement of the Company's core objectives on behalf of its shareholders and to create a strong sustainable company. The Board of Directors believe that good corporate governance involves openness and a trustful cooperation between shareholders, the Board, executive management, employees, customers, suppliers, public authorities and society in general.

The Company endorses the NUES code. The NUES Code is based on a "comply or explain" principle, which entails that listed companies must comply with the NUES Code or explain why an alternative approach has been chosen. The Company complies with the NUES Code, with the following deviations:

• The Company has not appointed a nomination committee and does not expect to appoint a nomination committee. The Board works continuously to constructively engage with shareholders to ensure that the interests of the shareholder base are taken into account in regards by the board composition.
• The Company has not appointed a remuneration committee. The Board determines the remuneration and compensation scheme of the Group in accordance with applicable law.
• The Company has not established guiding principles for how the Board of Directors will act in the event of a takeover bid. However, should such event occur, the Board of Directors will act in accordance with the NUES code and applicable law.

Internal control

The Company has implemented internal control and risk management systems appropriate to the size and nature of the Group's activities.

Corporate governance guidelines

The Company's corporate governance guidelines, as adopted by the Board of Directors, can be found on the company website: http://www.songabulk.no/corporate-governance

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has adopted a code of conduct for business, ethics and corporate social responsibility to facilitate that the Group shall enjoy an invaluable reputation for corporate trustworthiness around the world. The CSR approach is based on consistently conducting business with integrity and in compliance with the laws and regulations governing its activities.

Board members and employees of the Group must practice fair dealing, honesty and integrity in every aspect in dealing with other employees, business relations and customers, the public, the business community, shareholders, suppliers, competitors and government authorities. The Group's corporate values and commitment to act responsibly, athically and trustworthy in all activities they do, whether it be towards colleagues, customers, the society or the environment, shall be reflected, promoted and implemented in policies, decisions and actions.

			Christine	Vibeke Gwendoline
Name	Arne Blystad	Magnus Roth	Rødsæther	Fængsrud
Position:	Chairman	Board member	Board member	Board member
Born:	1955	1956	1964	1978
Nationality:	Norway	Sweden	Norway	Norway
Gender:	Male	Male	Female	Female
Member of board since:	September 2016	December 2016	May 2017	May 2017
Attendance board meetings	13/13	13/13	13/13	13/13
in 2018:
Independent of executive
management and significant	No	Yes	Yes	Yes
business contacts:
Independent of largest	No	No	Yes	Yes
shareholders:
Member of audit committee	Yes	No	No	Yes

BOARD OF DIRECTORS

Presentation of the Board of Directors

Arne Blystad

Mr. Blystad is an independent investor and co-founder of the Blystad Group, which is 100% owned and controlled by Mr. Arne Blystad and his immediate family, has a long history in international shipping. His companies have historically been active in the sale and purchase market. In addition to shipping, the Group has investments in heavy-lift, a securities portfolio and real estate. Mr. Blystad resides in Oslo, Norway.

Magnus Roth

Mr. Roth studied engineering at Linköping University between 1977 and 1977 and 1981 he was educated in the Royal Swedish Navy and left as a Captain in 1981. He received a Diploma in Shipping from London School of Foreign trade in 1982. From 1982 to 1983 Mr. Roth was self-employed in Oberseas AB in Stockholm, a company offering Supercargo service to shipping clients. In 1984 Mr. Roth joined the Volvo Groups food sector, Witte International AS where he started up their fish trading in Alesund, Norway. In 1989, the management did an MBO and established Scandsea International AS/AB, which became one of the world's leading in fish trading. In 1997 Mr. Roth part-founded Ocean Trawlers, which became one of the leading vertically integrated seafood companies, which he departed from when selling his shares in April 2016. Mr. Roth resides in Switzerland.

Christine Rødsæther

Ms. Rødsæther is a partner with the law firm Simonsen Vogt Wiig AS with more than 25 years' experience assisting international financial institutions, funds, project brokers, shipyards and equipment suppliers with transactional work, contract negotiation, financing and restructuring. She has held a number of board positions within the maritime sector. She is also a member of the advisory board to the Norwegian Ministry of Trade, Industry and Fisheries on maritime development and a member of the Marshall Islands' flag's Quality Council. She graduated from the University of Bergen in 1989, with a Master of Law in transnational business practice from University of the Pacific, California. Ms. Rødsæther resides in Bærum, Norway.

Vibeke Gwendoline Fængsrud

Ms. Fængsrud is the founder, owner and CEO of House of Math AS, Norway's largest private tutoring company within the natural sciences and economics. She is educated in mathematics, physics and pedagogy at the University of Oslo, where she now does a Master in Mathematics. Ms. Fængsrud has written 27 books and compendia on mathematics. In addition, Ms. Fængsrud has an Executive Bachelor of Management from Bl Norwegian Business School, specializing in International Business, Leadership and Board Competence. She also serves on the Board of Mariime & Merchant Bank ASA. Ms. Fængsrud has her primary board experience from academia. Ms. Fængsrud resides in Oslo, Norway.

GOING CONCERN

The consolidated financial statements of Songa Bulk ASA have been prepared on basis of the going concern assumption and according to the International Reporting Standards (IFRS) as adopted by the European Union. The Board of Directors confirms that the assumption is valid.

RISK FACTORS

After sale of all the Group's vessels and consequently repayment of bond loan, distribution of consideration shares and settlement of all balances related to the previous operations, the remaining risk factors for the Group are limited.

With limited assets available illiquidity may arise if any unexpected claim from third parties come to the Company's attention. Financial assets are considered sufficient to settle all current and future financial obligations.

Market risk related to the dry bulk market may influence the valuation of financial investments. The current macroeconomic situation is uncertain and there is a risk of negative developments.

REMAINING ASSETS

On the date of this report the remaining assets in the Company consist of 9 252 shares of Star Bulk Carriers Corp, and a cash balance of \$0.7 million.

ALLOCATION OF RESULTS

The parent company, Songa Bulk ASA, reports a net profit of \$19 878 000 in 2018. The Board proposes that Songa Bulk ASA allocates the net profit for the year to retained earnings.

SUBSEQUENT EVENTS

On 4 January 2019 the Company distributed a cash dividend of \$0.26 per share to the shareholders, equalling a total distribution of \$9.3 million.

On 29 January 2019 a total of 23 820 shares of Star Bulk were distributed to the shareholders in connection with the dividend resolution on 6 July 2018, the share capital reduction resolved on 5 June 2018 and the extraordinary dividend resolved on 3 October 2018. These shares were distributed to shareholders that did not submit the representation and warranties letter within the initial deadline dates for distributions but have submitted such letter prior to 18 January 2019.

On 18 March 2019, 6 971 shares of Star Bulk were transferred to Star Bulk against a consideration of \$93 thousand. These were shares that were not delivered to shareholders of Songa Bulk through the distributions of consideration shares due to shareholders being ineligible to receive such shares, and consequently received the cash option.

On 18 March 2019, 6 607 shares of Star Bulk were transferred to Star Bulk against no consideration. These were shares that were not delivered to shareholders of Songa Bulk through the distributions of consideration shares due to shareholders not submitting the representation and warranties letter. Star Bulk has irrevocably assumed the obligation to deliver these shares to the relevant shareholders in Songa Bulk upon receipt of the representation and warranties letter.

RESPONSIBILITY STATEMENT

We confirm, to the best of our knowledge, that the set of financial statements for the period 1 January 2018 to 31 December 2018 have been prepared in accordance with applicable accounting standards, and give a true and fair view of the Group's assets, liabilities, financial position and profit as a whole.

We also confirm, to the best of our knowledge, that the annual report includes a fair review of important events that have occurred during the financial year and their impact on the set of financial statements, and a description of the main risks and uncertainties going forward.

Oslo 28 March 2019

The Board of Directors of Songa Bulk ASA

Arne Blystad Chairman

Vibeke Gwendoline Fængsrud Board member

Magnus Roth Board member

Tomas Ketringen

Thomas Rønningen CEO

Christine Rødsæther Board member

SONGA BULK GROUP

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Comprehensive Income

in \$ thousands	Note	2018	2017
General and administrative expenses		200	200
Total operating expenses		200	200
Operating loss		-200	-200
Loss before taxes		-200	-200
Tax expense	14
Loss from continuing operations		-200	-200
Profit from discontinued operations	13	22 686	588
Net profit		22 486	388
Total comprehensive income		22 486	388
Basic and diluted earnings from discontinued operations -	15	0.633	0.018
\$ per share
Total basic and diluted earnings - \$ per share	15	0.627	0.012

Consolidated Statement of Financial Position

in \$ thousands	Note	31 December 2018	31 December 2017
Vessels	4		266 770
Deposit vessels	4	-	3 055
Total non-current assets		=	269 825
Inventories			2 233
Trade receivables			1 312
Other receivables	5	70	2 501
Financial assets through profit or loss		548
Cash and cash equivalents	6	10 570	41 017
Total current assets		11 187	47 063
TOTAL ASSETS		11 187	316 888
Share capital	7	121	21 620
Share premium	7		153 619
Other paid-in capital			574
Accumulated profit (-deficit)		678	-1 648
Total equity		799	174 165
Interest-bearing debt	10	-	136 776
Financial liabilities at fair value through profit or loss		-	490
Total non-current liabilities			137 266
Trade payables		100	1 745
Income taxes payable	14	211	124
Dividends payable		9 702
Other current liabilities	11	375	3 588
Total current liabilities		10 388	5 457
Total liabilities		10 388	142 723
TOTAL EQUITY AND LIABILITIES		11 187	316 888

Oslo 28 March 2019

The Board of Directors of Songa Bulk ASA

Magnus Roth Board member

Thomas Refringen

Thomas Rønningen CEO

linstine feddacetti

Christine Rødsæther Board member

Arne Blystad Chairman

Vibeke Gwendoline Fængsrud Board member

Consolidated Statement of Changes in Equity

in \$ thousands	Share capital	Share premium	Other paid in capital	Retained earnings	Total equity
Incorporation 24 August 2016	3				3
Share issuance	9 082	65 188			74 270
Share issuance costs		-1 432			-1 432
Warrants issued to employees			400		400
Net loss				-2 036	-2 036
Balance 31 December 2016	9 085	63 756	400	-2 036	71 205
Share issuance 31 January 2017	600	4 400			5 000
Share issuance 17 February 2017	11 935	88 311			100 246
Share issuance costs		-2 848			-2 848
Warrants issued to employees			174		174
Net profit				388	388
Balance 31 December 2017	21 620	153 619	574	-1 648	174 165
Dividend 22 March 2018		-3 586			-3 586
Dividend 6 July 2018		-150 033	-574	-393	-151 000
Share capital reduction 17 August 2018	-21 499				-21 499
Extraordinary dividend 3 October 2018				-10 446	-10 446
Extraordinary dividend 19 December 2018				-9 321	-9 321
Net profit YTD Q4 2018				22 486	22 486
Equity 31 December 2018	121			678	799

Consolidated Statement of Cash Flows

in \$ thousands	Note	2018	2017
Profit before taxes		22 486	394
Gain from sale of vessels	4	-24 405	-1 968
Depreciation	4	4 654	5 450
Change in inventories		2 233	-2 207
Net change in trade receivables/payables		-333	-247
Employee benefit expenses in connection with issuance of warrants			174
Change in financial liabilities at fair value through profit or loss		-490	163
Net change in other current items		-1 255	1 454
Net cash flow from operating activities from discontinued		2 890	3 214
operations*
Sale of vessels		144 550	13 615
Purchase of vessels	4	-28 355	-268 449
Paid deposit on vessels			-3 055
Dry docking paid	4	-2 426	-460
Net cash flow from investment activities from discontinued		113 769	-258 349
operations
Proceeds from share issuance			105 244
Share issuance costs			-2 846
Proceeds from issuance of debt			137 625
Debt issuance costs			-1 559
Repayment of interest-bearing debt	10	-138 000
Call penalty by early redemption of bonds	10	-5 520
Paid dividends		-3 586
Net cash flow from financing activities from discontinued		-147 106	238 464
operations
Net change in cash and cash equivalents		-30 447	-16 671
Cash and bank deposits at beginning of period		41 017	57 688
Cash and bank deposits at end of period		10 570	41 017

*Included in the net cash flow from operating activities from discontinued operations is \$200 thousand in operating expenses from continuing operations.

NOTES - CONSOLIDATED FINANCIAL STATEMENTS

Note 1 General

Corporate information and history

Songa Bulk ASA (the Company) is a public limited liability company incorporated and domiciled in Norway. The Company was incorporated 24 August 2016. The address of the main office is Haakon VIIs gate 1, 0161 Oslo. The Norwegian Enterprise no. is 917 811 288.

Songa Bulk ASA and its subsidiaries (the Group) were up to 6 July 2018 engaged in transportation of bulk cargo. On 6 July 2018 all the Group's 15 dry bulk vessels were delivered to Star Bulk Carriers Corp in a transaction were Songa Bulk received consideration of USD 144.55 million in cash and 13 688 000 shares of Star Bulk

The Company's shares are registered with Oslo Stock Exchange market place Oslo Axess under the ticker SBULK.

Basis of preparation

These consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. They comprise the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and related notes for the Group.

The consolidated financial statements have been prepared on a historical cost basis except where otherwise mentioned in the notes. The consolidated financial statements are prepared under the going concern assumption, as it awaits new investment opportunities.

Note 2 Accounting policies

Discontinued operations

During 2018, all of the main operations of the Group were disposed of and are presented as discontinued operations. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit or loss.

Use of estimates and judgements in preparation of the financial report

The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that may affect assets, liabilities, revenues, expenses and information in notes to the financial statements. Estimates are management's best assessment based on latest available, reliable information. The effect of change in an accounting estimate is recognized in profit or loss in the period of the change.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Songa Bulk ASA and all subsidiaries over which the Group has control. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary.

Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated.

Functional and presentation currency

The consolidated financial statements are presented in USD, which is also the functional currency for all entities within the Group.

Transactions and balances in foreign currencies

Transactions in foreign currencies are converted to the functional currency at the rate at the time of the transaction. Monetary items denominated in foreign currencies are converted into functional currency using the rate at the balance sheet date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit of loss.

Balance sheet classification

The group presents assets and liabilities in the statement of financial position based on the current/non-current classification

Vessels

Vessels are measured at historical cost, less accumulated depreciation and impairment. For vessels purchased, cost includes expenditures directly attributable to the acquisition of the vessels. Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any.

Vessels and related equipment have expected useful lives of 2.5 - 25 years.

Ordinary repairs and maintenance are expensed as incurred.

Impairment of vessels

The vessels are reviewed for indication of impairment at each reporting date, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized.

Deposit vessels

Deposits paid for future delivery of vessels, are presented as non-current assets at the actual deposit paid. The carrying amount includes any expenses that are directly attributable to entering into the agreement for future delivery of the vessel.

Inventories

Inventories, which comprise principally of bunker fuel, lube oil and stores are measured at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (FIFO) basis.

Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables without a significant financing element are recognized at the transaction amount less an allowance for lifetime expected credit losses under the simplified method. The amount of the allowance is based on the age of unpaid amounts, information about the current financial strength of customers, and other relevant information.

Financial instruments

IFRS 9 replaces IAS 39 for the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.

The group adopted the simplified expected credit loss model for its trade receivables with only minor effects.

Shares in Star Bulk are valued at fair value with changes in fair value recognized through profit of loss. The shares that have been resolved distributed as dividend in the period, but not yet distributed, are presented according to IFRIC 17 with shares at fair value through profit or loss, and the accompanying dividend debt at fair value with changes recognized in equity.

No assets held by the group were subject to reclassifications in IFRS 9.

Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other shortterm, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash. Cash and cash equivalents are recorded at their nominal values on the balance sheet.

Interest-bearing debt

Interest-bearing debt is initially recognized at its fair value less transaction costs. After initial recognition, interestbearing debt is measured at amortized cost using the effective interest method.

Trade and other payables

Trade and other payables represent liabilities for goods and services provided to the group prior to the end of financial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition and presented as current liabilities.

Revenue recognition

The group recognizes revenue when goods and services are transferred to the customers. Further details are proved for each of the group's activities as described below.

Operating revenue

Voyage charter revenues are recognized using the percentage of completion method on a load-to-discharge basis. Cost related to fulfilment of the contract incurred prior to loading is capitalized as mobilization costs and amortized over the associated period for which revenue is recognized. Voyage expenses incurred as repositioning for non-committed freight contracts are expensed as incurred. Other revenue from services, such as demurrage, is recognized when earned and is included in freight revenue.

Freight revenues from time charters are accounted for as operating leases under IAS 17 and are recognized on a straight-line basis over the rental periods of such charters, as service is performed.

Other operating income

Net income as a result of revenue sharing agreements is presented as other operating income.

Voyage and operating expenses

Voyage expenses mainly consist of bunker fuel expenses in connection with purchase of the vessel and delivery to charterers. Ship operating expenses include crew costs, repairs and maintenance, insurance, lube oils, communication expenses and fees to technical managers. Operating expenses are recognized when incurred.

Share-based payments

Share-based payment transactions through issuance of warrants to shareholders, that are also employed by the Group, are measured at fair value of the warrants at the issuance date as value of services received cannot be estimated reliably. Fair value is measured by Monte Carlo simulation. Share-based payments are recognized as an employee expense, at the time of issuance when there are no performance vesting conditions present, with a corresponding increase of equity.

Taxes

The vessel owning companies are subject to taxation under the Norwegian tonnage tax regime. Under the tonnage tax regime, profit from operations are exempt from taxes. Taxable profit is calculated on the basis of financial income after deduction of a portion of financial expenses. The portion is calculated as financial assets in percent of total assets. Tonnage tax is payable based on

the net tonnage of vessels. Tonnage tax is classified as an operating expense.

The parent company is subject for ordinary Norwegian taxation. Tax expense comprise tax payable and deferred tax expense. Tax payable is measured at the amount expected to be paid to authorities while deferred tax assets/liabilities are calculated based on temporary differences at the reporting date. Deferred tax assets are recognized to the extent that it is probable that they can be utilized in the future

Basic earnings per share

Basic earnings per share is calculated by dividing:

the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
• the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

Share issuance

Share issuance costs related to a share issuance transaction are recognized directly in equity. If share issuance costs, for tax purposes, can be deducted from other taxable income in the same period as they are incurred, the costs are recognized net after tax.

Related parties

Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or common significant influence.

Events after financial position date

New information regarding the Group's financial position as of the balance sheet date is taken into consideration in the financial statements. Events occurring after the financial position date, that do not affect the financial position as of the balance sheet date, but which will affect the financial position in the future, are disclosed if significant.

New or amendments to standards

The following new or amendments to standards and interpretations have been issued and become effective during the current period. These include:

• IFRS 15 Revenue from contracts with customers, applied for 2018.
• IFRS 9 Financial instruments, applied for 2018
• Amendments to IFRS 2 Share based payments.

The above standards did not have a material impact on the financial statements of the Group, beyond disclosures.

The following new standard has been issued and are effective for future periods:

IFRS 16 - Leases, for periods beginning on or after 1 January 2019.

IFRS 16 was issued in January 2016. It will result in almost all leases being recognized on the balance sheet by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term (less than 12 months) and low-value leases.

Songa Bulk ASA has made a preliminary assessment showing no effects at implementation of the standard.

Note 3 Segment information

Up to 6 July 2018, the group operated within one single segment, which was the shipping dry bulk segment. As from that date the group did not have active operations.

Note 4 Vessels and deposit for dry bulk vessels

in \$ thousands	Dry bulk	Dry-docking	Total vessels	Deposit
	vessels			vessels
Cost 1 January 2018	271 471	460	271 931	3 055
Additions 2018	28 355	2 426	30 781
Reclassification deposit to vessels	3 055		3 055	-3 055
Disposals 2018	-302 881	-2 886	-305 767
Cost 31 December 2018		=
Depreciation 1 January 2018	5 101	60	5 161
Depreciation 2018	4 615	39	4 654
Reversal depreciation sold vessels	-9 716	-99	-9 815
Accumulated depreciation 31 December 2018		-
Carrying amount 31 December 2018		=

The Group sold all its 15 vessels to Star Bulk Carriers Corp on 6 July 2018. Recognized gain from sale of the vessels were \$24.4 million.

In \$ thousands	Dry bulk	Dry-docking	Total vessels	Deposit
	vessels			vessels
Cost 1 January 2017	11 145		11 145	3 855
Additions 2017	268 453	460	268 913	3 055
Reclassification deposit to vessels	3 855		3 855	-3 855
Disposals 2017	-11 982		-11 982
Cost 31 December 2017	271 471	460	271 931	3 055
Depreciation 1 January 2017	37		37
Depreciation 2017	5 390	60	5 450
Reversal depreciation sold vessels	-326		-326
Accumulated depreciation 31 December 2017	5 101	60	5 161
Carrying amount 31 December 2017	266 370	400	266 770	3 055

Note 5 Other receivables

in \$ thousands	31 December 2018	31 December 2017
VAT receivables	29	45
Prepaid expenses	2	716
Earned revenues		791
Other receivables	39	049
Total other receivables	70	2 501

Note 6 Cash and cash equivalents

in \$ thousands		31 December 2018
Bank deposits denominated in USD	771	40 560
Bank deposits denominated in NOK	9 799	457
Total cash and cash equivalents	10 570	41 017

Of the bank deposits, \$20 thousand is related to restricted bank accounts for tax withholding purpose. At 31 December 2017 restricted cash was \$38 thousand.

Note 7 Share capital and shareholders

	Number of shares Share capital, \$		Share premium, \$
		thousands	thousands
Balance at 1 January 2018	35 860 000	21 620	153 619
Dividend 22 March 2018			-3 586
Dividend 6 July 2018			-150 033
Share capital reduction 17 August 2018		-21 499
Balance at 31 December 2018	35 860 000	121

	Number of shares Share capital, \$ thousands		Share premium, \$ thousands
Balance at 1 January 2017	14 860 000	9 085	63 756
Private placement 31 January 2017	1 000 000	600	4 400
Private placement 17 February 2017	20 000 000	11 935	88 311
Share issuance costs			-2 848
Balance at 31 December 2017	35 860 000	21 620	153 619

Authorized share capital is NOK 1 000 000. All issued shares are fully paid at 31 December 2018.

List of largest shareholders as of 31 December 2018:

Shareholder	Shareholding	Shareholding in %
Canomaro Shipping AS	6 209 036	17.3%
Songa Investments AS	4 711 900	13.1%
SongaTrading Inc	4 519 126	12.6%
Evermore Global Value Fund	2 148 278	6.0%
Ringnes Holding AS	746 400	2.1%
Eika Balansert	745 614	2.1%
Eika Norge	733 700	2.0%
Regents of The University of Michi	726 643	2.0%
Titan Opportunities Fund IC Sicav	702 200	2.0%
Dasa Invest AS	656 000	1.8%
Karsten Ellingsen AS	573 604	1.6%
Ola Rustad AS	555 000	1.5%
Sirius Internatonal Insurance Corp	465 797	1.3%
Jan Nikolai Pedersen	445 000	1.2%
Sverre Bragdø-Ellenes	400 000	1.1%
Investire Invest AS	400 000	1.1%
Solan Capital AS	366 800	1.0%
Clearstream Banking S.A.	302 182	0.8%
Tyns-Ring AS	300 000	0.8%
Borea Global Equities Spesialfond	240 073	0.7%
Total 20 largest shareholders	25 947 353	72.4%
Other shareholders	9 912 647	27.6%
Total	35 860 000	100.0%

Shares and warrants owned by board members, board consultants and executives:

Shareholder	Title		Shareholding Shareholding in %	No of warrants
Board members:
Arne Blystad	Chairman	9 317 120	25.98%
Magnus Roth	Board member	6 209 036	17.31%
Christine Rødsæther	Board member	3 124	0.01%
Vibeke Gwendoline Fængsrud	Board member	5 412	0.01%

Note 8 Financial risk factors

After sale of all the Group's vessels and consequently repayment of bond loan, distribution of consideration shares and settlement of all balances related to the previous operations, the remaining risk factors for the Group are limited.

Illiquidity risk exposure

With limited assets available illiquidity may arise if any unexpected claim from third parties come to the Company's attention. Financial assets are considered sufficient to settle all current and future financial obligations.

Financial market risk

Market risk related to the dry bulk market may influence the valuation of financial investments. The current macroeconomic situation is uncertain and there is a risk of negative developments.

Note 9 Financial instruments

Set out below is a comparison by category for carrying amounts and fair values of all of the Group's financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.

	31 December 2018		31 December 2017
In \$ thousands	Carrying amount	Fair value	Carrying amount	Fair Value
Financial assets:
Trade receivables			1 312	1 312
Other receivables*	39	39	1 741	1 741
Financial assets through profit or loss	548	548
Cash and cash equivalents	10 570	10 570	41 017	41 017
Financial liabilities:
Interest-bearing debt			138 000	138 000
Financial liabilities at fair value through
profit or loss			490	490
Trade payables	100	100	1 745	1 745
Income taxes payable	211	211	124	124
Dividends payable	9 702	9 702
Other current liabilities	375	375	2 548	2 548

*The difference between the balance sheet item other receivables in the table above is prepaid expenses and VAT receivable which are not considered financial instruments.

Fair value estimation

The different levels for fair value estimation have been defined as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either driectly or indirectly

Level 3: Unobservable input for the asset or liability

Fair value equals carrying value for all financial instruments. Cash and cash equivalents and financial assets through profit or loss are valued at level 1.

Categories of financial instruments

In \$ thousand			At fair value
	Cash, loans and			through profit or		Liabilities at
	receivables			oss		amortized cost		Total
	2018	2017	2018	2017	2018	2017	2018	2017
Financial assets:
Trade receivables		1 312						1 312
Other receivables	39	1 741					39	1 741
Financial assets at fair value through
profit or loss			548				548
Cash and cash equivalents	10 570	41 017					10 570	41 017
Financial liabilities:
Interest-bearing debt						138 000		138 000
Financial liabilities at fair value through
profit or loss				490				490
Trade payables					100	1 745	100	1 745
Income taxes payable					211	124	211	124
Dividends payable					9 702		9 702
Other current liabilities					375	2 548	375	2 548

Maturity of financial liabilities

In \$ thousands	< 1 year	1-5 years	Total at 31 December 2018
Trade payables	100	1	100
Income taxes payable	211		211
Dividends payable	9 702	1	9 702
Other current liabilities	375		375
Total financial liabilities	10 388		10 388

In \$ thousands	< 1 year	1-5 years	Total at 31 December 2017
Interest-bearing debt Financial liabilities at fair	-	138 000	138 000
value through profit or loss		490	490
Trade payables	1 745		1 745
Income taxes payable	124		124
Other current liabilities	2 548	1	2 548
Total financial liabilities	4 417	138 490	142 907

Note 10 Interest-bearing debt

On 14 May 2018, the Group entered into an agreement with Star Bulk Carriers Corp. (Star Bulk) to sell all its vessels to Star Bulk against a consideration of 13 688 000 shares of Star Bulk and \$144.55 million in cash. The transaction was closed 6 July 2018. The cash proceeds were used to repay the bond loan at 104% of nominal value.

in \$ thousands	31 December 2018 31 December 2017
Nominal value of issued bond		138 000
Debt issuance cost		-1 224
Interest-bearing debt secured by mortgage		136 776
Security under the bond terms:
Vessels - book value		266 770

Net debt reconciliation:

This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.

in \$ thousands
	Other assets	Liabilities from financing activities
	Cash and cash	Interest-bearing debt	Interest-bearing debt	Total
	equivalents	due within one year	due after one year
Net debt at 1 January 2018	41 017		-136 776	-95 759
Repayment of debt			138 000	138 000
Changes in amortized cost			-1 224	-1 224
Net cash flow	-30 447			-30 447
Net debt at 31 December 2018	10 570			10 570

in \$ thousands
	Other assets	Liabilities from financing activities
	Cash and cash	Interest-bearing debt	Interest-bearing debt	lotal
	equivalents	due within one year	due after one year
Net debt at 1 January 2017	57 688			57 688
Net proceeds from issuance of debt			-136 066	-136 066
Changes in amortized cost			-710	-710
Net cash flow	-16 671			-16 671
Net debt at 31 December 2017	41 017		-136 776	-95 759

Note 11 Other current liabilities

in \$ thousands	31 December 2018	31 December 2017
Prepaid revenues		1 040
Accrued expenses		1 494
Public dues payable	105	70
Other liabilities	270	984
Total other current liabilities	375	3 588

Note 12 Fees to auditors

Fees to auditors for statutory audit services in 2018 was \$43 thousand. Fees to auditors for other services was \$16 thousand.

Note 13 Discontinued operation

As a result of the transaction with Star Bulk, where all vessels were sold, results from vessel operations, as well as gain from sale of the vessels, and operating and financial expenses in connection with the operations are classified as discontinued operations.

Financial information relating to the discontinued operation:

	2018	2017
Operating income	34 040	26 713
Gain from sale of vessels	24 405	1 968
Operating expenses	-24 511	-24 587
Operating profit	33 934	4 094
Net financial expenses	-11 148	-3 500
Profit before taxes	22 786	594
Tax expense	-100	-6
Net profit of discontinued operation	22 686	588

Note 14 Income tax

in \$ thousands	2018	2017
Tax expense related to continuing operations
Tax expense related to discontinued operations	100	6
Basis for tax expense:
Basis for tax expense within the Norwegian tonnage tax legislation	435	24
Basis for tax expense within ordinary Norwegian tax legislation	-6 812	-7 558
Basis for tax expense	-6 377	-7 534
Tax expense:
Tax payable	100	6
Change deferred tax	-1 499	-1738
Change deferred tax not recognized	1 499	1738
Tax expense	100	6

Taxable income:
Basis for tax payable in tax expense	435	24
Basis for deferred tax in tax expense	-6 812	-7 558
Change in temporary differences	2 036	-2 036
Taxable income	-4 341	-9 570
Tax payable in statement of financial position:
Tax payable in tax expense	100	6
Tonnage tax payable	111	118
Tax payable in statement of financial position	211	124

Deferred tax per 31 December	2018	2017
Temporary differences:
Foreign exchange gain on long-term debt		272
Debt issuance costs	1	1 764
Total temporary differences		2 036
Tax loss carried forward	-14 137	-9 594
Non-deductible interest expenses carried forward	-233
Net temporary differences	-14 370	-7 558
Deferred tax:
Nominal tax rate on deferred tax	22%	23%
Deferred tax (-asset)	-3 161	-1 738
Deferred tax asset not recognized	3 161	1 738
Deferred tax in statement of financial position

Note 15 Earnings per share

	2018	2017
Profit from discontinued operations – in \$ thousands	22 686	588
Net profit attributable to ordinary equity holders – in \$ thousands	22 486	388
Basic and diluted weighted average number of ordinary shares outstanding	35 860 000	33 202 466
Basic and diluted earnings from discontinued operations, \$ per share	0.633	0.018
Total basic and diluted earnings - \$ per share	0.627	0.012

Note 16 Related party transactions

The Group has entered into a corporate service agreement with Arne Blystad AS for the rendering of administrative services, IT and office services and accounting and reporting services. In addition, the agreement covers hire of Chief Financial Officer. Arne Blystad AS is a company owned and controlled by the Chairman Arne Blystad and his immediate family. Total expenses under the agreement in 2018 was \$528 thousand. In 2017 the fee was \$502 thousand.

The Group has purchased technical management services from Songa Shipmanagement Ltd. for the rendering of technical services for the vessels Songa Maru, Songa Delmar, Songa Hadong, Songa Mountain, Songa Opus, Songa Devi, Songa Sky and Songa Claudine. Songa Shipmanagement Ltd. is a company owned and controlled by the Chairman Arne Blystad and his immediate family. Total expenses under the agreements in 2018 was \$713 thousand. In 2017 the fee was \$731 thousand.

Note 17 Key management and Board of Directors compensation

Board of Directors' compensation:

Directors' fees in 2018 were \$153 thousand.

Compensation and benefits of the key management:

			Other	Value of
In \$ thousands	Salary	Pension		remuneration warrants issued	Total 2018
Herman Billung - CEO	259	11			271
Per Kristian Aamlid - COO	154	13	2		169
Total	413	24	8	1	440

Total cost for hire of CFO in 2018 was \$209 thousand.

In \$ thousands	Salary	Pension	Other	Value of remuneration warrants issued	Total 2017
Herman Billung – CEO Per Kristian Aamlid - COO	362 164	20 16	3 3	142 32	527 215
Total	526	36	6	174	742

Total cost for hire of CFO in 2017 was \$167 thousand.

Note 18 Subsequent events

On 4 January 2019 the Company distributed a cash dividend of \$0.26 per share to the shareholders, equalling a total distribution of \$9.3 million.

On 29 January a total of 23 820 shares of Star Bulk were distributed to the shareholders in connection with the dividend resolution on 6 July 2018, the share capital resolved on 5 June 2018 and the extraordinary dividend resolved on 3 October 2018. These shares were distributed to shareholders that did not submit the representation and warranties letter within the initial deadline dates for distributions but have submitted such letter prior to 18 January 2019.

On 18 March 2019, 6 971 shares of Star Bulk were transferred to Star Bulk against a consideration of \$93 thousand. These were shares that were not delivered to shareholders of Songa Bulk through the distributions of consideration shares due to shareholders being ineligible to receive such shares, and consequently received the cash option.

On 18 March 2019, 6 607 shares of Star Bulk were transferred to Star Bulk against no consideration. These were shares that were not delivered to shareholders of Songa Bulk through the distributions of consideration shares due to shareholders not submitting the representation and warranties letter. Star Bulk has irrevocably assumed the obligation to deliver these shares to the relevant shareholders in Songa Bulk upon receipt of the representation and warranties letter.

SONGA BULK ASA

FINANCIAL STATEMENTS

Income Statement

in \$ thousands	Note	2018	2017
Operating revenue	3	1 858	2 490
Loss from sale of fixed assets		-150
Total operating income		1 708	2 490
Employee benefit expenses	4	987	1 022
Other operating expenses	5	988	1 338
Total operating expenses		1 975	2 360
Operating profit (-loss)		-267	130
Income from investments in subsidiaries		28 220	3 435
Interest income from group companies	10	130	996
Other financial income	6	4 549	2 287
Value adjustments financial instruments valued at fair value	14	-178
Interest expenses to group companies	10	-375	-26
Other interest expenses		-4 862	-3 652
Other financial expenses	7	-7 339	-353
Net financial income		20 145	2 687
Profit before taxes		19 878	2 817
Tax expense	8
Net profit		19 878	2 817

Balance sheet – Assets

in \$ thousands	Note	31 December 2018	31 December 2017
Investments in subsidiaries	9,13	3 875	205 376
Other receivables			3 055
Total financial non-current assets		3 875	208 431
Total non-current assets		3 875	208 431
Accounts receivable			2 490
Receivables from group companies	10	20	77 505
Other receivables	11	58	59
Total receivables		78	80 054
Market based shares	14	548
Total investments		548
Cash and cash equivalents	12	10 480	28 160
Total current assets		11 106	108 214
TOTAL ASSETS		14 981	316 645

Balance sheet – Equity and Liabilities

in \$ thousands	Note	31 December 2018	31 December 2017
Share capital	16	121	21 620
Share premium	16		153 619
Other paid-in equity			574
Total paid-in equity		121	175 813
Other equity		643	924
Total retained earnings		643	924
Total equity	15	764	176 738
Interest-bearing debt	13	-	136 231
Other non-current liabilities			490
Total non-current liabilities		=	136 721
Liabilities to group companies	10	3 974	2 405
Accounts payable		100	123
Taxes payable	8	171
Public duties payable		105	70
Dividends payable		9 702
Other current liabilities		165	587
Total current liabilities		14 217	3 186
Total liabilities		14 217	139 907
TOTAL EQUITY AND LIABILITIES		14 981	316 645

Oslo 28 March 2019

Board of Directors of Songa Bulk ASA

Magnus Roth Board member

Tomas Rightingen

Thomas Rønningen CEO

linstine floodsces

Christine Rødsæther Board member

Page 29

Arne Blystad Chairman

Villelu Guender

Vibeke Gwendoline Fængsrud Board member

Cash Flow Statement

in \$ thousands	2018	2017
Profit before taxes	19 878	2 817
Taxes paid		-393
Dividends recognized as income with no cash effect	-28 220	-3 435
Net change in trade receivables/payables	2 467	-2 654
Employee benefit expenses in connection with issuance of warrants		174
Financial expenses (-income) related to warrants to shareholder	-490	163
Value adjustments financial instruments valued at fair value	178
Items classified as financing activities	5 520
Change in other short-term assets and liabilities	-6 218	696
Net cash flow from operating activities	-6 885	=2 632
Investments in subsidiaries and other shares	-27 700	-275 772
Paid deposit on vessel		-3 055
Received dividends from subsidiaries	22 101	11 890
Net proceeds received for subsidiaries' sale of vessels	141 910
Net cash flow used in investing activities	136 311	-266 937
Proceeds from share issuance		105 248
Share issuance costs		-2 848
Proceeds from debt issuance (-repayment)	-138 000	137 625
Call penalty on early redemption of bond loan	-5 520
Debt issuance costs		-1 559
Proceeds from short-term borrowing		2 336
Paid dividends	-3 586
Net cash flow from financing activities	-147 106	240 802
Net change in cash and bank deposits	-17 680	=28 767
Cash and bank deposits at beginning of period	28 160	56 927
Cash and bank deposits at end of period	10 480	28 160

NOTES - FINANCIAL STATEMENTS

Note 1 General information

Songa Bulk ASA is the parent company in the Songa Bulk Group. Songa Bulk ASA is incorporated in Norway and has its head office in Oslo. The consolidated financial statements can be obtained from Songa Bulk ASA, Haakon VIIs gate 1, 0161 Oslo, Norway.

Note 2 Accounting principles

Basic principles

The accounts are prepared in accordance with the 1998 Norwegian Accounting Act and Generally Accepted Accounting Principles in Norway (NGAAP).

The financial statements are prepared on a historical cost basis under the going concern assumption.

Classification and valuation of balance sheet items

Assets intended for long-term ownership or use are classified as non-current assets. Other assets are classified as current assets. Receivables payable within one year are classified as current assets. Analogous criteria are applied when classifying liabilities.

Non-current assets are valued at cost, but are written down to their fair value if a reduction in value is expected to not be of a temporary nature.

Current assets are valued at the lower of cost or net realizable value. Current liabilities are recorded in the balance sheet at the nominal amount at the time the debt is established.

Currency

The financial statements are presented in USD which is also the functional and accounting currency of the company.

Foreign currency transactions are translated at the exchange rate on the date of the transaction. Monetary items in a foreign currency are translated at the exchange rate on the balance sheet date.

Investments in subsidiaries

Investments in subsidiaries are accounted for using the cost method. Investments are written down to their fair value if a reduction in value is expected to not be of a temporary nature.

Receivables

Receivables are booked at nominal amount less any expected loss.

Market hased shares

Market based shares held by the Company are valued at the market price on the balance sheet date. Market based shares that are resolved distributed to shareholders, but not yet distributed on the balance sheet date, are valued at the market price on the date of decision for distribution.

Cash and cash equivalents

Cash and cash equivalents consist of bank deposits. They are accounted at their nominal value.

Bond loans

Bond loans are initially recognized at its fair value less transaction costs. After initial recognition, transaction costs are amortized on a straight-line basis up to maturity.

Non-current liabilities

Non-current liabilities comprise of warrants issued to shareholders, other than shareholders that are also employed by the group, under a warrant agreement. Warrants are booked at the higher of cost and fair value.

Revenue recognition

Revenue is recognized when it is earned, which is when the service is performed. The revenue is recognized at the value of the consideration at the time of the transaction.

Costs

Costs are normally reported in the same period as the corresponding revenue. If costs are not corresponding directly to any revenue, allocation is determined on the basis of assessment criteria.

Share-based payments

Share-based payment transactions through issuance of warrants to shareholders, that are also employed by the Company, are measured at fair value of the warrants the issuance date as value of services received cannot be estimated reliably. Share-based payments are recognized as an employee expense, with a corresponding increase of equity.

Taxes

The tax expense consists of tax payable and any changes in deferred tax. Tax is charged to the income statement except where it relates to items that are recognized directly in equity.

Deferred tax is calculated on any temporary differences between tax values and accounting values using the relevant tax rate. Deferred tax assets and deferred tax liabilities are presented net. Deferred tax assets are recorded in the balance sheet whenever it is probable that it can be utilized

Share issuance costs

Share issuance costs related to a share issuance transaction are recognized directly in equity. If share issuance costs, for tax purposes, can be deducted from other taxable income in the same period as they are incurred, the costs are recognized net after tax.

Cash flow statement

The cash flow statement is prepared using the indirect method.

Related party transactions

Transactions with related parties are carried out at market terms. Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or common significant influence.

Subsequent events

New information regarding the Company's financial position as of the balance sheet date is taken into consideration in the financial statements. Events occurring after the financial position date, that do not affect the financial position as of the balance sheet date, but which will affect the financial position in the future, are disclosed if significant.

Note 3 Revenue

Revenue consists of Management fee revenues through the rendering of commercial management services to subsidiaries.

Note 4 Employee benefit expenses

in \$ thousands	2018	2017
Salary and salary related expenses	761	687
Value of issued warrants to employees		174
Social security tax	181	104
Pension cost	42	42
Other remuneration	3	15
Total employee benefit expenses	987	1 022

No employees were employed by the Company at year end 2018.

Board of Directors' compensation:

Directors' fees in 2018 were \$153 thousand.

Compensation and benefits of the key management:

			Other	Value of
In \$ thousands	Salary	Pension		remuneration warrants issued	Total 2018
Herman Billung - CEO	259	11			271
Per Kristian Aamlid - COO	154	13	2		169
Total	413	24	S		440

Total cost for hire of CFO in 2018 was \$209 thousand.

In \$ thousands	Salary	Pension	Other	Value of remuneration warrants issued	Total 2017
Herman Billung - CEO Per Kristian Aamlid - COO	362 164	20 16	3 3	142 32	527 215
Total	526	36	6	174	742

Total cost for hire of CFO in 2017 was \$167 thousand.

Note 5 Other operating expenses

in \$ thousands	2018	2017
Fees to auditors, lawyers and other professional fees	212	522
Fees for corporate services	528	502
Other operating expenses	248	314
Total other operating expenses	988	1 338

Fee to auditors:

In \$ thousands	2018	2017
Fee for statutory audit	12	16
Fee for attestation services	3	ব
Fee for other services	13	51
Total fees to auditors	28	71

Note 6 Other financial income

in \$ thousands	2018	2017
Interest income	124	492
Foreign exchange gain	3 935	1 795
Other financial income	490
Total other financial income	4 549	2 287

Note 7 Other financial expenses

in \$ thousands	2018	2017
Value change of financial liability in connection with warrants issued to shareholder		163
Amortized debt issuance costs	1 817	189
Call penalty by early redemption of bond loan	5 520
Other financial expenses
Total other financial income	7 339	353

Note 8 Tax expense

in \$ thousands	2018	2017
Basis for tax expense and tax payable:
Profit before taxes	19 878	2 817
Effects of foreign exchange gains and losses on current items	-474	-4 972
Dividends and other items under the tax exemption method	-28 138	-2 891
Received Group contribution	1 835
Non-deductible interest expenses	232
Other permanent differences between accounting and tax	-338	343
Share issuance costs directly in equity - recognized gross before tax		-2 848
Basis for tax expense	-7 005	-7 551
Tax expense:
Tax payable
Change deferred tax	-1 541	-1 737
Change deferred tax not recognized	1 541	1 737
Tax expense
Taxable income:
Basis for tax payable in tax expense
Basis for deferred tax in tax expense	-7 005	-7 551
Change in temporary differences	1 923	-2 036
Taxable income	-5 082	-9 587
Reconciliation of tax expense for the year:
Profit before taxes	19 878	2 817
Tax expense calculated on the relevant tax rate (23%/24%)	4 572	676
Tax expense
Difference	-4 572	-676
Difference comprise of:
Tax effect of foreign exchange gains and losses on current items	-109	- 1 193
Tax effect of dividends and other items under the tax exemption method	-6 472	-694
Tax effect of received group contribution	422
Tax effect of non-deductible interest expenses	ર્ટિક
Tax effect of other permanent differences	-77	82
Tax effect of share issuance costs directly in equity - recognized gross before tax		-684
Tax effect of deferred tax asset not recognized	1 541	1 738
Effect of changes in tax rate	70	75
Total difference	-4 572	-676
Tax payable in statement of financial position:
Tax payable from subsidiaries liquidated in 2018	171
Tax payable in statement of financial position	171

Deferred tax per 31 December	2018	2017
Temporary differences:
Foreign exchange gain on long-term debt	-	272
Debt issuance costs	-	1 764
Total temporary differences		2 036
Tax loss carried forward	-14 137	-9 587
Non-deductible interest expenses carry forward	-232
Net temporary differences	-14 369	-7 551
Deferred tax:
Nominal tax rate on deferred tax	22%	23%
Deferred tax (-asset)	-3 161	-1 737
Deferred tax asset not recognized	3 161	1 737
Deferred tax in statement of financial position

Note 9 Investments in subsidiaries

Subsidiary	Business office	Shareholding/voting rights
Songa Marlin AS	Oslo	100%
Songa Devi AS	Oslo	100%
Songa Hirose AS	Oslo	100%
Songa Sky AS	Oslo	100%
Songa Claudine AS	Oslo	100%

Note 10 Receivables and liabilities to group companies

In \$ thousands	2018	2017	2018	2017
	Receivables		Liabilities
Songa Hirose AS		392	500
Songa Marlin AS	20	211		2 385
Songa Claudine		32	332
Songa Glory AS				20
Songa Devi AS			1 692
Songa Sky AS	1		1 450
Group Contribution	1	544
Dividends	1	76 326
Total	20	77 505	3 974	2 405

Receivables and liabilities can be denominated in both USD and NOK. Balances are subject to calculation of quarterly interests of 3 Months LIBOR/NIBOR + a margin set on arms lengths basis. The receivables are subject to assessment of repayment or other settlements at any time.

Note 11 Other receivables

in \$ thousands	2018	2017
VAT receivable	29	45
Prepaid expenses	2	14
Other receivables	27
Total other current receivables	58	59

Note 12 Cash and cash equivalents

in \$ thousands	2018	2017
Bank deposits denominated in USD	685	27 732
Bank deposits denominated in NOK	9 795	428
Total cash and cash equivalents	10 480	28 160

Restricted cash related to employee taxes at 31 December 2018 was USD \$20 thousand. At 31 December 2017 restricted cash was \$38 thousand.

Note 13 Interest-bearing debt

On 14 May 2018, the Company entered into an agreement with Star Bulk Carriers Corp. (Star Bulk) to sell all its vessels to Star Bulk against a consideration of 13 688 000 shares of Star Bulk and \$144.55 million in cash. The transaction was closed 6 July 2018.The cash proceeds were used to repay the bond loan at 104% of nominal value.

in \$ thousands	31 December 2018 31 December 2017
Nominal value of issued bond	138 000
Debt issuance cost	-1 769
Interest-bearing debt	136 231

Book value of pledged assets under the bond agreement:

		31 December 2018
Shares in subsidiaries	1	205 376
Group loans		77 505
Total	1	282 881

Note 14 Market based shares

In \$ thousands		31 December 2018
Value at cost	630
Fair value	548

Recognized value adjustments on marked based shares valued at fair value was -\$178 in 2018.

Note 15 Equity

in \$ thousands	Share capital	Share premium	Other paid-in capital	Retained earnings	Total equity
Balance at 1 January 2018	21 620	153 619	574	924	176 738
Dividend 22 March 2018		-3 586			-3 586
Dividend 6 July 2018		-150 033	-574	-393	-151 000
Share capital reduction 17 August 2018	-21 499				-21 499
Extraordinary dividend 3 October 2018				-10 446	-10 446
Extraordinary dividend 19 December 2018				-9 321	-9 321
Net profit 2018				19 878	19 878
Balance at 31 December 2018	121			643	764

Note 16 Share capital and shareholders

	Number of shares	Share capital (USD)	Share premium (USD)
Balance at 1 January 2018	35 860 000	21 620	153 619
Dividend 22 March 2018			-3 586
Dividend 6 July 2018			-150 033
Share capital reduction 17 August 2018		-21 499
Balance at 31 December 2018	35 860 000	121

Authorized share capital is NOK 1 000 000. All issued shares are fully paid at 31 December 2018.

List of largest shareholders as of 31 December 2018:

Shareholder	Shareholding	Shareholding in %
Canomaro Shipping AS	6 209 036	17.3%
Songa Investments AS	4 711 900	13.1%
Songa Trading Inc	4 519 126	12.6%
Evermore Global Value Fund	2 148 278	6.0%
Ringnes Holding AS	746 400	2.1%
Eika Balansert	745 614	2.1%
Eika Norge	733 700	2.0%
Regents of The University of Michi	726 643	2.0%
Titan Opportunities Fund IC Sicav	702 200	2.0%
Dasa Invest AS	656 000	1.8%
Karsten Ellingsen AS	573 604	1.6%
Ola Rustad AS	555 000	1.5%
Sirius International Insurance Corp	465 797	1.3%
Jan Nikolai Pedersen	445 000	1.2%
Sverre Bragdø-Ellenes	400 000	1.1%
Investire Invest AS	400 000	1.1%
Solan Capital AS	366 800	1.0%
Clearstream Banking S.A.	302 182	0.8%
Tyns-Ring AS	300 000	0.8%
Borea Global Equities Spesialfond	240 073	0.7%
Total 20 largest shareholders	25 947 353	72.4%
Other shareholders	9 912 647	27.6%
Total	35 860 000	100.0 %

Shares and warrants owned by board members and executives:

Shareholder	Title	Shareholding	Shareholding in %	No of warrants
Board members:
Arne Blystad	Chairman	9 317 120	25.98%
Magnus Roth	Board member	6 209 036	17.31%
Christine Rødsæther	Board member	3 124	0.01%
Vibeke Gwendoline Fængsrud	Board member	5 412	0.01%

Note 17 Financial risk factors

After sale of all the Group's vessels and consequently repayment of bond loan, distribution of consideration shares and settlement of all balances related to the previous operations, the remaining risk factors for the Group are limited.

Illiquidity risk exposure

With limited assets available illiquidity may arise if any unexpected claim from third parties come to the Company's attention. Financial assets are considered sufficient to settle all current and future financial obligations.

Financial market risk

Market risk related to the dry bulk market may influence the valuation of financial investments. The current macroeconomic situation is uncertain and there is a risk of negative developments.

Note 18 Related party transactions

All related party transactions are carried out at marked terms.

The Company entered into a corporate service agreement with Arne Blystad AS for the rendering of administrative services, IT and office services and accounting and reporting services. In addition, the agreement covers hire of Chief Financial Officer. Arne Blystad AS is a company owned and controlled by the Chairman Arne Blystad and his immediate family. Total expenses under the agreement in 2018 was \$528 thousand. In 2017 the fee was \$502 thousand.

Note 19 Subsequent events

On 4 January 2019 the Company distributed a cash dividend of \$0.26 per share to the shareholders, equalling a total distribution of \$9.3 million.

On 29 January a total of 23 820 shares of Star Bulk were distributed to the shareholders in connection with the dividend resolution on 6 July 2018, the share capital reduction resolved on 5 June 2018 and the extraordinary dividend resolved on 3 October 2018. These shares were distributed to shareholders that did not submit the representation and warranties letter within the initial deadline dates for distributions but have submitted such letter prior to 18 January 2019.

On 18 March 2019, 6 971 shares of Star Bulk were transferred to Star Bulk against a consideration of \$93 thousand. These were shares that were not delivered to shareholders of Songa Bulk through the distributions of consideration shares due to shareholders being ineligible to receive such shares, and consequently received the cash option.

On 18 March 2019, 6 607 shares of Star Bulk were transferred to Star Bulk against no consideration. These were shares that were not delivered to shareholders of Songa Bulk through the distributions of consideration shares due to shareholders not submitting the representation and warranties letter. Star Bulk has irrevocably assumed the obligation to deliver these shares to the relevant shareholders in Songa Bulk upon receipt of the representation and warranties letter.

To the General Meeting of Songa Bulk ASA

Independent auditor's report

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Songa Bulk ASA, which comprise:

• The financial statements of the parent company Songa Bulk ASA (the Company), which comprise the balance sheet as at 31 December 2018, the income statement and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and
• · The consolidated financial statements of Songa Bulk ASA and its subsidiaries (the Group), which comprise the statement of financial position as at 31 December 2018, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion:

• · The financial statements are prepared in accordance with the law and regulations.
• · The accompanying financial statements give a true and fair view of the financial position of the Company as at 31 December 2018, and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.
• · The accompanying consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2018, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU.

Basis for Opinion

We conducted our audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by laws and regulations, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

There are changes in our audit focus since the Group sold all its vessels in July 2018. Impairment assessment for vessels is therefore not applicable. In 2018, we have focused on the sale transaction and presentation of discontinued operations.

PricewaterhouseCoopers AS, Postboks 748 Sentrum, NO-0106 Oslo T: 02316, org. no .: 987 009 713 VAT, www.pwc.no State authorised public accountants, members of The Norwegian Institute of Public Accountants, and authorised accounting firm

Key Audit Matter

Discontinued operations

We refer to note 4 and note 13 where the sale of vessels and the accounting for Discontinued operations is presented.

On 14 May 2018, the Group entered into an agreement to sell all its vessels to Star Bulk Carriers Corp. (Star Bulk). The consideration to the Group was 13 688 000 shares in Star Bulk (Consideration shares) and USD 144.55 million in cash. The transaction was completed on 6 July 2018.

As part of this transaction, the Group recognized a gain from sale of vessels of USD 24.4 million. Subsequent to the sale of the vessels to Star Bulk, the shipping dry bulk operation has been reported as discontinued operations.

We have focused on the transaction due to the size of the transaction and the impact on the financial statements.

Other information

Management is responsible for the other information. The other information comprises information in the annual report, except the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

The Board of Directors and the Managing Director (Management) are responsible for the preparation in accordance with law and regulations, including fair presentation of the financial statements of the Company in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation and fair presentation of the consolidated financial statements of the Group in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as management determines is necessary to enable the

How our audit addressed the Key Audit Matter

We obtained a calculation of the gain from sale of the vessels including a split per vessel. We traced the consideration per vessel back to the signed sales transaction agreement and consideration received. In addition, we verified the mathematical accuracy of the calculation considering net sales price and book value of the vessels. We found that the calculation supported the recognized gain from the sale of the vessels.

We assessed the appropriateness of the related presentation of discontinued operations and disclosures in note 13 to the financial statements for the Group to the requirements of the applicable financial reporting framework, IFRS, including IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations. We found the presentation and disclosures to be in accordance with IFRS requirements.

preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial statements of the Company use the going concern basis of accounting insofar as it is not likely that the enterprise will cease operations. The consolidated financial statements of the Group use the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• · identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• · obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's or the Group's internal control.
• · evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• · conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern.
• · evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• · obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Opinion on the Board of Directors' report

Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Board of Directors' report and in the statements on Corporate Governance and Corporate Social Responsibility concerning the financial statements, the going concern assumption and the proposed allocation of the result is consistent with the financial statements and complies with the law and regulations.

Opinion on Registration and Documentation

Based on our audit of the financial statements as described above, and control procedures we have considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, it is our opinion that management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the Company's accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway.

Oslo, 28 March 2019 PricewaterhouseCoopers AS

Bjørn Lund State Authorised Public Accountant

Annual report 2017

CONTENTS

DIRECTORS REPORT
SONGA BULK GROUP
CONSOLDATED FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
NOTES - CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------------------------------------------------------------------------------------------------
SONGA BULK ASA
FINANCIAL STATEMENTS
Income Statement
Balance sheet - Assets
Balance sheet - Equity and Liabilities
Cash Flow Statement
NOTES - FINANCIAL STATEMENTS -------------------------------------------------------------------------------------------------------------------------------------------------

DIRECTORS' REPORT

SONGA BULK

Songa Bulk ASA (the Company) was incorporated in August 2016. Songa Bulk ASA and its subsidiaries (The Group or Songa Bulk) was formed during fourth quarter the same year. Songa Bulk operates within the dry bulk shipping market. As at 31 December 2017 the Group owned 14 modern dry bulk vessels. The business is run from Oslo. The shares of the Company are traded on Oslo Axess, a platform on Oslo Stock Exchange.

THE BUSINESS

Songa Bulk was founded primarily as an investment vehicle to take exposure to fluctuating asset values of dry bulk vessels. This was done based on the belief, that asset values were at a cyclically low level, and that opportunities were present to make gains from increasing asset values over a period following the Company's foundation. Songa Bulk owns modern and flexible tonnage, operated on short-term time charter contracts and in the spot market. The Company has an efficient and low-cost setup and a conservative leverage profile.

The fleet

Following the one vessel delivered in the start-up year of 2016, 2017 was the year for building a fleet to the desired level. A total of 14 vessels were delivered to the Group in 2017, one of them was sold in October the same year, leading to a net fleet growth of 13 vessels during 2017. All vessels owned by the Group are modern vessels built on reputable shipyards.

The composition of the fleet as at 31 December 2017:

Vessel Name	Ex Name	Type	DWT	Built	Yard
Songa Glory	Equinox Glory	Supramax	58 680	2012	Nantong Cosco
Songa Wave	Xing Fu Hai	Ultramax	61 491	2017	Dalian Cosco
Songa Delmar	Delmar	Kamsarmax	81 501	2011	Hyundai Samho HI
Songa Devi	Goddess Santosh Devi Kamsarmax		81 918	2014	Tsuneishi Japan
Songa Flama	Flama	Kamsarmax	80 448	2011	STX South Korea
Songa Genesis	Maverick Genesis	Kamsarmax	80 705	2010	STX South Korea
Songa Grain	Nord Navigator	Kamsarmax	82 672	2008	Tsuneishi Japan
Songa Hadong	Hanjin Hadong	Kamsarmax	82 158	2012	Tsuneishi Japan
Songa Hirose	Harbor Hirose	Kamsarmax	83 494	2011	Sanoyas
Songa Maru	Ten Maru	Kamsarmax	82 687	2008	Tsuneishi Zhoushan
Songa Moon	Atlantic Moon	Kamsarmax	82 188	2012	Tsuneishi Japan
Songa Sky	Midland Sky	Kamsarmax	81 466	2010	Universal Shipbuilding
Songa Mountain	Mount Meru	Capesize	179 147	2009	Hyundai HI Korea
Songa Opus	Golden Opus	Capesize	180 716	2010	STX South Korea

Vessel additions in 2017:

• The supramax bulk carrier Songa Marlin, purchased in 2016, was delivered on 23 January 2017. The purchase price was \$11.85 million of which \$2.37 million was paid as a deposit in 2016.
• The supramax bulk carrier Songa Glory, purchased in 2016, was delivered on 1 February 2017. The purchase price was \$14.85 million of which \$1.49 million was paid as a deposit in 2016.
• The kamsarmax bulk carrier Songa Genesis was purchased through an auction in January 2017. The vessel was delivered on 22 February 2017. The purchase price was \$13.15 million.
• The kamsarmax bulk carrier Songa Flama was purchased on 8 February 2017. The vessel was delivered on 18 April 2017. The purchase price was \$14.78 million.
• The kamsarmax bulk carrier Songa Delmar was purchased on 17 March 2017. The vessel was delivered on 12 May 2017. The purchase price was \$18.70 million.
• The kamsarmax bulk carrier Songa Grain was purchased on 23 March 2017. The vessel was delivered on 3 August 2017. The purchase price was \$14.14 million.
• The kamsarmax bulk carrier Songa Hadong was purchased on 29 March 2017. The vessel was delivered on 27 April 2017. The purchase price was \$20.05 million.
• The ultramax bulk carrier Songa Wave was purchased on 30 March 2017. The vessel was delivered on 20 April 2017. The purchase price was \$23.30 million.
• The cape size bulk carrier Songa Mountain was purchased on 12 April 2017. The vessel was delivered on 20 July 2017. The purchase price was \$27.95 million.
• The cape size bulk carrier Songa Opus was purchased on 14 June 2017. The vessel was delivered on 12 September 2017. The purchase price was \$28.85 million.
• The kamsarmax bulk carrier Songa Sky was purchased on 7 August 2017. The vessel was delivered on 27 November 2017. The purchase price was \$18.28 million.
• The kamsarmax bulk carrier Songa Devi was purchased on 17 August 2017. The vessel was delivered on 14 September 2017. The purchase price was \$22.75 million.
• The kamsarmax bulk carrier Songa Hirose was purchased on 18 August 2017. The vessel was delivered on 15 November 2017. The purchase price was \$19.20 million.
• The kamsarmax bulk carrier Songa Moon was purchased on 21 September 2017. The vessel was delivered on 10 October 2017. The purchase price was \$20.50 million.
• The cape size bulk carrier Songa Claudine was purchased on 21 September 2017. The purchase price was \$30.50 million. A deposit of \$3.05 million was paid in 2017. The vessel was delivered in January 2018.

Vessel sale in 2017:

• The supramax bulk carrier Songa Marlin was sold on 22 September 2017. The vessel was delivered to new owners on 17 October 2017. The sales price was \$13.80 million.

Equity financing:

Songa Bulk was pleased with the great reception from shareholders during the equity raise of \$74.3 million in 2016 to finance the first vessel acquisitions. As 2017 was underway, the Group saw further potential for growth in what still was considered an attractive market. To finance the acquisitions of more vessels Songa Bulk raised \$105.2 million in gross cash proceeds in the beginning of 2017.

• On 31 January 2017, 1 million new shares were issued in a private placement. Total gross proceeds were \$5 million.
• On 17 February 2017, 20 million new shares were issued in a private placement. Total gross proceeds were \$100.2 million.

Loan financing:

Following the communicated strategy to take on moderate leverage Songa Bulk issued a senior secured bond on 30 May 2017 with a total borrowing limit of \$150 million. The bond has floating interest of LIBOR + a margin of 4.50%. The Board is pleased with the positive response received from bond investors during the year. The bond was raised on what Board of Directors consider very competitive terms, and to high quality investors. Prior to completion of the bond issue Songa Bulk had received multiple offers from reputable banks for bank financing at attractive terms. However, the Board of Directors was, and still is, confident that the bond issue will provide Songa Bulk with an increased flexibility at a very

attractive cost. Two tap issues, following the initial bond issue, has brought total loan amount up to \$138 million. Consequently, the Board of Directors consider the Group's debt to asset ratio to be sensible. The following events have occurred:

• On 30 May 2017 the Group issued a \$75 million senior secured bond with a total borrowing limit of \$150 million. The bond has floating interest rate of LIBOR + a margin of 4.50%. The bond was settled on 13 June 2017 and final maturity is 13 June 2022.
• On 23 August 2017 the Group completed a tap issue of \$45 million. The interest rate is LIBOR + a margin of 4.50% and final maturity is 13 June 2022.
• On 29 September 2017 the Group completed a tap issue of \$18 million. The interest rate is LIBOR + a margin of 4.50% and final maturity is 13 June 2022. Following the tap issue it was unconditionally and irrevocable confirmed from Songa Bulk to the bondholders that no more tap issues will be performed under the bond terms.

Operations:

Through 2017, the fleet has operated on short to medium term time charter parties, either on fixed hire rates or on hire rates related to dry bulk indexes. One vessel has operated in a pool. Total TC-out days were 2 909 which equates to a full year employment of 7.97 vessels.

The fleet has performed satisfactory with no major incidents. One ship passed her special survey in dry-dock and was offhire for 13 days. All charterers have lived up to their obligations and no legal disputes did occur.

THE MARKET

The dry bulk market in 2017 was characterized by an overall healthy increase in demand combined with a moderate growth in tonnage supply. The result was that demand outpaced supply, setting the stage for considerable improvements in freight rates.

First quarter was expected to be weak, with seasonally lower demand and high influx of newbuilding deliveries. However, high iron ore activity together with an early start of the grain season created healthy demand and subsequent stronger rates than anticipated. This clearly boosted the market sentiment, and ensured a solid hike in secondhand values. Whereas first quarter surprised on the upside, second quarter came in below expectations as demand slowed down after the high shipping activity in first quarter. It was only by the middle of July the overall activity really started to show strength. Iron ore combined with strong demand for coal lifted the cape rates, and coal together with strong increase in grain shipments contributed positively to panamax and supramax.

Looking at 2017 as a whole, total seaborne trade ended up with growth of 3.7%. As result of slightly longer sailing distances the ton mile equivalent came in at around 4% increase:

• Iron ore 1.54 billion tons (+3.6%)
• Coal 1.24 billion tons (+6.4%)
• Grain 0.50 billion tons (+6.6%)
• Others 1.14 billion tons (+0.2%)

Total newbuilding deliveries added up to 38.2 million dwt in 2017. Total deletions were 14.0 million dwt creating a net growth of 24.2 million dwt, an increase of 3.1%.

As is often the case, cape size rates experienced high volatility ranging between \$4 650 per day in mid February and \$30 475 per day in mid December. Panamax and Supramax experienced more stable rates, but both segments posted healthy improvements:

• Spot time charter rates for cape size vessels averaged \$15 129 per day for the whole of 2017, more than a doubling of the average in 2016.
• Average spot time charter rates for panamax vessels came in at \$9 766 per day for the year representing an increase of 73% compared with 2016.
• Spot time charter rates for supramax vessels averaged \$9 171 per day, an improvement on 2016 of 47%.

Second hand values experienced a substantial increase during first quarter of 2017. However, asset prices stayed more or less unchanged for the remainder of the year. We saw the following development in values of which almost all took place during the first four months of the year:

• 5 year old Supramax estimated worth \$17.0 million by the end of 2017, up 21% compared with end 2016.
• 5 year old Panamax estimated worth \$18.5 million by the end of 2017, up 32% compared with end 2016.
• 5 year old Cape Size estimated worth \$33.0 million by the end of 2017, up 37% compared with end 2016.

FINANCIALS

As the Group was formed during fourth quarter 2016, some of the numbers commented on in this section lack comparatives.

Financial performance

The Group reports a net profit of \$388 thousand for the year 2017.

Total operating revenue and other operating income was \$28.7 million for the year. A gain of \$2.0 million came from sale of one vessel, while \$26.7 million was time and voyage charter revenue from fleet operations. 14 vessels were delivered to the Group throughout the year, adding to the one vessel delivered in 2016. Total TC-out days¹ in 2017 was 2 909 days, compared to total operating days¹ of 2 975. This equals 98.5%. Due to vessels being delivered to the Group throughout the year, operating days equal only 54% of possible operating days for a fully delivered fleet of 15 vessels for a whole year. Furthermore, average time charter equivalent¹ in 2017 was \$9 159 per day.

Total operating expenses were \$24.8 million in 2017. Net ship operating expenses¹ were \$5 294 per vessel per day. General and administrative expenses equal \$2.5 million for the year. The Group has been able to upscale operations without adding significant general and administration expenses. Depreciation were \$5.5 million. Operating profit were \$3.9 million, leading to an EBITDA of \$9.4 million in 2017. Given the fact this has been the start-up year for the Group, with fleet operations in average right above 50 percent of the days and extra start-up expenses, it is satisfactory to see that operations have been profitable right from the beginning.

Net financial expenses were \$3.5 million. Mainly, this consist of interest expenses on the bonds issued in June 2017, with additional tap issues in August and September.

Financial position

The Group's main focus through 2017 was to build a fleet of intended size, as well as optimizing the financial structure. Total assets increased from \$72.8 million per 31 December 2016 to \$316.9 million per 31 December 2017. Total noncurrent assets, which comprise of vessels delivered and paid deposit on vessel for future delivery, increased by \$254.9 million from year end 2016 to year end 2017. This was through a net fleet growth of 13 vessels during the financial year. The Board of Directors are pleased with the fleet composition; 14 top modern vessels built at reputable shipyards weighted sensibly across the segments. Also, the Group's ability to build a strong fleet in a short period of time in a competitive market, is seen as favourable.

Total equity was \$174.2 million as at 31 December 2017, up from \$71.2 million a year earlier. A total of \$105.2 million was paid in through private placements during the year, adding to the \$74.3 million from the private placement in 2016.

Interest bearing debt was \$136.8 million at year end 2017. Interest bearing debt consists in its entirety of a bond loan with an outstanding amount of \$138.0 million, reduced with debt issuance costs to be expensed over the bond maturity, which is June 2022. The bond was issued in June 2017 at a very competitive interest rate of LIBOR + 4.5%. Following the bond issue of \$75 million, two additional tap-issues were carried out in August and September, respectively \$45 million and \$18 million, to finance additional vessel acquisitions.

The Board of Directors is satisfied that the Group has been able to finance its vessels with a healthy mix of equity and debt at competitive terms. This financing strategy has resulted in a conservative leverage just above 40%.

1 Please see note 23

Cash flows

The balance of cash and cash equivalents was reduced from \$57.7 million at year end 2016, to \$41.0 million as at 31 December 2017. \$3.2 million was generated through operations, and \$238.5 million through equity and debt financing. \$258.3 million was the net spending on investing in the fleet.

HEALTH, SAFETY AND ENVIRONMENT (HSE)

The Company's objective is to ensure safe and secure operations. The business operates in compliance with national and international requirements and regulations. There have been few work-related accidents to personnel on Board in 2017 and only one resulting in sick leave. There have not been any pollution incidents related to the Company's vessels in 2017.

The working environment is considered good.

The Company focus continuously on being a workplace free from discrimination on the basis of gender, race or religion on matters such as pay, promotion and recruitment. Songa Bulk offer equal opportunities to men and women. At year end 2017, the Group had 3 employees onshore, two men and one woman.

CORPORATE GOVERNANCE

The Company focus continuously on having good corporate governance to support achievement of the Company's core objectives on behalf of its shareholders and to create a strong sustainable company. The Board of Directors believe that good corporate governance involves openness and a trustful cooperation between shareholders, the Board, executive management, employees, customers, suppliers, public authorities and society in general.

The Company endorses the NUES code. The NUES Code is based on a "comply or explain" principle, which entails that listed companies must comply with the NUES Code or explain why an alternative approach has been chosen. The Company complies with the NUES Code, with the following deviations:

• The Company has not appointed a nomination committee and does not expect to appoint a nomination committee. The Board works continuously to constructively engage with shareholders to ensure that the interests of the shareholder base are taken into account in regards by the board composition.
• The Company has not appointed a remuneration committee. The Board determines the remuneration and compensation scheme of the Group in accordance with applicable law.
• The Company does not have an absolute limit for the performance-related remuneration of the CEO and other members of the Company's Management. The grounds for the deviation is that the warrants already issued are not capped and no cap has subsequently been agreed. The Company notes that the warrant structure in the Company is aligned with shareholders' interest.
• Songa Shipholding AS, a company controlled by Arne Blystad, has been granted warrants to subscribe for additional shares in the Company. The Company notes that the warrant structure in the Company is aligned with the shareholders' interest.
• The Company has not established guiding principles for how the Board of Directors will act in the event of a takeover bid. However, should such event occur, the Board of Directors will act in accordance with the NUES code and applicable law.

Internal control

The Company has implemented internal control and risk management systems appropriate to the size and nature of the Group's activities. The CFO reports to the CEO on a regular basis and as directed.

Corporate governance guidelines

The Company's corporate governance guidelines, as adopted by the Board of Directors, can be found on the company website: http://www.songabulk.no/corporate-governance

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Company has adopted a code of conduct for business, ethics and corporate social responsibility to facilitate that the Group shall enjoy an invaluable reputation for corporate trustworthiness around the world. The CSR approach is based on consistently conducting business with integrity and in compliance with the laws and regulations governing its activities.

Board members and employees of the Group must practice fair dealing, honesty and integrity in every aspect in dealing with other employees, business relations and customers, the public, the business community, shareholders, suppliers, competitors and government authorities. The Group's corporate values and commitment to act responsibly, ethically and trustworthy in all activities they do, whether it be towards colleagues, customers, suppliers, the society or the environment, shall be reflected, promoted and implemented in policies, decisions and actions.

			Christine	Vibeke Gwendoline
Name	Arne Blystad	Magnus Roth	Rødsæther	Fængsrud
Position:	Chairman	Board member	Board member	Board member
Born:	1955	1956	1964	1978
Nationality:	Norway	Sweden	Norway	Norway
Gender:	Male	Male	Female	Female
Member of board since:	September 2016	December 2016	May 2017	May 2017
Attendance board meetings
in 2017 (since appointed to	15/15	15/15	9/9	9/9
the BOD):
Independent of executive
management and significant	No	Yes	Yes	Yes
business contacts:
Independent of largest
shareholders:	No	No	Yes	Yes
Member of audit committee	Yes	No	No	Yes

BOARD OF DIRECTORS

Presentation of the Board of Directors

Arne Blystad

Mr. Blystad is an independent investor and co-founder of the Company. The Blystad Group, which is 100% owned and controlled by Mr. Arne Blystad and his immediate family, has a long history in international shipping. His companies have historically been active in the sale and purchase market. In addition to shipping, the Group has investments in heavy-lift, a securities portfolio and real estate. Mr. Blystad resides in Oslo, Norway.

Magnus Roth

Mr. Roth studied engineering at Linköping University between 1975 and 1977. Between 1977 and 1981 he was educated in the Royal Swedish Navy and left as a Captain in 1981. He received a Diploma in Shipping from London School of Foreign trade in 1982. From 1982 to 1983 Mr. Roth was self-employed in Oberon Overseas AB in Stockholm, a company offering Supercargo service to shipping clients. In 1984 Mr. Roth joined the Volvo Groups food sector, Witte International AS where he started up their fish trading in Ålesund, Norway. In 1989, the management did an MBO and established Scandsea International AS/AB, which became one of the world's leading in fish trading. In 1997 Mr. Roth part-founded Ocean Trawlers, which became one of the leading vertically integrated seafood companies, which he departed from when selling his shares in April 2016. Mr. Roth resides in Switzerland.

Christine Rødsæther

Ms. Rødsæther is a partner with the law firm Simonsen Vogt Wiig AS with more than 25 years' experience assisting international financial institutions, funds, project brokers, shipowners, shipyards and equipment suppliers with transactional work, contract negotiation, financing and restructuring. She has held a number of board positions within the maritime sector. She is also a member of the advisory board to the Norwegian Ministry of Trade, Industry and Fisheries on maritime development and a member of the Marshall Islands' flag's Quality Council. She graduated from the University of Bergen in 1989, with a master of laws in transnational business practice from University of the Pacific, California. Ms. Rødsæther resides in Bærum, Norway.

Vibeke Gwendoline Fængsrud

Ms. Fængsrud is the founder, owner and CEO of House of Math AS, Norway's largest private tutoring company within the natural sciences and economics. The company was inspired by her education in Mathematics and Physics at the University of Oslo. House of Math is currently holding 100 employees. Ms. Fængsrud has written 11 books on mathematics, as well as 16 compendia. In addition, Ms. Fængsrud has an Executive Bachelor of Management from BI Norwegian Business School, specializing in International business, Leadership and board competence. Ms. Fængsrud has her board experience from academia. Ms. Fængsrud resides in Oslo, Norway.

GOING CONCERN

The consolidated financial statements of Songa Bulk ASA have been prepared on basis of the going concern assumption and according to the International Financial Reporting Standards (IFRS) as adopted by the European Union. The Board of Directors confirms that the assumption is valid.

RISK FACTORS

The Group is exposed to a variety of risks including market risk, credit risk, liquidity risk and interest rate risk. To reduce and manage these risks, management periodically assesses the Group's financial market risk in general, as well as evaluating hedging strategies for specific exposures as they arise. For 2017, the Group did not have any hedging contracts or other derivative instruments.

The most significant risk for the Group is the market risk related to the cyclical dry bulk market. Changes in national and international economic conditions, including for example interest rate levels, inflation, employment levels, may influence the valuation of real and financial assets. In turn, this may impact the demand for goods, services and assets globally and thereby the macro economy. The current macroeconomic situation is uncertain and there is a risk of negative developments. Such changes and developments – none of which will be within the control of the Company – may negatively impact the Company's investment activities, realization opportunities and overall investor returns.

The demand for, and the pricing of the underlying assets are outside of the Company's control and depend, among other things, on the global economy, global trade growth, as well as oil and gas prices. On the supply side there are uncertainties tied to ordering of new vessels and scope of future scrapping. The actual residual value of the vessels in the underlying investments, and/or their earnings after expiration of the fixed contract terms, may be lower than the Company estimates.

The Group is exposed to credit risk in the case that receivables from customers and other parties are not paid. The customers are in general large companies with excellent credit rating. The Group had no losses on receivables in 2017.

Illiquidity may arise if the Group is not able to pay its financial obligations at due date. The Group applies cash forecasting to ensure that the activities are adequately financed at all times. Cash flow from operations and from planned financing activities are considered sufficient to settle all financial obligations.

The Group's issued bond has floating interest (LIBOR) + a fixed margin which means a change in LIBOR will have a direct effect on the Groups cash flow.

OUTLOOK

We believe the market will develop positively also in 2018 with supply growth leveling off and demand holding, although growing at a slightly lower pace than seen in 2017. But overall the tonnage balance should tilt more in owner's favour increasing the fleet utilization and ultimately improve freight rates.

With a sailing fleet of 15 vessels with an average age of seven years, Songa Bulk is well positioned with its robust business model and low cash break even. For 2018 the cash breakeven is estimated to be around \$7 350 per day. This includes opex, G&A and interest expenses, but does not include dry dockings.

The chartering strategy was initially to employ the majority of the fleet at fixed time charter rates for short to medium periods with duration up to a year. Given the improved market environment Songa Bulk has gradually increased its spot exposure.

Out of the 15 vessels, 3 vessels are employed on index related rates, with two more entering the same scheme in March/April 2018. In addition, the 3 Capesizes are all employed trading spot in the CCL Pool.

The focus going forward will be on earnings rather than growth unless there are accretive opportunities.

ALLOCATION OF RESULTS

The parent company, Songa Bulk ASA, reports a net profit of \$2 817 000 in 2017. The Board proposes that Songa Bulk ASA allocates the net profit for the year to retained earnings.

SUBSEQUENT EVENTS

The Capesize bulk carrier Songa Claudine was delivered 25 January 2018. The difference between the purchase price and deposit paid, \$27.45 million, was settled on delivery of the vessel.

In an extraordinary general meeting held on 22 March 2018 it was resolved to distribute a dividend of NOK per share equivalent to \$0.10 per share, in total \$3 586 000. The dividend was paid on 4 April 2018.

RESPONSIBILITY STATEMENT

We confirm, to the best of our knowledge, that the set of financial statements for the period 1 January 2017 to 31 December 2017 have been prepared in accordance with applicable accounting standards, and give a true and fair view of the Group's assets, liabilities, financial position and profit as a whole.

We also confirm, to the best of our knowledge, that the annual report includes a fair review of important events that have occurred during the financial year and their impact on the set of financial statements, and a description of the main risks and uncertainties going forward.

Oslo 24 April 2018

The Board of Directors of Songa Bulk ASA

Magnus Roth Board member

vendoline Fængsrud Board member

Arne Blystad

Chairman

lerman Alf Billung CEO

adsæther Board member

Page 11

SONGA BULK GROUP

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Comprehensive Income

		Period from date of incorporation (24 August 2016) to 31
Note	2017	December 2016
		-
		117
		-
		117
	246	-
		45
		117
		779
4	5 450	37
	24 787	978
	3 894	-862
		24
12	-3 967	-3
16	-94	-325
	-3 500	-304
		-1 166
		870
		-2 036
	388	-2 036
		-0.349
	4 14 15 17 18	1 577 24 822 2 036 28 435 220 16 629 2 488 562 394 6 388 0.012

Consolidated Statement of Financial Position

in \$ thousands	Note	31 December 2017	31 December 2016
Vessels	4	266 770	11 108
Deposit vessels	4	3 055	3 855
Total non-current assets		269 825	14 963
Inventories		2 233	26
Trade receivables		1 312	3
Other receivables	5	2 501	133
Cash and cash equivalents	6	41 017	57 688
Total current assets		47 063	57 850
TOTAL ASSETS		316 888	72 813
Share capital	7	21 620	9 085
Share premium	7	153 619	63 756
Other paid-in capital		574	400
Retained loss		-1 648	-2 036
Total equity		174 165	71 205
Interest bearing debt	12	136 776
Financial liabilities at fair value through profit or loss		490	327
Total non-current liabilities		137 266	327
Trade payables		1 745	632
Income taxes payable	17	124	393
Other current liabilities	13	3 588	206
Total current liabilities		5 457	1 2:31
Total liabilities		142 723	1 608
TOTAL EQUITY AND LIABILITIES		316 888	72 813

Oslo 24 April 2018

The Board of Directors of Songa Bulk ASA

Arne Blystad

Chairman

e Gwendoline Fæng Board member

Magnus Roth Board member

Herman Alf Billung CEO-

hristine Rødsæther

Board member

Consolidated Statement of Changes in Equity

in \$ thousands	Share capital	Share premium	Other paid-up capital	Retained earnings	Total equity
Incorporation 24 August 2016	3	-	-	-	3
Share issuance	9 082	65 188	-	-	74 270
Share issuance costs	-	-1 432	-	-	-1 432
Warrants issued to employees	-	-	400	-	400
Net loss	-	-	-	-2 036	-2 036
Balance 31 December 2016	9 085	63 756	400	-2 036	71 205
Share issuance 31 January 2017	600	4 400	-	-	5 000
Share issuance 17 February 2017	11 935	88 311	-	-	100 246
Share issuance costs	-	-2 848	-	-	-2 848
Warrants issued to employees	-	-	174	-	174
Net profit	-	-	-	388	388
Balance 31 December 2017	21 620	153 619	574	-1 648	174 165

Consolidated Statement of Cash Flows

			Period from date of incorporation (24 August 2016) to 31
in \$ thousands	Note	2017	December 2016
Profit (-loss) before taxes		394	-1 166
Depreciation	4	5 450	37
Gain on sale of vessels	4	-1 968	-
Change in inventories		-2 207	-26
Net change in trade receivables/payables		-247	679
Employee benefit expenses in connection with issuance of warrants	8	174	400
Change in financial liabilities at fair value through profit or loss	8	163	327
Change in other short-term assets and liabilities		1 454	-404
Net cash flow from operating activities		3 214	-153
Sale of vessels		13 615	-
Purchase of vessels	4	-268 449	-10 000
Paid deposit vessels	4	-3 055	-3 855
Dry-docking paid	4	-460	-
Net cash flow used in investing activities		-258 349	-13 855
Proceeds from share issuance		105 246	73 129
Share issuance costs		-2 848	-1 432
Proceeds from issuance of debt	12	137 625	-
Debt issuance costs	12	-1 559	-
Net cash flow from financing activities		238 464	71 697
Net change in cash and bank deposits		-16 671	57 688
Cash and bank deposits at beginning of period		57 688	0
Cash and bank deposits at end of period		41 017	57 688

NOTES – CONSOLIDATED FINANCIAL STATEMENTS

Note 1 General

Corporate information and history

Songa Bulk ASA (the Company) is a public limited liability company incorporated and domiciled in Norway. The Company was incorporated 24 August 2016. The address of the main office is Haakon VIIs gate 1, 0161 Oslo. The Norwegian Enterprise no. is 917 811 288.

Songa Bulk ASA and its subsidiaries (the Group) are engaged in the transportation of bulk cargo. The group was formed during the 4th Quarter of 2016. As of 31 December 2017 the Group owns a total of 14 dry bulk vessels; two cape size, ten kamsarmax, one supramax and one ultramax. A third cape size vessel has been purchased and was delivered in January 2018.

On 24 May 2017 the Company's shares were registered with Oslo Stock Exchange market place Oslo Axess under the ticker SBULK.

Basis of preparation

These consolidated financial statements are prepared in accordance with the accounting principles prescribed by International Financial Reporting Standards (IFRS) as adopted by the European Union. They comprise the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and related notes for the Group.

The consolidated financial statements have been prepared on a historical cost basis except for financial liabilities at fair value through profit or loss. The consolidated financial statements are prepared under the going concern assumption.

The accompanying notes for 2016 that relate to the income statement are for the period from incorporation (24 August 2016) to 31 December 2016.

Note 2 Accounting policies

Use of estimates and judgements in preparation of the financial report

The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that may affect assets, liabilities, revenues, expenses and information in notes to the financial statements. Estimates are management's best assessment based on latest available, reliable information. The effect of change in an accounting estimate is recognized in profit or loss in the period of the change.

The following areas involve significant judgements and estimates in the preparation of the consolidated financial statements:

• The fair value of equity instruments used in share-based payment transactions
• The fair value of financial liabilities at fair value through profit or loss

The Group has issued warrants to its founding shareholders. Based on certain criteria the warrants give the holders a right, but no obligation, to subscribe for one additional share at a price fixed in NOK.

Market prices for warrants are not available and therefore they are valued by use of an option pricing model. Warrants are valued by use of Monte Carlo Simulation based on 1 million observations. The following factors are taken into account when valuing the warrants: The exercise price of the warrants, the life of the warrants, the current price of the underlying shares, the expected volatility of the share price, the dividends expected on the shares and the risk-free interest rate for the life of the warrants. Factors are estimated based on management's best knowledge at the date of the valuation.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Songa Bulk ASA and all subsidiaries over which the Group has control. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary.

Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated.

Functional and presentation currency

The consolidated financial statements are presented in USD, which is also the functional currency for all entities in the Group.

Transactions and balances in foreign currencies

Transactions in foreign currencies are converted to the functional currency at the rate at time of the transaction. Monetary items denominated in foreign currencies are

converted into functional currency using the rate at the balance sheet date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit of loss. Nonmonetary items, which are measured at historical cost in a foreign currency, are converted at the currency rates on the dates of the initial transactions.

Balance sheet classification

The group presents assets and liabilities in statement of financial position based on current/non-current classification.

Current assets and current liabilities include items due less than one year from the balance sheet date, and items related to the operating cycle. Other assets are classified as non-current assets.

Vessels

Vessels are stated at historical cost, less accumulated depreciation and impairment. For vessels purchased, these costs include expenditures that are directly attributable to the acquisition of the vessels. Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any.

Vessels and related equipment have expected useful lives of 2.5 - 25 years. Future depreciations are based on depreciation schedules including residual values. Expected useful lives of long-lived assets, and residual values, are reviewed at each balance sheet date and, where they differ significantly from previous estimates, depreciation calculations are changed accordingly. Residual value for the ships is based on steel price times lightweight tonnage and is reassessed annually.

Ordinary repairs and maintenance expenses are charged to the income statement during the financial period in which they are incurred.

Costs related to major inspections/classification (drydocking) are recognized in the carrying amount of the vessels if certain recognition criteria are satisfied. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next inspection, normally 2.5 – 5 years. Any remaining carrying amount of the cost of the previous inspection is de-recognized.

Impairment of vessels

The vessels are reviewed for indication of impairment at each reporting date, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized. The recoverable amount is the higher of an asset's net selling price and its value in use. The net selling price is the amount obtainable from the sale of an asset in an arms length transaction less the costs of disposal, while value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Deposit vessels

In the event where the Company has paid deposits at the balance sheet date for future delivery of vessels, the deposits are presented as non-current assets at the actual deposit paid. The carrying amount includes any expenses that are directly attributable to entering into the agreements for future delivery of the vessel.

Inventories

Inventories, which comprise principally of bunker fuel, lube oil and stores are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (FIFO) basis.

Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. The Group regularly reviews its accounts receivables and estimates the amount of uncollectible receivables each period and establishes an allowance for uncollectible amounts. The amount of the allowance is based on the age of unpaid amounts, information about the current financial strength of customers, and other relevant information

Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other shortterm, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash. Cash and cash equivalents are recorded at their nominal values on the balance sheet.

Interest bearing debt

Interest bearing debt is initially recognized at its fair value less transaction costs. After initial recognition, interest bearing debt is measured at amortized cost using the effective interest method.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss comprise of warrants issued to shareholders, other than shareholders that are also employed by the Group, under a warrant agreement. The warrant agreement is a contract that will or may be settled in the entity's own equity instruments and is a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity's own equity instruments.

Trade and other payables

These amounts represent liabilities for goods and services provided to the group prior to the end of financial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

Revenue recognition

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities as described below. The group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Operating revenue

Voyage charter revenues are recognized using the percentage of completion method on a "discharge to discharge" basis. As the one vessel involved in voyage charters is under a revenue sharing agreement (pool) where results are settled on a net basis, the recognized voyage charter revenues are net of voyage expenses

such as bunkers consumption, port costs and other voyage related expenses.

Freight revenues from time charters are accounted for as operating leases under IAS 17 and are recognized on a straight-line basis over the rental periods of such charters, as service is performed.

Other operating income

Net income, the settlement amount as a result of the revenue sharing agreement for one vessel is presented as other operating income.

Voyage and operating expenses

Voyage expenses mainly consist of bunker fuel expenses in connection with purchase of the vessel and delivery to charterers. Ship operating expenses include crew costs, repairs and maintenance, insurance, lube oils, communication expenses and fees to technical managers. Operating expenses are recognized when incurred.

Share-based payments

Share-based payment transactions through issuance of warrants to shareholders, that are also employed by the Group, are measured at fair value of the warrants at the issuance date as value of services received cannot be estimated reliably. Fair value is measured by Monte Carlo simulation. Share-based payments are recognized as an employee expense, at the time of issuance when there are no performance vesting conditions present, with a corresponding increase of equity.

Taxes

The vessel owning companies are subject to taxation under the Norwegian tonnage tax regime. Under the tonnage tax regime, profit from operations are exempt from taxes. Taxable profit is calculated on the basis of financial income after deduction of a portion of financial expenses. The portion is calculated as financial assets in percent of total assets. Tonnage tax is payable based on the net tonnage of vessels. Tonnage tax is classified as an operating expense.

The parent company is subject for ordinary Norwegian taxation. Tax expense comprise tax payable and deferred tax expense. Tax payable is measured at the amount expected to be paid to authorities while deferred tax assets/liabilities are calculated based on temporary differences at the reporting date. Deferred tax assets are recognized to the extent that it is probable that they can be utilized in the future.

Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
• the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

Share issuance

Share issuance costs related to a share issuance transaction are recognized directly in equity. If share issuance costs, for tax purposes, can be deducted from other taxable income in the same period as they are incurred, the costs are recognized net after tax.

Related parties

Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or common significant influence.

Events after financial position date

New information regarding the Group's financial position as of the balance sheet date is taken into consideration in the financial statements. Events occurring after the financial position date, that do not affect the financial position as of the balance sheet date, but which will affect the financial position in the future, are disclosed if significant.

New or amendments to standards

The following new or amendments to standards and interpretations have been issued and become effective during the current period. These include:

• Amendments to IAS 12 Income taxes regarding recognition of deferred tax assets for unrealised losses, for periods beginning on or after 1 January 2017
• Amendments to IAS 7 Cash flow statements, for periods beginning on or after 1 January 2017

The above pronouncements did not have a material impact on the financial statements of the Group, beyond disclosures.

The following new or amendments to standards have been issued and become effective in years beginning on or after 1 January 2018, assuming European Union adoption.

• IFRS 15 Revenue from contracts with customers, for periods beginning on or after 1 January 2018. The current practice of recognizing revenue on a discharge-to-discharge basis is not in line with IFRS 15. Recognition of revenue will be on a load-to-discharge basis, with costs directly related to the contract incurred prior to loading capitalized as mobilization costs and amortized over the period for which revenue is recognized. The Company has elected to adopt the standard with full retrospective implementation, which means that comparatives will be restated, however the effect is assessed as immaterial for 2017. Application of the new revenue recognition model will begin in the first quarter of 2018.
• IFRS 9 Financial instruments, for periods beginning on or after 1 January 2018. No material impact is expected for the Group.
• Amendments to IFRS 2 Share based payments for periods beginning on or after 1 January 2018. No material impact is expected for the Group.
• IFRS 16 Leases, for periods beginning on or after 1 January 2019. No material impact is expected for the Group.

Note 3 Segment information

The group operates within one single segment, which is the shipping dry bulk segment.

Note 4 Vessels and deposit dry bulk vessels

in \$ thousands	Dry bulk	Dry-docking	Total vessels	Deposit
	vessels			vessels
Cost 1 January 2017	11 145	-	11 145	3 855
Additions 2017	268 453	460	268 913	3 055
Reclassification deposit to vessels	3 855	-	3 855	-3 855
Disposals 2017	-11 982	-	-11 982	-
Cost 31 December 2017	271 471	460	271 931	3 055
Depreciation 1 January 2017	37	-	37	-
Depreciation 2017	5 390	60	5 450	-
Reversal depreciation sold vessels	-326	-	-326	-
Accumulated depreciation 31 December 2017	5 101	60	5 161	-
Carrying amount 31 December 2017	266 370	400	266 770	3 055

In \$ thousands	Dry bulk	Dry-docking	Total vessels	Deposit
	vessels			vessels
Additions 2016	11 145	-	11 145	3 855
Cost 31 December 2016	11 145	-	11 145	3 855
Depreciation 2016	37	-	37	-
Accumulated depreciation 31 December 2016	37	-	37	-
Carrying amount 31 December 2016	11 108	-	11 108	3 855

The Group took delivery of 14 vessels during 2017, adding to the one vessel delivered in 2016. One vessel was sold in 2017, taking the total vessels owned by the Group at 31 December 2017 to 14. In addition, the Group has paid deposit for one more vessel at 31 December 2017. This vessel was delivered in January 2018.

Recognized gain on sale of vessel in 2017 was \$2.0 million.

The group has made an assessment of the residual values as per 31 December 2017, concluding that there are no significant changes to the ones used initially.

Costs in relation to special surveys (dry docking) are capitalized when incurred. During 2017 one vessel was in dry dock. The costs are depreciated over the period until the next special survey, which is 5 years.

One of the vessels purchased in 2017 was under a time charter contract that management considered to be unfavourable compared to market rates at that time. The negative net present value of the contract was estimated to \$175 thousand. The amount was amortized over the remaining contract period as reduction of depreciation. Accordingly, \$175 thousand was added to the cost of the vessel and will be depreciated over the vessels useful life.

As at 31 December 2017, management has assessed impairment indicators and concluded that there are no impairment indicators on any vessel.

Note 5 Other receivables

in \$ thousands	31 December 2017	31 December 2016
VAT receivables	45	72
Prepaid expenses	716	55
Incurred revenues	791	-
Other receivables	949	6
Total other receivables	2 501	133

Note 6 Cash and cash equivalents

in \$ thousands	31 December 2017	31 December 2016
Bank deposits denominated in USD	40 560	56 351
Bank deposits denominated in NOK	457	1 337
Total cash and cash equivalents	41 017	57 688

Of the bank deposits, \$38 thousand is related to restricted bank accounts for tax withholding purpose.

Note 7 Share capital and shareholders

	Number of shares	Share capital, \$ thousands	Share premium, \$ thousands
Balance at 1 January 2017	14 860 000	9 085	63 756
Private placement 31 January 2017	1 000 000	600	4 400
Private placement 17 February 2017	20 000 000	11 935	88 311
Share issuance costs	-	-	-2 848
Balance at 31 December 2017	35 860 000	21 620	153 619

	Number of shares	Share capital, \$ thousands	Share premium, \$ thousands
Incorporation 24 August 2016	100	3	-
Share split 28 October 2016 (1:60)	6 000	3	-
Private placement 4 November 2016	14 854 000	9 082	65 188
Share issuance costs	-	-	-1 432
Balance at 31 December 2016	14 860 000	9 085	63 756

Authorized share capital is NOK 179 300 000. All issued shares are fully paid at 31 December 2017.

The Group has issued warrants to its founding shareholder. For further information see note 8.

List of largest shareholders as of 31 December 2017:

Shareholder	Share holding	Share holding in %
Canomaro Bulk AS	4 671 400	13.03 %
Songa Trading Inc	2 547 900	7.11 %
Songa Shipholding AS	2 164 000	6.03 %
Evermore Global Value Fund	2 143 278	5.98 %
J.P. Morgan Bank (Ireland) Plc	1 437 300	4.01 %
North East Star Maritime Ltd	1 267 100	3.53 %
Credit Suisse Securities (USA) Llc	1 000 000	2.79 %
SEB Prime Solutions Sissener Canop	1 000 000	2.79 %
Magnus Leonard Roth	981 102	2.74 %
Polux Investment Ltd	821 200	2.29 %
Ringnes Holding AS	746 400	2.08 %
Eika Norge	733 700	2.05 %
Regents of the University of Michi	730 643	2.04 %
USB AG	682 533	1.90 %
Bras Kapital AS	600 000	1.67 %
Euroclear Bank S.A./N.V.	532 342	1.48 %
Torstein Ingvald Tvenge	525 000	1.46 %
Ola Rustad AS	500 000	1.39 %
Sirius International Insurance Corp	465 797	1.30 %
Morgan Stanley & Co. LLC	445 200	1.24 %
Total 20 largest shareholders	23 994 895	66.91 %
Other shareholders	11 865 105	33.09 %
Total	35 860 000	100.00 %

Shares and warrants owned by board members, board consultants and executives:

Shareholder	Title	Share holding	Share holding in %	No of warrants
Board members:
Arne Blystad	Chairman	4 711 900	13.14 %	673 594
Magnus Roth	Board member	5 652 502	15.76 %	-
Christine Rødsæther	Board member	3 124	0.01 %	-
Vibeke Gwendoline Fængsrud	Board member	5 412	0.01 %	-
Board consultant:
Ghikas Goumas	Board consultant	1 267 100	3.53 %	-
Executives:
Herman Alf Billung	CEO	73 500	0.20 %	673 594
Per Kristian Aamlid	COO	34 000	0.10 %	149 688
Thomas Rønningen	CFO	3 500	0.01 %	-
Nina Rathsack	Operations Manager	2 540	0.01 %	-

Note 8 Warrants

On 31 January 2017 and 17 February 2017 three shareholders of Songa Bulk ASA were issued with warrants. The warrants came in addition to the warrants issued on 4 November 2016. The number of warrants issued are detailed in the tables below. Total warrants issued as per 31 December 2017 is 1 496 876. No more warrants will be issued under the existing warrant agreement. The total warrants issued equals 7.5% of shares issued up to an aggregate amount of \$100 million in proceeds. Each warrant gives the holders the right, but no obligation, to subscribe for one share at a price equal to the share subscription price in each respective share issuance. The warrants are valid for a period of 5 years from the relevant date of issuance.

Conditions for exercise are such that tranche 1 vests at subscription price + 25%, tranche 2 vests at subscription price + 50% and tranche 3 vests at subscription price + 75%. The price increase is measured from the average volume weighted trading price for a period of 10 trading days with minimum trading volume equal to the NOK equivalent of USD 1 million. The warrant subscription price is equal to the original subscription price of the share issuance for all three tranches.

		Tranche 1			Tranche 2			Tranche 3
		Value	Value		Value	Value		Value	Value
		per	per		per	per		per	per
	No of	warrant	warrant	No of	warrant	warrant	No of	warrant	warrant
Share issue	warrants	(NOK)	(USD)	warrants	(NOK)	(USD	warrants	(NOK)	(USD)
4 November 2016	201 094	5.87	0.72	201 094	5.84	0.71	201 094	4.54	0.56
31 January 2017	13 750	7.53	0.90	13 750	7.87	0.94	13 750	6.37	0.76
17 February 2017	59 583	6.85	0.82	59 583	6.99	0.84	59 583	5.52	0.66

Granted warrants as at 31 December 2017 to shareholders that are also employed by the Group:

Valuation date is the date of the respective share issuance. Subscription price is NOK 40.89 for warrants issued on 4 November 2016, NOK 41.63 for warrants issued on 31 January 2017 and NOK 42.00 for warrants issued on 17 February 2017. Warrants are accounted for as employee benefit expenses with a corresponding increase in equity. Total recognized amount in 2017 was \$174 thousand. Recognized amount in 2016 was \$400 thousand.

	Tranche 1				Tranche 2			Tranche 3
	Value		Value		Value Value		Value		Value
		per	per		per	per		per	per
	No of	warrant	warrant	No of	warrant	warrant	No of	warrant	warrant
Share issue	warrants	(NOK)	(USD)	warrants	(NOK)	(USD	warrants	(NOK)	(USD)
4 November 2016	164 531	6.48	0.79	164 531	6.29	0.79	164 531	5.18	0.63
31 January 2017	11 250	6.24	0.76	11 250	6.26	0.76	11 250	4.88	0.59
17 February 2017	48 750	6.13	0.75	48 750	6.12	0.75	48 750	4.74	0.58

Granted warrants as at 31 December 2017 to shareholder that is not employed by the Group:

Valuation date is 31 December 2017. Subscription price is NOK 40.89 for warrants issued on 4 November 2016, NOK 41.63 for warrants issued on 31 January 2017 and NOK 42.00 for warrants issued on 17 February 2017. These warrants are recognized as financial liabilities, since the strike price is not in the functional currency of the entity, and valued at fair value through profit or loss. The fair value of all issued warrants to shareholder not employed by the group as of 31 December 2017 was \$490 thousand. As of 31 December 2016 the fair value was \$327 thousands. The recognized net expense in 2017 was \$163 thousand. In 2016 the net expense was \$327 thousands. The items are classified as other financial expenses.

Warrants are valued by use of Monte Carlo Simulation with 1 000 000 observations. The Monte Carlo model projects future share prices for the Company based on a risk-neutral framework (similar to the financial modelling used for other models such as Black-Scholes model or a binomial model). By using identical assumptions and sufficient number of simulations, a Monte Carlo simulation without special conditions would yield somewhat identical results to a Black-Scholes or binomial model. However, a Monte Carlo simulation allows for greater flexibility and customization of the assumptions and plan design parameters, which is necessary to value such a plan dependent on uncertainty with respect to vesting dates and quantity becoming exercisable. The following inputs to the Monte Carlo model is applied:

Volatility: 25%

Note 9 Share based payments

The Group has issued warrants to employees as described in note 8. The warrants were issued under a warrant agreement between the founding shareholders and Songa Bulk ASA. The warrants issued to employees have been expensed as detailed in note 19 since there are no service or performance requirements determining the vesting of the warrants.

	Number of warrants	Exercise price (NOK)	Number of exercisable warrants	Remaining contractual life
Outstanding 1 January 2017	603 282	40.89	0	3.8 years
Granted 31 January 2017 Granted 17 February 2017	41 250 178 749	41.63 42.00	0 0	4.1 years 4.2 years
Outstanding as at 31 December 2017	823 281	41.17	0	3.9 years

	Number of warrants	Exercise price (NOK)	Number of exercisable warrants	Remaining contractual life
Granted 4 November 2016	603 282	40.89	0	4.8 years
Outstanding as at 31 December 2016	602 282	40.89	0	4.8 years

Note 10 Financial risk factors

Financial market risk

The Songa Bulk Group owns and operates dry bulk vessels for transportation of dry cargo worldwide. Through its operations the Group is exposed to financial risks such as market risk (including currency risk), credit risk, liquidity risk, interest rate risks and other risks that may influence the value of assets, liabilities and cash flows.

To reduce and manage these risks, management periodically assesses the Group's financial market risk in general, as well as evaluating hedging strategies for specific exposures as they arise. The primary strategy used for reducing the financial market risks is the use of derivatives, where appropriate.

Derivative instruments are only implemented for the purpose of hedging financial risks. The Group does not trade or use instruments with the objective of earning financial gains from interest rate or exchange rate fluctuations alone. The Group only employs conventional derivative instruments in contracts with highly rated and reputable financial institutions and commodities brokers.

For 2017, the Group did not have any hedging contracts or other derivative instruments.

Currency risk exposure

Revenues, expenses, assets and liabilities of the Group are mainly denominated in USD. The Group is exposed to currency risk in connection with the following items:

General and administrative expenses

General and administrative expenses as salaries, fees to lawyers and other fees such as share issuance costs are mainly denominated in NOK. Exchange rate fluctuations between USD and NOK will have an effect on the actual recognized expenses in the financial statements.

Warrants

The fair value of warrants recognized at fair value through profit or loss is valued in NOK. The change in value to be recognized in profit or loss will be affected by any fluctuations in the USD/NOK exchange rate.

Taxable income

Taxable income is denominated in NOK. Monetary items denominated in other currencies, which is mainly USD, will be translated to NOK for tax purposes. Any change in the foreign exchange rates will affect the taxable income and income tax payable.

Credit risk exposure

The Group is exposed to credit risk in the case that receivables from customers and other parties are not paid. The customers are in general large companies with excellent credit rating. For new customers, a credit evaluation is performed. In 2017 there were five customers that each represented more than 10% of total revenue. These customers represented in total 66% of total revenue.

Illiquidity risk exposure

Illiquidity may arise if a company is not able to pay its financial obligations at due date. The Group applies cash flow forecasting to ensure that the activities are adequately financed at all times. Cash flows from operations and from planned financing activities are considered sufficient to settle all financial obligations.

Interest rate risk exposure

The Group's issued bond has floating interest (LIBOR) + a fixed margin which means a change in LIBOR will have a direct effect on the Group's cash flows. If LIBOR increases by 1%, the interest expense would increase by \$1.38 million per year.

Note 11 Financial instruments

Set out below is a comparison by category for carrying amounts and fair values of all of the Group's financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.

	31 December 2017		31 December 2016
In \$ thousands	Carrying amount	Fair value	Carrying amount	Fair Value
Financial assets:
Trade receivables	1 312	1 312	3	3
Other receivables*	1 741	1 741	78	78
Cash and cash equivalents	41 017	41 017	57 688	57 688
Financial liabilities:
Interest bearing debt**	138 000	138 000	-	-
Financial liabilities at fair value through
profit or loss	490	490	327	327
Trade payables	1 745	1 745	682	682
Income taxes payable	124	124	393	393
Other current liabilities*	2 548	2 548	115	115

*The difference between the balance sheet item other receivables and other receivables in the table above is prepaid expenses which are not considered a financial instrument. The difference between the balance sheet item other current liabilities and other current liabilities in the table above is prepaid revenues which are not considered a financial instrument.

**The difference between the balance sheet item Interest bearing debt and the table above is the debt issuance costs as detailed in note 12.

Fair value estimation

The different levels for fair value estimation have been defined as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Unobservable input for the asset or liability

Fair value equals carrying value for all financial instruments. Cash and cash equivalents are valued at level 1, Financial liabilities at fair value through profit or loss, which are warrants issued to shareholder, are valued at level 3.

Categories of financial instruments

In \$ thousand			At fair value
		Cash and loans	through profit		Available for		Liabilities at
	and receivables		or loss		sale		amortized cost		Total
	2017	2016	2017	2016	2017	2016	2017	2016	2017	2016
Financial assets:
Trade receivables	1 312	3	-	-	-	-	-	-	1 312	3
Other receivables	1 741	78	-	-	-	-	-	-	1 741	78
Cash and cash equivalents	41 017	57 688	-	-	-	-	-	-	41 017	57 688
Financial liabilities:
Interest bearing debt	-	-	-	-	-	-	138 000	-	138 000	-
Financial liabilities at fair
value through profit or loss		-	490	327	-	-	-	-	490	327
Trade payables	-	-	-	-	-	-	1 745	682	1 745	682
Income taxes payable	-	-	-	-	-	-	124	393	124	393
Other current liabilities	-	-	-	-	-	-	2 548	115	2 548	115

Maturity of financial liabilities

In \$ thousands	< 1 year	1-5 years	Total at 31 December 2017
Interest bearing debt	-	138 000	138 000
Financial liabilities at fair value through profit or loss	-	490	490
Trade payables	1 745	-	1 745
Income taxes payable	124	-	124
Other current liabilities	2 548	-	2 548
Total financial liabilities	4 417	138 490	142 907

In \$ thousands	< 1 year	1-5 years	Total at 31
			December 2016
Non-current liabilities	-	327	327
Trade payables	682	-	682
Income taxes payable	393	-	393
Other current liabilities	115	-	115
Total financial liabilities	1 190	327	1 517

Note 12 Interest bearing debt

On 30 May 2017, the Company issued a \$75 million senior secured bond with a total borrowing limit of \$150 million. The bond has floating interest rate, of LIBOR plus a margin of 4.50%. Settlement was 13 June 2017 and the bond shall be repaid in full on the maturity date which is 13 June 2022.

On 23 August 2017, the Company completed a tap issue of \$45 million. The total nominal amount outstanding in the bond following the tap issue was \$120 million of the borrowing limit of \$150 million. The bond has a floating interest rate of LIBOR plus a margin of 4.50%, and the final maturity is 13 June 2022.

On 29 September 2017, the Company completed a tap issue of \$18 million. The total nominal amount outstanding on the bond following the tap issue is \$138 million of the borrowing limit of \$150 million. The bond has a floating interest rate of LIBOR plus a margin of 4.50%, and the final maturity 13 June 2022.

in \$ thousands	31 December	31 December
	2017	2016
Nominal value of issued bond	138 000	-
Debt issuance cost	-1 224	-
Interest bearing debt secured by mortgage	136 776	-
Security under the bond terms:
Vessels – book value	266 770	-

In addition, the outstanding bond amount, interest fees and expenses are secured by the following:

• First priority pledges over all the shares in each vessel owning subsidiary
• First priority pledges over all group loans
• First priority assignments of all relevant insurance policies related to the vessels and the equipment related thereto
• Joint and several guarantees from each vessel owning subsidiary

The following financial covenants exist under the bond terms:

• Vessel loan to value ratio shall at all times be below 75.0%
• The liquidity of the Company shall at all times exceed the sum of the interest payments falling due on the four following interest payment dates (interest payments are quarterly)

In addition, the earliest distribution is in 2018. Distribution is permitted if the vessel LTV ratio is below 50% and is also limited to the issuer's consolidated adjusted net profit of the previous calendar year. Depreciation made on the vessels and sale of vessels is not included in adjusted net profit.

Net debt reconciliation:

This section sets out an analysis of net debt and the movements in net debt for each of the periods presented.

in \$ thousands
	Other assets	Liabilities from financing activities
	Cash and cash	Interest bearing debt	Interest bearing debt	Total
	equivalents	due within one year	due after one year
Net debt at 1 January 2017	57 688	-	-	57 688
Net proceeds from issuance of debt	-	-	-136 066	-136 066
Changes in amortized cost	-	-	-710	-710
Net cash flow	-16 671	-	-
Net debt at 31 December 2017	41 017	-	-136 776	-95 759

Note 13 Other current liabilities

in \$ thousands	31 December 2017	31 December 2016
Prepaid revenues	1 040	91
Accrued expenses	1 494	57
Public dues payable	70	46
Other liabilities	984	12
Total other current liabilities	3 588	206

Note 14 Ship operating expenses

in \$ thousands	2017	2016
Crew costs	8 403	71
Stores and lubes	2 118	-
Repairs and maintenance	1 352	-
Insurances	891	-
Management fees	1 174	-
Start-up costs in connection with delivery of vessels	760	24
Tonnage taxes	118	-
Other ship operating expenses	1 813	22
Total ship operating expenses	16 629	117

Note 15 General and administrative expenses

in \$ thousands	2017	2016
Salaries and other employee benefit expenses	847	124
Warrants issued to employees	174	400
Fees to auditor, lawyers and other professional fees	1 121	181
Other general and administrative expenses	346	74
Total general and administrative expenses	2 488	779

Auditors fee was \$36 thousand.

Note 16 Other financial expenses

in \$ thousands	2017	2016
Foreign exchange gain	83	11
Warrants granted to shareholder	-143	-327
Value change warrants	-21	-
Other financial expenses	-13	-9
Other financial expenses	-94	-325

Note 17 Income tax

in \$ thousands	2017	2016
Basis for tax expense and tax payable:
Profit (-loss) before taxes	394	-1 166
Effects of foreign exchange gains and losses on current items	-4 133	3 781
Effects of Norwegian tonnage tax legislation	-1 422	140
Other permanent differences between accounting and tax	475	727
Share issuance costs directly in equity – recognized gross before tax	-2 848	-
Basis for tax expense*	-7 534	3 482
*Basis for tax expense:
Basis for tax expense within the Norwegian tonnage tax legislation	24	-
Basis for tax expense within ordinary Norwegian tax legislation	-7 558	3 482
Basis for tax expense	-7 534	3 482
Tax expense:
Tax payable	6	870
Change deferred tax	-1738	-
Change deferred tax not recognized	1738	-
Tax expense	6	870
Taxable income:
Basis for tax payable in tax expense	24	3 482
Basis for deferred tax in tax expense	-7 558	-
Share issuance costs directly in equity – recognized net after tax	-	-1 912
Change in temporary differences	-2 036	-
Taxable income	-9 570	1 570
Reconciliation of tax expense for the year:
Profit (-loss) before taxes	394	-1 166
Tax expense calculated on the relevant tax rate (24%/25%)	95	-291
Tax expense	6	870
Difference	-89	1 162
Difference comprise of:
Tax effect of foreign exchange gains and losses on current items	-992	945
Tax effect of Norwegian tonnage tax legislation	-341	35
Tax effect of other permanent differences	114	182
Tax effect of share issuance costs directly in equity – recognized gross before tax	-684	-
Tax effect of deferred tax asset not recognized	1 738	-
Effect of changes in tax rate	76	-
Total difference	-89	1 162
Tax payable in statement of financial position:
Tax payable in tax expense	6	870
Tonnage tax payable	118	1
Tax effect of share issuance costs directly in equity – recognized net after tax	-	-478
Tax payable in statement of financial position	124	393

Deferred tax per 31 December 2017
Temporary differences:
Foreign exchange gain on long-term debt	272	-
Debt issuance costs	1 764	-
Total temporary differences	2 036	-
Tax loss carried forward	-9 594	-
Net temporary differences	-7 558	-
Deferred tax:
Nominal tax rate on deferred tax	23%	24%
Deferred tax (-asset)	-1 738	-
Deferred tax asset not recognized	1 738	-
Deferred tax in statement of financial position	-	-

Note 18 Earnings per share

	2017	2016
Net profit (-loss) attributable to ordinary equity holders - \$ thousands	388	-2 036
Basic and diluted weighted average number of ordinary shares outstanding	33 202 466	5 833 338
Basic and diluted earnings, \$ per share	0.012	-0.349

Note 19 Related party transactions

The Group has entered into a corporate service agreement with Arne Blystad AS for the rendering of administrative services, IT and office services and accounting and reporting services. In addition, the agreement covers hire of Chief Financial Officer. Arne Blystad AS is a company owned and controlled by the Chairman Arne Blystad and his immediate family. Total expenses under the agreement in 2017 was \$502 thousand. In 2016 the fee was \$ 21 thousand.

The Group has entered into technical management agreements with Songa Shipmanagement Ltd. for the rendering of technical services for the vessels Songa Maru, Songa Genesis, Songa Delmar, Songa Hadong, Songa Mountain, Songa Opus, Songa Devi and Songa Sky. Songa Shipmanagement Ltd. is a company owned and controlled by the Chairman Arne Blystad and his immediate family. Total expenses under the agreements in 2017 was \$731 thousand.

Note 20 Key management and Board of Directors compensation

No directors' fees were paid in 2016 or 2017.

Compensation and benefits of the key management:

			Other	Value of
In \$ thousands	Salary	Pension	remuneration	warrants issued	Total 2017
Herman Billung – CEO	362	20	3	142	527
Per Kristian Aamlid – COO	164	16	3	32	215
Total	526	36	6	174	742

Total cost for hire of CFO in 2017 was \$167 thousand.

In \$ thousands	Salary	Pension	Other remuneration	Value of warrants issued	Total 2016
Herman Billung – CEO Per Kristian Aamlid – COO	67 34	5 3	- -	327 73	399 110
Total	101	8	-	400	509

Note 21 Commitments

The Group has paid deposit in 2017 for one cape size bulk carrier for delivery in January 2018. Under a memorandum of agreement the Group is committed to pay the settlement amount for the vessels on delivery. Total commitment is \$27.45 million.

Note 22 Subsequent events

The Capesize bulk carrier Songa Claudine was delivered 25 January 2018. The difference between the purchase price and deposit paid, \$27.45 million, was settled on delivery of the vessel.

In an extraordinary general meeting held on 22 March 2018 it was resolved to distribute a dividend of NOK per share equivalent to \$0.10 per share, in total \$3 586 000. The dividend was paid on 4 April 2018.

Note 23 Alternative Performance Measures

Financial performance	2017	2016
Time charter equivalent revenue1 , \$ in thousands	26 645	117
Time charter out days (TC Out days2 )	2 909	17
Time charter equivalent (TCE3 ), \$ per day	9 159	6 882
Net ship operating expenses4 , \$ in thousands	15 749	117
Operating days5	2 975	20
Net ship operating expenses per day (OPEX6 ), \$ per day	5 294	5 850

1 Time charter equivalent revenue is voyage charter revenue, time charter revenue and other operating income ( expenses).

2 Time Charter Out days (TC Out days) are calculated on a vessel by vessel basis and represent operating days less handover days, dry-dock and unscheduled repairs.

3 Time Charter Equivalent (TCE) is calculated by dividing time charter equivalent revenue by TC Out days during a reporting period.

4 Net Ship Operating Expenses are the ship operating expenses less startup costs and tonnage tax. Startup costs are expenses related to delivery of new vessels, which cannot be activated.

5 Operating days are the number of days calculated from the day the Company takes delivery of the vessel, until end of the reporting period.

⁶Net Ship Operating Expenses per day (OPEX) is calculated by dividing net ship operating expenses by operating days during a reporting period.

SONGA BULK ASA

FINANCIAL STATEMENTS

Income Statement

			Period from date of incorporation (24 August 2016) to 31
in \$ thousands	Note	2017	December 2016
Operating revenue	3	2 490	3
Total operating income		2 490	3
Employee benefit expenses	4	1 022	524
Other operating expenses	5	1 338	232
Total operating expenses		2 360	756
Operating profit (-loss)		130	-753
Income from investments in subsidiaries		3 435	-
Interest income from group companies	10	996	41
Other financial income	6	2 287	35
Interest expenses to group companies	10	-26	-
Other interest expenses		-3 652	-
Other financial expenses	7	-353	-335
Net financial income (-expenses)		2 687	-259
Profit (-loss) before taxes		2 817	-1 012
Tax expense	8	-	881
Net profit (-loss)		2 817	-1 893

Balance sheet – Assets

in \$ thousands	Note	31 December 2017	31 December 2016
Investments in subsidiaries	9,13	205 376	38
Other receivables	11	3 055	-
Total financial non-current assets		208 431	38
Total non-current assets		208 431	38
Accounts receivable		2 490	3
Receivables from group companies	10	77 505	15 435
Other receivables	11	59	73
Total receivables		80 054	15 511
Cash and cash equivalents	12	28 160	56 927
Total current assets		108 214	72 438
TOTAL ASSETS		316 645	72 475

Balance sheet - Equity and Liabilities

in \$ thousands	Note	31 December 2017	31 December 2016
		21 620	9 085
Share capital	15
Share premium	15	153 619	63 754
Other paid-in equity		574	400
Total paid-in equity		175 813	73 239
Other equity		924	-1 893
Total retained earnings		924	-1 893
Total equity		176 733	71 347
Interest bearing debt	13	136 231
Other non-current liabilities	17	490	327
Total non-current liabilities		136 721	327
Liabilities to group companies	10	2 405	41
Accounts payable		123	290
Taxes payable	8		393
Public duties payable		70	46
Other current liabilities		587	32
Total current liabilities		3 186	802
Total liabilities		139 907	1 124:
TOTAL COUITY AND ITES		216 GAE	79 1775

Oslo 24 April 2018

Board of Directors of Songa Bulk ASA

Arne Blystad Chairman

Vibeke Gwendoline Fængsrud Board member

Magnus Roth Board member

C Herman Alf Billung CEO

vistine Rødsæther

Board member

Cash Flow Statement

		Period from date of incorporation (24 August 2016) to 31
in \$ thousands	2017	December 2016
Profit (-loss) before taxes	2 817	-1 012
Taxes paid	-393	-
Dividends recognized as income with no cash effect	-3 435	-
Net change in trade receivables/payables	-2 654	287
Employee benefit expenses in connection with issuance of warrants	174	400
Financial expenses related to warrants to shareholder	163	327
Change in other short-term assets and liabilities	696	-441
Net cash flow from operating activities	-2 632	-439
Investments in subsidiaries and other shares	-275 772	-39
Paid deposit on vessel	-3 055	-
Investments by lending to subsidiaries	-	-14 290
Received dividends from subsidiaries	11 890	-
Net cash flow used in investing activities	-266 937	-14 329
Proceeds from share issuance	105 248	73 129
Share issuance costs	-2 848	-1 434
Proceeds from debt issuance	137 625	-
Debt issuance costs	-1 559	-
Proceeds from short-term borrowing	2 336
Net cash flow from financing activities	240 802	71 695
Net change in cash and bank deposits	-28 767	56 927
Cash and bank deposits at beginning of period	56 927	0
Cash and bank deposits at end of period	28 160	56 927

NOTES – FINANCIAL STATEMENTS

Note 1 General information

Songa Bulk ASA is the parent company in the Songa Bulk Group. The Songa Bulk Group is the owner and operator of dry cargo vessels. Songa Bulk ASA is incorporated in Norway and has its head office in Oslo. The consolidated financial statements can be obtained from Songa Bulk ASA, Haakon VII's gate 1, 0161 Oslo, Norway.

Note 2 Accouting principles

Basic principles

The accounts are prepared in accordance with the 1998 Norwegian Accounting Act and Generally Accepted Accounting Principles in Norway (NGAAP).

The financial statements are prepared on a historical cost basis under the going concern assumption.

The accompanying notes for 2016 that relate to the income statement are for the period from incorporation (24 August 2016) to 31 December 2016.

Classification and valuation of balance sheet items

Assets intended for long-term ownership or use are classified as non-current assets. Other assets are classified as current assets. Receivables payable within one year are classified as current assets. Analogous criteria are applied when classifying liabilities.

Non-current assets are valued at cost, but are written down to their fair value if a reduction in value is expected to not be of a temporary nature.

Current assets are valued at the lower of cost or net realisable value. Current liabilities are recorded in the balance sheet at the nominal amount at the time the debt is established.

Currency

The financial statements are presented in USD which is also the functional and accounting currency of the company.

Foreign currency transactions are translated at the exchange rate on the date of the transaction. Monetary items in a foreign currency are translated at the exchange rate on the balance sheet date.

Investments in subsidiaries

Investments in subsidiaries are accounted for using the cost method. Investments are written down to their fair value if a reduction in value is expected to not be of a temporary nature.

Receivables

Receivables are booked at nominal amount less any expected loss.

Cash and cash equivalents

Cash and cash equivalents consist of bank deposits. They are accounted at their nominal value.

Bond loans

Bond loans are initially recognized at its fair value less transaction costs. After initial recognition, transaction costs are amortized on a straight line basis up to maturity.

Non-current liabilities

Non-current liabilities comprise of warrants issued to shareholders, other than shareholders that are also employed by the group, under a warrant agreement. Warrants are booked at the higher of cost and fair value.

Revenue recognition

Revenue is recognized when it is earned, which is when the service is performed. The revenue is recognized at the value of the consideration at the time of the transaction.

Costs

Costs are normally reported in the same period as the corresponding revenue. If costs are not corresponding directly to any revenue, allocation is determined on the basis of assessment criteria.

Share-based payments

Share-based payment transactions through issuance of warrants to shareholders, that are also employed by the Company, are measured at fair value of the warrants the issuance date as value of services received cannot be estimated reliably. Share-based payments are recognized as an employee expense, with a corresponding increase of equity.

Taxes

The tax expense consists of tax payable and any changes in deferred tax. Tax is charged to the income statement except where it relates to items that are recognized directly in equity.

Deferred tax is calculated on any temporary differences between tax values and accounting values using the relevant tax rate. Deferred tax assets and deferred tax liabilities are presented net. Deferred tax assets are recorded in the balance sheet whenever it is probable that it can be utilized.

Share issuance costs

Share issuance costs related to a share issuance transaction are recognized directly in equity. If share issuance costs, for tax purposes, can be deducted from other taxable income in the same period as they are incurred, the costs are recognized net after tax.

Cash flow statement

The cash flow statement is prepared using the indirect method.

Related party transactions

Transactions with related parties are carried out at market terms. Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or common significant influence.

Subsequent events

New information regarding the Company's financial position as of the balance sheet date is taken into consideration in the financial statements. Events occurring after the financial position date, that do not affect the financial position as of the balance sheet date, but which will affect the financial position in the future, are disclosed if significant.

Note 3 Revenue

Revenue consists of Management fee revenues through the rendering of commercial management services to subsidiaries.

Note 4 Employee benefit expenses

in \$ thousands	2017	2016
Salary and salary related expenses	687	101
Value of issued warrants to employees	174	400
Social security tax	104	15
Pension cost	42	8
Other remuneration	15	-
Total employee benefit expenses	1 022	524

At year end 2017 the company had a total of 3 employees.

Board of Directors compensation:

No directors' fees were paid in 2016 or 2017.

Compensation and benefits of the key management:

In \$ thousands	Salary	Pension	Other remuneration	Value of warrants issued	Total 2017
Herman Billung - CEO Per Kristian Aamlid - COO	362 164	20 16	3 3	142 32	527 215
Total	526	36	6	174	742

Total cost for hire of CFO in 2017 was \$167 thousand.

In \$ thousands	Salary	Pension	Other remuneration	Value of warrants issued	Total 2016
Herman Billung - CEO Per Kristian Aamlid - COO	67 34	5 3	- -	327 73	399 110
Total	101	8	-	400	509

Note 5 Other operating expenses

in \$ thousands	2017	2016
Fees to auditors, lawyers and other professional fees	522	161
Fees for corporate services	502	21
Other operating expenses	314	50
Total other operating expenses	1 338	232

Fee to auditors:

In \$ thousands	2017	2016
Fee for statutory audit	16	1
Fee for attestation services	4	5
Fee for other services	51	4
Total fees to auditors	71	10

Note 6 Other financial income

in \$ thousands	2017	2016
Interest income	492	24
Foreign exchange gain	1 795	11
Total other financial income	2 287	35

Note 7 Other financial expenses

in \$ thousands	2017	2016
Value change of financial liability in connection with warrants issued to shareholder	163	327
Amortized share issuance costs	189	-
Other financial expenses	1	8
Total other financial income	353	335

Note 8 Tax expense

in \$ thousands	2017	2016
Basis for tax expense and tax payable:
Profit (-loss) before taxes	2 817	-1 012
Effects of foreign exchange gains and losses on current items	-4 972	3 808
Dividends under the tax exemption method	-2 891	-
Other permanent differences between accounting and tax	343	727
Share issuance costs directly in equity – recognized gross before tax	-2 848	-
Basis for tax expense	-7 551	3 523
Tax expense:
Tax payable	-	881
Change deferred tax	-1 737	-
Change deferred tax not recognized	1 737	-
Tax expense	-	881

Taxable income:
Basis for tax payable in tax expense	-	3 523
Basis for deferred tax in tax expense	-7 551	-
Share issuance costs directly in equity – recognized net after tax	-	-1 912
Group contribution	-	-41
Change in temporary differences	-2 036
Taxable income	-9 587	1 570
Reconciliation of tax expense for the year:
Profit (-loss) before taxes	2 817	-1 012
Tax expense calculated on the relevant tax rate (24%/25%)	676	-253
Tax expense	0	881
Difference	-676	1 134
Difference comprise of:
Tax effect of foreign exchange gains and losses on current items	- 1 193	952
Tax effect of dividends under the tax exemption method	-694	-
Tax effect of other permanent differences	82	182
Tax effect of share issuance costs directly in equity – recognized gross before tax	-684	-
Tax effect of deferred tax asset not recognized	1 738	-
Effect of changes in tax rate	75	-
Total difference	-676	1 134
Tax payable in statement of financial position:
Tax payable in tax expense	-	881
Tax effect of share issuance costs directly in equity – recognized net after tax	-	-478
Tax effect of group contribution	-	-10
Tax payable in statement of financial position	-	393
Deferred tax per 31 December	2017	2016
Temporary differences:
Foreign exchange gain on long-term debt	272	-
Debt issuance costs	1 764	-
Total temporary differences	2 036	-
Tax loss carried forward	-9 587	-
Net temporary differences	-7 551	-
Deferred tax:
Nominal tax rate on deferred tax	23%	24%
Deferred tax (-asset)	-1 737	-
Deferred tax asset not recognized	1 737	-
Deferred tax in statement of financial position	-	-

Note 9 Investments in subsidiaries

Subsidiary	Business office	Shareholding / voting rights
Songa Maru AS	Oslo	100%
Songa Marlin AS	Oslo	100%
Songa Glory AS	Oslo	100%
Songa Genesis AS	Oslo	100%
Songa Delmar AS	Oslo	100%
Songa Flama AS	Oslo	100%
Songa Haddock AS	Oslo	100%
Songa Res 5 AS	Oslo	100%
Songa Mountain AS	Oslo	100%
Songa Grain AS	Oslo	100%
Songa Opus AS	Oslo	100%
Songa Devi AS	Oslo	100%
Songa Moon AS	Oslo	100%
Songa Hirose AS	Oslo	100%
Songa Sky AS	Oslo	100%
Songa Claudine AS	Oslo	100%

Note 10 Receivables and liabilities to group companies

In \$ thousands	2017	2016	2017	2016
	Receivables		Liabilities
Songa Hirose AS	392	-	-	-
Songa Marlin AS	211	-	2 385	-
Songa Claudine	32	-	-	-
Songa Glory AS	-	-	20	-
Group Contribution	544	-	-	41
Dividends	76 326	-	-	-
Songa Maru AS	-	15 434	-	-
Total	77 505	15 434	2 405	41

Receivables and liabilities can be denominated in both USD and NOK. Balances are subject to calculation of quarterly interests of 3 Months LIBOR / NIBOR + a margin set on arms lengths basis. The receivables are subject to assessment of repayment or other settlements at any time.

Note 11 Other receivables

in \$ thousands	2017	2016
VAT receivable	45	69
Prepaid expenses	14	4
Total other current receivables	59	73

Other non-current receivables comprise of payment of deposit of \$ 3 055 thousand under a memorandum of agreement for the purchase of the cape size bulk carrier Songa Claudine.

Note 12 Cash and cash equivalents

in \$ thousands	2017	2016
Bank deposits denominated in USD	27 732	55 598
Bank deposits denominated in NOK	428	1 329
Total cash and cash equivalents	28 160	56 927

Restricted cash related to employee taxes at 31 December 2017 was USD \$38 thousand. At 31 December 2016 restricted cash was \$32 thousand.

Note 13 Interest bearing debt

On 30 May 2017, the Company issued a \$75 million senior secured bond with a total borrowing limit of \$150 million. The bond has floating interest rate, of LIBOR plus a margin of 4.50%. Settlement was 13 June 2017 and the bond shall be repaid in full on the maturity date which is 13 June 2022.

On 23 August 2017, the Company completed a tap issue of \$45 million. The total nominal amount outstanding in the bond following the tap issue was \$120 million of the borrowing limit of \$150 million. The bond has a floating interest rate of LIBOR plus a margin of 4.50%, and the final maturity is 13 June 2022.

On 29 September 2017, the Company completed a tap issue of \$18 million. The total nominal amount outstanding in the bond following the tap issue is \$138 million of the borrowing limit of \$150 million. The bond has a floating interest rate of LIBOR plus a margin of 4.50%, and the final maturity 13 June 2022.

in \$ thousands	31 December 2017	31 December 2016
Nominal value of issued bond	138 000	-
Debt issuance cost	-1 769	-
Interest bearing debt	136 231	-

The following financial covenants exist under the bond terms:

• Vessel loan to value ratio shall at all times be below 75.0%
• The liquidity of the Company shall at all times exceed the sum of the interest payments falling due on the four following interest payment dates (interest payments are quarterly).

In addition, the earliest distribution is in 2018. Distribution is permitted if the vessel LTV ratio is below 50% and is also limited to the issuer's consolidated adjusted net profit of the previous calendar year. Depreciation made on the vessels and sale of vessels is not included in adjusted net profit.

Book value of pledged assets under the bond agreement:

	31 December 2017
Shares in subsidiaries	205 376
Group loans	77 505
Total	282 881

Note 14 Non-current liabilities

Non-current liabilities are liabilities related to warrants issued to shareholders. See note 17 for further details.

Note 15 Equity

in \$ thousands	Share capital	Share premium	Other paid-in capital	Retained earnings	Total equity
Balance at 1 January 2017	9 085	63 754	400	-1 893	71 347
Share issuance 31 January 2017	600	4 400	-	-	5 000
Share issuance 17 February 2017	11 935	88 313			100 248
Share issuance costs	-	-2 848	-	-	-2 848
Warrants issued to employees	-	-	174	-	174
Net profit	-	-	-	2 817	2 817
Balance at 31 December 2017	21 620	153 619	574	924	176 738

Note 16 Share capital and shareholders

	Number of shares	Share capital (USD)	Share premium (USD)
Balance at 1 January 2017	14 860 000	9 085	63 754
Private placement 31 January 2017	1 000 000	600	4 400
Private placement 17 February 2017	20 000 000	11 935	88 313
Share issuance costs	-	-	-2 848
Balance at 31 December 2017	35 860 000	21 620	153 619

Authorized share capital is NOK 179 300 000. All issued shares are fully paid at 31 December 2017.

The Group has issued warrants to its founding shareholder. For further information see note 17.

List of largest shareholders as of 31 December 2017:

Shareholder	Share holding	Share holding in %
Canomaro Bulk AS	4 671 400	13.03 %
Songa Trading Inc	2 547 900	7.11 %
Songa Shipholding AS	2 164 000	6.03 %
Evermore Global Value Fund	2 143 278	5.98 %
J.P. Morgan Bank (Ireland) Plc	1 437 300	4.01 %
North East Star Maritime Ltd	1 267 100	3.53 %
Credit Suisse Securities (USA) Llc	1 000 000	2.79 %
SEB Prime Solutions Sissener Canop	1 000 000	2.79 %
Magnus Leonard Roth	981 102	2.74 %
Polux Investment Ltd	821 200	2.29 %
Ringnes Holding AS	746 400	2.08 %
Eika Norge	733 700	2.05 %
Regents of the University of Michi	730 643	2.04 %
USB AG	682 533	1.90 %
Bras Kapital AS	600 000	1.67 %
Euroclear Bank S.A./N.V.	532 342	1.48 %
Torstein Ingvald Tvenge	525 000	1.46 %
Ola Rustad AS	500 000	1.39 %
Sirius International Insurance Corp	465 797	1.30 %
Morgan Stanley & Co. LLC	445 200	1.24 %
Total 20 largest shareholders	23 994 895	66.91 %
Other shareholders	11 865 105	33.09 %
Total	35 860 000	100.00 %

Shares and warrants owned by board members and executives:

Shareholder	Title	Share holding	Share holding in %	No of warrants
Board members:
Arne Blystad	Chairman	4 711 900	13.14 %	673 594
Magnus Roth	Board member	5 652 502	15.76 %	-
Christine Rødsæther	Board member	3 124	0.01 %	-
Vibeke Gwendoline Fængsrud	Board member	5 412	0.01 %	-
Board consultant:
Ghikas Goumas	Board consultant	1 267 100	3.53 %	-
Executives:
Herman Alf Billung	CEO	73 500	0.20 %	673 594
Per Kristian Aamlid	COO	34 000	0.10 %	149 688
Thomas Rønningen	CFO	3 500	0.01 %	-
Nina Rathsack	Operations Manager	2 540	0.01 %	-

Note 17 Warrants

On 31 January 2017 and 17 February 2017 three shareholders of Songa Bulk ASA were issued with warrants. The warrants came in addition to the warrants issued on 4 November 2016. The number of warrants issued are detailed in the tables below. Total warrants issued as per 31 December 2017 was 1 496 876. No more warrants will be issued under the existing warrant agreement. The total warrants issued equals 7.5% of shares issued up to an aggregate amount of \$100 million in proceeds. Each warrant gives the holders the right, but no obligation, to subscribe for one share at a price equal to the share subscription price in each respective share issuance. The warrants are valid for a period of 5 years from the relevant date of issuance.

Conditions for exercise are such that tranche 1 vests at subscription price + 25%, tranche 2 vests at subscription price + 50% and tranche 3 vests at subscription price + 75%. The price increase is measured from the average volume weighted trading price for a period of 10 trading days with minimum trading volume equal to the NOK equivalent of USD 1 million. The warrant subscription price is equal to the original subscription price of the share issuance for all three tranches.

	Tranche 1		Tranche 2			Tranche 3
		Value	Value		Value	Value		Value	Value
		per	per		per	per		per	per
	No of	warrant	warrant	No of	warrant	warrant	No of	warrant	warrant
Share issue	warrants	(NOK)	(USD)	warrants	(NOK)	(USD	warrants	(NOK)	(USD)
4 November 2016	201 094	5.87	0.72	201 094	5.84	0.71	201 094	4.54	0.56
31 January 2017	13 750	7.53	0.90	13 750	7.87	0.94	13 750	6.37	0.76
17 February 2017	59 583	6.85	0.82	59 583	6.99	0.84	59 583	5.52	0.66

Granted warrants as at 31 December 2017 to shareholders that are also employed by the Company:

Valuation date is the date of the respective share issuance. Subscription price is NOK 40.89 for warrants issued on 4 November 2016, NOK 41.63 for warrants issued on 31 January 2017 and NOK 42.00 for warrants issued on 17 February 2017. Warrants are accounted for as employee benefit expenses with a corresponding increase in equity. Total recognized amount in 2017 was \$174 thousand. Recognized amount in 2016 was \$400 thousand.

Granted warrants as at 31 December 2017 to shareholder that is not employed by the Company:

	Tranche 1		Tranche 2			Tranche 3
		Value	Value		Value	Value		Value	Value
		per	per		per	per		per	per
	No of	warrant	warrant	No of	warrant	warrant	No of	warrant	warrant
Share issue	warrants	(NOK)	(USD)	warrants	(NOK)	(USD	warrants	(NOK)	(USD)
4 November 2016	164 531	6.48	0.79	164 531	6.29	0.79	164 531	5.18	0.63
31 January 2017	11 250	6.24	0.76	11 250	6.26	0.76	11 250	4.88	0.59
17 February 2017	48 750	6.13	0.75	48 750	6.12	0.75	48 750	4.74	0.58

Valuation date is 31 December 2017. Subscription price is NOK 40.89 for warrants issued on 4 November 2016, NOK 41.63 for warrants issued on 31 January 2017 and NOK 42.00 for warrants issued on 17 February 2017. These warrants are recognized as financial liabilities, since the strike price is not in the functional currency of the entity, and valued at fair value through profit or loss. The fair value of all issued warrants to shareholder not employed by the group as of 31 December 2017 was \$490 thousand. As of 31 December 2016 the fair value was \$327 thousands. The recognized net expense in 2017 was \$163 thousand. In 2016 the net expense was \$327 thousands. The items are classified as other financial expenses.

Warrants are valued by use of Monte Carlo Simulation with 1 000 000 observations. The Monte Carlo model projects future share prices for the Company based on a risk-neutral framework (similar to the financial modelling used for other models such as Black-Scholes model or a binomial model). By using identical assumptions and sufficient number of simulations, a Monte Carlo simulation without special conditions would yield somewhat identical results to a Black-Scholes or binomial model. However, a Monte Carlo simulation allows for greater flexibility and customization of the assumptions and plan design parameters, which is necessary to value such a plan dependent on uncertainty with respect to vesting dates and quantity becoming exercisable. The following inputs to the Monte Carlo model is applied:

Volatility: 25%

Note 18 Financial risk factors

Financial market risk

Songa Bulk AS owns subsidiaries, which operates dry bulk vessels for transportation of dry cargo worldwide. Through operations in subsidiaries, the Company is exposed to financial risks such as market risk (including currency risk), credit risk, liquidity risk, interest rate risk and other risks that may influence the value of assets, liabilities and cash flows.

To reduce and manage these risks, management periodically assesses the Company's financial market risk in general, as well as evaluating hedging strategies for specific exposures as they arise. The primary strategy used for reducing the financial market risks is the use of derivatives, where appropriate.

Derivative instruments are only implemented for the purpose of hedging financial risks. The Company does not trade or use instruments with the objective of earning financial gains from interest rate or exchange rate fluctuations alone. The Company only employs conventional derivative instruments in contracts with highly rated and reputable financial institutions and commodities brokers.

For 2017, the Company did not have any hedging contracts or other derivative instruments.

Currency risk exposure

Revenues, expenses, assets and liabilities of the Company are mainly denominated in USD. The Company is exposed to currency risk in connection with the following items:

General and administrative expenses

General and administrative expenses as salaries, fees to lawyers and other fees such as share issuance costs are mainly denominated in NOK. Exchange rate fluctuations between USD and NOK will have an effect on the actual recognized expenses in the financial statements.

Warrants

The fair value of warrants recognized at fair value through profit or loss is valued in NOK. The change in value to be recognized in profit or loss will be affected by any fluctuations in the USD/NOK exchange rate.

Taxable income

Taxable income is denominated in NOK. Monetary items denominated in other currencies, which is mainly USD, will be translated to NOK for tax purposes. Any change in the foreign exchange rates will affect the taxable income and income tax payable.

Credit risk exposure

The Company is exposed to credit risk in the case that receivables from customers and other parties are not paid. The customers are in general large companies with excellent credit rating. For new customers, a credit evaluation is performed.

Liquidity risk exposure

Iliquidity risk may arise if a company is not able to pay its financial obligations at due date. The Company applies cash flow forecasting to ensure that the activities are adequately financed at all times. Cash flows from operations and from planned financing activities are considered sufficient to settle all financial obligations.

Interest rate risk exposure

The Company's issued bond has floating interest which means a change in LIBOR will have a direct effect on the Company's cash flows. If LIBOR increases by 1%, the interest expense would increase by \$1.38 million per year.

Note 19 Related party transactions

All related party transactions are carried out at marked terms.

The Company has entered into a corporate service agreement with Arne Blystad AS for the rendering of administrative services, IT and office services and accounting and reporting services. In addition, the agreement covers hire of Chief Financial Officer. Arne Blystad AS is a company owned and controlled by the Chairman Arne Blystad and his immediate family. Total expenses under the agreement in 2017 was \$502 thousand. In 2016 the fee was \$21 thousand.

Note 20 Subsequent events

In January 2018, the Company nominated its subsidiary Songa Claudine AS to take delivery of the vessel Songa Claudine. The deposit paid under the Memorandum of Agreement was transferred to Songa Claudine AS accordingly on back-to-back terms, meaning no gains or losses were recognized.

In an extraordinary general meeting held on 22 March 2018 it was resolved to distribute a dividend of NOK per share equivalent to \$0.10 per share, in total \$3 586 000. The dividend was paid on 4 April 2018.

To the General Meeting of Songa Bulk ASA

Independent Auditor's Report

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Songa Bulk ASA. The financial statements comprise:

The financial statements of the parent company, which comprise the balance sheet as at 31 December 2017, and the income statement and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and

The financial statements of the group, which comprise the balance sheet as at 31 December 2017 and income statement, statement of changes in equity, cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion:

• The financial statements are prepared in accordance with the law and regulations.
• The accompanying financial statements give a true and fair view of the financial position of the parent company as at 31 December 2017, and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.
• The accompanying financial statements present fairly, in all material respects, the financial position of the group as at 31 December 2017, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the EU.

Basis for Opinion

We conducted our audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by laws and regulations, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Impairment Assessment for Vessels

We refer to note 2 (Accounting policies) and note 4 (Vessels and deposit dry bulk vessels).

The group has 14 vessels with a combined carrying amount USD 266.8 million. Following managements' assessment no impairment indicators were identified for vessels. Based on this, no impairment test was performed and no impairment charge was recognized.

We focused on this area due to the relative size of the amounts and the judgement used in arriving at the conclusion together with the potential impact of any fall in value of the vessels.

We evaluated and challenged managements' assessment and conclusion of no impairment indicators at December 31, 2017 and the process by which this was performed. We assessed managements accounting policy against IFRSs and obtained explanations from management as to how the specific requirements of the standards, in particular IAS 36 – Impairment of assets, were met.

Impairment indicators assessed included among other the following; market capitalization being greater than net asset value, positive development in the dry bulk market for freight and vessel valuations compared to purchase price. Further, we did not observe significant changes in market interest rates or other market rates of return.

Management compiled broker valuation certificates for the vessels. We satisfied ourselves that the external brokers had both the objectivity and the competence to provide the estimate. No matters of consequence arose from the procedures above.

Based on the procedures performed, we came to the same conclusion as management. No impairment indicators were identified.

Other information

Management is responsible for the other information. The other information comprises the Board of Directors' report, the statements on Corporate Governance and Corporate Social Responsibility, but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

The Board of Directors and the Managing Director (management) are responsible for the preparation in accordance with law and regulations, including fair presentation of the financial statements of the parent company in accordance with the Norwegian Accounting Act and accounting standards and

Key Audit Matter How our audit addressed the Key Audit Matter

practices generally accepted in Norway, and for the preparation and fair presentation of the financial statements of the group in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial statements of the parent company use the going concern basis of accounting insofar as it is not likely that the enterprise will cease operations. The financial statements of the group use the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with laws, regulations, and auditing standards and practices generally accepted in Norway, including ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company or the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company or the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Opinion on the Board of Directors' report

Based on our audit of the financial statements as described above, it is our opinion that the information presented in the Board of Directors' report and in the statements on Corporate Governance and Corporate Social Responsibility concerning the financial statements, the going concern assumption, and the proposal for the allocation of the profit is consistent with the financial statements and complies with the law and regulations.

Opinion on Registration and Documentation

Based on our audit of the financial statements as described above, and control procedures we have considered necessary in accordance with the International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, it is our opinion that management has fulfilled its duty to produce a proper and clearly set out registration and documentation of the Company and the Group's accounting information in accordance with the law and bookkeeping standards and practices generally accepted in Norway.

Oslo, 24 April 2018

PricewaterhouseCoopers AS

Bjørn Lund State Authorised Public Accountant

Årsregnskap 2017 Axxis Geo Solutions AS

(

Resultatregnskap Balanse Noter til regnskapet

Org.nr.: 990 691 371

Resultatregnskap

Axxis Geo Solutions AS

Driftsinntekter og driftskostnader	Note	2017	2016
Salgsinntekt		21 482 784	5 651 644
Leieinntekter		287 532	155 467
Sum driftsinntekter		21 770 316	5 807 111
		0	530 952
Varekostnad	3	20 788 674	3 052 461
Lønnskostnad	3	27 138 669	2 588 914
Annen driftskostnad		47 927 343	6 172 327
Sum driftskostnader før avskrivninger
Driftsresultat før avskrivninger		-26 157 027	-365 216
Avskrivning av driftsmidler og immaterielle eiendeler	6	13 379 335	47 000
Sum avskrivninger		13 379 335	47 000
Driftsresultat		-39 536 362	-412 216
Finansinntekter og finanskostnader
Inntekt på investering i deltakerlignet selskap		0	-13 317 461
Annen renteinntekt		8 156	602 553
Annen finansinntekt	2	1 270 604	232 780
Annen rentekostnad		1 210 577	554 341
Annen finanskostnad	2	1 625 948	159 484
Resultat av finansposter		-1 557 765	-13 195 953
Ordinært resultat før skattekostnad		-41 094 127	-13 608 169
Skattekostnad på ordinært resultat	7	0	0
Årsresultat		-41 094 127	-13 608 169
Overføringer
Overført til udekket tap		41 094 127	13 608 169
Sum overføringer	8	-41 094 127	-13 608 169

(

Balanse

Axxis Geo Solutions AS

Eiendeler	Note	2017	2016
Anleggsmidler
Varige driftsmidler
Skip og flytende installasjoner	6	64 570 000	0
Driftsløsøre, inventar o.a. utstyr	6	0	40 000
Sum varige driftsmidler		64 570 000	40 000
Finansielle anleggsmidler			53 500
Investeringer i datterselskap	4 5	16 988 650 0	676 877
Lån til foretak i samme konsern	4	0	15 341 467
Investeringer i tilknyttet selskap Lån til tilknyttet selskap og felles kontrollert virksomhet		0	5 245 917
Sum finansielle anleggsmidler		16 988 650	21 317 761
Sum anleggsmidler		81 558 650	21 357 761
Omløpsmidler
Varer
Lager av varer og annen beholdning		71 529 71 529	0 0
Sum varer
Fordringer
Kundefordringer	5	89 854	173 844
Andre kortsiktige fordringer	5, 6	23 985 336	223 821
Sum fordringer		24 075 190	397 665
Investeringer
Bankinnskudd, kontanter o.l
Bankinnskudd, kontanter o.l.		969 911	236 181
Sum bankinnskudd, kontanter o.l		969 911	236 181
Sum omløpsmidler		25 116 630	633 846
Sum eiendeler		106 675 280	21 991 607

(

Balanse Axxis Geo Solutions AS

Egenkapital og gjeld	Note	2017	2016
Egenkapital
Innskutt egenkapital Aksjekapital Overkurs	9	50 095 875 49 442 441	38 125 053 0
Annen innskutt egenkapital Sum innskutt egenkapital		0 99 538 315	5 000 000 43 125 053
Opptjent egenkapital Udekket tap Sum opptjent egenkapital		-34 182 725 -34 182 725	-22 684 556 -22 684 556
Sum egenkapital	8	65 355 590	20 440 496
Gjeld
Kortsiktig gjeld Leverandørgjeld Skyldig offentlige avgifter Annen kortsiktig gjeld Sum kortsiktig gjeld	5	15 269 263 4 403 26 046 024 41 319 690	1 206 044 112 874 232 193 1 551 111
Sum gjeld		41 319 690	1 551 111
Sum egenkapital og gjeld		106 675 280	21 991 607
	Ulsteinvik, den Styret i Axxis Geo Solutions AS
Bjarte Bruheim Styreleder	Jogeir Romestrand Styremedlem	Ole Andre Heggheim Styremedlem
Fredrik Platou Styremedlem		Njål Sævik Styremedlem

( ,

Note 1 Regnskapsprinsipper

Årsregnskapet er satt opp i samsvar med regnskapsloven og NRS 8 - God regnskapsskikk for små foretak.

Valuta

Pengeposter i utenlandsk valuta vurderes iht. kursen ved regnskapsårets slutt.

Driftsinntekter

Inntektsføring ved salg av varer skjer på leveringstidspunktet. Tjenester inntektsføres etter hvert som de leveres.

Skatt

Skattekostnaden i resultatregnskapet omfatter både periodens skatt og endring i utsatt skatt. Utsatt skatt er beregnet med 23% på grunnlag av de midlertidige forskjeller som eksisterer mellom regnskapsmessige og skattemessige verdier, samt ligningsmessig underskudd til fremføring ved utgangen av regnskapsåret. Skatteøkende og skattereduserende midlertidige forskjeller som reverserer eller kan reverseres i samme periode er utlignet og nettoført.

Klassifisering og vurdering av anleggsmidler

Anleggsmidler omfatter eiendeler bestemt til varig eie og bruk. Anleggsmidler er vurdert til anskaffelseskost. Varige driftsmidler balanseføres og avskrives over driftsmidlets økonomiske levetid. Varige driftsmidler nedskrives til gjenvinnbart beløp ved verdifall som forventes ikke å være forbigående. Gjenvinnbart beløp er det høyeste av netto salgsverdi og verdi i bruk er nåverdi av fremtidige kontantstrømmer knyttet til eiendelen. Nedskrivingen reverseres når grunnlaget for nedskrivingen ikke lenger er til stede.

Klassifisering og vurdering av omløpsmidler

Omløpsmidler og kortsiktig gjeld omfatter normalt poster som forfaller til betaling innen ett år etter balansedagen, samt poster som knytter seg til varekretsløpet. Omløpsmidler vurderes til laveste verdi av anskaffelseskost og virkelig verdi.

Aksjer i datterselskap

Investeringer i datterselskap er vurdert etter kostmetoden ettersom konsernet samlet ikke overstiger grensen for små foretak.

Varer

Varer er vurdert til det laveste av anskaffelseskost og netto salgsverdi.

Fordringer

Kundefordringer og andre fordringer oppføres til pålydende etter fradrag for avsetning til forventet tap. Avsetning til tap gjøres på grunnlag av en individuell vurdering av de enkelte fordringene.

Pensjonsforpliktelser

Pensjonsforpliktelser finansiert over driften er beregnet og balanseført under avsetning for forpliktelser. Pensjonsordninger finansiert via sikrede ordninger er ikke balanseført. Pensjonspremien anses i disse tilfeller som pensjonskostnad og klassifiseres sammen med lønnskostnader.

Det er avsatt til forventede garantikostnader. Garantiavsetningen er i balansen oppført under annen kortsiktig gjeld.

Note 2 Poster som er slått sammen i regnskapet

Annen finansinntekt	2017	2016
Valuta gevinst (agio)	712 532	202 715
Gevinst salg aksjer og andeler	537 311	0
Annen finansinntekt	20 761	30 065
Sum finansinntekter	1 270 604	232 780
Annen finanskostnad	2017	2016
Valuta tap (disagio)	379 041	159 484
Garantiomkostninger	1 246 907	0
Sum finanskostnader	1 625 948	159 484

Note 3 Lønnskostnader og ytelser, godtgjørelser til daglig leder, styret og revisor

Lønnskostnader	2017	2016
Lønninger	11 201 486	1 936 596
Arbeidsgiveravgift	311 121	313 723
Pensjonskostnader	60 403	185 964
Andre vtelser	9 215 663	616 178
Sum	20 788 674	3 052 461

Selskapet leier inn mannskap og tjenester fra andre selskaper og har ingen faste ansatte.

Pensjonsforpliktelser

Selskapet er pliktig til å ha tjenestepensjonsordning etter lov om obligatorisk tjenestepensjon. Selskapets pensjonsordninger tilfredsstiller kravene i denne lov.

Selskapet har valgt at daglig leder utgår. Det er ikke utbetalt honorar til styret.

Revisor

Kostnadsført revisjonshonorar for 2017 utgjør kr 70 000 eks mva. I tillegg kommer honorar for andre tjenester med kr 167 000 eks mva.

Note 4 Investering i datterselskap bokført etter EK-metoden

Investeringene i datterselskap regnskapsføres etter egenkapitalmetoden.

Selskap	Forretningskontor		Eierandel Bokført verdi
Neptune Seismic AS	Oslo	100 %	256 250
Axxis Geo Solution Inc	Houston	100 %	16 732 400

Det er ikke utarbeidet konsernregnskap for morselskapet Axxis Geo Solutions AS i samsvar med god regnskapsskikk for små foretak.

Note 5 Mellomværende med selskap i samme konsern

Fordringer	2017	2016
Kortsiktig fordring Neptune Seismic AS	960 350	61 612
Aksjonærlăn Neptune Seismic AS (langsiktig)	0	676 877
Kortsiktig fordring Axxis Geo Solutions Inc	11 847 747	0
Sum	12 808 097	738 489
Gjeld	2017	2016
Other accrued costs - Axxis Geo Solution Inc	14 846 222	0
Sum	14 846 222	0

Note 6 Anleggsmidler

ﮯ

	Seismic utstyr	Driftsløsøre, inventar ol.	MS Neptune Naiad
Anskaffelseskost pr. 01.01.17		440 780
+ Tilgang kjøpte anleggsmidler	13 489 915		41 831 000
Anskaffelseskost 31.12.17 II	13 489 915	440 780	41 831 000
Akkumulerte avskrivninger 31.12.17	1 247 915	440 780	4 183 000
= Bokført verdi 31.12.17	12 242 000	0	37 648 000
Årets ordinære avskrivninger	1 247 915	40 000	4 183 000
Økonomisk levetid	3 år	3-10 år	10 år
Avskrivningsplan	l ineær	Lineær	lineær
	Mobiliserings-	Periodisk	Sum
	kostnader	vedlikehold
Anskaffelseskost pr. 01.01.17			440 780
Tilgang kjøpte anleggsmidler	6 629 749	17 615 671	79 566 335
Anskaffelseskost 31.12.17 ニ	6 629 749	17 615 671	80 007 115
Akkumulerte avskrivninger 31.12.17	4 972 749	2 935 671	13 780 115
= Bokført verdi 31.12.17	1 657 000	14 680 000	66 227 000
Arets ordinære avskrivninger	4 972 749	2 935 671	13 379 335
Økonomisk levetid	8 mnd	3 år
Avskrivningsplan	Lineær	Lineær

Note 7 Skatt

Ārets skattekostnad	2017	2016
Resultatført skatt på ordinært resultat:
Betalbar skatt	0	0
Endring i utsatt skattefordel	0	0
Skattekostnad ordinært resultat	0	0
Skattepliktig inntekt:
Ordinært resultat før skatt	-41 094 127	-13 608 169
Permanente forskjeller	-495 009	13 355 973
Endring i midlertidige forskjeller	-22 577 211	19 661
Skattepliktig inntekt	-64 166 348	-232 535
Betalbar skatt i balansen:
Betalbar skatt på årets resultat	0	0
Sum betalbar skatt i balansen	0	0

Skatteeffekten av midlertidige forskjeller og underskudd til fremføring som har gitt opphav til utsatt skatt og utsatte skattefordeler, spesifisert på typer av midlertidige forskjeller:

	2017	2016	Endring
Varige driftsmidler	22 507 854	-69 357	-22 577 211
Sum	22 507 854	-69 357	-22 577 211
Andeler	0	-8 446 145	-8 446 145
Akkumulert fremførbart underskudd	-143 423 897	-79 257 549	64 166 348
Grunnlag for beregning av utsatt skatt	-120 916 043	-87 773 052	33 142 991
Utsatt skattefordel (23 % / 24 %)	-27 810 690	-21 065 532	6 745 157

I henhold til God regnskapsskikk for små foretak balanseføres ikke utsatt skattefordel.

Note 8 Egenkapital

(

	Aksjekapital	Overkurs	lkke reg.	Udekket	Sum
			kap.utvidelse		underskudd egenkapital
Egenkapital Pr. 01.01.2017	38 125 053		5 000 000	-22 684 556	20 440 496
Kapitalnedsettelse	-29 595 958			29 595 958	0
Kap.utvidelse v/innskudd 28.01	2 094 817	2 905 183	-5 000 000		0
Kap.utvidelse tingsinnskudd 28.01	8 584 979	8 147 421			16 732 400
Kap.utvidelse konvertering 28.01	10 623 911	10 082 397			20 706 308
Kap.utvidelse v/innskudd 28.01	12 104 819	11 487 863			23 592 682
Kap.utvidelse v/innskudd 22.03	643 873	611 057			1 254 930
Kap.utvidelse v/innskudd 06.12	7 514 381	16 208 520			23 722 901
Arets resultat				-41 094 127	-41 094 127
Pr. 31.12.2017		50 095 875 49 442 441	0	-34 182 725	65 355 590

Axxis Geo Solutions AS

Note 9 Aksjonærer

Aksjekapitalen i Axxis Geo Solutions AS pr. 31.12 består av:

	Antall	Pålvdende	Bokført
Ordinære aksjer	500 958 747	0.10 -	50 095 875
Sum	500 958 747		50 095 875

Eierstruktur

(

(

De største aksjonærene i % pr. 31.12 var:

	Ordinære		Eierandel Stemmeandel
Bjarte Bruheim	84 702 022	16,9	16,9
Rome AS	78 888 477	15,7	15,7
Havila Holding AS	75 143 812	15,0	15,0
Songa Investments AS	75 118 563	15,0	15,0
W2 Seismic AS	42 924 893	8,6	8,6
TRH AS	22 373 526	4,5	4,5
Lee Parker	19 316 203	3,9	3,9
Alcides Shipping AS	16 096 835	3,2	3,2
Johs. Hansen Rederi AS	15 023 712	3,0	3,0
Remco AS	15 023 712	3,0	3,0
Bjørnulf AS	8 028 754	1,6	1,6
Payco AS	6 438 734	1,3	1,3
Richard Dunlop	5 150 987	1,0	1,0
Sum >1% eierandel	464 230 230	92,7	92,7
Sum øvrige	36 728 517	7,3	7,3
Totalt antall aksjer	500 958 747	100,0	100,0

Aksjer og opsjoner eiet av medlemmer i styret og daglig leder:

Navn	Verv	Ordinære
Bjarte Bruheim	Styreleder	84 702 022

BDO AS Nesevegen 3 Postboks 93 6067 Ulsteinvik

Uavhengig revisors beretning

Til generalforsamlingen i Axxis Geo Solutions AS

Uttalelse om revisjonen av årsregnskapet

Konklusjon

Vi har revidert Axxis Geo Solutions AS' årsregnskap som består av balanse per 31. desember 2017, resultatregnskap for regnskapsåret avsluttet per denne datoen og noter til årsregnskapet, herunder et sammendrag av viktige regnskapsprinsipper.

Etter vår mening er det medfølgende årsregnskapet avgitt i samsvar med lov og forskrifter og gir et rettvisende bilde av selskapets finansielle stilling per 31. desember 2017, og av dets resultater for regnskapsåret avsluttet per denne datoen i samsvar med regnskapslovens regler og god regnskapsskikk i Norge.

Grunnlag for konklusjonen

Vi har gjennomført revisjonen i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder de internasjonale revisjonsstandardene International Standards on Auditing (ISAene). Våre oppgaver og plikter i henhold til disse standardene er beskrevet i Revisors oppgaver og plikter ved revisjon av årsregnskapet. Vi er uavhengige av selskapet slik det kreves i lov og forskrift, og har overholdt våre øvrige etiske forpliktelser i samsvar med disse kravene. Etter vår oppfatning er innhentet revisjonsbevis tilstrekkelig og hensiktsmessig som grunnlag for vår konklusjon.

Styrets ansvar for årsregnskapet

Styret (ledelsen) er ansvarlig for å utarbeide årsregnskapet i samsvar med lov og forskrifter, herunder for at det gir et rettvisende bilde i samsyar med regnskapslovens regler og god regnskapsskikk i Norge. Ledelsen er også ansvarlig for slik internkontroll som den finner nødvendig for å kunne utarbeide et årsregnskap som ikke inneholder vesentlig. feilinformasjon, verken som følge av misligheter eller utilsiktede feil.

Ved utarbeidelsen av årsregnskapet må ledelsen ta standpunkt til selskapets evne til fortsatt drift og opplyse om forhold av betydning for fortsatt drift. Forutsetningen om fortsatt drift skal legges til grunn for årsregnskapet så lenge det ikke er sannsynlig at virksomheten vil bli avviklet.

Revisors oppgaver og plikter ved revisjonen av årsregnskapet

Vårt mål med revisjonen er å oppnå betryggende sikkerhet for at årsregnskapet som helhet ikke inneholder vesentlig feilinformasjon, verken som følge av misligheter eller utilsiktede feil, og å avgi en revisjonsberetning som inneholder vår konklusjon. Betryggende sikkerhet er en høy grad av sikkerhet, men ingen garanti for at en revisjon utført i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder ISA-ene, alltid vil avdekke vesentlig feilinformasjon som eksisterer. Feilinformasjon kan oppstå som følge av misligheter eller utilsiktede feil. Feilinformasjon blir vurdert som vesentlig dersom den enkeltyis eller

samlet med rimelighet kan forventes å påvirke økonomiske beslutninger som brukerne foretar basert på årsregnskapet.

Som del av en revisjon i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder ISA-ene, utøver vi profesjonelt skjønn og utviser profesjonell skepsis gjennom hele revisjonen. I tillegg:

• · identifiserer og anslår vi risikoen for vesentlig feilinformasjon i regnskapet, enten det skyldes misligheter eller utilsiktede feil. Vi utformer og gjennomfører revisjonshandlinger for å håndtere slike risikoer, og innhenter revisjonsbevis som er tilstrekkelig og hensiktsmessig som grunnlag for vår konklusjon. Risikoen for at vesentlig feilinformasjon som følge av misligheter ikke blir avdekket, er høyere enn for feilinformasjon som skyldes utilsiktede feil, siden misligheter kan innebære samarbeid, forfalskning, bevisste utelatelser, uriktige fremstillinger eller overstyring av intern kontroll.
• · opparbeider vi oss en forståelse av den interne kontroll som er relevant for revisjonen, for å utforme revisjonshandlinger som er hensiktsmessige etter omstendighetene, men ikke for å gi uttrykk for en mening om effektiviteten av selskapets interne kontroll.
• · evaluerer vi om de anvendte regnskapsprinsippene er hensiktsmessige og om regnskapsestimatene og tilhørende noteopplysninger utarbeidet av ledelsen er rimelige.
• · konkluderer vi på hensiktsmessigheten av ledelsens bruk av fortsatt driftforutsetningen ved avleggelsen av regnskapet, basert på innhentede revisjonsbevis, og hvorvidt det foreligger vesentlig usikkerhet knyttet til hendelser eller forhold som kan skape tvil av betydning om selskapets evne til fortsatt drift. Dersom vi konkluderer med at det eksisterer vesentlig usikkerhet, kreves det at vi i revisjonsberetningen henleder oppmerksomheten på tilleggsopplysningene i regnskapet, eller, dersom slike tilleggsopplysninger ikke er tilstrekkelige, at vi modifiserer vår konklusjon om årsregnskapet. Våre konklusjoner er basert på revisjonsbevis innhentet inntil datoen for revisionsberetningen. Etterfølgende hendelser eller forhold kan imidlertid medføre at selskapet ikke fortsetter driften.
• evaluerer vi den samlede presentasjonen, strukturen og innholdet, inkludert tilleggsopplysningene, og hvorvidt årsregnskapet representerer de underliggende transaksjonene og hendelsene på en måte som gir et rettvisende bilde.

Vi kommuniserer med styret blant annet om det planlagte omfanget av revisjonen og til hvilken tid revisjonsarbeidet skal utføres. Vi utveksler også informasjon om forhold av betydning som vi har avdekket i løpet av revisjonen, herunder om eventuelle svakheter av betydning i den interne kontrollen.

Uttalelse om øvrige lovmessige krav

Konklusjon om registrering og dokumentasjon

Basert på vår revisjon av årsregnskapet som beskrevet ovenfor, og kontrollhandlinger vi har funnet nødvendig i henhold til internasjonal standard for attestasjonsoppdrag (ISAE) 3000 «Attestasjonsoppdrag som ikke er revisjon eller forenklet revisorkontroll av historisk finansiell informasjon», mener vi at ledelsen har oppfylt sin plikt til å sørge for ordentlig og, oversiktlig registrering og dokumentasjon av selskapets regnskapsopplysninger i samsvar med lov og god bokføringsskikk i Norge.

Ulsteinvik,26. Juni 2018 BDФ TI Statsautorisert revisor

Uavhengig revisors beretning 2017 Axxis Geo Solutions AS - Side 3 av 3

Årsregnskap

2016

Axxis Geo Solutions AS

Org.nr. 990 691 371

·Resultatregnskap

Axxis Geo Solutions AS

Driftsinntekter og driftskostnader	Note	2016	2015
Salgsinntekt		5 651 644	8 442 538
Leieinntekter		155 467	0
Sum driftsinntekter		5 807 111	8 442 538
Varekostnad		530 052	1 045 366
Lønnskostnad	3	3 052 461	5 494 516
Annen driftskostnad	3	2 588 914	2 569 177
Sum driftskostnader før avskrivninger		6 172 327	9 109 058
Driftsresultat før avskrivinger		-365 216	-666 521
Ordinære avskrivinger	7	47 000	47 000
Sum avskrivinger		47 000	47 000
Driftsresultat		-412 216	-713 521
Finansinntekter og finanskostnader
Andel resultat deltakerlignet selskap	5	-13 317 461	-22 689 816
Annen finansinntekt	2	835 332	1 456 233
Annen finanskostnad	2	713 824	1 334 977
Resultat av finansposter		-13 195 953	-22 568 560
Ordinært resultat før skatt		-13 608 169	-23 282 081
Skattekostnad på ordinært resultat	8	0	0
Årets resultat		-13 608 169	-23 282 081
Overføringer
Overført til udekket tap		13 608 169	9 076 387
Overført fra annen egenkapital		0	14 205 693
Sum overføringer	9	-13 608 169	-23 282 081

Axxis Geo Solutions AS

(

(

のお、お店は

Balanse

ﺍﻟﻤﺴﺘﻘﻠﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘ

Axxis Geo Solutions AS

ETENDELER	Note	2016	2015
Anleggsmidler
Varige driftsmidler
Driftsløsøre, inventar o.a. utstyr	7	40 000	87 000
Finansielle anleggsmidler
Investeringer i datterselskap	5	53 500	53 500
Lån til foretak i samme konsern	6	676 877	672 394
Investeringer i tilknyttet selskap	5	15 341 467	28 658 928
Lån til tilknyttet selskap	6	5 245 917	4 741 995
Sum anleggsmidler		21 357 761	34 213 817
Omløpsmidler
Fordringer
Kundefordringer	6	173 844	939 695
Andre kortsiktige fordringer		223 821	152 800
Bankinnskudd, kontanter o.l.
Bankinnskudd, kontanter o.l.	4	236 181	1 394 798
Sum omløpsmidler		633 846	2 487 293
Sum eiendeler		21 991 607	36 701 110

Axxis Geo Solutions AS

(

(

. Side 3

ﺍﻟﻤﺴﺘﻘﻠﺔ ﺍﻟﻤﺘ

	Balanse
Axxis Geo Solutions AS
EGENKAPITAL OG GJELD	Note	2016	2015
Egenkapital
Innskutt egenkapital
Aksjekapital	10	38 125 053	38 125 053
Ikke registrert kapitalforhøyelse		5 000 000	0
Opptjent egenkapital
Üdekket tap		-22 684 556	-9 076 387
Sum egenkapital	9	20 440 496	29 048 665
Gjeld
Kortsiktig gjeld
Leverandørgjeld		1 206 044	467 790
Skyldig offentlige avgifter		112 874	537 456
Annen kortsiktig gjeld	6	232 193	6 647 199
Sum kortsiktig gjeld		1 551 111	7 652 444
Sum gjeld		1 551 111	7 652 444
Sum egenkapital og gjeld		21 991 607	36 701 110

Ulsteinvik, den Styret i Axxis Geo Solutions AS

Bjarte Bruheim Styreleder

Jogeir Romestrand Styremedlem

Ole Andre Heggheim Styremedlem

Fredrik Platou Styremedlem

Axxis Geo Solutions AS

(

Axxis Geo Solutions AS

NOTE 1 REGNSKAPSPRINSIPPER

Årsregnskapet er satt opp i samsvar med regnskapsloven og God regnskapsskikk for små foretak.

Tjenester inntektsføres i takt med utførelsen. Inntektsføring av leieinntekter skjer i takt med opptjening.

Anleggsmidler omfatter eiendeler bestemt til varig eie og bruk. Anleggsmidler er vurdert til anskaffelseskost. Varige driftsmidler balanseføres og avskrives over driftsmidlets økonomiske levetid.

Varige driftsmidler nedskrives til gjenvinnbart beløp ved verdifall som forventes ikke å være forbigående. Gjenvinnbart beløp er det høyeste av nettosalgsverdi og verdi i bruk er nåverdi av fremtidige kontantstrømmer knyttet til eiendelen. Nedskrivningen reverseres når grunnlaget for nedskrivningen ikke lenger er tilstede.

Omløpsmidler og kortsiktig gjeld omfatter poster som forfaller til betaling innen ett år etter anskaffelsestidspunktet, samt poster som er knyttet til varekretsløpet. Omløpsmidler vurderes til laveste av anskaffelseskost og virkelig verdi. Kortsiktig gjeld balanseføres til nominelt beløp på opptakstidspunktet.

Pengeposter i utenlandsk valuta omregnes til balansedagens kurs.

Kundefordringer og andre fordringer oppføres til pålydende etter fradrag for avsetning til forventet tap. Avsetning til tap gjøres på grunnlag av en individuell vurdering av de enkelte fordringene.

Skattekostnaden i resultatregnskapet omfatter både periodens betalbare skatt og endring i utsatt skatt. Utsatt skatt er beregnet med 24 % på grunnlag av de midlertidige forskjeller som eksisterer mellom regnskapsmessige og skattemessige verdier, samt skattemessig underskudd til fremføring ved utgangen av regnskapsåret. Skatteøkende og skattereduserende midlertidige forskjeller som reverserer i samme periode er utlignet. Netto utsatt skattefordel balanseføres i den grad det er sannsynlig at denne kan bli nyttegjort.

Regnskapsprinsippene er for øvrig nærmere omtalt i de tilhørende noter til de enkelte regnskapspostene.

NOTE 2 POSTER SOM ER SAMMENSLÅTT

Posten andre finansinntekter er slått sammen av

	2016	2015
Agio	202 715	988 328
Andre renteinntekter	602 553	413 510
Andre finansinntekter	30 065	54 395
Sum andre finansinntekter	835 332	1 456 233
Posten andre finanskostnader er slått sammen av	2016	2015
Rentekostnader	554 341	388 699
Disagio	159 484	946 278
Sum andre finanskostnader	713 824	1 334 977

Axxis Geo Solutions AS

NOTE 3 LØNNSKOSTNADER, ANTALL ÅRSVERK, GODTGJØRELSER M.M.

Lønnskostnader	2016	2015
Lønn administrasjon	1 761 832	2.813.347
Lønn mannskap egne	107 500	1 173 271
Lønn mannskap innleid	67 265	43 285
Arbeidsgiveravgift	313 724	615 924
Pensjonskostnader	185 964	284 692
Reisekostnader	465 093	331 058
Andre lønnskostnader	151 083	232 038
Sum	3 052 461	5 494 516
Antall årsverk i administrasjon	2	3

Selskapet har valg at daglig leder utgår. Det er ikke utbetalt honorar til styret.

Revisor

Det er i 2016 kostnadsført kr. 30.000,- (eks. mva) i ordinært revisjonshonorar og kr. 11.200,- (eks. mva) vedrørende andre tjenester levert av revisor.

Pensjonsforpliktelser

Selskapet er forpliktet til å ha pensjonsordning etter lov om obligatorisk tjenestepensjon. Selskapets pensjonsordninger tilfredsstiller kravene i denne lov.

NOTE 4 BUNDNE MIDLER

Av bankinnskudd vedrører kr. 195.249,- innskudd på skattetrekkskonto.

NOTE 5 DATTERSELSKAPER

Investeringer i datterselskap regnskapsført etter kostmetoden:

Investeringene er vurdert til anskaffelseskost for aksjene med mindre nedskrivning har vært nødvendig.

Selskap	Forretningskontor	Eierandel	Bokført verdi
Neptune Seismic AS	Oslo	રી જેવ	53 500

Oppfatter at styreverv og eierandeler for styremedlemmer medfører kontroll over selskapet.

Investeringer i datterselskap regnskapsført etter egenkapitalmetoden:

Investering i Neptune Seismic DIS, eierandel 49,5 % (Neptune Offshore AS eier i tillegg 0,5 % indirekte gjennom Neptune Seismic AS som er hovedmannen i Neptune Seismic DIS med 1 % eierandel)

Axxis Geo Solutions AS

Side 2

Axxis Geo Solutions AS

NOTE 5 DATTERSELSKAPER - FORTSETTER

Deltakerlignende selskap bokført etter egenkapitalmetoden

	Neptune
Selskap	Seismic DIS
Eierandel	49,5 %
Anskaffelseskost 01.01.	56 461 841
Bokført verdi 01.01.	28 658 928
Innkalt kapital
Andel årets resultat	-13 317 461
Bokført verdi 31.12.	15 341 467
Andel ikke innkalt kapital-USD
Andel ikke innkalt kapital-NOK

Det er ikke utarbeidet konsernregnskap for morselskapet Neptune Offshore AS i samsvar med god regnskapsskikk for små foretak.

NOTE 6 MELLOMVÆRENDE MED FORETAK I SAMME KONSERN

	2016	2015
Kundefordringer Neptune Seismic AS	61 612	901 273
Aksjonærlån Neptune Seismic AS (langsiktig)	676 877	672 394
Deltakerlån til Neptune Seismic DIS (langsiktig)	5 245 917	4 741 995
Forskudd Neptune Seismic AS (kortsiktig)		-1 500 000
Sum	5 984 406	4 815 662

NOTE 7 VARIGE DRIFTSMIDLER

	Inventar og utstyr
Anskaffelseskost 1.1	882 142
Tilgang kjøpte driftmidler
Avgang til anskaffelseskost
Anskaffelseskost 31.12	882 142
Akkumulerte avskrivninger pr. 31.12	-842 142
Bokført verdi pr. 31.12.	40 000
Årets avskrivninger	47 000
Økonomisk levetid	3-10 år
Avskrivningsplan	Lineær

Axxis Geo Solutions AS

NOTE 8 SKATTER

Skatter kostnadsføres når de påløper, det vil si at kostnaden er knyttet til det regnskapsmessige resultat før skatt. Skattekostnaden består av betalbar skatt (skatt på årets skattepliktige inntekt) og endring i netto utsatt skatt.

Oversikt over midlertidige forskjeller:

	2016	2015
Anleggsreserve	-69 357	-49 697
Underskudd fra DIS		-11 342 419
Andel i deltakerlignet virksomhet	-8 446 145	-2 999 240
Sum midlertidige forskjeller før underskudd til fremføring	-8 515 502	-14 391 356
Skattemessig underskudd til fremføring	-79 257 549	-79 025 014
Sum midlertidige forskjeller og underskudd til fremføring	-87 773 051	-93 416 370
Utsatt skattefordel	-21 065 532	-23 354 093
Anvendt skattesats	24 %	25 %

Utsatt skattefordel er ikke balanseført i henhold til God regnskapsskikk.

Nedenfor er det gitt en spesifikasjon over forskjellen mellom det regnskapsmessige resultat før skattekostnad og årets skattegrunnlag.

	2016	2015
Resultat før skattekostnad	-13 608 169	-23 282 081
Permanente forskjeller	13 355 973	22 726 882
Endring midlertidige forskjeller	19 660	1 360
Arets skattegrunnlag før underskudd til fremføring	-232 536	-253 839
Anvendelse av skattemessig underskudd
Overført til underskudd til fremføring	232 536	553 839
Årets skattegrunnlag

NOTE 9 EGENKAPITAL

		Ikke registrert	Üdekket
		Aksjekapital kapitalutvidelsc underskudd		Sum
Egenkapital 01.01.	38 125 053		-9 076 387	29 048 665
Arets endring i egenkapital
Kapitalinnskudd		5 000 000		5 000 000
Arets resultat			-13 608 169	-13 608 169
Egenkapital 31.12.	38 125 053	5 000 000	-22 684 556	20 440 496

Den 17.11.2016 ble det vedtatt å sette ned aksjekapitalen med kr.29 595 958,26 ved at pålydende ble redusert med kr 0,347 til kr 0,10 pr aksje. Nedsettelsesbeløpet disponeres til dekning av tap og til fond. Videre er besluttet innskudd ny egenkapital, der kr 5 000 000 var innbetalt 31.12.2016. Kapitalnedsettelsen og innskudd ny egenkapital endelig registrert i Brønnøysund 28.01.2017.

Axxis Geo Solutions AS

NOTE 10 AKSJEKAPITAL OG AKSJEEIER INFORMASJON

Selskapets aksjekapital er kr. 38.125.052,86 fordelt på 85.290.946 aksjer à kr. 0,447.

Eierstruktur:

Selskapets aksjonærer pr. 31.12.:

Aksjonærer	Antall aksjer	Eierandel
Bjarte Henry Bruheim	46 663 437	54,71 %
Rome As	27 664 383	32,44 %
TRH AS	7 449 538	8,73 %
Bjørnulf A/S	2 726 546	3,20 %
Frank Otterlei	214 835	0,25 %
Knut Johan Voldsund	194 560	0,23 %
Primari Mar NUF	194 560	0,23 %
Lars Ståle Skoge	86 152	0,10 %
Nils Martin Romestrand	વેર તે 33 રે	0,11 %
Totalt	85 290 946	100,00 %

Selskapet har en aksjeklasse og alle aksjer har lik stemmerett.

Selskapet vedtok 20.02.2017 å gi styret fullmakt frem til 20.02.2019 til å tegne nye aksjer for pålydende inntil kr. 20 968 910.

NOTE 11 HENDELSER ETTER BALANSEDAGEN

Selskapet meldte kapitalnedsettelse 28.11.2016. Kapitalnedsettelsen ble registrert 28.01.2017. Videre er vedtatt kapitalutvidelse, ved kontantinnskudd og konvertering av gjeld. Ny aksjekapital etter endringene kr. 41.937.620,10 registrert 28.01.2017

Den 4. januar 2017 kjøpte selskapet MS Neptune Naiad fra datterselskapet Neptune Seismic AS. Som en følge av dette er Neptune Seismic DIS er vedtatt avviklet.

Selskapet registrerte 22.03.2017 nytt styre og meldt at daglig leder utgår.

Den 20.02.2017 ble det vedtatt ny kapitalutvidelse ved kontantemisjon med ny aksjekapital pålydende kr. 643 873,40. Ny aksjekapital etter enderingen kr. 42.581.493,50 registrert 22.03.2017.

BDO AS Nesevegen 3 Postboks 93 6067 Illsteinvik

Uavhengig revisors beretning

Til generalforsamlingen i Axxis Geo Solutions AS

Uttalelse om revisjonen av årsregnskapet

Konklusjon

Vi har revidert Axxis. Geo Solutions AS' årsregnskap som består av balanse per 31. desember 2016, resultatregnskap for regnskapsåret avsluttet per denne datoen og noter til årsregnskapet, herunder et sammendrag av viktige regnskapsprinsjoper.

Etter vår mening er det medfølgende årsregnskapet avgitt i samsvar med lov og forskrifter og gir et rettvisende bilde av selskapets finansielle stilling per 31. desember 2016, og av dets resultater for regnskapsåret avsluttet per denne datoen i samsvar med regnskapslovens regler og god regnskapsskikk i Norge.

Grunnlag for konklusjonen

Vi har gjennomført revisjonen i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder de internasjonale revisjonsstandardene International Standards on Auditing (ISAene). Våre oppgaver og plikter i henhold til disse standardene er beskrevet i Revisors oppgaver og plikter ved revisjon av årsregnskapet. Vi er uavhengige av selskapet slik det kreves i lov og forskrift, og har overholdt våre øvrige etiske forpliktelser i samsvar med disse kravene. Etter vår oppfatning er innhentet revisjonsbevis tilstrekkelig og hensiktsmessig som grunnlag for vår konklusjon.

Annen informasjon

Ledelsen er ansvarlig for annen informasjon. Annen informasjon består av årsberetningen. men inkluderer ikke årsregnskapet og revisjonsberetningen.

Vår uttalelse om revisjonen av årsregnskapet dekker ikke annen informasjon, og vi attesterer ikke den andre informasjonen.

l forbindelse med revisjonen av årsregnskapet er det vår oppgave å lese annen informasjon med det formål å vurdere hvorvidt det foreligger vesentlig inkonsistens mellom annen informasjon og årsregnskapet, kunnskap vi har opparbeidet oss under revisjonen, eller hvorvidt den tilsynelatende inneholder vesentlig feilinformasjon.

Dersom vi konkluderer med at den andre informasjonen inneholder vesentlig feilinformasjon er vi pålagt å rapportere det. Vi har ingenting å rapportere i så henseende.

Styrets ansvar for årsregnskapet

Styret (ledelsen) er ansvarlig for å utarbeide årsregnskapet i samsvar med lov og forskrifter, herunder for at det gir et rettvisende bilde i samsvar med regnskapslovens regler og god regnskapsskikk i Norge. Ledelsen er også ansvarlig for slik intern kontroll som den finner nødvendig for å kunne utarbeide et årsregnskap som ikke inneholder vesentlig feilinformasjon, verken som følge av misligheter eller feil.

Ved utarbeidelsen av årsregnskapet må ledelsen ta standpunkt til selskapets evne til fortsatt drift og opplyse om forhold av betydning for fortsatt drift. Forutsetningen om fortsatt drift skal legges til grunn for årsregnskapet så lenge det ikke er sannsynlig at virksomheten vil bli avviklet.

Revisors oppgaver og plikter ved revisjonen av årsregnskapet

Vårt mål med revisjonen er å oppnå betryggende sikkerhet for at årsregnskapet som helhet ikke inneholder vesentlig feilinformasjon, verken som følge av misligheter eller utilsiktede feil, og å avgi en revisjonsberetning som inneholder vår konklusjon. Betryggende sikkerhet er en høy grad av sikkerhet, men ingen garanti for at en revisjon utført i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder ISA-ene, alltid vil avdekke vesentlig feilinformasjon som eksisterer. Feilinformasjon kan oppstå som følge av misligheter eller utilsiktede feil. Feilinformasjon blir vurdert som vesentlig dersom den enkeltvis eller samlet med rimelighet kan forventes å påvirke økonomiske beslutninger som brukerne foretar basert på årsregnskapet.

Som del av en revisjon i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder ISA-ene, utøver vi profesjonelt skjønn og utviser profesjonell skepsis gjennom hele revisjonen. I tillegg:

• identifiserer og anslår vi risikoen for vesentlig feilinformasjon i regnskapet, enten . det skyldes misligheter eller utilsiktede feil. Vi utformer og gjennomfører revisjonshandlinger for å håndtere slike risikoer, og innhenter revisjonsbevis som er tilstrekkelig og hensiktsmessig som grunnlag for vår konklusjon. Risikoen for at vesentlig feilinformasjon som følge av misligheter ikke blir avdekket, er høyere enn for feilinformasjon som skyldes utilsiktede feil, siden misligheter kan innebære samarbeid, forfalskning, bevisste utelatelser, uriktige fremstillinger eller overstyring av intern kontroll.
• opparbeider vi oss en forståelse av den interne kontroll som er relevant for revisjonen, for å utforme revisjonshandlinger som er hensiktsmessige etter omstendighetene, men ikke for å gi uttrykk for en mening om effektiviteten av selskapets interne kontroll.
• evaluerer vi om de anvendte regnskapsprinsippene er hensiktsmessige og om regnskapsestimatene og tilhørende noteopplysninger utarbeidet av ledelsen er rimelige.
• konkluderer vi på hensiktsmessigheten av ledelsens bruk av fortsatt drift-. forutsetningen ved avleggelsen av regnskapet, basert på innhentede revisjonsbevis, og hvorvidt det foreligger vesentlig usikkerhet knyttet til hendelser eller forhold som kan skape tvil av betydning om selskapets evne til fortsatt drift. Dersom vi konkluderer med at det eksisterer vesentlig usikkerhet, kreves det at vi i revisjonsberetningen henleder oppmerksomheten på tilleggsopplysningene i regnskapet, eller, dersom slike tilleggsopplysninger ikke er tilstrekkelige, at vi modifiserer vår konklusjon om årsregnskapet og årsberetningen. Våre konklusjoner er basert på revisjonsbevis innhentet inntil datoen for revisjonsberetningen.

Etterfølgende hendelser eller forhold kan imidlertid medføre at selskapet ikke fortsetter driften.

• evaluerer vi den samlede presentasjonen, strukturen og innholdet, inkludert tilleggsopplysningene, og hvorvidt årsregnskapet representerer de underliggende transaksjonene og hendelsene på en måte som gir et rettvisende bilde.

Vi kommuniserer med styret blant annet om det planlagte omfanget av revisjonen og til hvilken tid revisjonsarbeidet skal utføres. Vi utveksler også informasjon om forhold av betydning som vi har avdekket i løpet av revisjonen, herunder om eventuelle svakheter av betydning i den interne kontrollen.

Uttalelse om øvrige lovmessige krav

Konklusjon om årsberetningen

Basert på vår revisjon av årsregnskapet som beskrevet ovenfor, mener vi at opplysningene i årsberetningen om årsregnskapet, forutsetningen om fortsatt drift og forslaget til dekning. av tap er konsistente med årsregnskapet og i samsvar med lov og forskrifter.

Konklusjon om registrering og dokumentasjon

Basert på vår revisjon av årsregnskapet som beskrevet ovenfor, og kontrollhandlinger vi har funnet nødvendig i henhold til internasjonal standard for attestasjonsoppdrag (ISAE) 3000 «Attestasjonsoppdrag som ikke er revisjon eller forenklet revisorkontroll av historisk finansiell informasjon», mener vi at ledelsen har oppfylt sin plikt til å sørge for ordentlig og oversiktlig registrering og dokumentasjon av selskapets regnskapsopplysninger i samsvar med lov og god bokføringsskikk i Norge.

juni 2017 Uls BDC Thry

statsautorisert revisor

Uavhengig revisors beretning 2016 Axxis Geo Solutions AS - Side 3 av 3

BDO AS, et norsk aksjeselskap, er deltaker i BDO International Limited, et engelsk selskap med begrenset ansvar, og er en del av det internasjonale nettverket BDO; som består av uavhengige selskaper i de enkelte land. Företaksregisteret: NO 993 606 650 MYA.

Årsberetning 2016 for Axxis Geo Solutions AS 990 691 371

Virksomhetens art

Axxis Geo Solutions AS med datterselskaper driver rederivirksomhet fra selskapets hovedkontor i Ulsteinvik i Ulstein Kommune, Møre og Romsdal. Det er utført 2 årsverk i 2016.

Virksomheten består i å eie og drive skip som leverer tjenester til olje- og gassindustrien samt deltakelse i andre relaterte selskap.

Fortsatt drift

Årsregnskapet er utarbeidet under forutsetningen om fortsatt drift. Styret bekrefter at forutsetningen for fortsatt drift er til stede.

Arbeidsmiljø/ytre miljø

Styret anser arbeidsmiljøet i selskapet og konsernet som godt. Det er ikke iverksatt spesielle tiltak. Ansatte på rederikontoret har ikke vært utsatt for ulykker eller skader i forbindelse med utførelse av arbeidet. Sykefraværet har vært på mindre enn 1 % av den totale arbeidstiden i selskapet i regnskapsåret. Konsernets skip er engasjert i sjøverts operasjoner og transport med det dette innebærer av risiko relatert til forurensning.

Det er ikke rapporter om uregelmessig eller ulovlig utslipp eller forurensinger.

Likestilling

Selskapet og konsemet har som mål at det ikke skal forekomme forskjellsbehandling på grunn av kjønn. Styret består av 4 personer som alle er menn.

Neptune Seismic DIS/Neptune Naiad

Selskapet eier 50% av Neptune Seismic DIS som eide MV Neptune Naiad. I januar 2017 kjøpte Axxis Geo Solution fartøyet MV Neptune Naiad fra Neptune Seismic DIS. Kjøpet ble finansiert ved at deltakerne i det selgende selskapet fikk tildelt aksjer i Axixis Geo Solutions AS. Neptune Naiad har i 2017 blitt tildelt en kontrakt på foreløpig 6 måneder for kinesiske BGP.

Finansiering

Selskapets egenkapital pr. 31.12.16 var kr 20.440.496. Selskapets totale forpliktelse knyttet til uinnkalt kapital i datterselskap og tilknyttede selskaper utgjør pr. 31.12.16 NOK 0. Selskapet sin arbeidskapital er negativ. I januar 2017 ble det gjennomført emisjoner som tilførte selskapet ca 61 millioner kroner, i form av ting- og kontantinnskudd.

Rettvisende oversikt

Likviditetsbeholdning pr. 31.12.16 var TNOK 236 Totalkapitalen var ved utgangen av året MNOK 22 Egenkapitalandelen pr. 31.12.2016 var 93 %.

Styret mener at årsregnskapet gir et rettvisende bilde av Axxis Geo Solutions AS sine eiendeler og gjeld, finansielle stilling og resultat.

Forslag til resultatdisponering.

Styret foreslår at årets underskudd Overført til udekket tap

Sum overføringer

NOK 13.608.169,- disponeres slik: NOK 13.608.169,-NOK 13.608.169. -

Andre forhold

Utover det som er beskrevet i denne beretningen kjenner styret ikke til at det har inntruffet forhold som har betydning for selskapets eller konsernets stilling og resultat.

Ulsteinvik, 22.06.2017

Bjarte Bruheim Styrets leder

Ole Andre Heggheim Styremedlem

1211 Fredrik Patou

ogeir Romestrand Styremedlem

Styremedlem

Neptune Offshore AS Brendehaugen 18 - , 6065 Ulsteinvik, Norway Telephone: +47 70 00 94 00 - Telefax: +47 70 00 94 01 e-mail: post@neptune.no - VAT no .: 990 691 371MVA

Årsregnskap

2015

Neptune Offshore AS

Org.nr. 990 691 371

Neptune Offshore AS
Driftsinntekter og driftskostnader	Note	2015	2014
Salgsinntekt		8 442 538	12 472 541
Sum driftsinntekter		8 442 538	12 472 541
Varekostnad		1 045 366	2 931 851
T ønnskostnad	3	5 494 516	12 002 981
Annen driftskostnad	3	2 569 177	2 642 323
Sum driftskostnader før avskrivninger		9 109 058	17 577 156
Driftsresultat før avskrivinger		-666 521	-5 104 615
Ordinære avskrivinger	7	47 000	46 380
Sum avskrivinger		47 000	46 380
Driftsresultat		-713 521	-5 150 995
Finansinntekter og finanskostnader
Andel resultat deltakerlignet selskap		-22 689 816	-35 850 152
Annen finansinntekt	2	1 456 233	708 582
Annen finanskostnad	2	1 334 977	593 017
Resultat av finansposter		-22 568 560	-35 734 587
Ordinært resultat før skatt		-23 282 081	-40 885 582
Skattekostnad på ordinært resultat	8	0	0
Årets resultat		-23 282 081	-40 885 582
Overføringer
Overført til udekket tap		9 076 387	0
Overført fra annen egenkapital		14 205 693	40 885 582
Sum overføringer	9	-23 282 081	-40 885 582

(

(

Side 2

Neptune Offshore AS 2015 Note ELENDELER Anleggsmidler Varige driftsmidler 134 000 87 000 7 Driftsløsøre, inventar o.a. utstyr Finansielle anleggsmidler 53 500 4 Investeringer i datterselskap 5 672 394 Lån til foretak i samme konsern 51 348 744 28 658 928 4 Investeringer i tilknyttet selskap 4 741 995 5 Lån til tilknyttet selskap 0 Andre langsiktige fordringer 52 228 266 34 213 817 Sum anleggsmidler Omløpsmidler Fordringer 939 695 5 Kundefordringer 152 800 Andre kortsiktige fordringer Bankinnskudd, kontanter o.l. 1 394 798 6 Bankinnskudd, kontanter o.l. 2 487 293 Sum omløpsmidler 36 701 110 Sum eiendeler	Balanse
			2014
			53 500
			622 022
			0 70 000
			3 031 724
			300 440
			2 268 049
			5 600 212
			57 828 478

Neptune Offshore ASSE Comments of the Organ 990 691 371 - 10 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 -

(

Balanse

Neptune Offshore AS

EGENKAPITAL OG GJELD	Note	2015	2014
Egenkapital
Innskutt egenkapital
Aksjekapital	10	38 125 053	38 125 053
Overkurs		0	6 552 928
Annen innskutt egenkapital		0	7 652 766
Opptjent egenkapital
Udekket tap		-9 076 387	0
Sum egenkapital	9	29 048 665	52 330 746
Gjeld
Kortsiktig gjeld
Leverandørgjeld		467 790	1 487 080
Skyldig offentlige avgifter		537 456	1 946 918
Annen kortsiktig gjeld	5	6 647 199	2 063 734
Sum kortsiktig gjeld		7 652 444	5 497 732
Sum gjeld		7 652 444	5 497 732
Sum egenkapital og gjeld		36 701 110	57 828 478

Ulsteinvik, den 2701 16. Styret i Neptune Offshore AS

Pogeir Romestrand Styreleder

Sedul Anno.

Tore Rødal Styremedlem

Bjarte Henry Bruheim Styremedlem

Idar Hatløy

Daglig leder

Neptune Offshore AS

(

(

Side 4

Neptune Offshore AS

NOTE 1 REGNSKAPSPRINSIPPER

Årsregnskapet er satt opp i samsvar med regnskapsloven og God regnskapsskikk for små foretak.

Presentasjonen i resultatregnskapet er endret fra 2014 til 2015. Fra og med august 2014 presenteres kostnadene som kostnader og inntekter som inntekter for avdeling 100. Tidligere var inntekter nullet mot kostnader der kostnadene ble viderefakturert.

Tjenester inntektsføres i takt med utførelsen. Inntektsføring av leieinntekter skjer i takt med opptjening.

Anleggsmidler omfatter eiendeler bestemt til varig eie og bruk. Anleggsmidler er vurdert til anskaffelseskost. Varige driftsmidler balanseføres og avskrives over driftsmidlets økonomiske levetid.

Varige driftsmidler nedskrives til gjenvinnbart beløp ved verdifall som forventes ikke å være forbigående. Gjenvinnbart beløp er det høyeste av nettosalgsverdi og verdi i bruk. Verdi i bruk er nåverdi av fremtidige kontantstrømmer knyttet til eiendelen. Nedskrivningen reverseres når grunnlaget for nedskrivningen ikke lenger er tilstede.

Omløpsmidler og kortsiktig gjeld omfatter poster som forfaller til betaling innen ett år etter anskaffelsestidspunktet, samt poster som er knyttet til varekretsløpet. Omløpsmidler vurderes til laveste av anskaffelseskost og virkelig verdi. Kortsiktig gjeld balanseføres til nominelt beløp på opptakstidspunktet.

Pengeposter i utenlandsk valuta omregnes til balansedagens kurs.

Kundefordringer og andre fordringer oppføres til pålydende etter fradrag for avsetning til forventet tap. Avsetning til tap gjøres på grunnlag av en individuell vurdering av de enkelte fordringene.

Skattekostnaden i resultatregnskapet omfatter både periodens betalbare skatt og endring i utsatt skatt. Utsatt skatt er beregnet med 25 % på grunnlag av de midlertidige forskjeller som eksisterer mellom enav er ernessige og skattemessige verdier, samt skattemessig underskudd til fremføring ved utgangen av regnskapsåret. Skatteøkende og skattereduserende midlertidige forskjeller som reverserer eller kan reversere i samme periode er utlignet. Netto utsatt skattefordel balanseføres i den grad det er sannsynlig at denne kan bli nyttegjort.

Regnskapsprinsippene er for øvrig nærmere omtalt i de tilhørende noter til de enkelte regnskapspostene.

Neptune Offshore AS

NOTE 2 POSTER SOM ER SAMMENSLÅTT

Posten andre finansinntekter er slått sammen av

(

	2015	2014
Agio	988 328	456 360
Andre renteinntekter	413 510	184 392
Andre finansinntekter	54 395	67 829
Sum andre finansinntekter	1 456 234	708 582
Posten andre finanskostnader er slått sammen av	2015	2014
Rentekostnader	388	2 631
Disagio	946 278	381 536
Refunderte finanskostnader		46 250
Annen finanskostnad		162 600
Sum andre finanskostnader	1 334 977	593 017

NOTE 3 LØNNSKOSTNADER, ANTALL ÅRSVERK, GODTGJØRELSER M.M.

Lønnskostnader	2015	2014
Lønn administrasjon	2 813 347	6 004 763
Lønn mannskap egne	1 173 271	7 132 671
Lønn mannskap innleid	43 285	4 041 569
Styrehonorar		-150 000
Arbeidsgiveravgift	615 924	1 506 849
Pensjonskostnader	284 692	548 175
Reisekostnader	331 958	2 523 120
Andre lønnskostnader	232 038	708 258
Refunderte lønnskostnader		-10 312 424
Sum	5 494 516	12 002 981
Antall årsverk i administrasjon	3	6
Ytelser til ledende personer	Daglig leder	Styret
Lønn	1 540 000
Andre godtgjørelser	72 897
Sum	1 612 897

Neptune Offshore AS

NOTE 3 LØNNSKOSTNADER, ANTALL ÅRSVERK, GODTGJØRELSER M.M. (forts)

Revisor

(

Det er i 2015 kostnadsført kr. 48.000,- (eks. mva) i ordinært revisjonshonorar og kr. 19.500,- (eks. mva) vedrørende andre tjenester levert av revisor.

Pensjonsforpliktelser

Selskapet er forpliktet til å ha pensjonsordning etter lov om obligatorisk tjenestepensjon. Selskapets pensjonsordninger tilfredsstiller kravene i denne lov.

NOTE 4 DATTERSELSKAPER

Investeringer i datterselskap regnskapsført etter kostmetoden:

Investeringene er vurdert til anskaffelseskost for aksjene med mindre nedskrivning har vært nødvendig.

Selskap	Forretningskontor	Eierandel	Bokført verdi
Neptune Seismic AS	Oslo	50 %	53 500
Sum			53 500

Oppfatter at styreverv og eierandeler for styremedlemmer medfører kontroll over selskapet.

Investeringer i datterselskap regnskapsført etter egenkapitalmetoden:

Investering i Neptune Seismic DIS, eierandel 49,5 % (Neptune Offshore AS eier i tillegg 0,5 % indirekte gjennom Neptune Seismic AS som er hovedmannen i Neptune Seismic DIS med 1 % eierandel)

DELTAKERLIGNEDE SELSKAP BOKFØRT ETTER EGENKAPITALMETODEN

Selskap	Neptune Seismic DIS
Eierandel	49,5 %
Anskaffelseskost 01.01.	56 461 841
Bokført verdi 01.01.	51 348 744
Innkalt kapital
Andel årets resultat	-22 689 816
Bokført verdi 31.12.	28 658 928
Andel ikke innkalt kapital-USD
Andel ikke innkalt kapital-NOK

Det er ikke utarbeidet konsernregnskap for morselskapet Neptune Offshore AS i samsvar med god regnskapsskikk for små foretak.

Neptune Offshore AS

Side 3

Neptune Offshore AS

NOTE 5 MELLOMVÆRENDE MED FORETAK I SAMME KONSERN

	2015	2014
Kundefordringer Neptune Seismic AS	901 273	2 959 439
Aksjonærlån Neptune Seismic AS (langsiktig)	672 394	622 022
Deltakerlån til Neptune Seismic DIS (langsiktig)	4 741 995
Forskudd Neptune Seismic AS (kortsiktig)	-1 500 000	-1 500 000
Sum	4 815 662	2 081 461

NOTE 6 BUNDNE MIDLER

(

Av bankinnskudd vedrører kr. 258.641,- innskudd på skattetrekkskonto.

NOTE 7 VARIGE DRIFTSMIDLER

	Inventar og utstyr
Anskaffelseskost 1.1	882 142
Tilgang kjøpte driftmidler
Avgang til anskaffelseskost
Anskaffelseskost 31.12	882 142
Akkumulerte avskrivninger pr. 31.12	-795 142
Bokført verdi pr. 31.12.	87 000
Arets avskrivninger	47 000
Økonomisk levetid	3-10 år
Avskrivningsplan	Lineær

Neptune Offshore AS

NOTE 8 SKATTER

Skatter kostnadsføres når de påløper, det vil si at kostnaden er knyttet til det regnskapsmessige resultat før skatt. Skattekostnaden består av betalbar skatt (skatt på årets skattepliktige inntekt) og endring i netto utsatt skatt. Skattekostnaden fordeles på ordinært resultat av ekstraordinære poster i henhold til skattegrunnlaget.

Oversikt over midlertidige forskjeller:

	2015	2014
Anleggsreserve	-49 697	-48 337
Underskudd DIS ikke avregnet	-11 342 419
Andel i deltakerlignet virksomhet	-2 999 240	8 348 018
Sum midlertidige forskjeller før underskudd til fremføring	-14 391 356	8 299 681
Skattemessig underskudd til fremføring	-79 025 014	-78 471 175
Sum midlertidige forskjeller og underskudd til fremføring	-93 416 370	-70 171 494
Utsatt skattefordel	-23 354 093	-18 946 303
Anvendt skattesats	25 %	27 %

Utsatt skattefordel er ikke balanseført i henhold til God regnskapsskikk.

Nedenfor er det gitt en spesifikasjon over forskjellen mellom det regnskapsmessige resultat før skattekostnad og årets skattegrunnlag.

	2015	2014
Resultat før skattekostnad	-23 282 081	-40 885 582
Permanente forskjeller	22 726 882	25 470 143
Endring midlertidige forskjeller	1 360	-1 252
Årets skattegrunnlag før underskudd til fremføring	-553 839	-15 416 691
Anvendelse av skattemessig underskudd
Årets skattegrunnlag	-553 839	-15 416 691

Neptune Offshore AS

NOTE 9 EGENKAPITAL

		Aksjekapital Overkursfond innskutt EK	Annen	Udekket underskudd	Sum
Egenkapital 01.01.	38 125 053	6 552 928	7 652 766		52 330 747
Arets endring i egenkapital
Arets resultat		-6 552 928	-7 652 766	-9 076 387	-23 282 081
Egenkapital 31.12.	38 125 053			-9 076 387	29 048 665

NOTE 10 AKSJEKAPITAL OG AKSJEEIER INFORMASJON

Selskapets aksjekapital er kr. 38.125.053 fordelt på 85.290.946 aksjer à kr. 0,447.

Eierstruktur:

1

Selskapets aksjonærer pr. 31.12.:

Aksjonærer	Antall aksjer	Eierandel
Bjarte Henry Bruheim	46 663 437	54,71 %
Rome As	27 664 383	32,44 %
TRH AS	7 449 538	8,73 %
Bjørnulf A/S	2 726 546	3,20 %
Frank Otterlei	214 835	0,25 %
Knut Johan Voldsund	194 560	0,23 %
Primari Mar NUF	194 560	0,23 %
Lars Ståle Skoge	86 152	0,10 %
Nils Martin Romestrand	તેર જેડી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામમાં પ્રાથમિક શાળા, પંચાયતઘર, આંગણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી ત	0,11 %
Totalt	85 290 946	100,00 %

Selskapet har en aksjeklasse og alle aksjer har lik stemmerett.

Årsberetning 2015 for Neptune Offshore AS 990 691 371

Virksomhetens art

Neptune Offshore AS med datterselskaper driver rederivirksomhet fra selskapets hovedkontor i Ulsteinvik i Ulstein Kommune, Møre og Romsdal. Selskapet ble stiftet i 2006 og hadde ved årets slutt 2 ansatte, hvor begge står for drift og ledelse av rederiet.

Virksomheten består i å eie og drive skip som leverer tjenester til olje- og gassindustrien samt deltakelse i andre relaterte selskap.

Fortsatt drift

Årsregnskapet er utarbeidet under forutsetningen om fortsatt drift. Styret bekrefter at forutsetningen for fortsatt drift er til stede.

Arbeidsmiljø/ytre miljø

Styret anser arbeidsmiljøet i selskapet og konsernet som godt. Det er ikke iverksatt spesielle tiltak. Ansatte på rederikontoret har ikke vært utsatt for ulykker eller skader i forbindelse med utførelse av arbeidet. Sykefraværet har vært på mindre enn 1 % av den totale arbeidstiden i selskapet i regnskapsåret. Konsernets skip er engasjert i sjøverts operasjoner og transport med det dette innebærer av risiko relatert til forurensning.

Det er ikke rapporter om uregelmessig eller ulovlig utslipp eller forurensinger.

Likestilling

Selskapet og konsernet har som mål at det ikke skal forekomme forskjellsbehandling på grunn av kjønn. Styret består av 3 personer som alle er menn og alle tilsette i konsernet er menn.

Neptune Seismic DIS/Neptune Naiad

Selskapet eier 50% av Neptune Seismic DIS som eier MV Neptune Naiad. I april 2014 avsluttet skipet en kontrakt med CGG og fartøyet ble liggende uvirksomt i USA til slutten av 2014. Grunnet ubalanse i seismikkmarkedet mellom kapasitet og etterspørsel viste det seg svært vanskelig å skaffe oppdrag. En besluttet derfor å ta skipet til Norge og legge det i kaldt opplag. Skipet ankom Sunnmøre på tampen av 2014 og alle ansatte om bord er oppsagt. Selskapet er kontinuerlig i kontakt med mulige kunder men en har hittil ikke lykkes i å skaffe skipet beskjeftigelse.

Neptune Offshore AS Brendehaugen 18 - , 6065 Ulsteinvik, Norway Telephone: +47 70 00 94 00 - Telefax: +47 70 00 94 01 e-mail: post@neptune.no - VAT no .: 990 691 371MVA

Rederiets Sikkerhetsstyringssystem

Rederiet er sertifisert av DNV etter "International Safety Management" (ISM kodens) krav og innehaver Document Of Compliance.

Finansiering

Selskapets egenkapital pr. 31.12.15 var kr 29.048.665. Selskapets totale forpliktelse knyttet til uinnkalt kapital i datterselskap og tilknyttede selskaper utgjør pr. 31.12.15 NOK 0. Selskapet sin arbeidskapital er negativ, men styret forventer at eierne vil tilføre selskapet nødvendig likviditet inntil markedet bedrer seg og en kommer i normal driftssituasjon.

Rettvisende oversikt

Likviditetsbeholdning pr. 31.12.15 var MNOK 1,4. Totalkapitalen var ved utgangen av året MNOK 36,7 Egenkapitalandelen pr. 31.12.2015 var 79,1 %.

Styret mener at årsregnskapet gir et rettvisende bilde av Neptune Offshore AS sine eiendeler og gjeld, finansielle stilling og resultat.

Forslag til resultatdisponering.

Styret foreslår at årets underskudd	NOK 23.282.081,- disponeres slik:
Overført til udekket tap	NOK 9.076.387,-
Overført fra annen egenkaptal	NOK 14.205.693,-
Sum overføringer	NOK 23.282.081, -

Andre forhold

(

Utover det som er beskrevet i denne beretningen kjenner styret ikke til at det har inntruffet forhold som har betydning for selskapets eller konsernets stilling og resultat.

Ulsteinvik, 27.06.2016

Jogeir Romestrand

Styrets leder

Idar Hatløy

Daglig leder

BarteBritheim Styremedlem

1) Orc

Tore Rødal Styremedlem

Neptune Offshore AS Brendehaugen 18 - , 6065 Ulsteinvik, Norway Telephone: +47 70 00 94 00 - Telefax: +47 70 00 94 01 e-mail: post@neptune.no - VAT no.: 990 691 371MVA

Tel: +47 70 01 81 81 Fax: +47 70 01 81 91 www.bdo.no

Nesevegen 3 Postboks 93 6067 ULSTEINVIK

Til generalforsamlingen i Neptune Offshore AS

Revisors beretning

Üttalelse om årsregnskapet

Vi har revidert årsregnskapet for Neptune Offshore AS, som viser et underskudd på kr 23 282 081. Årsregnskapet består av balanse per 31. desember 2015, resultatregnskap for regnskapsåret avsluttet per denne datoen, og en beskrivelse av vesentlige anvendte regnskapsprinsipper og andre noteopplysninger.

Styret og daglig leders ansvar for årsregnskapet

Styret og daglig leder er ansvarlig for å utarbeide årsregnskapet og for at det gir et rettvisende bilde i samsvar med regnskapslovens regler og god regnskapsskikk i Norge, og for slik intern kontroll som styret og daglig leder finner nødvendig for å muliggjøre utarbeidelsen av et årsregnskap som ikke inneholder vesentlig feilinformasjon, verken som følge av misligheter eller feil.

Revisors oppgaver og plikter

Vår oppgave er å gi uttrykk for en mening om dette årsregnskapet på bakgrunn av vår revisjon. Vi har gjennomført revisjonen i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder International Standards on Auditing. Revisjonsstandardene krever at vi etterlever etiske krav og planlegger og gjennomfører revisjonen for å oppnå betryggende sikkerhet for at årsregnskapet ikke inneholder vesentlig feilinformasjon.

En revisjon innebærer utførelse av handlinger for å innhente revisjonsbevis for beløpene og opplysningene i årsregnskapet. De valgte handlingene avhenger av revisors skjønn, herunder vurderingen av risikoene for at årsregnskapet inneholder vesentlig feilinformasjon, enten det skyldes misligheter eller feil. Ved en slik risikovurdering tar revisor hensyn til den interne kontrollen som er relevant for selskapets utarbeidelse av et årsregnskap som gir et rettvisende bilde. Formålet er å utforme revisjonshandlinger som er hensiktsmessige etter omstendighetene, men ikke for å gi uttrykk for en mening om effektiviteten av selskapets interne kontroll. En revisjon omfatter også en vurdering av om de anvendte regnskapsprinsippene er hensiktsmessige og om regnskapsestimatene utarbeidet av ledelsen er rimelige, samt en vurdering av den samlede presentasjonen av årsregnskapet.

Etter vår oppfatning er innhentet revisjonsbevis tilstrekkelig og hensiktsmessig som grunnlag for vår konklusjon.

Konklusjon

Etter vår mening er årsregnskapet avgitt i samsvar med lov og forskrifter og gir et rettvisende bilde av den finansielle stillingen til Neptune Offshore AS per 31. desember 2015, og av resultater for regnskapsåret som ble avsluttet per denne datoen i samsvar med regnskapslovens regler og god regnskapsskikk i Norge.

Uttalelse om øvrige forhold

Konklusjon om årsberetningen

Basert på vår revisjon av årsregnskapet som beskrevet ovenfor, mener vi at opplysningene i årsberetningen om årsregnskapet som beskrevet vil at opplysningene
av tan er konsisterskapet forutsetningen om fortsatt drift og forslaget til dekningene av tap er konsistentererere foruesemingen om fortsatt drift og forskiller.
av tap er konsistente med årsregnskapet og er i samsvar med lov og forskrifter.

Konklusjon om registrering og dokumentasjon

Basert på vår revisjon av årsregnskapet som beskrevet ovenfor, og kontrollhandlinger vi har funnet nødvendig i henhold til internasjonal standard for attestasjonsoppdrag inn "Attestasjonsopodrag som ikke er revisjon eller for attestasjonsopportag ISAE 300
finansigll informasion" mener et tiller forenklet revisorkontroll av historisk finansiell informasjon", mener vi at ledelsen har oppfylt sin first från i driver i dre från
oversiktlig registrering og delsen har oppfylt sin plikt til å sørge for ordentli oversiktlig registrering og dokumentasjon av selskapets med om opplytt sin pridentlig
oversiktlig registrering og dokumentasjon av selskapets regnskapsopplysninger i samsvar med lov og god bokføringsskikk i Norge.

Ulsteinvikr 27. juni 2016 BDO The h Fidem Statsautorisert revisor

This file is sealed with a digital signature.
The seal is a guarantee for the authenticity of the document. Document ID 97F524D83935474BBD3131E5415DF681

Balance Sheet
Assis Geo Solutions AS
NOK		28.02.2019
ASSECS
Non current assets
Deferred tax asset		39,432,053
Vessel, equipment and maintenance		135,586,467
Investment in subsidiaries		36,069,556
Other non current assets		4,145,994
Total non current assets		215,234,070
Current assets
Stock of supplies		24,853,293
Account receivables		111,662,296
Other current assets		29,391,588
Cash and cash equivalents		75,204,450
Total Current Assets		241,111,627
Total assets		456,345,698
NOK Equity and Liabilities		28.02.2019
Equity
Share capital		64,259,778 67,422,671
Additional paid-in capital
Capital increase not registered		65,000,000 196.682.449
Total paid-in capital		(78,741,462)
Accumulated earnings and other equity		117,940,987
Total Equity
Current liabilities
Account payables		175.931.804
Liabilities to group companies		68,061,092
Other current liabilities		94.411.815
Total current liabilities		338,404,711
Total equity and liabilities		456,345,698
	Ulsteinvik, 12 April 2019
Bjarte Bruheim	Jogeir Romestrand Ole A. Heggheim
Chair	Board member	Board member
Fredrik Platou	Nial Sævik	Tore Rødal

Board member

Board member

Board member

This file is sealed with a digital signature. The seal is a guarantee for the authenticity of the document. Document ID:

97F524D83935474BBD3131E5415DF681

Accounting Policies

General Information about the Company and Basis of Presentation General information

Axxis Geo Solutions AS (AGS) is the parent company of a group of companies focusing on the ocean bottom seismic market. The company has a proprietary technology-agnostic node handling system and is currently operating five vessels with more than 9,000 nodes. In 2018 the 100% owned subsidiary Axxis Multi-Client AS (AMC) was established in order to divide the operational seismic business of AGS and the multi-client library-business, where the latter is supposed to be conducted from AMC. AGS AS is a limited liability company incorporated in Norway on 16 October 2006.

Basis of Preparation

The financial statements are prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway. The notes are an integral part of the financial statements.

Summary of Significant Accounting Policies

Presentation currency

AGS presents its consolidated financial reports in NOK. Functional currency, however, for AGS AS is USD as all revenue and the majority part of expenses are nominated and paid in USD.

Foreign Currency

Transactions in foreign currencies are translated to NOK using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities in non-functional currencies are translated into functional currency spot rate of exchange ruling at the balance sheet. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominate in non-functional currencies are recognized in the income statement.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received for services in the ordinary course of the Group's activities. Revenue is shown net of withholding and value-added taxes. Revenue is recognised as follows:

Percentage of completion method (POC)

The Group performs both multi-client services projects and seismic services under contracts for specific customers, whereby the seismic data is owned by the customer. The Group recognises contract revenue (whether priced as lump sum, day rate or unit price) based on the percentage of completion method (POC). Progress is measured in a manner generally consistent with the physical progress on the project. For AGS group the revenue recognition is based on a split between acquisition work and data processing. For the acquisition work the progress is measured on the number of energy releases in the water.

The progress of the data processing is measured based on estimated time of completion. Any amount received greater than that calculated as recognisable will be recorded on the balance sheet as deferred revenue and recognised in the applicable future period. Conversely, any earned but unbilled revenue will be recognised as revenue in the current period and recorded as accrued revenue on the balance sheet.

Mobilisation fees for fixed rate / unit price contracts

For fixed rate/unit price contracts revenues for mobilisation are usually contracted with the customer and should cover the vessels transit to the actual area. Revenues and costs related to mobilisation are deferred and recognised over the acquisition period (which is the first receiver is dropped to the last retrieval) of the contract, representing the acquisition period. The deferral of mobilisation costs can only begin after a definitive contract has been executed between AGS and the client. Until a contract is signed, costs are expensed as incurred.

Property, plant and equipment

Property, plant and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment loss. Historical cost includes costs directly attributable to the acquisition of the item. Costs are included in the asset's carrying amount or recognised as a separate asset, if appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. Costs of all repairs and maintenance are expensed as incurred.

Depreciation on assets is calculated using the straight-line method. The assets are depreciated over their estimated useful life, as follows:

	Useful life
Machinery and equipment*	3 - 8 years
Hardware equipment and furniture	3 - 5 years

*Machinery and equipment are mainly placed onboard the vessel. Parts of the equipment are under water during operation and have a shorter useful life.

The assets' residual values, useful lives, and method of depreciation are reviewed at each balance sheet date and adjusted if appropriate. If an asset's carrying amount is greater than its estimated recoverable amount, the asset is immediately written down to the recoverable amount (Note 2.12). Assets under construction are carried at cost, less accumulated impairment. Depreciation commences when the asset is ready for its intended use.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognised.

Leases

The determination whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is assessed for whether the fulfilment of the arrangement is dependent on the use of a specific asset or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Operating leases: Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

b) Financial leases: Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as financial leases are capitalised at the commencement of the lease at the lower of the leased asset and the present value of the minimum lease payments. There were no property or equipment on financial lease in 2017 and 2018.

Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

The useful lives of intangible assets are assessed to be either finite or indefinite.

Intangible assets with finite useful lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and method are reviewed at least every financial year end.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level.

a) Computer software

The cost of acquired computer software licenses is capitalised based on the expenses incurred to acquire and bring the specific software to use. These costs are amortised over the estimated useful life (3 years).

The costs of design of software interfaces, installing, testing, creating system and user documentation, defining user reports and data conversion are capitalised together with the software cost. These costs are directly related to developing the software application for the group's use.

Costs associated with maintaining computer software are expensed as incurred. Costs directly associated with the production of identifiable and unique software products controlled by the group, which are expected to generate economic benefits in excess of cost (beyond one year) are recognised as intangible assets. Direct costs include software development employee costs and an appropriate portion of relevant overheads. Computer software development costs recognised as assets are amortised over their estimated useful life, not to exceed three years.

Inventories

Inventories are valued at the lower of cost or net realisable value. Cost is determined using the firstin, first-out (FIFO) method. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

The group's inventory consists primarily of fuel.

Impairment of non-financial assets

The group performs impairment test when there are indicators of impairment and at least once a year. The group considers the relationship between the total revenue forecast and the book value of each multi-client project when reviewing for indicators of impairment, hence the book value of the multi-client projects is highly influenced by the future sales forecasts.

When there are indicators that the net book value may not be recoverable, the library is tested for impairment individually per project. Each project is a separate cash generating unit (CGU). Any impairment of the multi-client library is recognized immediately and presented as "Amortisation and impairment of the multi-client library" in the statement of profit and loss. When the carrying amount of a project exceeds its recoverable amount the project is considered impaired and is written down to its recoverable amount.

Taxes

a) Current income tax

Current income tax assets and liabilities for the current and prior periods are measured using the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the group operates and generates taxable income.

Current income tax relating to items recognised directly in equity is recognised in equity and not in the income statement.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

b) Deferred tax

Deferred tax is provided for using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted on the balance sheet date and are expected to apply when the related deferred tax asset is realised, or the deferred tax liability is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax relating to items recognised directly in equity is recognised in equity and not in the income statement.

c) Sales tax expenses and assets are recognised net of the amount of sales tax, except: - When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable - When receivables and payables are stated with the amount of sales tax included

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

Employee benefits

a) Pension obligations

The group operates a defined contribution plan. The net pension cost for the period is presented as an employee expense.

b) Bonus plans

The group recognises a provision for bonus expenses where contractually obliged or where there is a past practice that has created a constructive obligation.

Provisions

Provisions are recognised when the group has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Cash flow statement

The cash flow statement is presented using the indirect method. Cash and cash equivalents include cash at hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

Dronning Eufemias gate 6, NO-0191 Oslo Postboks 1156 Sentrum. NO-0107 Oslo

Foretaksregisteret: Tif: +47 24 00 24 00 Fax:

www.ev.no

UAVHENGIG REVISORS BERETNING

Til generalforsamlingen i Axxis Geo Solutions AS

Revisors beretning til mellombalanse

Konklusjon

Vi har revidert mellombalansen for Axxis Geo Solutions AS pr. 28.02.19 som viser en egenkapital på kr 117.940.987. Mellombalansen består av balanse og beskrivelse av vesentlige anvendte regnskapsprinsipper. Mellombalansen er utarbeidet av styret og daglig leder ved anvendelse av regnskapsprinsippene beskrevet i note 1 til mellombalansen.

Etter vår mening gir mellombalansen i det alt vesentlige et uttrykk for selskapets finansielle stilling pr. 28.02.19 i samsvar med regnskapsprinsippene beskrevet i note 1 til mellombalansen.

Grunnlag for konklusjonen

Vi har gjennomført revisjonen i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder de internasjonale revisjonsstandardene (ISA-ene). Våre oppgaver og plikter i henhold til disse standardene er beskrevet i avsnittet Revisors oppgaver og plikter ved revisjon av mellombalansen. Vi er uavhengige av selskapet i samsvar med de relevante etiske kravene i Norge knyttet til revisjon slik det kreves i lov og forskrift. Vi har også overholdt våre øvrige etiske forpliktelser i samsvar med disse kravene. Etter vår oppfatning er innhentet revisjonsbevis tilstrekkelig og hensiktsmessig som grunnlag for vår konklusjon.

Grunnlag for regnskapsavleggelse og begrensning av distribusjon

Vi gjør oppmerksom på note 1 til mellombalansen, som beskriver grunnlaget for regnskapsavleggelsen. Mellombalansen er utarbeidet for at Axxis Geo Solutions AS skal gjennomføre en mulig fusjon, og anses derfor ikke å være egnet for andre formål.

Ledelsens ansvar for mellombalansen

Ledelsen er ansvarlig for å utarbeide mellombalansen i samsvar med regnskapsprinsippene beskrevet i note 1 i mellombalansen og for slik intern kontroll som ledelsen finner nødvendig for å muliggjøre utarbeidelsen av en mellombalanse som ikke inneholder vesentlig feilinformasjon, verken som følge av misligheter eller feil.

Ved utarbeidelsen av mellombalansen må ledelsen ta standpunkt til selskapets evne til fortsatt drift og opplyse om forhold av betydning for fortsatt drift. Forutsetningen om fortsatt drift skal legges til grunn for mellombalansen med mindre ledelsen enten har til hensikt å avvikle selskapet eller legge ned virksomheten, eller ikke har noe annet realistisk alternativ

Revisors oppgaver og plikter ved revisjon av mellombalansen

Vårt mål er å oppnå betryggende sikkerhet for at mellombalansen som helhet ikke inneholder vesentlig feilinformasjon, verken som følge av misligheter eller feil, og å avgi en revisjonsberetning som inneholder vår konklusjon. Betryggende sikkerhet er en høy grad av sikkerhet, men ingen garanti for at en revisjon utført i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder ISA-ene, alltid vil avdekke vesentlig feilinformasjon. Feilinformasjon kan skyldes misligheter eller feil og er å anse som vesentlig dersom den enkeltvis eller samlet med rimelighet kan forventes å påvirke de økonomiske beslutningene som brukerne foretar på grunnlag av mellombalansen.

Som del av en revisjon i samsvar med lov, forskrift og god revisjonsskikk i Norge, herunder ISA-ene, utøver

vi profesjonelt skjønn og utviser profesjonell skepsis gjennom hele revisjonen. I tillegg:

• ► identifiserer og anslår vi risikoen for vesentlig feilinformasjon i mellombalansen, enten det skyldes misligheter eller feil. Vi utformer og gjennomfører revisjonshandlinger for å håndtere slike risikoer, og innhenter revisjonsbevis som er tilstrekkelig og hensiktsmessig som grunnlag for vår konklusjon. Risikoen for at vesentlig feilinformasjon som følge av misligheter ikke blir avdekket, er høyere enn for feilinformasjon som skyldes feil, siden misligheter kan innebære samarbeid, forfalskning, bevisste utelatelser, uriktige fremstillinger eller overstyring av intern kontroll;

• opparbeider vi oss en forståelse av den interne kontrollen som er relevant for å utforme revisjonshandlinger som er hensiktsmessige etter omstendighetene, men ikke for å konkludere særskilt på selskapets interne kontroll:

• vurderer vi om de anvendte regnskapsprinsippene er hensiktsmessige og om regnskapsestimatene og tilhørende noteopplysninger utarbeidet av ledelsen er rimelige:

• konkluderer vi på om ledelsens bruk av fortsatt drift-forutsetningen er hensiktsmessig, og, basert på innhentede revisjonsbevis, hvorvidt det foreligger vesentlig usikkerhet knyttet til hendelser eller forhold som kan skape betydelig tvil om selskapets evne til fortsatt drift. Dersom vi konkluderer med at det foreligger vesentlig usikkerhet. kreves det at vi i revisjonsberetningen heneer oppmerksomheten på tilleggsopplysningene i mellombalansen. Hvis slike tilleggsopplysninger ikke er tilstrekkelige, må vi modifisere vår konklusjoner er basert på revisjonsbevis innhentet frem til datoen for revisjonsberetningen. Etterfølgende hendelser eller forhold kan imidlertid medføre at selskapets evne til fortsatt drift ikke lenger er til stede;

• evaluerer vi den samlede presentasjonen, strukturen og innholdet i mellombalansen inkludert tilleggsopplysningene, og hvorvidt mellombalansen gir uttrykk for de underliggende transaksjonene og hendelsene på en måte som gir et rettvisende bilde.

Vi kommuniserer med dem som har overordnet ansvar for styring og kontroll, blant annet om det planlagte omfanget av revisjonen, tidspunktet for vårt revisjonsarbeid og eventuelle vesentlige funn i vår revisjon, herunder vesentlige svakheter i den interne kontrollen som vi avdekker gjennom vårt arbeid.

Oslo, 12. april 2019

ERNST & YOUNG AS

statsautorisert revisor

Ref.nr.: Pinkode:

Innkalling til ordinær generalforsamling

Ordinær generalforsamling i Songa Bulk ASA avholdes 16. mai 2019 kl. 10:00 i selskapets forretningslokaler i Haakon VII's gate 1, 0161 Oslo.

Påmeldingsfrist: 14. mai 2019 kl. 15:30

Ref.nr.: Pinkode:

Påmelding

Undertegnede vil delta på ordinær generalforsamling den 16. mai 2019 og avgi stemme for:

egne aksjer

Påmelding gjøres elektronisk via selskapets hjemmeside www.songabulk.no eller via Investortjenester.

For påmelding via selskapets hjemmeside, må overnevnte pin og referansenummer oppgis. Elektroniske aktører (innkalling via Investortjenester) får ingen pin og referansenummer og kan kun melde seg på via Investortjenester. Alternativt kan du signere og sende dette påmeldingsskjemaet til genf@dnb.no (scannet versjon), eller per post til DNB Bank ASA, Verdipapirservice, Postboks 1600 Sentrum, 0021 Oslo. Påmelding må være mottatt senest innen 14. mai 2019 kl. 15:30.

Dersom aksjeeier er et foretak, oppgi navn på personen som vil møte for foretaket:_______________________________________________________

Sted Dato Aksjeeiers underskrift

Fullmakt uten stemmeinstruksfor ordinær generalforsamling i Songa Bulk ASA Dersom du selv ikke kan møte på generalforsamling, kan du gi fullmakt til en annen person.

Fullmakt gis elektronisk via selskapets hjemmeside www.songabulk.no eller via Investortjenester. For fullmakt via selskapets hjemmeside, må ovennevnte pin og referansenummer oppgis. Elektroniske aktører (innkalling via investortjenester) får ingen pin og referansenummer og kan kun gi fullmakt via Investortjenester. Alternativt kan du signere og sende dette fullmaktsskjemaet til genf@dnb.no (skannet versjon), eller per post til DNB Bank ASA, Verdipapirservice, Postboks 1600 Sentrum, 0021 Oslo.
Om det ikke oppgis navn på fullmektigen, vil fullmakten anses gitt styrets leder, eller den han bemyndiger.
Fullmakten må være mottatt senest innen 14. mai 2019 kl. 15:30.
Undertegnede:________ gir herved (sett kryss)

Styrets leder (eller den han bemyndiger), eller

__________________________________

(fullmektigens navn med blokkbokstaver)

fullmakt til å møte og avgi stemme på ordinær generalforsamling 16. mai 2019 i Songa Bulk ASA for mine/våre aksjer.

Sted Dato Aksjeeiers underskrift (Undertegnes kun ved fullmakt)

Ref.nr.: Pinkode:

Fullmakt med stemmeinstruks for ordinær generalforsamling i Songa Bulk ASA

Dersom du ikke selv kan møte på generalforsamling, kan du benytte dette fullmaktsskjemaet for å gi stemmeinstruks til en fullmektig.

Fullmakter med stemmeinstruks kan kun registreres av DNB, og sendes til genf@dnb.no (skannet versjon), eller post til DNB Bank ASA, Verdipapirservice, Postboks 1600 Sentrum, 0021 Oslo. Fullmaktsskjemaet må være mottatt senest 14. mai 2019 kl. 15:30.

Fullmaktsskjemaet må være datert og signert.

Dersom det ikke oppgis navn på fullmektigen, vil fullmakten anses gitt styrets leder, eller den han bemyndiger.

Undertegnede:________________________________________________________

gir herved (sett kryss på én)

Styrets leder (eller den han bemyndiger), eller

__________________________________

(Fullmektigens navn med blokkbokstaver)

fullmakt til å møte og avgi stemme på ordinær generalforsamling 16. mai 2019 i Songa Bulk ASA for mine/våre aksjer.

Stemmegivningen skal skje i henhold til instruksjon nedenfor. Dersom det ikke krysses av i rubrikken, vil dette anses som en instruks om å stemme i tråd med styrets forslag. Dersom det blir fremmet forslag i tillegg til, eller som erstatning for forslaget i innkallingen, avgjør fullmektigen stemmegivningen. Dersom det er tvil om forståelsen av instruksen, vil fullmektigen kunne avstå fra å stemme.

Agenda ordinær generalforsamling 16. mai 2019	For	Mot	Avstå
Sak 2: Valg av møteleder			
Sak 3: Valg av en person til å medundertegne protokollen			
Sak 4: Godkjennelse av innkalling og forslag til dagsorden			
Sak 6: Godkjennelse av årsregnskap og årsberetning for 2018 for Songa Bulk ASA og konsernet			
Sak 8: Styrets erklæring om fastsettelse av lønn og annen godtgjørelse til ledende ansatte
a) Veiledende retningslinjer			
b) Bindende retningslinjer (aksjerelaterte insentivordninger)			
Sak 9: Godkjennelse av revisors honorar for 2018			
Sak 10: Godtgjørelse til styrets medlemmer			
Sak 11: Valg av medlemmer til styret
Sak 12: Godkjennelse av fusjonsplan med Axxis Geo Solutions AS og kapitalforhøyelse ved utstedelse av vederlagsaksjer			
Sak 13: Aksjespleis			
Sak 14: Øvrige vedtektsendringer			
Sak 15: Fullmakt til styret til å forhøye aksjekapitalen i forbindelse med opsjonsprogram			
Sak 16: Fullmakt til styret til å forhøye aksjekapitalen			

Sted Dato Aksjeeiers underskrift (undertegnes kun ved fullmakt med stemmeinstruks)

Angående møte- og stemmerett vises til allmennaksjeloven, især lovens kapittel 5. Dersom aksjeeier er et selskap, skal firmaattest vedlegges fullmakten.

Ref no: PIN code:

Notice of annual general meeting

The annual general meeting in Songa Bulk ASA will be held on 16 May 2019 at 10:00 (CET) at the company's office premises at Haakon VII's gate 1, N-0161 Oslo, Norway.

Registration deadline: 14 May 2019 at 15:30 (CET).

Notice of attendance

The undersigned will attend the annual general meeting on 16 May 2019 and cast votes for:

own shares.

Notice of attendance can be registered electronically through the company's website www.songabulk.no or via VPS Investor Services.

To access the electronic system for notification of attendance through the company's website, the above mentioned reference number and PIN code must be stated. Shareholders who have chosen electronic communication (via VPS Investor Services) will not receive PIN and reference number, and can only give notice through VPS Investor services.

Notice of attendance may also be sent by e-mail to genf@dnb.no (scanned form) or by regular mail to DNB Bank ASA, Registrars Department, P.O. Box 1600 Centrum, 0021 Oslo, Norway. The notice of attendance must be received no later than 14 May 2019 at 15:30 (CET).

If the shareholder is a company, please state the name of the individual who will be representing the company: ______________________________

Place	Date	Shareholder's signature
	If you are unable to attend the meeting, you may grant proxy to another individual.	Proxy without voting instructions for annual general meeting of Songa Bulk ASA
			Ref no:	PIN code:
VPS Investor Services. Oslo, Norway.		Proxy can be submitted electronically through the company's website www.songabulk.no or via VPS Investor Services. To access the electronic system for granting proxy through the company's website, the above mentioned reference number and PIN code must be stated.		Shareholders who have elected electronic communication (via VPS Investor Services) will not receive PIN and reference numbers, and can only give proxy via Proxy may also be sent by e-mail to genf@dnb.no (scanned form) or by regular mail to DNB Bank ASA, Registrars' Department, P.O. Box 1600 Centrum, 0021
				If you send the proxy without naming the proxy holder, the proxy will be deemed given to the chairman of the board of directors or an individual authorised by him.
	This proxy must be received no later than by 14 May 2019 at 15:30 (CET).
hereby grants (tick one of the two)		The undersigned:_____________
	the chairman of the board of directors (or a person authorised by him), or
	_________ name of proxy holder (in capital letters)
		proxy to attend and vote for my/our shares at the annual general meeting of Songa Bulk ASA on 16 May 2019.

Place Date Shareholder's signature (Only for granting proxy)

With regards to your right to attend and vote, reference is made to the Norwegian Public Limited Liability Companies Act, in particular Chapter 5. If the shareholder is a company, the company's certificate of registration must be attached to the proxy.

Ref no: PIN code:

Proxy with voting instructions

If you are unable to attend the annual general meeting in person, you may use this proxy form to give voting instructions.

Proxies with voting instructions can only be registered by DNB, and must be sent to genf@dnb.no (scanned form) or by regular mail to DNB Bank ASA, Registrars' Department, P.O. Box 1600 Centrum, 0021 Oslo, Norway. The form must be received by DNB Bank ASA, Registrars' Department no later than by 14 May 2019 at 15:30 (CET).

Proxies with voting instructions must be dated and signed in order to be valid.

If you leave the "Name of the proxy holder" blank, the proxy will be deemed given to the chairman of the board of directors, or an individual authorised by him.

The undersigned:_______________________________________________________

hereby grants (tick one of the two)

the chairman of the board of directors (or a person authorised by him), or

____________________________________

name of proxy holder (in capital letters)

proxy to attend and vote for my/our shares at the annual general meeting of Songa Bulk ASA on 16 May 2019.

The votes shall be exercised in accordance to the instructions below. If the sections for voting are left blank, this will be deemed as an instruction to vote in favour of the board's proposed resolutions. However, if any motions are made from the attendees in addition to or in replacement of the proposals in the notice, the proxy holder may vote at his or her discretion. If there is any doubt as to how the instructions should be understood, the proxy holder may abstain from voting.

Agenda for the annual general meeting on 16 May 2019	For	Against	Abstention
Item 2: Election of a chair of the meeting			
Item 3: Election of a person to co-sign the minutes			
Item 4: Approval of the notice and the agenda			
Item 6: Approval of the 2018 annual accounts and the board's report for Songa Bulk ASA and the group			
Item 8: The board's declaration on determination of salary and other remuneration for senior management
a) Advisory guidelines			
b) Binding guidelines (share-related incentive schemes)			
Item 9: Approval of the auditor's remuneration for 2018			
Item 10: Remuneration to the members of the board			
Item 11: Election of members to the board
Item 12: Approval of the merger plan with Axxis Geo Solutions AS			
Item 13: Reverse share split and accompanying amendment to the articles of association			
Item 14: Other amendments to the articles of association			
Item 15: Authorisation to the board to increase the share capital in connection with an option scheme			
Item 16: Authorisation to the board to increase the share capital			

Place Date Shareholder's signature (Only for granting proxy with voting instructions)

With regards to your right to attend and vote, reference is made to the Norwegian Public Limited Liability Companies Act, in particular Chapter 5. If the shareholder is a company, the company's certificate of registration must be attached to the proxy.