Fjord Defence Group ASA

M&A Activity • Sep 22, 2017

Acquisition and Sale

Acquisition and Sale

Oslo, September 22, 2017 / Songa Bulk ASA (Oslo Axess: SBULK)

(the "Company" or "Songa Bulk") is pleased to announce that it has

entered into an agreement to sell a Supramax bulk carrier, built in

2009 at Tsuneishi Zhoushan. In addition, the Company has reached an

agreement to acquire a Capesize bulk carrier built at STX Korea in

2011 (181.258 dwt)

The Supramax will be delivered to its new Owners within the 15th of

November 2017 while the Cape Size will be delivered no later than

15th of January 2018.

The sale of the Supramax does not constitute a change in strategy,

but must be seen in combination with the Cape Size acquisition. The

Company finds the risk reward ratio attractive for Capesizes going

forward

The total fleet of Songa Bulk remains at 15 vessels. Following the

two transactions a total of $296.375.000 has been invested.

Songa Bulk will book a profit of about $2.000.000 in connection with

the sale of the Supramax

About Songa Bulk

Songa Bulk ASA (the "Company"), established by the Blystad Group and

Herman Billung. The Company has low gearing, no legacy issues and a

cost efficient operational platform. The Company seeks to actively

manage the cyclicality of the drybulk market by investing at

historically low levels, focus on returning capital toshareholders

through asset sales and/or dividends as the market recovers.

Please see our webpage: www.songabulk.no