Fjord Defence Group ASA

M&A Activity • Mar 31, 2017

Acquisition of two vessels

Acquisition of two vessels

Oslo, March. 31, 2017 / Songa Bulk AS (Merkur: SBULK-ME)

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

it has entered into an agreement to acquire one kamsarmax

bulk carrier built 2012 at Tsuneishi Japan (82,158 dwt) and one

ultramax bulk carrier built 2017 at DACKS, China (61,491 dwt). The

vessels have been acquired at an aggregate sum of USD 43.35 million.

Both vessels will be delivered to the Company by the end of April.

The Company will establish wholly owned subsidiaries to take

delivery of the vessels.

This brings the total fleet of the Company to 9 vessels.

All the transactions completed so far, including the two last

additions, are done on an all cash basis, but given the improved

market environment the Company will consider to take on moderate

leverage going forward.

Songa Bulk will continue its low cost efficient operational platform

with focus on returning capital to its shareholders through asset

sales and/or dividends as the market recovers.

Please see our webpage: www.songabulk.no