Fjord Defence Group ASA

Share Issue/Capital Change • Feb 10, 2017

Songa Bulk AS - Completion of private placement of USD 100 million

Songa Bulk AS - Completion of private placement of USD 100 million

Oslo, 10 February 2017: Reference is made to the

announcement by Songa Bulk AS ("Songa Bulk" or the

"Company") published on 9 February 2017 regarding a

contemplated private placement of shares with a minimum of

USD 50 million (the "Private Placement").

The Board of Directors (the "Board") of Songa Bulk is

pleased to announce that the Company has successfully

completed the Private Placement of approximately USD 100

million with the support of new and existing investors,

through the subscription of 20 million new shares (the "New

Shares") at a subscription price of NOK 42 per share (the

"Subscription Price"), raising gross proceeds of

approximately NOK 840 million. The Company's share capital

will as a consequence increase with NOK 100,000,000 to NOK

179,300,000, divided on 5,860,000 shares each with a nominal

value of NOK 5.

The net proceeds from the Private Placement will be used for

(i) vessel investments; (ii) working capital; and (iii)

general corporate purposes. It is intended that vessel

investments shall be made within the first 12 months

following the Company's initial capital raising in November

2016, and that any net proceeds from sale of vessels

following the first two years of the initial capital raising

will be returned to investors through dividends or capital

reductions, subject to maintaining a reasonable working

capital.

There was considerable interest in the Private Placement,

and the USD 100 million placement was oversubscribed. A

broad base of existing shareholders and new investors were

offered to participate. The Private Placement is made

subject to shareholder approval in an extraordinary general

meeting, expected to be held on or about 17 February 2017.

The subscription price in the Private Placement was made at

close to market price with no substantial discount. As a

consequence, the shareholders' preferential rights are

waived.

The New Shares to be issued under the Private Placement will

be listed on Merkur Market as soon as practically possible

after registration of the share capital increase in the

Norwegian Register of Business Enterprises, expected on or

about 20 February 2017.

Clarksons Platou Securities AS and Fearnley Securities AS

acted as Joint Lead Managers and Bookrunners for the Private

Placement.

For further information, please contact:

Herman Billung, CEO

Tel: + 47 23 01 14 34

hb@blystad.no