Fjord Defence Group ASA

Share Issue/Capital Change • Feb 1, 2017

Delivery of the Songa Glory, directed share issue, appointments of a new director and issue of warrants,

Delivery of the Songa Glory, directed share issue, appointments of a new director and issue of warrants,

Oslo, [1 February], 2017 / Songa Bulk AS (Merkur:

SBULK-ME) (the "Company" or "Songa Bulk") is pleased to

announce that it has taken delivery of the Songa Glory,

a 58,680 DWT Supramax bulk carrier built by Nantong

COSCO KHI Shipbuilding (NACKS) in 2012. The vessel is

the third vessel delivered to the Company.

The purchase price for the vessel was USD 14.85m, which

the Company has settled from its existing cash

reserves. The seller is North East Star Maritime, an

affiliated company of Equinox Maritime (the "Seller").

The Seller has undertaken to reinvest USD 5,000,000 of

the purchase price in the Company and board of the

Company resolved on 31 January 2017 to issue 1,000,000

shares in a directed placement to the Seller at a

subscription price of USD 5 per share. The

extraordinary general meeting of the Company dated 6

December 2016 has approved a power of attorney to the

board to issue the consideration shares.

Following the issue of the consideration shares, the

Company will have issued 15,860,000 shares, each with a

par value of NOK 5. The consideration shares are

expected to be issued on or about [3] February 2017.

The consideration shares will have the same rights as

the ordinary shares of the Company in all respects.

Following completion of the acquisition and issue of

the consideration shares, Mr. Ghikas J. Goumas will

join the board of directors of the Company as approved

by the extraordinary general meeting of the Company on

6 December 2016. Mr. Goumas and related parties

(through J.G. Goumas Shipping Co.) are significant

shareholders of the Seller. The Seller will, following

delivery of the consideration shares, control 6.305 %

of the shares and votes of the Company.

The Company has entered into a warrant agreement dated

4 November 2016 between the Company and Blystad

Shipholding AS (a company controlled by Arne Blystad),

Billung Bulk AS (controlled by Herman Billung) and PK

Shipping AS (controlled by Per Kristian Aamlid)

(together the "Holders"). The terms of the warrant

agreement are further described in the admission

document published by the Company dated 16 December

2016. Under the warrants agreement the Holders have a

right to be issued warrants representing 7.5 % of any

share issues made by the Company (up to USD 100m of

capital raised). Consequently, the board has approved,

and will propose that the next general meeting of the

company approves an issue of 75,000 warrants to the

Holders on the terms of the agreement:

Blystad Shipholding AS: 33,750 new warrants (with a

total holding of 527,344 warrants after issue)

Billung Bulk AS: 33,750 new warrants (with a total

holding of 527,344 warrants after issue)

PK Shipping AS: 7,500 new warrants (with a total

holding of 117,188 warrants after issue)

Each warrant gives the Holder a right to subscribe for

one share at the price used in the share issue towards

Equinox. As per the agreement, 1/3 of the warrants will

vest once the share price of the Company increases to

NOK 52.04, NOK 62.45 and NOK 72.86 respectively. The

warrants are otherwise issued on the terms of the

existing warrant agreement.