Golden Ocean Group

Earnings Release • Feb 27, 2015

VLCCF - Fourth Quarter and Full Year 2014 Results

VLCCF - Fourth Quarter and Full Year 2014 Results

HIGHLIGHTS

* Knightsbridge reports net income of $5.2 million and earnings per share of

$0.06 for the fourth quarter of 2014.

* Knightsbridge reports EBITDA of $13.5 million and EBITDA per share of $0.17

for the fourth quarter of 2014.

* Knightsbridge reports net income of $16.0 million and earnings per share of

$0.30 for the year ended December 31, 2014.

* Knightsbridge took delivery of KSL San Francisco and KSL Santos at the end

of October.

* Knightsbridge received $6.4 million in the fourth quarter as final

settlement for a claim for damages and unpaid charter hire.

* Knightsbridge took delivery of KSL Sakura, KSL Seoul, KSL Seville and Golden

Kathrine in January 2015.

* In January 2015, Knightsbridge entered into an index-linked, long term time

charter contract for chartering out a total of 15 Capesizes.

* In February 2015, Knightsbridge entered into a $425.0 million secured post-

delivery term loan facility to part finance 14 newbuilding vessels.

FOURTH QUARTER 2014 AND FULL YEAR 2014 RESULTS

The Company reports net income of $5.2 million and earnings per share of $0.06

for the fourth quarter compared with a net loss of $6.2 million and a loss per

share of $0.11 for the preceding quarter. Net income in the fourth quarter

includes $6.4 million in respect of cash received in the fourth quarter as final

settlement for a claim for damages and unpaid charter hire. The net loss in the

third quarter includes dry docking costs of $2.0 million in connection with the

Belgravia and the Golden Future. The average daily time charter equivalent

("TCE") earned by the Capesize vessels in the fourth quarter was $13,200

compared with $10,200 in the preceding quarter. In February 2015, the Company

estimates an approximately average cash cost breakeven rate for the remainder of

the first quarter of 2015 on a TCE basis for its Capesize vessels of $13,000 per

vessel per day.

Cash and cash equivalents decreased by $54.0 million in the fourth quarter. The

Company generated cash from operating activities of $2.4 million, paid $106.9

million in respect of its newbuilding program, paid $4.0 million to

shareholders, borrowed $58.5 million (net) from the banks and increased its

restricted cash balance by $3.9 million.

For the year ended December 31, 2014, the Company reports net income of $16.0

million and earnings per share of $0.30 compared with a net loss of $3.9 million

and a loss per share of $0.15 in the year ended December 31, 2013. The net

income in the year ended December 31, 2014 includes aggregate receipts of $19.6

million as settlements for claims for damages and unpaid charter hire and a

receipt of $2.6 million upon the early termination of the time charter of the

Belgravia. The net loss in the year ended December 31, 2013 includes a net loss

from discontinued operations of $7.4 million. The average daily TCE earned by

the Capesize vessels in the year ended December 31, 2014 is $14,600 compared

with $21,100 in the year ended December 31, 2013.

THE PROPOSED MERGER WITH GOLDEN OCEAN GROUP LIMITED

On October 7, 2014, Golden Ocean Group Limited ("Golden Ocean") and

Knightsbridge announced that the two companies had entered into an agreement and

plan of merger (the "Merger Agreement"), pursuant to which the two companies had

agreed to merge, with Knightsbridge as the surviving legal entity (the "Combined

Company").  The Combined Company will be renamed Golden Ocean Group Limited upon

completion of the merger.  As a result of the expected merger, the Combined

Company would become one of the world's leading dry bulk companies with a modern

fleet of 72 vessels, of which 34 are newbuildings under construction as of

December 31, 2014.  The merger is subject to approval by the shareholders of

Golden Ocean and Knightsbridge in separate special general meetings which have

been called for on March 26, 2015. The record date for the shareholders meetings

is set to February 16, 2015. The merger is expected to close at the end of March

2015. Completion of the merger is also subject to the execution of certain

definitive documents, customary closing conditions and regulatory approvals.

Knightsbridge's ordinary shares are currently listed for trading on the NASDAQ

Global Select Market ("NASDAQ"), and Golden Ocean's ordinary shares are

currently listed for trading on the Oslo Stock Exchange (the "OSE") and the

Singapore Stock Exchange.  In accordance with the Merger Agreement, the Combined

Company have applied for a secondary listing of the ordinary shares on the OSE.

After the merger its ordinary shares will be listed for trading on both NASDAQ

and the OSE. The Singapore Stock Exchange (the "SGX") has approved the delisting

of Golden Ocean on the SGX and it is expected that Golden Ocean will be delisted

from the SGX on March 20, 2015.

Shareholders of Golden Ocean will receive shares in Knightsbridge as merger

consideration. Pursuant to the Merger Agreement, one share in Golden Ocean will

give the right to receive 0.13749 shares in the Company, and the Company will

issue at most a total of 61.5 million shares to shareholders in Golden Ocean as

merger consideration.

FLEET DEVELOPMENT

On October 30, 2014, two of the 13 Capesize newbuildings purchased from

Frontline 2012 Ltd in September 2014, KSL San Francisco and KSL Santos, were

delivered from the yard and commenced trading in the spot market. The final

installments of $36.5 million and $37.6 million, respectively, were paid at the

time of their delivery.

In January 2015, Knightsbridge took delivery of KSL Sakura, KSL Seville, KSL

Seoul and Golden Kathrine. These are four of the newbuilding vessels that were

purchased from Frontline 2012 in September 2014.

In January 2015, Knightsbridge entered into an agreement with RWE Supply &

Trading GmbH, a wholly owned subsidiary of RWE AG (a major European energy

company), for chartering out a total of 15 Capesize vessels on long term, index-

linked contracts. The vessels are expected to be delivered over the next five

quarters starting in the first quarter of 2015.

CORPORATE

Knightsbridge originally filed a Registration Statement on Form F-4 with the

Securities and Exchange Commission on November 18, 2014, which was declared

effective on February 25, 2015, and Knightsbridge and Golden Ocean have called

special general meetings on March 26, 2015 to request approval of the previously

announced merger, which is expected to close by the end of the first quarter

On February 5, 2015, an agreement was signed between Knightsbridge (as

guarantor), various SPCs (as borrowers) and various banks for a $425.0 million

senior secured post-delivery term loan facility. The purpose of the loan is to

partially finance 14 newbuilding vessels. The loan is divided into 12 tranches

of $30.0 million and two tranches of $32.5 million.

80,121,550 ordinary shares were outstanding as of December 31, 2014, and the

weighted average number of shares outstanding for the fourth quarter was

80,121,550.

THE DRY BULK MARKET

In many aspects the dry bulk market behaved differently during 2014 from what

has been the case in earlier years. Traditionally the seasonal pattern has been

a slow start to the year due to adverse weather in the Southern hemisphere,

while the fourth quarter normally provides more energy with restocking of both

iron ore and coal. The first quarter started on a high note with Baltic Dry

Index (BDI) averaging 1.371 followed by 28 percent and three percent declines in

the following two quarters. The negative trend reversed during October and

November, the gains were during December. Consequently the average BDI of 2014

was down by six percent compared to the previous year, making 2014 the second

worst year since 1999. Capesize vessels earned on average $14,335 per day in the

fourth quarter  compared to $12,635 per day in the previous quarter and $27,071

in fourth quarter of 2013.

Chinese industrial production increased by 8.5 percent in 2014 compared to 9.5

percent in 2013. The Chinese leadership seems to be fairly comfortable with

lower GDP growth, but is still indicating that their growth target for the

coming three years is within a six to seven percent range. If this materializes

it is still decent given the size of the Chinese economy, but it is expected

that we will see a shift towards more consumer focused growth rather than

infrastructure driven projects.

Chinese steel consumption experienced a small negative growth last year compared

to nine percent growth in 2013. However the production of steel increased by

1.5 percent last year which was backed by strong growth in steel exports.

Annualized steel exports in November and December was about 115 million mt.

Expectations were high for seaborne transportation of iron ore in 2014, based on

additional supply in particular from the miners in Australia. Iron ore imports

to China were up with approximately 100 million mt last year and total iron ore

imports to the country reached 925 million mt which was in line with

forecaster's expectations.

What derailed the dry bulk freight market recovery were the lack of coal demand

from China, the relief of the grain port congestion in South America compared to

the previous year and the after effect of the stock piling ahead of the

Indonesian ban on raw ore (nickel ore and bauxite) exports.

Approximately 8.5 million dwt of new dry bulk capacity was delivered during

fourth quarter of 2014, compared to 11.8 million dwt in third quarter. About

15.5 million dwt was removed from the tonnage list during 2014, fairly evenly

spread out over the four quarters. The delivery ratio compared to the official

order book at the beginning of 2014 was very similar to what has been the case

the last couple of year. Just below 80 percent resulted in 47.5 million mt of

new capacity. A total of 600 vessels above 10,000 dwt were delivered and 285

removed resulting in a net fleet growth of 5.2 percent measured in carrying

capacity.

The downward pressure on asset prices continued during the fourth quarter.

Capesizes values that had been more robust in the previous two quarters

experienced a stronger negative correction than the smaller segments. According

to sale and purchase brokers, modern vessels (maximum five years old) were

priced approximately 12 percent lower by the end of the year compared to the end

of September 2014.

Two months into 2015 the freight market has continued its negative trend with a

BDI touching "all time low." With Owners not even covering their operating

expenses ordering of new capacity is not being considered and for the last four

months shipyards have secured very few new orders. In addition, scrapping

activity has picked up. During the first six weeks of this year 19 Capesizes

have been committed to scrap buyers. This is almost half of what was scrapped in

total last year.

Most analysts expect that spot earnings this year on average will be in line

with 2014.

The main downside risks are considered to be a quicker than expected change in

the Chinese energy mix, and a slower than expected process in restructuring

Chinese domestic iron ore industry. Upside potential should derive from Chinese

economic stimulus, supply dynamics (scrapping/ cancellations of new buildings),

a positive effect from lower oil prices on global economy and a strong grain

season in South America could lead to higher congestion.

OUTLOOK

The process to merge with Golden Ocean is entering into its final stage and the

companies have called for special general meetings on March 26, 2015. The Board

and management are dedicated to conclude the process of creating one of the

world's leading dry bulk companies. After completion of the merger, the Combined

Company will be in a position to look for further consolidation opportunities in

the dry bulk market.

The loan facility concluded in February 2015 proves the strong support the

Company has in the banking market. The structure with low gearing and long

repayment profile will assist the Company in managing the current weak market

and indicates which financial gearing the Combined Company is aiming to achieve

going forward.

The Company is pleased with Golden Ocean's establishment of Capesize Chartering

Ltd, which was announced by Golden Ocean on February 10, 2015. Knightsbridge

will benefit from this though the management agreement with Golden Ocean and

following the merger the Combined Company expects to offer to the market a

Capesize fleet with more flexibility and options that will give added value to

ship owners and the charterers/cargo owners.

The market in the first quarter has been disappointing so far and this will

affect the earnings for the first quarter. Future earnings will continue to

correlate with the spot market as long as the majority of our vessels are

employed in the spot market. Should the weak market continue it will force

changes on the industry, some participants will disappear, and it will open up

for consolidation and for those that have stamina to stand through this period

there will be opportunities in the other end. During a period with a weak market

we expect to see increased scrapping, postponed orders, cancellations and

conversions, and in long term it will cater for better fundamentals for an

upturn in the market in the future.

The Board of Knightsbridge has decided not to declare a dividend for the fourth

quarter of 2014 due to the current market environment, which caters for a

cautious approach.

FORWARD LOOKING STATEMENTS

The statements contained in this presentation that are not purely historical are

forward-looking statements. The forward-looking statements include, but are not

limited to, statements regarding the expectations, hopes, beliefs, intentions or

strategies regarding the future of Knightsbridge Shipping Ltd.

("Knightsbridge"), Golden Ocean Group Limited ("Golden Ocean") and the shipping

market in general. In addition, any statements that refer to projections,

forecasts or other characterizations of future events or circumstances,

including any underlying assumptions, are forward-looking statements. The words

"anticipate", "believe", "continue", "could", "estimate", "expect", "intend",

"may", "might", "plan", "possible", "potential", "predict", "project",

"forecast", "should", "would" and similar expressions may identify forward-

looking statements, but the absence of these words does not mean that a

statement is not forward-looking. Forward-looking statements in this

presentation may include, for example, statements about: the shipping markets,

sources of and demand for drybulk and other shipping cargo, and the performance

of the shipping markets and the Chinese and global economy.

The forward-looking statements contained in this presentation are based on the

current expectations and beliefs of Knightsbridge concerning future developments

and their potential effects on Knightsbridge, Golden Ocean,  the shipping

markets and factors affecting supply and demand for drybulk and other shipping

cargo, including, among other things, the expected merger between Golden Ocean

and Knightsbridge.  All statements and information in this presentation relating

to the merger and the resulting combined company are based on the anticipated

effectuation of the merger, which is subject to certain conditions precedent.

There can be no assurance that future developments affecting any of them will be

those that have been anticipated. These forward-looking statements involve a

number of risks, uncertainties (many of which are beyond Golden Ocean's or

Knightsbridge's control) or other assumptions that may cause actual results or

performance to be materially different from those expressed or implied by these

forward-looking statements. Should one or more of these risks or uncertainties

materialize, or should any of Knightsbridge's assumptions prove incorrect,

actual results may vary in material respects from those projected in these

forward-looking statements. Neither Knightsbridge nor Golden Ocean undertake any

obligation to update or revise any forward-looking statements, whether as a

result of new information, future events or otherwise, except as may be required

under applicable securities laws.

Important Information For Investors And Shareholders

This communication does not constitute an offer to sell or the solicitation of

an offer to buy any securities or a solicitation of any vote or approval.  In

connection with the proposed transaction between Golden Ocean Group Limited

("Golden Ocean") and Knightsbridge Shipping Limited ("Knightsbridge"),

Knightsbridge has filed relevant materials with the Securities and Exchange

Commission (the "SEC"), including a registration statement of Knightsbridge on

Form F-4, including Amendments No. 1, 2 and 3 thereto, containing a joint proxy

statement of Golden Ocean and Knightsbridge that also constitutes a prospectus

of Knightsbridge.  The registration statement has been declared effective by the

SEC on February 25, 2015, and Golden Ocean and Knightsbridge commenced mailing

the definitive joint proxy statement/prospectus to shareholders of Golden Ocean

and Knightsbridge on or about February 26, 2015. INVESTORS AND SECURITY HOLDERS

OF GOLDEN OCEAN AND KNIGHTSBRIDGE ARE URGED TO READ THE JOINT PROXY

STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED OR THAT WILL BE FILED WITH THE

SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL

CONTAIN IMPORTANT INFORMATION.  Investors and security holders will be able to

obtain free copies of the registration statement and the joint proxy

statement/prospectus and other documents filed with or furnished to the SEC by

Knightsbridge through the website maintained by the SEC at http://www.sec.gov.

Copies of the documents filed with or furnished to the SEC by Knightsbridge will

be available free of charge on Knightsbridge's website at

http://www.knightsbridgeshipping.com.  Additional information regarding the

participants in the proxy solicitations and a description of their direct and

indirect interests, by security holdings or otherwise, are contained in the

joint proxy statement/prospectus and other relevant materials to be filed with

or furnished to the SEC when they become available.

The Board of Directors

Knightsbridge Shipping Limited

Hamilton, Bermuda

February 26, 2015

Questions should be directed to:

Contact:

Ola Lorentzon: Chairman, Knightsbridge Shipping Limited

+ 46 703 998886

Inger M. Klemp: Chief Financial Officer, Knightsbridge Shipping Limited

+47 23 11 40 76

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1897901]