Borr Drilling — Capital/Financing Update 2021

Jun 15, 2021

Borr Drilling Limited - Entering MoU to streamline Mexico operations and improve liquidity

Borr Drilling Limited - Entering MoU to streamline Mexico operations and improve liquidity

June 15, 2021: Borr Drilling Limited (the "Company", "Borr Drilling") (NYSE and

OSE: "BORR) has five rigs working for joint ventures which are jointly owned

with our Mexican partner providing integrated well services for Pemex. The

services commenced in May 2019 and have provided Pemex with an incremental

production of approximately 125,000 barrels of oil per day from 21 wells drilled

so far. In our most recent meeting with Pemex management we have received a very

favourable review of the performance and the cost efficiency of this operation.

The integrated well services joint ventures have received a request for

extension of this program, which in turn is expected to employ the five Borr

Drilling rigs until the end of 2022.

In connection with this extension, the Company and our Mexican partner have

entered into a Memorandum of Understanding ("MoU") to make certain changes in

the structures of the joint ventures, where our Mexican partner will buy Borr

Drilling's 49% stake of the integrated services JVs Opex and Akal (the "IWS

JVs"). The transaction is expected to free up a gross amount of $28 million for

Borr Drilling, representing historic profits in the IWS JVs and some settlements

of other payables, which is incremental to the dayrate earnings resulting from

the provision of drilling services.

Simultaneously, Borr Drilling will acquire an incremental 2% stake of the joint

ventures performing drilling services (the "Drilling JVs") from the Mexican

partner, and by that hold a 51% majority ownership position. The Drilling JVs

will continue to earn day rates from its main customers Opex and Akal through

regular drilling contracts.  This will streamline the Company's Mexican

operation, reduce our risk, and over time lead to a more stable cash-flow. The

Company expects to close the transaction within the third quarter of 2021.

As of the end of Q1 2021, Borr Drilling reported a receivable balance of $30.3

million from its related parties, mainly representing bareboat revenue and other

earnings due from the Drilling JVs. In addition, the Drilling JVs has a positive

working capital balance and retained profits attributable to Borr Drilling. The

$28 million gross settlement for the transaction is in addition to this amount.

The cash generated by the Company's 13 operating rigs is expected to cover the

finance, stacking and G&A cash cost for the third quarter 2021. Additionally,

with improved regularity in payments from Pemex, continued operation of Borr

Drilling's rigs in Mexico until 2022, the proceeds from the sale of the IWS JVs,

and an overall activity for the Company in excess of 13 rigs should provide the

Company with sufficient liquidity runway until the current debt maturities in

2023. The Company is also optimistic about re-activations of additional warm

stacked rigs due to improved market conditions.

Hamilton, Bermuda

15 June 2021

This press release includes forward looking statements, which do not reflect

historical facts and may be identified by words such as "potentially",

"expected", "should" and "will" and similar expressions and include statements

relating to the commencement of closing of the transaction, receivable balances,

retained profit and working capital, gross settlement, the operating margin of

13 operating rigs to cover the finance, stacking and G&A cash costs for the

third quarter 2021, regularity of payments from Pemex, contracts of rigs,

sufficient liquidity runway until the current debt maturities in 2023, improved

market conditions and other non-historical matters. Such forward-looking

statements are subject to risks, uncertainties and other factors could cause

actual events to differ materially from the expectations expressed or implied by

the forward-looking statements included herein and other factors described in

the section entitled "Risk Factors" in our prospectuses and filings with the

Securities and Exchange Commission. These forward-looking statements are made

only as of the date of this release. We do not undertake to update or revise the

forward-looking statements, whether as a result of new information, future

events or otherwise.