Dolphin Drilling AS — Capital/Financing Update 2010

Dec 21, 2010

Disclosure of holdings

Armada Seismica ASA ("Armada") shall grant a

convertible loan to Dolphin of up to USD 6.5 million

in order for Dolphin to fund 13 % of the purchase

price for seismic equipment on Polar Duke. If Dolphin

exercises its option to charter a vessel similar to

Polar Duke from Armada, Armada will be entitled to

convert this loan into shares in Dolphin at at

conversion price of NOK 2.50. Provided that the

principal amount of this loan is converted to share

capital and the value of 1 USD is NOK 6, Armada will

receive 15,600,000 shares corresponding to 10,29 % of

the registered share capital upon completion of the

Private Placement. If the value of the dollar

increases or accrued interest is converted to share

capital, Armada will receive more shares