Energy SpA — Capital/Financing Update 2017

Sep 28, 2017

Denne melding til obligasjonseierne er kun utarbeidet på engelsk. For informasjon vennligst kontakt Nordic Trustee ASA.

To the bondholders in:

ISIN: NO 001 0689763 - 9.50 per cent. Iona Energy Company (UK) Limited Senior Secured Callable Bond Issue 2013/2018

Oslo, 28 September 2017

Partial release of the NT Retention Amount - Payment to Bondholders; Clarifications in respect of outstanding Bonds

Nordic Trustee ASA acts as bond trustee (the "Bond Trustee") for the bondholders (the "Bondholders") in the above mentioned bond issue (the "Bond Issue") where Iona Energy Company (UK) Limited is the issuer (the "Issuer").

All capitalised terms used herein and not otherwise defined herein shall have the meanings assigned thereto in the bond loan agreement for the Bond Issue originally dated 26 September 2013 (as amended on 3 June 2014, and as amended and restated on 17 April 2015, 10 March 2017 and 13 April 2017) (the "Bond Agreement").

Partial release of the NT Retention Amount

Reference is made to Clause 9.4.4 of the Bond Agreement. The Bond Trustee has determined, in its sole discretion, that it will make a partial distribution in an amount of USD 600,000 to Bondholders from the NT Retention Amount. Such amount will be paid to the Bondholders as described below:

Record Date:	4 October 2017 (end of business)
Settlement Date:	6 October 2017
	Repayment Amount: USD 600,000, equal to 114.28571% of the face value of the respective
	Bondholders' holding of Bonds, will be paid as an extraordinary payment and
	shall not be considered to be a redemption of any of the Bonds.

Clarifications in respect of outstanding Bonds

As at the date of this notice, and following the payment of the Deferred Bond Repayment Amount (less the Final MIP Amount) to Bondholders on 12 July 2017 (as to this, please refer to the notice from the Bond Trustee published on 5 July 2017), Bonds in a principal amount of USD 525,000 have been left outstanding in the VPS. Bonds have been left outstanding in this manner solely so that there is a definitive record in the VPS of each Bondholder's entitlement to its pro rata share of the Extraordinary Proceeds. Pursuant to the Bond Agreement, the Issuer shall have no further liability in respect of the above outstanding Bonds as it has satisfied its obligation to pay the Deferred Bond Repayment Amount (being the final repayment of principal under the Bond Agreement).

Bondholders are entitled to receive the full amount of all Extraordinary Proceeds from the Bond Trustee pursuant to Clause 9.4 of the Bond Agreement and therefore, future recoveries of Bondholders in respect of the Extraordinary Proceeds will not be capped at the principal amount of Bonds then outstanding. In order to ensure that Bondholders will receive the full amount of Extraordinary Proceeds they are entitled to, the Bond Trustee will structure future distributions of Extraordinary Proceeds to Bondholders as either extraordinary payments (payments not considered to be a redemption of any of the Bonds) or as a payment of principal with a premium.

Yours sincerely Nordic Trustee ASA

Vivian Trøsch