Frontline Plc — Capital/Financing Update 2010

Sep 17, 2010

FRO - Restructuring of VLCC newbuilding contracts

Frontline Ltd. (the "Company" or "Frontline") is pleased to announce that we

have agreed with Zhoushan Jinhaiwan Shipyard Co., Ltd. ("Jinhaiwan") to

re-structure our VLCC newbuilding program at the yard.

In April and May 2008, Frontline ordered six VLCC newbuildings at Jinhaiwan. In

May 2009, two of these newbuilding orders were cancelled and the installments

paid-in were transferred to two of the retained newbuildings and the two

remaining VLCC newbuildings orders were changed into options.

As a result of the re-structuring Frontline has agreed to maintain the two

options and has ordered one additional VLCC newbuilding and is committed to take

delivery of five 320,000 dwt VLCC newbuildings, with a total contract price of

$525 million. The delivery dates for the vessels have been deferred by three

months from the original contractual dates, with the first vessel to be

delivered in January 2012 and the last in February 2013. Furthermore, payment

terms of the previously ordered vessels have been improved

As of September 17, 2010, Frontlines newbuilding program comprises two Suezmax

tankers and five VLCCs, which constitute a contractual cost of $650 million, and

in addition two Suezmax newbuilding options. Installments of $162 million have

been made on the newbuildings and the remaining installments to be paid amount

to $488 million, with expected payments of approximately $64 million in 2010,

$95 million in 2011, $185 million in 2012 and $144 million in 2013.

The Company has not yet secured financing for these newbuildings. However, based

on recently secured financing for Front Eminence and Front Endurance and

indications from banks, we assume 70 percent financing of market value for these

newbuildings. The net required equity investment in the remaining installments

is approximately $29 million. The equity investment is fully covered through the

recent completion of the $225 million convertible bond offering.

Frontline is pleased with the agreement reached with the yard, which reduces the

contract price on the VLCC newbuildings to competitive levels, lowers the total

capital expenditures on the previously ordered vessels going forward, improves

the payment terms and adds one VLCC to its newbuilding program at a competitive

contract price. Furthermore, it has been of vital importance for the Board that

the newbuilding orders can be executed and financed without impacting

Frontline's dividend capacity.

September 17, 2010

The Board of Directors

Frontline Ltd.

Hamilton, Bermuda

Questions should be directed to:

Jens Martin Jensen: Chief Executive Officer, Frontline Management AS

+47 23 11 40 99

Inger M. Klemp: Chief Financial Officer, Frontline Management AS

+47 23 11 40 76

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1445008]