Frontline Plc — Capital/Financing Update 2015

Dec 17, 2015

FRO - New $500.1 Million Term Loan Facility

FRO - New $500.1 Million Term Loan Facility

Frontline Ltd. (the "Company" or "Frontline") today announced that subsidiaries

of Frontline have signed a new $500.1 million senior secured term loan facility

("New Facility") with DNB Bank ASA, Nordea Bank Norge ASA, ABN AMRO Bank NV, ING

Bank NV, Skandinaviska Enskilda Banken AB (publ) (SEB), Danske Bank A/S and

Credit Suisse AG. DNB is the facility agent.

The New Facility will mature in December 2020 and will carry a rate of LIBOR

plus a margin of 190 bps. The proceeds of the New Facility will be used to

refinance four existing bank facilities of approximately $378 million in

aggregate and repay outstanding amounts owed to Ship Finance International

Limited of approximately $113 million.

The New Facility will be secured by six VLCC's and six Suezmax tankers with an

average age of 4.6 years and it will have an amortization profile of 13.4 years.

In addition, the margin on the $466.5 million term loan facility, financing 16

product tankers, will be reduced to 190 bps.

The refinancing and amendments are expected to give a positive cash and P&L

effect in 2016 alone of  approximately $22 million and $7 million, respectively,

and the average daily cash cost breakeven TCE rates on the current operating

fleet of 43 owned or leased vessels is estimated to be reduced by approximately

$1,400 per day.

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS,

commented: "The terms achieved in the refinancing and related amendments improve

our cash flow and lower our cash breakeven rates further. The terms clearly

demonstrate the strong support we have from our relationship banks."

The Board of Directors

Frontline Ltd.

Hamilton, Bermuda

December 16, 2015

Questions should be directed to:

Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS

+47 23 11 40 84

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

+47 23 11 40 76

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking

statements. Forward-looking statements include statements concerning plans,

objectives, goals, strategies, future events or performance, and underlying

assumptions and other statements, which are other than statements of historical

facts. Words, such as, but not limited to "believe," "anticipate," "intends,"

"estimate," "forecast," "project," "plan," "potential," "may," "should,"

"expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various

assumptions, many of which are based, in turn, upon further assumptions.

Although Frontline believes that these assumptions were reasonable when made,

because these assumptions are inherently subject to significant uncertainties

and contingencies which are difficult or impossible to predict and are beyond

the control of Frontline, Frontline cannot assure you that they will achieve or

accomplish these expectations, beliefs or projections. The information set forth

herein speaks only as of the date hereof, and Frontline disclaims any intention

or obligation to update any forward-looking statements as a result of

developments occurring after the date of this communication.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1974232]