Frontline Plc — Capital/Financing Update 2016

Oct 14, 2016

FRO - Terminates four VLCC newbuilding contracts

FRO - Terminates four VLCC newbuilding contracts

Frontline Ltd. (the "Company" or "Frontline") (NYSE:FRO) today announced that it

has entered into an agreement with STX Offshore & Shipbuilding Co., Ltd. ("STX")

to terminate contracts for four VLCC newbuildings due for delivery in 2017.  The

contracted price of these vessels was $364.3 million, of which the company has

made instalment payments of $45.5 million. Following the contract terminations,

the Company has been released of any and all obligations relating to the

contracts, and received all instalment payments made to STX, less a $0.5 million

cancellation fee per vessel.

The Company believes the market will continue to present attractive

opportunities, and we will assess on-the-water and resale assets, which are at

historically low prices. Frontline's low cash breakeven levels, and access to

attractively priced capital, gives the Company significant operating leverage

and positions Frontline to take advantage of price dislocations in the market.

Following the terminations, Frontline's fleet consists of 73 vessels, including

newbuildings, with an aggregate capacity of approximately 13.5 million dwt.  The

Company's fleet is comprised of 25 VLCCs, 22 Suezmax tankers, 22 LR2/aframax

tankers and one MR. In addition, we have three MR tankers chartered in on short

term contracts.

October 14(th), 2016

The Board of Directors

Frontline Ltd.

Hamilton, Bermuda

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.