Hunter Group ASA

Hunter Group ASA -Market Update

· First instalment on the first three vessels

· Payment for fourth vessel upon refund guarantee

· Declaration of three options

· New options received

First three vessels: Contracts effective, first instalment made and refund

guarantee in place

The board of directors is pleased to announce that the Company has received

satisfactory refund guarantees for the first three VLCCS (Hull nr 5455, Hull nr

5456 and Hull nr 5457) to be constructed at Daewoo Shipbuilding Marine

Engineering Co., Ltd (the "Shipyard") and has made the first instalment for each

contract, totalling USD 25.56m, to the Shipyard. The vessels are the latest

Daewoo design and will be outfitted with a scrubber, which will provide the

vessels with both technical and commercial advantages compared with the existing

VLCC fleet. In addition, the vessels will be fully compliant with the new IMO

environmental regulations coming into force in January 2020. The second

instalments are between 20 January 2019 and 20 March 2019, and the vessels are

scheduled for delivery is 4q 2019. The costs for each vessel is USD 82.5m, plus

USD 2.7m for scrubber.

The fourth vessel: First instalment upon refund guarantee

The board will make the first instalment of USD 8,55m for the fourth vessel

(Hull nr 5460) once the refund guarantee is in place. The design is identical

with the first three vessels and total cost is USD 82.8.m, plus USD 2.7m for

scrubber. The board anticipate that the refund guarantee will be in place within

the next few weeks. Second instalment is scheduled for 20 January 2019 and

delivery is 4q 2019.

Declaration of options

The board has decided to exercise the options for construction three additional

vessels. Each of the option vessels have a price of USD 82.8m, plus USD 2.7m for

scrubber. First instalment, totalling USD 25,65m is expected to be paid by 1st

September 2018. Estimated delivery times are 31 May 2020, 30 June 2020 and 31

August 2020. The Company foresee that the signing will occur in the near future

and that the second instalment for each of the contracts will be between 19 June

2019 and 27 September 2019. After signing of the contracts, the Company and

Shipyard will sit down and negotiate in good faith for earlier delivery

schedules for the option vessels.

New options for additional vessels

The Company has received three new options from the Shipyard for identical

technical specifications. The options are each priced at USD 92m, including

scrubber, and with delivery 1st half 2021. These new options will expire 15

August 2018.

For further information, please contact:

Henrik A. Christensen, Chairman, +47 909 67 683, [email protected]

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