Saga Pure — Share Issue/Capital Change 2010

Nov 19, 2010

COMPLETED PRE-PLACEMENT

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN

WHOLE OR IN PART DIRECTLY OR INDIRECTLY, IN

AUSTRALIA, CANADA, HONG KONG, JAPAN OR THE

UNITED STATES.

SAGA - COMPLETED PRE-PLACEMENT

Oslo, 19 November 2010

Reference is made to the stock exchange notice issued

earlier today (19 November 2010) regarding a

contemplated pre-placement of new shares. Saga

Tankers ASA ("SAGA" or the "Company") has now

completed the placement for a total of 7,888,850 new

shares, representing close to 10% of the registered

share capital. The subscription price was NOK 7.10

per share, giving gross proceeds of approximately NOK

56 million.

Pareto Securities AS acted as Manager and Bookrunner

in the transaction.

Net proceed will be applied towards general corporate

purposes and strengthening of SAGA's balance sheet.

Completion of the private placement will be

conditional upon approval of the required share

capital increase by the Extraordinary General Meeting

of SAGA scheduled to be held on or around 13 December

2010. A notice of the Meeting will shortly be sent

to the shareholders of SAGA. The new shares to be

issued in the private placement will not be tradeable

until the share capital increase has been approved

and the subsequent registration of the share capital

increase in the Norwegian Register of Business

Enterprises (Foretaksregisteret) has taken place.

Such registration is expected to take place on or

around 14 December 2010.

For further information, please contact:

Jon Christian Syvertsen, CEO

Fredrik Platou, CFO

management@sagatankers.no

+47 23 11 82 70

www.sagatankers.no

*********

The shares to be offered have not been and will not

be registered under the U.S. Securities Act of 1933,

as amended (the `U.S. Securities Act`), or any state

securities laws, and will be offered within the

United States only to qualified institutional buyers

(`QIB`), as defined in Rule 144A under the U.S.

Securities Act (`Rule 144A`), in reliance upon the

exemption from the registration requirements

provided by section 4(2) of the U.S. Securities Act

Rule 144A, and to certain non-U.S. persons in

offshore transactions in reliance on Regulation S

under the U.S. Securities Act. The shares to be

offered will be subject to certain restrictions on

transfer. This press release shall not constitute an

offer to sell or the solicitation of an offer to buy

nor shall there be any sale of the securities in any

State in which such offer, solicitation or sale would

be unlawful. The Company does not intend to register

any portion of the offering of the securities in

the United States or to conduct a public offering

of the securities in the United States. Copies of

this announcement are not being made and may not be

distributed or sent into the United States,

Australia, Canada, Hong Kong or Japan.

In any EEA Member State that has implemented

Directive 2003/71/EC (together with any applicable

implementing measures in any member State,

the "Prospectus Directive"), this communication is

only addressed to and is only directed at qualified

investors in that Member State within the meaning of

the Prospectus Directive.

This announcement is only directed at (a) persons who

are outside the United Kingdom; or (b) investment

professionals within the meaning of Article 19 of the

Financial Services and Markets Act 2000 (Financial

Promotion) Order 2005 (the "Order"); or (c) persons

falling within Article 49(2)(a) to (d) of the Order;

or (d) persons to whom any invitation or inducement

to engage in investment activity can be communicated

in circumstances where Section 21(1) of the Financial

Services and Markets Act 2000 does not apply.

Certain statements included within this announcement

contain forward-looking information, including,

without limitation, those relating to (a) forecasts,

projections and estimates, (b) statements of

management's plans, objectives and strategies for

SAGA, such as planned expansions, investments or

other projects, (c) targeted production volumes and

costs, capacities or rates, start-up costs, cost

reductions and profit objectives, (d) various

expectations about future developments in SAGA's

markets, particularly prices, supply and demand and

competition, (e) results of operations, (f) margins,

(g) growth rates, (h) risk management, as well as (i)

statements preceded

by "expected", "scheduled", "targeted", "planned", "pr

oposed", "intended" or similar statements.

Although we believe that the expectations reflected

in such forward-looking statements are reasonable,

these forward-looking statements are based on a

number of assumptions and forecasts that, by their

nature, involve risk and uncertainty. Various

factors could cause our actual results to differ

materially from those projected in a forward-looking

statement or affect the extent to which a particular

projection is realized.

No assurance can be given that such expectations will

prove to have been correct. SAGA disclaims any

obligation to update or revise any forward-looking

statements, whether as a result of new information,

future events or otherwise.