Farstad Shipping ASA – Update on merger process

Skudeneshavn, Ålesund and Limassol, 25 April, 2017

Reference is made to the detailed stock exchange announcement on 24 March 2017 regarding the merger plans (the "Merger Plans") signed by Solstad Offshore ASA ("Solstad Offshore" or the "Company"), Farstad Shipping ASA ("Farstad"), Deep Sea Supply Plc ("DESSC") and Solstad Offshore's relevant subsidiaries to merge the businesses of Solstad Offshore, Farstad and DESSC with Solstad Offshore's relevant subsidiaries as the surviving entities (the "Mergers").

We also refer to stock exchange announcements from Solstad Offshore, Farstad and DESSC confirming that the extraordinary general meetings in Solstad Offshore, Farstad, DESSC, Solship Invest 2 AS, Solship Invest 3 AS and Solship Sub AS today approved the relevant parts of the Merger Plans.

The Merger decisions will be filed with the Norwegian Register of Business Enterprises today and will also be filed with the relevant authorities on Cyprus.

Furthermore, the relevant parties have today received confirmation from the Norwegian Competition Authority confirming that the matter has been closed, meaning that the Mergers have been cleared.  The relevant parties have previously received clearance from the competition authorities in Brazil, and the Mergers are therefore now cleared by the relevant competition authorities.

It is expected that the Mergers will become effective on or about 9 June 2017 with delivery of consideration shares to the shareholders of Farstad and DESSC in VPS on or about 14 June 2017.

For further information, please contact:

Lars Peder Solstad, Chief Executive Officer of Solstad Offshore ASA at +47 913 18 585 or Sven Stakkestad,  Deputy Chief Executive Officer of Solstad Offshore ASA  at +47 905 15 802.

Karl-Johan Bakken, Chief Executive Officer of Farstad Shipping ASA at +47 901 05 697 or Olav Haugland, Chief Financial Officer of Farstad Shipping ASA at +47 915 41 809

Anders Hall Jomaas, Chief Financial Officer of Deep Sea Supply Plc at +47 400 42 918.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.