Completed sale of Saga Agnes and update on business plan

The charterer of the vessel MT Saga Agnes ("Saga Agnes") redelivered the vessel from its contract to the Company on 27 July 2012. As per the contract, the Company paid for the remaining bunkers onboard the vessel at the time of redelivery, approx. USD 1.4 million.

Saga Tankers ASA has today completed the sale of Saga Agnes and delivered the vessel to its new owners. The net sales proceeds including the value of the remaining bunkers and lubes, a total of USD 32.1 million, has been used to repay the only remaining outstanding bank loan in full (USD 11.4 million) and to increase the Company's cash position.

The Company has now completed the sale of all material assets.

The Board of Directors believes it is in the best interest of all shareholders that the remaining equity of the Company is now returned to its shareholders. The Board of Directors will within the end of August call for an extraordinary general meeting where it will be proposed resolutions which will distribute the remaining equity to the shareholders.

The Company will publish its Q2 2012 results on 13 August 2012.

Oslo, 31 July 2012
Fredrik Platou, CEO

Questions & investor relations: fp@sagatankers.no