Sale of VLCC

Saga Tankers ASA has entered into an agreement for the sale of its 2000-built VLCC, Saga Unity. The sale is outright and free from any subjects. The sales proceeds, USD 29.4 million net plus the value of bunkers and lubes, will be used to deleverage the Company. The vessel will be delivered to its Buyers during November 2011.

Saga Tankers ASA announces today that the decline in ship values increases the risk for the company breaching covenants in its loan agreements, such as clauses regarding minimum value and value adjusted equity ratio. As a result, the company is in discussions with its lenders concerning its indebtedness.

The company continues to review its financing options and is currently considering various alternatives.

Oslo, 12 October 2011

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