Yantai Raffles to Extend Frigstad's Deadline on 2nd Option Rig

Yantai Raffles Shipyard has agreed with Frigstad Discoverer Invest Ltd to extend the June 5, 2007 deadline for executing the contract to build a second rig similar to the SS Frigstad Oslo, which is currently under construction at the YRS. Under this agreement, Frigstad may now declare the option anytime before August 5, 2007.

There is no added cost for Frigstad to obtain this extension for the second option. The added yard cost, if this option is declared, is 1% per month from April 5, 2007 until June 5, 2007, and 2% per month for the following two months.

Frigstad also has a third option to build yet another rig at YRS, whether or not the above option is declared. The due date for this option is October 5, 2007.

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