Northern Drilling Ltd. (the "Company") is contemplating a private placement (the "Private Placement") of new shares (the "Offer Shares") for gross proceeds of up to approximately USD 10,000,000. The Private Placement is directed towards investors subject to and in compliance with applicable exemptions from relevant prospectus or registration requirements. The Company has engaged SpareBank 1 Markets AS as its Sole Bookrunner in the Private Placement (the "Manager").

The net proceeds from the Private Placement will be used to cover arbitration costs for the ongoing arbitration proceedings relating to claims arising from the termination of resale contracts for the drillships West Aquila and West Libra, and for general corporate purposes.

The subscription price will be set through an accelerated bookbuilding process (the “Subscription Price”). The application period for the Private Placement will start today, 1 February 2023 at 16:30 (CET) and is expected to close no later than 2 February 2023 at 08:00 (CET). The Company reserves the right to close or extend the application period at any time at its sole discretion, at short notice. The minimum order size and allocation in the Private Placement will be the NOK equivalent of EUR 100,000, provided that the Company may, at its sole discretion, offer and allocate an amount below EUR 100,000, pursuant to any applicable exemptions from applicable prospectus requirements being available.

The Company's largest shareholder, Hemen Holding Ltd. ("Hemen"), is supportive of the transaction and will subscribe for at least its pro-rata shareholding of approx. 40.63%.

Allocation of Offer Shares will be made at the discretion of the Company's Board of Directors in consultation with the Managers after expiry of the application period, subject to any shortening or extension of the application period.

Completion of the Private Placement is conditional upon the necessary corporate resolutions being validly made by the Company, including without limitation approval by the Company’s Board of Directors and the Offer Shares having been fully paid and validly issued. The Company and the Manager reserve the right, at any time and for any reason, to cancel and/or modify the terms of the Private Placement.

Settlement of the New Shares allocated in the Private Placement is expected to take place on or about 6 February 2023 on delivery versus payment basis by delivery of existing and unencumbered shares in the Company that are already listed on the Oslo Børs pursuant to a share lending agreement (the “Share Lending Agreement”) between the Company, the Manager and Hemen. The Manager will settle the share loan from Hemen with the new shares issued in connection with the Private Placement. A number of new shares equal to the final number of Offer Shares will be issued by the Company’s board of directors, and will be used to settle the share borrowing from Hemen under the Share Lending Agreement. Some or all of the new shares to be re-delivered to Hemen as lender may be registered under a separate ISIN pending approval and publication of a listing prospectus by the Financial Supervisory Authority of Norway (the "FSA"), if such prospectus is required under applicable laws and regulations. In the event a prospectus is required for the listing of such shares, some or all of the new shares to be re-delivered will not be listed or tradable on Oslo Børs until such listing prospectus has been approved by the FSA and been published by the Company.

The Company has considered the Private Placement in light of the equal treatment obligations under applicable regulations and is of the opinion that the waiver of the preferential rights inherent in a private placement, taking into consideration the time, costs and risk of alternative methods of the securing the desired funding, is in the common interest of the shareholders of the Company.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and was published by Jonas Ytreland, CFO of the Company, on 1 February 2023 at 16:30 (CET).



Jonas Ytreland, CFO

+47 994 65 550

Additional information about the Company can be found at:

Important information:

This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. Copies of this announcement are not being made and may not be distributed or sent into any jurisdiction in which such distribution would be unlawful or would require registration or other measures.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and accordingly may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States. Any sale in the United States of the securities mentioned in this announcement will be made solely to “qualified institutional buyers” as defined in Rule 144A under the Securities Act.

In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State. The “Prospectus Regulation” means Regulation (EU) 2017/1129, as amended (together with any applicable implementing measures) in any Member State.

This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only for relevant persons and will be engaged in only with relevant persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.

The issue, subscription or purchase of shares in the Company is subject to specific legal or regulatory restrictions in certain jurisdictions. Neither the Company nor the Manager assume any responsibility in the event there is a violation by any person of such restrictions. The distribution of this release may in certain jurisdictions be restricted by law. Persons into whose possession this release comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “strategy”, “intends”, “estimate”, “will”, “may”, “continue”, “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict, and are beyond their control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not make any guarantee that the assumptions underlying the forward-looking statements in this announcement are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this announcement or any obligation to update or revise the statements in this announcement to reflect subsequent events. You should not place undue reliance on the forward-looking statements in this announcement. The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement. This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities of the Company. The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions. This announcement is an advertisement and is not a prospectus for the purposes of the Prospectus Regulation as implemented in any Member State.