FRO - Contemplated offering of shares

Frontline Ltd. (NYSE/OSE: FRO) (the "Company") has mandated Arctic Securities AS and Arctic Securities LLC (the "Manager"), to assist the Company in a contemplated offering (the "Offering") for issue of 13,422,819 new shares (the "New Shares") for gross proceeds of USD 100 million. The Offering is directed towards certain Norwegian and international institutional investors subject to applicable exemptions from European prospectus requirements. The minimum application and allocation amount has been set to the USD equivalent of EUR 100,000, provided that the Company reserves the right to, at its sole discretion, allocate lower amounts to investors that qualify as "professional investors" pursuant to the Norwegian Securities Trading Act and ancillary regulations.

The subscription price in the Offering will be USD 7.45 per New Share (equalling NOK 62.80 at a USD/NOK exchange rate of 8.43), equivalent to a 2.1 % discount to the closing price of the Company's shares on the New York Stock Exchange on December 8, 2016 adjusted for the USD 0.10 dividend declared by the Company on 28 November 2016. The application period for the Offering will start December 8, 2016 at 22:00 hours (CET) and will close on December 9, 2016 at 08:00 hours (CET). The Company reserves the right to close or extend the application period at any time at their sole discretion, at short notice.

Our largest shareholder, Hemen Holding Ltd., ("Hemen"), a Cyprus holding company, indirectly controlled by trusts established by the Company's Chairman and President, Mr. John Fredriksen, for the benefit of his immediate family,  which owns approximately 52% of the Company's ordinary shares, has guaranteed the Offering. If the Offering is oversubscribed, the allocation to Hemen may be reduced below its pro rata share in order to improve the free float.

The allocation will be made at the discretion of the Company in consultation with the Manager, on or about December 9, 2016, subject to any shortening or extension of the application period.

The New Shares will not give right to receive the USD 0.10 dividend declared by the Company on 28 November 2016 with ex-date 13 December 2016 on the New Your Stock Exchange and 14 December 2016 on the Oslo Stock Exchange and payment date on or about 22 December 2016.

The net proceeds from the Offering will be used to opportunistically fund growth opportunities through vessel acquisitions and for general corporate purposes.

Subject to full payment of the New Shares, the New Shares allocated in the Offering are expected to be delivered to the subscribers in the Offering on or about December 16, 2016 and to be registered in the Norwegian Central Securities Depository (VPS) with the Company's ISIN BMG3682E1921 and commence to trade under the Company's ordinary trading symbol "FRO" and become tradable on the Oslo Stock Exchange and the New York Stock Exchange on or about December 16, 2016.