FRO - USD 100 MILLION SHARE OFFERING FULLY SUBSCRIBED

HAMILTON, Bermuda, Dec. 09, 2016 -- Frontline Ltd. (NYSE/OSE: FRO) (the "Company") is pleased to announce that the offering (the "Offering") of new shares (the "New Shares") announced on December 8, 2016, has been successfully completed at USD 7.45 per New Share (equalling NOK 62.80 at a USD/NOK exchange rate of 8.43), raising gross proceeds of USD 100 million (approximately NOK 843 million) through the issuance of 13,422,819 New Shares. The Offering was significantly oversubscribed.

Due to very strong demand, the Company's largest shareholder, Hemen Holding Ltd. ("Hemen"), has agreed to be allocated 1,342,281 New Shares in the Offering, corresponding to 10 per cent of the Offering. Hemen will own an aggregate of 82,145,703 shares in the Company upon completion of the Offering, equalling approximately 48.4 per cent of the Company's shares and votes.

Notifications of allocation of New Shares will be distributed on or about December 9, 2016. The due date for payment for allocated New Shares is expected to be December 16, 2016.

Subject to full payment of the New Shares, delivery of the New Shares allocated in the Offering is 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.

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 York Stock Exchange and 14 December 2016 on the Oslo Stock Exchange and payment date on or about 22 December 2016.

Following issuance of the New Shares the Company will have 169,809,325 issued common shares each having a par value of USD 1.00.

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

This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Offering is being made by means of an application agreement, a term sheet and a prospectus and related prospectus supplements which form a part of the Company's effective Registration Statement on Form F-3 (Registration No. 333-204884) that has previously been filed with the US Securities and Exchange Commission (the "SEC"). Copies of the offering documentation may be obtained by contacting Arctic Securities at telephone: +47 21 01 30 40 or e-mail: [email protected].

Arctic Securities AS and Arctic Securities LLC have acted as sole manager in the Offering.

December 9, 2016

The Board of Directors
Frontline Ltd.
Hamilton, Bermuda

Contacts:

Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS

+47 23 11 40 84

Inger M. Klemp: Chief Financial Officer, Frontline Management AS

+47 23 11 40 76

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Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements, which include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. Words such as "believe", "anticipate", "intends", "estimate", "forecast", "project", "plan", "potential", "may", "should", "expect", "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions.  Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter hire rates and vessel values, changes in demand in the dry bulk market, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our  vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists, and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission.

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