Pursuant to that certain Confidentiality Agreement between Dleif Drilling LLC ("Dleif") and certain holders of the 5.875% notes due 2022 issued by Schahin II Finance Company (SPV) Limited, Dleif is publicly disclosing that on November 18, 2016, Magni Drilling Limited ("Magni") conveyed an offer (the “Offer”) to Dleif for the purchase of the drillship Sertão. The Offer was for 75 million U.S. dollars. The Offer was not accepted and expired on November 22, 2016, although conversations with Magni have continued.

For information on this press release, please contact Mark D. Collins of Richards, Layton & Finger, P.A., U.S. legal counsel to Dleif Drilling LLC.