NewLead : Announces Expansion of Fleet to Ten Vessels

PIRAEUS, Greece, Jan. 27, 2015 /PRNewswire/ -- NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company") announced today that it recently added five bitumen tanker vessels to its fleet. The Company has expanded its fleet to 10 vessels in less than a year while performing on its strategy to capitalize on opportunities that arise in the market.

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NewLead completed the acquisition of three bitumen tankers, the "Captain Nikolas I", the "Nepheli" and the "Sofia", for a purchase price of approximately $21.0 million, to be paid through a combination of equity and debt financing. The other two bitumen tankers, the "Ioli" and the "Katerina L", were added to NewLead's fleet following two separate bareboat/leasing agreements. The Company has the option to purchase the last two vessels at any time during the term of the bareboat/leasing agreements but has the obligation to purchase both vessels at the end of the term of such agreements, for an aggregate purchase price of a minimum of approximately $6.05 million together with the payment of any remaining unpaid trade debt on both vessels. The Company is expected to make a payment of approximately $4.23 million in connection with the delivery of the last two vessels. The delivery payment and the payment at the end of the agreements to purchase the vessels are expected to be paid, through the issuance of shares of common stock of the Company, all as described in the agreements included in the Company's Current Report on Form 6-K filed on January 27, 2015.

Four of the five vessels, the Captain Nikolas I, the Nepheli, the Ioli and the Katerina L, were built in 2009 and the Sofia was built in 2008. NewLead has been managing the Captain Nikolas I and the Sofia for over a year. The remaining three vessels were delivered to NewLead's fleet at various times during the fourth quarter of 2014.

The gross earnings from the employment of all five vessels are expected to be $12.65 million per year. All five vessels are expected to generate an aggregate of approximately $5.61 million of EBITDA per year assuming an aggregate of $7.04 million of yearly operating expenses. Four of the five bitumen tanker vessels are trading on the spot market and the Nepheli is on a period time charter until August 2015.

Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "NewLead continues to deliver on its commitments to create value for its shareholders and grow its fleet while improving the age profile as well as their tradability, increasing the cash flow as well as the revenues of the Company. Today, NewLead's average fleet age is 7.39 years compared to 17.84 years at the beginning of 2014."

Mr. Zolotas, continued, "NewLead invested in young, high quality sophisticated bitumen tanker vessels to capture opportunities in emerging economies and niche markets with relatively low competition. NewLead's long term relationships with oil majors and fuel oil companies will allow responsiveness to market opportunities as well as support its commitment to continue to grow its fleet."

Fleet Update

The following table details NewLead's fleet as of January 27, 2015:

    Vessel Name      Size (dwt)        Vessel Type                      Year Built
    -----------      ---------         -----------                      ----------

    Dry Bulk Vessels
    ----------------

    Newlead
     Castellano                 35,542  Eco-type Handysize                         2013
    -----------                 ------  ------------------                         ----

    Newlead
     Albion                     32,318  Eco-type Handysize                         2012
    -------                     ------  ------------------                         ----

    Newlead
     Venetico                   32,500  Eco-type Handysize                         2012
    ---------                   ------  ------------------                         ----

    Newlead
     Victoria                   75,966  Panamax                                    2002
    ---------                   ------  -------                                    ----

    Newlead
     Markela                    71,733  Panamax                                    1990
    --------                    ------  -------                                    ----

    Tanker Vessels
    --------------

      Captain
       Nikolas I                 5,887  Chemical Tanker/Asphalt Carrier            2009
      ----------                 -----  -------------------------------            ----

      Katerina L                 3,357  Chemical Tanker/Asphalt Carrier            2009
      ----------                 -----  -------------------------------            ----

      Nepheli                    3,416  Chemical Tanker/Asphalt Carrier            2009
      -------                    -----  -------------------------------            ----

      Ioli                       3,396  Chemical Tanker/Asphalt Carrier            2009
      ----                       -----  -------------------------------            ----

      Sofia                      2,888  Chemical Tanker/Asphalt Carrier            2008
      -----                      -----  -------------------------------            ----

      Gema(1)                   19,831  Oil Tanker                                 2001
      ------                    ------  ----------                                 ----

1. This is a third party vessel under management

About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international, vertically integrated shipping, logistics and commodity company, providing ideal solutions for seaborne transportation of dry bulk commodities and petroleum products through owned and managed vessels. NewLead controls a fleet of ten vessels, including five dry-bulk and five tanker vessels and manages one third party tanker vessel. NewLead's common shares are traded under the symbol "NEWL" on the Over-the-Counter market. To learn more about NewLead Holdings Ltd., please visit NewLead's website at www.newleadholdings.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release includes assumptions, expectations, projections, intentions and beliefs about future events. These statements, as well as words such as "anticipate," "estimate," "project," "plan," and "expect," are intended to be ''forward-looking" statements. We caution that assumptions, expectations, projections, intentions and beliefs about future events may vary from actual results and the differences can be material. Forward-looking statements include, but are not limited to, such matters as the creditworthiness of our counterparties, the reliability of reserve reports, our ability to extract or acquire coal to fulfill contracts, the consummation of conditional contracts, future operating or financial results; our liquidity position and cash flows, our ability to borrow additional amounts under our revolving credit facility and, if needed, to obtain waivers from our lenders and restructure our debt, and our ability to continue as a going concern; statements about planned, pending or recent vessel disposals and/or acquisitions, business strategy, future dividend payments and expected capital spending or operating expenses, including dry-docking and insurance costs; statements about trends in the product tanker and dry-bulk vessel shipping segments, including charter rates and factors affecting supply and demand; expectations regarding the availability of vessel acquisitions; completion of repairs; length of off-hire; availability of charters; and anticipated developments with respect to any pending litigation. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although NewLead believes 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, NewLead cannot assure you that it will achieve or accomplish these expectations, beliefs or projections described in the forward looking statements. 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 and currencies, general market conditions, including changes in charter rates and vessel values, failure of a seller to deliver one or more vessels, and other factors discussed in NewLead's filings with the U.S. Securities and Exchange Commission from time to time. NewLead expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in NewLead's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Investor and Media Relations:
Elisa Gerouki
NewLead Holdings Ltd.
Telephone: + 30 213 014 8023
Email: [e-mail]

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SOURCE NewLead Holdings Ltd.