SDSD: COMPLETED PRIVATE PLACEMENT

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SDSD: COMPLETED PRIVATE PLACEMENT

Limassol, January 25, 2017

S.D. Standard Drilling Plc. ("SDSD" or the "Company") is pleased to announce that it has completed a private placement towards a selected group of international and Norwegian institutional investors to further strengthen the institutional shareholder base and prepare the Company for future growth. The Company has allotted and issued 220,297,158 shares (the "New Shares") at the price of NOK 0.90 corresponding to gross proceeds of NOK 198,267,442 in a private placement (the "Private Placement").

Following the issuance of the new shares, from the Private Placement and the Subsequent Offering completed on 20 January 2017, the share capital of the Company will be increased to USD 10,220,000 divided into 1,022,000,000 shares with a par value of USD 0.01 each.

Net proceeds from the Private Placement will be used to partly fund the 15.6% investment in New World Supply Ltd. being the ultimate owner of six (6) mid- size Platform Supply Vessels. Furthermore, the Company looks to deploy cash into oil service investment opportunities, directly into companies, securities and/or assets, with the aim to control a larger fleet of assets - all purchased at low values.

The payment date for the New Shares will be on or about January 30, 2017 and the delivery of the New Shares will be delivered on or about February 2, 2017. The New Shares will be listed and tradable on the Merkur Market, with ticker "SDSD-ME" under a separate ISIN number being CY0107010916 for the period between issuance of the New Shares and the approval and publication of a listing prospectus by the Norwegian FSA. Further, The Board will propose a launch of a subsequent share offering (the "Subsequent Offering"). The Subsequent Offering will be directed towards shareholders of the Company, as of January 24, 2017, as registered with the VPS two trading days thereafter (the "Record Date"), who were not invited to participate, or applied for but were not allocated shares, in the Private Placement, and who are not resident in a jurisdiction where such offering would be unlawful or (for jurisdictions other than Norway) would require any prospectus, filing, registration or similar action ("Eligible Shareholders"). The Company intends to offer 22,200,000 shares to Eligible Shareholders. The Subsequent Offering will remain subject to approval of an increase of the Company's authorised share capital by an extraordinary general meeting of the Company (the "EGM"), expected to be held ultimo February 2017. Four significant shareholders, being Saga Tankers ASA (incl. Strata Marine & Offshore AS), QVT Financial L.P., Apollo Asset Management Limited and HRF Marine LLC, together controlling approximately 39% of the shares in the Company, subscribed for and were allocated 22,222,222 shares in the Private Placement. The shares were allocated according to their current pro rata holdings. The following primary insiders (or related parties thereof) of the Company have ordered and been allocated shares in the Private Placement: Arne Fredly, member of the Board, has been allocated 2,343,184 shares through Apollo Asset Limited and Saga Tankers ASA, represented on the Board, has been allocated 10,496,231 shares. Clarksons Platou Securities AS has acted as Sole Manager and Bookrunner in the Private Placement. For further information please contact: General Manager Evangelia Panagide at [phone], or Chairman of the Board Martin Nes at [phone] *** This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.