SDSD: ISSUANCE AND ALLOTMENT OF NEW SHARES

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SDSD: ISSUANCE AND ALLOTMENT OF NEW SHARES

Limassol, January 4, 2017

Reference is made to announcements made on December 8

and 9, 2016, concerning a private placement of up to

423,076,924 new shares (the "Private Placement") in

S.D. Standard Drilling Plc. ("SDSD" or the "Company")

and the announcement made earlier today regarding an

extraordinary general meeting in the Company.

Following the extraordinary general meeting held

earlier today where the authorised share capital of

the Company was increased from $3,620,000 divided into

362,000,000 shares of $0.01 each, to $10,220,000 by

the creation of additional new 660,000,000 ordinary

shares of $0.01 each, the Board has resolved to issue

and allot 423,076,924 new shares (the "New Shares") to

the investors in the Private Placement at the price of

NOK 0.65, corresponding to gross proceeds of NOK 275

million.

A listing prospectus is being prepared in connection

with the listing of the New Shares on Oslo Axess. The

New Shares to be issued will be registered in the VPS

with ISIN number CY0107010916 and will not be

tradable until the prospectus has been approved by the

Norwegian FSA. The delivery date for the New Shares is

expected to take place on or about 10 January 2017.

The Board has decided to list the New Shares on the

Merkur Market pending the Prospectus approval. The

shares will start trading on or about 11 January 2017.

Once the Prospectus has been approved by the Norwegian

FSA the New Shares will start trading on the Oslo

Axess with ticker "SDSD" under its original ISIN

number being CY0101550917.

Notwithstanding the above, the subscribers in the

Private Placement (other than pre-committed and other

existing shareholders) will receive partly settlement

by way of already issued, existing and tradable shares

made available through a lending arrangement certain

existing shareholders, against payment of NOK 0.65

per share.

The Board expects to launch the previously announced

subsequent offering (the "Subsequent Offering") in

week 3 following the completion of the Private

Placement.

For further information please contact:

General Manager Evangelia Panagide at [phone]

16, 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.