SDSD: ISSUANCE AND ALLOTMENT OF NEW SHARES FROM THE PRIVATE PLACEMENT

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SDSD: ISSUANCE AND ALLOTMENT OF NEW SHARES FROM THE PRIVATE PLACEMENT

Limassol, February 1, 2017

Reference is made to announcements made on January 25, 2017, concerning a private placement of up to 220,297,158 new shares (the "New Shares") (the "Private Placement") in S.D. Standard Drilling Plc. ("SDSD" or the "Company"). The New Shares have now been validly and legally issued and registered in the VPS with ISIN number CY0107010916 and will be delivered to the investors that have been allotted shares tomorrow, Thursday February 2, 2017.

The New Shares will start trading on the Merkur Market with ticker: SDSD-ME and with ISIN number CY0107010916. Please note that this ticker and ISIN differs from the ticker and ISIN for the Company's shares listed on Oslo Axess. The New Shares will not be tradable on Oslo Axess until a listing prospectus has been approved by the Norwegian FSA and published by the Company. Once the prospectus has been approved and published, the New Shares will be transferred to and start trading on the Oslo Axess with ticker "SDSD" under its original ISIN number, being CY0101550917. Such listing prospectus is expected approved and published end of February 2017.

Following the issuance of the New Shares the share capital of the Company has been increased to USD 10,220,000 divided into 1,022,000,000 shares with a par value of USD 0.01 each, all of which are fully paid. For further information please contact:

General Manager Evangelia Panagide at [phone], or Chairman of the Board Martin Nes at [phone]

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