Shelf Drilling : Board of Directors Approves Share Issue

PRESS RELEASE

SHELF DRILLING BOARD OF DIRECTORS APPROVES SHARE ISSUE

Dubai, 28 October 2020: Reference is made to the announcement by Shelf Drilling, Ltd. ("Shelf Drilling" or

the "Company", OSE: SHLF) on 30 October 2019 regarding the grant of 40,863 restricted stock units ("RSUs") to Mr. Danner under the Company's 2017 Long-Term Incentive Plan.

The 40,863 RSUs will vest on the first anniversary from the date of grant (i.e. on 14 November 2020), subject to Mr. Danner's continued service with the Company. In order to settle the RSUs, the Company's board of directors has today resolved to issue 40,863 new common shares, each with a par value of USD 0.01, to the chairman. The share issue is conditional upon the vesting of the RSUs on 14 November 2020.

Following the share issue, the issued share capital of the Company will be USD 1,362,230.40, divided into 136,223,040 common shares, each with a par value of USD 0.01. The authorised share capital of the Company is USD 1,840,634.73, divided into 184,063,473 shares, each with a par value of USD 0.01.

For Mr. Danner's continued service as chairman, the board of directors has approved, with effect from 14 November 2020, an annual equity award targeted at USD 50,000 in the form of 179,727 RSUs. The RSUs shall vest on the first anniversary from the date of grant and shall each be settled in exchange for one common share in the Company against no consideration, subject to Mr. Danner's continued service with the Company.

About Shelf Drilling

Shelf Drilling is a leading international shallow water offshore drilling contractor with rig operations across Middle East, Southeast Asia, India, West Africa and the Mediterranean. Shelf Drilling was founded in 2012 and has established itself as a leader within its industry through its fit-for-purpose strategy and close working relationship with industry leading clients. The company is incorporated under the laws of the Cayman Islands with corporate headquarters in Dubai, United Arab Emirates. The company is listed on the Oslo Stock Exchange under the ticker "SHLF".

Additional information about Shelf Drilling can be found at www.shelfdrilling.com.

Contact details

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