SOURCE: Golden Ocean Group

August 28, 2009 03:00 ET

GOGL - Sale of vessel and long term time charter contract

HAMILTON, BERMUDA--(Marketwire - August 28, 2009) -

Golden Ocean Group Limited ("Golden Ocean" or the "Company") has agreed to get released from the bare boat agreement for the 1994 built Panamax vessel "M/V Golden Joy" against purchasing the vessel for $10.7 million.

Simultaneously the Company has agreed to sell the vessel for net sale proceeds of $16 million. Delivery to the buyers will take place in October 2009.

The transaction will give a negative result of $4.1 million, but will have a positive cash effect of $3.8 million. The result will be recorded in the fourth quarter of 2009. The vessel is due for dry docking this year but is sold on an "as is" basis. Golden Joy is the last of the 5 vessels under the deal with Clipper Bulk Shipping Ltd.

Golden Ocean is further pleased to advise that the Company has utilized the recent strength in the dry bulk market and fixed out on time charter the Panamax vessel M/V Mulberry Paris (76,450 dwt, built 2004). The vessel will be delivered to the Charterer at the end of this month for a two years time charter contract.

The agreed daily time charter hire is $18.100 less 5% total commission. The vessel is on a long term time charter contract to Golden Ocean at $9.500 per day. The agreed time charter agreement further reduces the company's cash break even costs for its open tonnage and secures $5 million in additional net income over the charter period.

Both transactions are in line with the outlined strategy communicated during the last quarterly report, where the Company stated that it will continue to add cover for open capacity. Further the Company will focus on a modern and homogenous fleet with lowest possible running costs.

Hamilton, Bermuda
August 28, 2009

Contact Persons:
Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 40

Geir Karlsen: CFO, Golden Ocean Management AS
+47 22 01 73 53

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