Nordic American Offshore Ltd. (NYSE:NAO) – Improved Market Conditions.

Hamilton, Bermuda, August 21, 2017

Dear Shareholder,

In beginning of July this year, we secured a medium term employment for one of our vessels, i.e. seven months firm + three months options at a rate of $7,200 per day. Thereafter, we have concluded 15 new fixtures in July with rates in the range of $7,200 – $21,000 per day. So far in August, we have concluded eight new fixtures between $8,700 and $30,000 per day.

The UK Platform Supply Vessel (PSV) market is currently stronger than the market on the Norwegian Continental Shelf. We have all our seven operating vessels in the UK sector of the North Sea. Three ships are in lay-up and ready to be reactivated if required.

Going forward, we are hopeful that we can conclude fixtures at higher rates than in the first half of this year. The market is volatile by nature. We do not predict how long the stronger market will last – the longer the better.

All British Pounds (GBP) amounts have been converted to USD at a conversation rate of 1.2.

I and my son Alexander have recently increased our holdings in NAO, now standing at 10.8% of the common shares.

Kind regards,

Herbjørn Hansson
Executive Chairman
Nordic American Offshore Ltd.

Nordic American Offshore Ltd. press release