Yantai Raffles Acquires Sanlian Longkou Facility

Yantai, Shandong, China, 2nd November 2009 – Yantai Raffles Offshore Ltd, a subsidiary of Yantai Raffles Shipyard Limited, has entered into an agreement to purchase of 100% equity interest in Sanlian Longkou shipyard in Shandong, China for a cash consideration of RMB291Million. Completion of the acquisition is subject to required regulatory approvals. The shipyard, with existing land area of more than 400,000 sqm, will be built as one of the world’s largest Jackup fabrication yards.

Deputy Chairman Mr Brian Chang said “We are delighted to announce the acquisition of Sanlian Longkou. Through this purchase we can expand our capacity, improve our efficiency and embark on delivering quality products to our customers at a competitive price and on time. Our long term plan is to become the number one supplier of Jackup drilling rigs in the world within the next 3-5 years.”

About Yantai Raffles Shipyard Limited

Yantai Raffles Shipyard Limited is the largest rig builder in China, with significant expertise and experience in the construction of various marine and offshore projects which include jack-up drilling rigs, semi-submersible drilling rigs, floating production storage and offloading vessels, heavy lift vessels, pipe lay vessels and other prototype vessels. Both innovative and scalable, Yantai Raffles is supported by a highly- skilled engineering force, cutting-edge facilities and superior technology. Shares of Yantai Raffles trade on the Oslo OTC system under the ticker symbol YRSL.NO.

Yantai Raffles Shipyard Limited