Frontline Ltd. launches a convertible bond offering
up to USD 225 million, due 2015

Press release from Frontline Ltd. 26-03-2010

Frontline Ltd. ("Frontline" or the "Company") announces today that it intends to issue up to USD 225 million in principal amount of convertible bonds (the "Bonds") with a five-year tenor. This amount includes an increase option (in respect of up to USD 25 million in principal amount of Bonds) that has been granted to the joint bookrunners of the offering.

The senior unsecured Bonds are convertible into common shares of the Company. The Bonds are expected to have an annual coupon in the range of 4.00% - 4.50% payable quarterly in arrear and a conversion premium of 30% - 35% over the volume weighted average price of the Company's shares on the Oslo Stock Exchange (converted into USD) between launch and pricing (the 'Reference Price'), subject to a minimum Reference Price of NOK 178.00.

The Bonds will be issued and redeemed at 100% of their principal amount and will, unless previously redeemed, converted or purchased and cancelled, mature in 2015. The Bonds are expected to be settled on or around 14 April 2010. The Bonds will not be listed on issue but Frontline may decide to list the Bonds on an exchange at a later stage.

The proceeds from the Bonds will be used for general corporate purposes, financing of the remaining equity investments in the Company's newbuilding program and will improve the Company's ability to react to attractive market opportunities.

ABG Sundal Collier, Arctic Securities and Deutsche Bank are acting as Joint-Lead Managers. ABG Sundal Collier and Deutsche Bank are acting as Joint Boookrunners. First Securities AS and Nordea Bank Norge ASA are acting as Co-Managers.

Frontline expects to announce the final terms and conditions related to the convertible bond transaction on 26 March 2010.

Frontline Ltd.