FRO - Termination of charter-in contract for OBO carrier

Hamilton, Bermuda, April 4, 2011

Frontline Ltd. ("Frontline" or the "Company") has agreed with Ship Finance International Limited ("Ship Finance") to terminate the long term charter party between the companies for the OBO carrier Front Leader. Ship Finance has simultaneously sold the vessel. The termination of the charter is expected to take place in April 2011. Frontline will make a compensation payment to Ship Finance of approximately $7.7 million for the early termination of the charter. Furthermore, the transaction will reduce the Company's obligations under capital leases with approximately $10.2 million.

Front Leader was recently redelivered to Frontline after completing a three year time charter agreement. The Company has evaluated new employment possibilities for the vessel but given the uncertainty and current low rates in the drybulk market combined with an expensive upcoming drydocking an early termination of the charter was determined to be the most sensible alternative.

Frontline has seven remaining OBO carriers on charter in from Ship Finance expiring in 2015. The current contract coverage for these vessels is 79%, 49% and 26% with average rates of $47,200, $53,700 and $63,900 per day in the remainder of 2011, 2012 and 2013, respectively.

Frontline Ltd.