NewLead Holdings Ltd. Announces Progress in the Restructuring Process with Reduction of Indebtedness by Approximately $159.0 Million

Completion of Sale of Four LR1 Product Tankers
and One Panamax Dry Bulk Vessel

PIRAEUS, Greece, March 12, 2012

NewLead Holdings Ltd. (NASDAQ: NEWL) ("NewLead" or the "Company"), an international shipping company owning and operating tankers and dry bulk vessels, today announced the completion of the sale of the four LR1 product tankers and one Panamax dry bulk vessel, the 1990-built "Newlead Esmeralda". The sale of these vessels was conducted as part of the Company's overall financial restructuring plan.

Following the successful completion of sale of the five vessels, the net sales proceeds have been applied in full satisfaction of all liabilities under the governing loan agreements. NewLead's overall indebtedness decreased by an aggregate of approximately $159.0 million after these sales, of which a decrease of $147.9 million resulted from the sale of the four LR1 product tankers and a decrease of $11.1 million resulted from the sale of the "Newlead Esmeralda" for total sale proceeds of $12.0 million out of which $0.9 million will be used to satisfy a substantial part of the vessel's trade debt.

Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "The successful completion of the sale of the five vessels is a momentous step forward in achieving a successful restructuring for the Company. We have significantly reduced the indebtedness of the Company and together with our restructuring advisors continue to work with our lenders to successfully complete the financial restructuring of NewLead and move the Company forward."

About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 11 vessels, of which two are double-hull product tankers and 9 are dry bulk vessels including four newbuildings and one vessel currently under construction that is scheduled to be delivered in the third quarter of 2012. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. To learn more about NewLead Holdings Ltd., please visit the new website at www.newleadholdings.com

Source: NewLead Holdings Ltd. press release