NewLead Holdings Ltd. Announces Conversion of $217,250,000 Debt to Equity

PIRAEUS, Greece, June 11, 2012

NewLead Holdings Ltd. (NASDAQ: NEWL) ("NewLead") today announced that Cyprus Popular Bank Public Co. Ltd. ("Cyprus Popular Bank") agreed with NewLead to the conversion of $217,250,000 associated with the aggregate principal amount of 7% Convertible Senior Notes due 2015 (the "Notes"). The Notes are held by Focus Maritime Corp. ("Focus"), a company controlled by Michael Zolotas, the President and Chief Executive Officer of NewLead. Under the terms of the conversion, the Notes held by Focus will be converted into 264,939,024 shares of NewLead's common stock. Once issued, NewLead will have a total of 284,868,787 shares of common stock outstanding.

Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "We agreed to convert this debt as a sign of my continued faith in NewLead. This conversion evidences the continued progress we have made in reducing NewLead's indebtedness. These shares are being acquired for the long term, and I have no current intention of disposing of them."

NewLead is currently discussing similar arrangements with Piraeus Bank S.A. and Lemissoler Maritime Company W.L.L. Under the agreement with Cyprus Popular Bank, NewLead may not allow debt to equity conversions on more favorable terms. There can be no assurance that Piraeus Bank S.A. or Lemissoler Maritime Company W.L.L. will agree to exchange their debt for equity on acceptable terms or at all.

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 5 vessels, of which two are double-hull product tankers and 3 are dry bulk vessels, including 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