Shelf Drilling Holdings, Ltd. Announces Commencement of Offers to Purchase Any and All of Its Outstanding (a) 8.625% Senior Secured Notes Due 2018 and (b) 9.500% Senior Secured Notes Due 2020

The following table sets forth certain terms of each Offer:

Regulation S
CUSIP G23618 AA2 and ISIN
USG23618AA22

Regulation S
CUSIP G23618 AB0 and ISIN
USG23618AB05

IAI
CUSIP 822538 AD6 and ISIN
US822538AD60

Each Offer will expire at 5:00 p.m. , New York City time, on February 2, 2018 (such date and time, as it may be extended, the "Expiration Time"), unless earlier terminated. Tendered Notes may be withdrawn from an Offer at any time until the earlier of (a) the Expiration Time and (b) if the applicable Offer is extended, the 10th business day after commencement of that Offer.

Tendered Notes need to be delivered on or prior to the Expiration Time, except if Notes are delivered through the guaranteed delivery procedures described in the Statement, in which case guaranteed deliveries of tendered Notes need to be made by February 6, 2017 . The Company expects both Offers to settle on February 7, 2017 (the "Settlement Date").

For each $1,000 principal amount of Notes validly tendered at or prior to the Expiration Time and accepted for purchase pursuant to the applicable Offer, holders will receive the amount set forth in the table above under the heading "Notes Consideration," together with an amount equal to accrued and unpaid interest to, but not including, the Settlement Date. In the event that an Offer is withdrawn or otherwise not completed, the applicable Notes Consideration will not be paid or become payable to holders of Notes who have validly tendered and not validly withdrawn their Notes in connection with such Offer. In any such event, Notes previously tendered pursuant to such Offer will be promptly returned to their tendering holder.

The Company will fund the Offers with the net cash proceeds from a debt financing transaction (the "Proposed Financing").

Each Offer is subject to the satisfaction or waiver of certain conditions specified in the Statement, including successful completion of the Proposed Financing, which conditions may be waived by the Company in its sole discretion, subject to applicable law.

The Company is exercising, concurrently with the commencement of the Offers, its right to optionally redeem pursuant to the terms of the applicable indentures, as amended or supplemented, any and all Notes not purchased by the Company in the applicable Offer, conditioned upon and subject to successful completion of the Proposed Financing. In the event that the Company does not consummate the redemption of the Notes, it may otherwise acquire any Notes which remain outstanding after the Expiration Time, through open market or privately negotiated transactions, one or more additional tender offers, or otherwise, upon such terms and at such prices as the Company may determine.

The Statement, the Letter of Transmittal and the Notice of Guaranteed Delivery are being distributed to holders of Notes beginning today. Credit Suisse Securities ( USA ) LLC ("Credit Suisse") is the dealer manager for the Offers. Investors with questions regarding the Offers may contact Credit Suisse at (212) 325-2476 (collect) or (800) 820-1653 (U.S. toll free). Globic Advisors, Inc. is the tender agent and the information agent for the Offers. Copies of the Statement and other documents related to the Offers may be obtained by contacting Globic Advisors, Inc. at (800) 974-5771 (toll-free) or email info@globic.com. The Statement, the Letter of Transmittal, the Notice of Guaranteed Delivery and other documents related to the Offers are available online at http://www.globic.com/shelfdrilling until expiration or termination of the Offers.

None of the Company, its board of directors, the trustee, the information agent, the tender agent, the dealer manager or any of their respective affiliates makes any recommendation as to whether holders of Notes should tender or refrain from tendering as to all or any portion of the principal amount of their Notes pursuant to the applicable Offer. Holders must make their own decisions as to whether to tender Notes, and, if so, the principal amount of Notes to tender, and no one has been authorized by any of them to make such a recommendation. Holders must make their own decisions.

This press release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, the Notes and the Offers do not constitute an offer to buy or the solicitation of an offer to sell the Notes in any jurisdiction or in any circumstances in which such offers or solicitations are unlawful. The full details of the Offers, including complete instructions on how to tender Notes, are included in the Statement. Holders are strongly encouraged to read carefully the Statement and other documents related to the Offers because they will contain important information.

Shelf Drilling is a leading international shallow water offshore drilling contractor engaged in the provision of equipment and services for the drilling, completion and workover of offshore oil and natural gas wells. Shelf Drilling was founded in 2012 and has established itself as a leader within its industry through its fit-for-purpose strategy and close working relationship with industry leading clients. Certain of Shelf Drilling's common shares are quoted on the Norwegian OTC List.

Additional information about Shelf Drilling can be found at http://www.shelfdrilling.com.

For questions regarding any of the Offers, see above under the heading "Information Relating to the Offers."  For other questions, please contact Ian Clark , Shelf Drilling, at +971 4 567 3606.

This press release contains "forward-looking statements" which are subject to certain risks, trends and uncertainties.  In particular, statements made that are not historical facts may be forward-looking statements.  Words such as "should," "may," "will," "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "contemplates" and similar expressions identify forward-looking statements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by these forward-looking statements. Such forward-looking statements include statements regarding the intention to purchase and/or redeem Notes. Such forward-looking statements speak only as of the date of this press release and the Company does not undertake any obligation to update any forward-looking statements.