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Frontline Ltd. (FRO)

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Thursday 20 October, 2011

Frontline Ltd.

FRO - Sale of Vessel and Termination of Charter

Frontline  Ltd. ("Frontline" or "Company") has entered into an agreement to sell
its  1994-built  Suezmax  tanker  Front  Fighter.  Delivery  to the new owner is
expected  to take  place in  October 2011. The  sale will  result in  a net cash
outflow  of approximately  $3.0 million,  after repayment  of bank debt, and the
Company expects to record a loss of approximately $27.0 million.

Furthermore,  the  Company  has  agreed  with Ship Finance International Limited
("Ship  Finance") to terminate the  long term charter party  for the OBO carrier
Front  Striver and Ship Finance has  simultaneously sold the vessel. The charter
party  is  expected  to  terminate  in  late October 2011. Frontline will make a
compensation payment to Ship Finance of approximately $8.1 million for the early
termination   of   the  charter.  The  transaction  will  reduce  the  Company's
obligations  under  capital  leases  with  approximately  $10.7  million and the
Company expects to record a loss of approximately $9.3 million.

October 20, 2011
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda

Questions should be directed to:

Jens Martin Jensen, Chief Executive Officer, Frontline Management AS,
+47 23 11 40 00

Inger M. Klemp, Chief Financial Officer, Frontline Management AS,
+47 23 11 40 76

Forward Looking Statements
This press release contains forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including Frontline management's examination of historical
operating trends. Although Frontline believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, Frontline cannot give assurance that it will achieve or
accomplish these expectations, beliefs or intentions.

Important  factors that,  in the  Company's view,  could cause actual results to
differ  materially  from  those  discussed  in  this  press  release include the
strength  of world economies and currencies, general market conditions including
fluctuations  in charter hire rates and vessel  values, changes in demand in the
tanker  market as a result of changes  in OPEC's petroleum production levels and
world  wide  oil  consumption  and  storage,  changes in the Company's operating
expenses  including bunker prices,  dry-docking and insurance  costs, changes in
governmental  rules and regulations or  actions taken by regulatory authorities,
potential  liability  from  pending  or  future litigation, general domestic and
international  political conditions, potential disruption of shipping routes due
to  accidents or  political events,  and other  important factors described from
time  to  time  in  the  reports  filed  by  the  Company with the United States
Securities and Exchange Commission.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
Source: Frontline Ltd. via Thomson Reuters ONE


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