Monday 14 September 2020

Dubai, 14 September 2020: Reference is made to the announcement by Shelf Drilling, Ltd. ("Shelf Drilling" or the "Company", OSE ticker code "SHLF", and together with its direct and indirect subsidiaries the "Group") on 21 February 2019 regarding the entering into of agreements with an affiliate (see Footnote 1) of China Merchants & Great Wall Ocean Strategy & Technology Fund ("CM" or “China Merchants”) for bareboat charter of, and the option to buy, two CJ-46 jack-up rigs (the "BBC Arrangement").

The Company has entered into an agreement with CM to terminate the BBC Arrangement. The termination shall be effective upon the settlement of a total charter payment of USD 4 million, payable by the Company in September 2020.