NSA Nimrod Sea Asst

TIDMNSA

RNS Number : 7405Q

Nimrod Sea Assets Limited

19 June 2015

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS UNLAWFUL.

NIMROD SEA ASSETS LIMITED

Investment and Dividend Update

19 June 2015

The following announcement is an investment update for Nimrod Sea Assets Limited (the "Company") and details changes to the Company's dividend policy.

There are updates regarding two of the Company's investments - the mv Red7 Alliance and the FS Cygnus.

With respect to the mv Red7 Alliance (in which the Company has a 99.5% economic interest, through a Partnership), the Company received notice at 1700 UK on 18 June 2015 that Red7Marine Offshore Limited (the charterer of the vessel) had been put into administration. The administrators (Ernst and Young) have advised that they are seeking to return the vessel to the Partnership (represented for this purpose by its General Partner, DSV Alliance AS). The Company is commencing discussions with the administrators and has activated a contingency plan to protect asset value and explore options for redeployment. We will make further announcements as to developments with respect to the mv Red7 Alliance in due course.

With respect to the FS Cygnus (in which the Company has a 75% economic interest), restructuring discussions have commenced with Fletcher Shipping Limited who are the charterer of the vessel. These discussions are expected to be completed by 31 July 2015 and will likely result in a new charter on less favorable terms. Any changes to the chartering arrangements must be approved by Sparebank 1 SR Bank ASA who have a mortgage on the FS Cygnus. We will provide further details as to the outcome of these restructuring discussions in due course.

Dividend Declarations & Review

Since the Company's launch in March 2014, the oil price has been volatile, with Brent Crude trading initially to a high of US$115 in June 2014 and falling sharply since November 2014 to a low of US$45 in January 2015, recovering to stand at US$64 at last night's close. Consequently, as previously announced, the Company has slowed its pace of investments, and also there have been delays in the income cash flows received from some of the underlying initial investments and their respective SPVs. Banks have become more cautious in applying their lending criteria to the sector whilst they wait for the oil price to stabilise and strengthen. However it should be noted that the oil price has been trending upwards since mid-January.

The Company's Board is mindful of the Investment Period of 18 to 24 months following Admission detailed in the Prospectus. This Investment Period would therefore close between September 2015 and March 2016. In anticipation of this, and cognisant both of the current delays in income receipt by the Company and of shareholders' hopes for cash flow from the Company, the Board anticipates declaring a quarterly dividend of 2 cents per Ordinary Share from the end of end June 2015 until March 2016. This will be funded by income received net of expenditure, and where necessary, added to from the Company's capital resources.

As a result the Company anticipates declaring the first of these quarterly dividends at a Board meeting on 29 June 2015.

Alongside this dividend distribution the Board will conduct extensive reviews of the existing portfolio, investment policy and the further investment process and opportunities throughout this period to March 2016. If conditions remain uncertain, the Board will give serious consideration to returning unrequired uninvested capital as well as a further review of the dividend payout.

About the Company

The Company's investment objective is to obtain income return and capital appreciation for its Shareholders by participating in vehicles which acquire, charter and sell specific categories of Marine Assets associated with the offshore oil and gas industry.

Shareholder Update: Quarterly dividend policy and investment update

For further information please contact:

Nimrod Capital LLP + 44 (0) 20 7382 4565

Richard Bolchover

Marc Gordon

END OF ANNOUNCEMENT

E&OE - in transmission

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