Nordic American Tankers Limited (NYSE:NAT) Letter to Shareholders from the Chairman and CEO. Year-end rally in the crude tanker

Nordic American Tankers Limited (NYSE:NAT) Letter to Shareholders from the
Chairman and CEO. Year-end rally in the crude tanker market - strongly
increased rates. Will it last?

HAMILTON, Bermuda, Dec. 10, 2013 (GLOBE NEWSWIRE) --

Dear Shareholder,

As we approach the end of the year, I would like to share with you some
thoughts on recent events. The best suezmax tanker rates for a year or two are
with us now. For each day passing by, we come closer to stable improved
conditions. These last few months have been a busy and exciting time for us.
We have established a new company, Nordic American Offshore Ltd. (NAO), where
NAT is the largest shareholder. The fourth quarter started quite slowly, while
the tanker market for crude oil has strengthened considerably during the last
few weeks. The stronger market manifested itself first in the super tanker
sector (VLCC), and is now having a positive impact on the Suezmax sector. As I
write this, broker reports are quoting Suezmax spot market rates of about
$35,000 per day. The longer it lasts, the better. The fourth quarter can still
be expected to remain weak as a certain time is needed to improve the rates
across our fleet.

We obviously see the recent development as a positive sign. As we enter 2014,
the fundamentals of our business can accommodate these spikes occurring more
frequently, in turn raising the average rates achieved by our fleet.

Bright spots on the horizon are the strong tendencies we see in global
ton-mile demand (transportation work) coupled with, most likely, negative
tanker industry fleet growth in 2014. Recently, there have been many reports
in the media about US energy independence. The US accounts for only about 15%
of our business; the focus in the crude shipping sector is tilting eastward.
Global oil consumption is still growing, and the distances for transporting
the oil are increasing.

In November, we announced the creation of Nordic American Offshore - an
offshore supply vessel company employing a similar strategy to NAT. NAO, which
at this time owns six supply vessels, is a separate company from NAT. The
company was primarily financed through a private placement, which was well
received and oversubscribed. NAT also has made an investment in NAO of $65
million, which is slightly in excess of the cost of one Suezmax newbuilding.
The plan is to have NAO listed on the NYSE during the first quarter of 2014.

The reasoning behind the investment in NAO is twofold. Accounting for the
related equity issue, the transaction is demonstrably accretive, at today's
rates. NAO has substantial contracted revenue and a potential for strong
dividends, which will flow through to NAT shareholders. We are hopeful that
the value of NAT's investment would increase. We have seen NAO shares trading
over the counter (OTC) in Oslo at levels above the issue price. Secondly, many
of the same management resources will serve both companies. This will decrease
NAT's general and administrative costs and give NAO a cost advantage too.

The shipping downturn has lasted for a long time. However, the signs of a
recovery are becoming clearer and clearer. NAT will benefit from the turning
tide. We have made significant investments in our ships during the weak market
– an investment that will bear fruit as conditions improve.

We already see the benefits of fuel-saving technologies that we have applied
to our existing vessels. Thanks to our investment in maintenance, the
technical condition of our fleet is excellent.

We believe our shareholders are not served by endlessly ordering new ships
when the existing tonnage is perfectly capable of the job. Some companies
spend plenty of timetalking about the benefits of new ships, but those new
ships only exacerbate the oversupply problem we have and drive down rates for
the entire sector. We are in the business of generating returns – not acting
like the neighbour who every year has to buy the flashiest new car.

We would also point out that our fleet gets high marks in vetting, with a
proven record in adhering to strict industry standards of quality and safety.
That means safety for the crew, safety for the environment and safety for

We focus on risk management. Many companies failed to manage their balance
sheets and to protect their equity position. The investors in several of those
companies ended up with holdings worth zero. We have always stated we are
shareholder friendly and protecting our position and strength during the
downturn is part of that strategy.

With the establishment of NAO, NAT is in an even stronger position than before
and we are constantly evaluating the best way to safeguard shareholders and
capture the tanker market recovery. The management of NAT has no incentive to
indiscriminately grow the fleet or assume large risks. We will stay the
course, acting responsibly and conservatively.

I wish you all and your families all the best for the holidays and look
forward to a prosperous and exciting 2014.


Herbjørn Hansson
Chairman & CEO


Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides
safe harbor protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying assumptions
and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including this
cautionary statement in connection with this safe harbor legislation. The
words "believe," "anticipate," "intend," "estimate," "forecast," "project,"
"plan," "potential," "will," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable
when made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. We undertake no
obligation to update any forward-looking statement, whether as a result of new
information, future events or otherwise.

Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies and currencies, general market conditions,
including fluctuations in charter 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 our operating
expenses, including bunker prices, drydocking and insurance costs, the market
for our vessels, availability of financing and refinancing, 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, vessel breakdowns and instances of
off-hires and other important factors described from time to time in the
reports filed by the Company with the Securities and Exchange Commission,
including the prospectus and related prospectus supplement, our Annual Report
on Form 20-F, and our reports on Form 6-K.

Press release (PDF):

CONTACT: Scandic American Shipping Ltd.
         Manager for:
         Nordic American Tankers Limited
         P.O Box 56, 3201 Sandefjord, Norway
         Tel: + 47 33 42 73 00 E-mail:

         Jacob Ellefsen,
         Manager, Investor Relations and Research, Monaco
         Nordic American Tankers Limited
         Tel: + 377 93 25 89 07 or + 33 678 631 959

         Rolf Amundsen, Advisor, Norway
         Nordic American Tankers Limited
         Tel: +1 800 601 9079 or + 47 908 26 906

         Turid M. Sorensen, CFO & EVP, Norway
         Nordic American Tankers Limited
         Tel: +47 33 42 73 00 or +47 90 57 29 27

         Gary J. Wolfe
         Seward & Kissel LLP, New York, USA
         Tel: +1 212 574 1223

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