NewLead Holdings Announces Material Progress of Restructuring Plan; Sale of Four Product Tankers and 147.9M Reduction of Indebtedness

NewLead Holdings Ltd.

("NewLead" or the "Company"), an international shipping company owning and operating tankers and dry bulk vessels, today announced that it agreed to sell four LR1 products tanker vessels. The sale of two vessels, the Newlead Fortune and the Newlead Avra, was completed today. The sale of the other two vessels, the Newlead Compass and the Newlead Compassion, is expected to be completed by the end of January 2012. The sale of these four vessels is part of NewLead's overall financial restructuring plan to reduce debt. The Bank of Scotland syndicate, composed of 10 institutions, agreed with NewLead to accept the net sale proceeds in full satisfaction of all liabilities owned to the syndicate under the governing loan agreement. Following the completion of the sale of the four vessels, NewLead's overall indebtedness will be reduced by $147.9 million. As of today, prior to the delivery of the Newlead Fortune and the Newlead Avra, NewLead had $585.4 million of indebtedness[1] on its balance sheet and its fleet consisted of 20 vessels, composed of six tankers and 14 dry bulk vessels. Following the successful completion of sale of the four vessels, and after giving effect to the reduction of debt, NewLead will have $437.5 million of indebtedness. In addition, NewLead's fleet will consist of the following 16 vessels: 14 dry bulk vessels (including four newbuildings and one vessel currently under construction that is scheduled to be delivered in the third quarter of 2012) and two product tankers.