Nordic American Tankers Limited (NAT) (NYSE: NAT) Letter to Shareholders From the Chairman and CEO -- An Update

Nordic American Tankers Limited

Dear Shareholder, As Chairman and CEO, I try to keep our shareholders well-informed about developments in your company and the tanker world in general. This is a good time to send you one of my occasional letters, since much is going on in our industry and the world. The tanker markets remain soft, due primarily to the excess supply of vessels. The longer term outlook, however, is more encouraging. The order book for new vessels is declining and starting in 2014 we expect only a modest number of newbuildings will be launched. We also expect older vessels will continue to be scrapped. Consequently, the suezmax tanker markets should start tightening again. In early June, we announced that our subsidiary, Orion Tankers Limited, had renewed its commercial agreement with a subsidiary of ExxonMobil Corporation for two years. This important contract demonstrates the oil major`s continued faith in the company`s sound financial position and validates management`s dedication to safety and quality operations of its large, high standard suezmax fleet. We take pride in how well we maintain our fleet, ensuring the longevity of our vessels. Many operators cannot afford such maintenance in the current market. If you would like to read more about our operations and philosophy on running a business efficiently and with integrity, please take a look at "QUALITY COUNTS," the cover story in the May/June issue of FORUM, published by DNV. DNV is one of the most prominent classification societies in the world dealing with safety and risk management for ships, offshore units and for industry. Here is the link: http://www.dnv.com/resources/publications/dnv_forum/2013/forum_01_2013/Quality_counts.asp Based upon proceeds from our follow-on offering of shares in April this year and undrawn amounts from our $ 430 million credit facility, the company has the financial resources to expand its fleet, which now numbers 20 ships. Due to extensive delays, we cancelled our acquisition of a 2013 built suezmax tanker in June, with full return of our deposit. But this does not diminish in any way our interest in purchasing additional vessels in this market, as long as it is done in a prudent manner which also could include newbuildings. Our primary objective is to maximize total return to our shareholders, including maximizing our quarterly cash dividend. Over time we have produced a competitive total return for our shareholders and we believe that we are in an excellent position to achieve such results in the future. Nordic American is a company with limited downside and all upside. Dividend is a central element in our strategy. During the periods of soft tanker markets, the company has paid a modest quarterly dividend. When the markets start tightening again, the dividends can be expected to rise. Our model ensures that the interests of our shareholders and our management are fully aligned. If our shareholders do well, so do management and vice versa. I never comment on the stock price. Let me say,though, that over the recent past I and my immediate family have increased our investment in Nordic American significantly and we are now the largest shareholder of the company. Going forward, I feel strongly that Nordic American is in the best possible position to navigate the global economic seas, be they calm or stormy. We are privileged to be in a business that the world needs, with a company's success determined by how well it manages the shifting tides of that world. Please feel free to contact me personally at herbjorn.hansson@scandicamerican.com to give me any views or suggestions that you may have. It is always refreshing to hear from you. All the best! Sincerely, Herbjorn Hansson Chairman & CEO