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2017-02-09

Polarcus Limited: Polarcus agrees terms for 5 1/2 year bareboat charter

Polarcus Limited ("Polarcus" or the "Company", OSE: PLCS) is pleased to
announce that one of its Norwegian subsidiaries has entered into a heads of
agreement with SCF GEO AS ("Sovcomflot"), to charter a vessel on bareboat
terms with delivery scheduled for March, 2017 (the "Charter"). The fixed
period of the Charter will be 5 1/2 years with options to extend for up to
four additional months. With this agreement, the Polarcus Group reinforces
its collaboration with a strategic client and now has two vessels on
long-term charter, both built to operate in environmentally-sensitive sea
areas including high Ice Class conditions.

The vessel will be delivered without streamers and the streamer package
currently on board the vessel will be available for use across the Polarcus
fleet. The Charter will generate minimum hire of USD 72 million over the
fixed charter period with the possibility of increased charter hire fees
based on Sovcomflot benefitting from certain market improvements. Sovcomflot
will have the right to purchase the vessel at any time during the charter at
pre-agreed prices.

The heads of agreement and the Charter are subject to the consent of the bank
lenders who have mortgagee rights over the vessel (the "Banks"). The Charter
is also subject to finalizing terms with Sovcomflot. The terms will be based
on a previous agreement between the Polarcus and Sovcomflot Groups which
contains amendments and supplemental terms to the industry standard BARECON
2001 form.

Polarcus is a seven-vessel marine geophysical company. Following delivery of
the vessel to Sovcomflot, the Polarcus Group will have two vessels on
long-term bareboat charter with a total fixed backlog of USD 110 million with
no associated operating costs. In addition, the Polarcus Group operates a
fleet of four vessels in the contract market for which the current backlog
amounts to USD 115 million. The Company also has Polarcus Nadia, currently
cold-stacked, which will be considered for re-activation on improved market
conditions. The available excess streamer package will reduce re-activation
costs significantly if installed on Polarcus Nadia.

"Securing this long-term revenue stream is testament to the Company's ability
to adapt to the current environment. As well as strengthening Polarcus'
backlog and cash flow profile, this vessel commitment generates healthy
tension in our current vessel schedule,
" stated Duncan Eley, Group COO.

Following signature of the Charter on the terms outlined above, the combined
backlog will be USD 225 million and booked capacity for the Polarcus fleet
will be as follows:

* Q1-2017 = 81%
* Q2-2017 = 85%
* Q3-2017 = 75%
* Q4-2017 = 35%

IMPORTANT NOTICE
: There is no guarantee that the necessary Bank approvals will be granted,
that Charter terms will be finalized in an agreed period or on the terms
described above.

Contacts

Duncan Eley, COO
+971 4 436 0800
duncan.eley@polarcus.com

Hans-Peter Burlid, CFO
+971 50 559 8175
hp.burlid@polarcus.com

About Polarcus

Polarcus (OSE: PLCS) is an innovative marine geophysical company with a
pioneering environmental agenda, delivering high-end towed streamer data
acquisition and imaging services from Pole to Pole. Polarcus operates a fleet
of high performance 3D seismic vessels incorporating leading-edge maritime
technologies for improved safety and efficiency. Polarcus offers contract
seismic surveys and multi-client projects with advanced onboard processing
solutions and employs nearly 500 professionals worldwide. The Company's
principal office is in Dubai, United Arab Emirates. For more information,
visit www.polarcus.com

This information is subject to the disclosure requirements pursuant to section
5 -12 of the Norwegian Securities Trading Act.

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Polarcus Limited via Globenewswire

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