First Ship Lease Trust : Announcement - Sponsor

FSL TRUST MANAGEMENT PTE. LTD.

(As Trustee-Manager of First Ship Lease Trust)

(Company Registration No. 200702265R)

(Incorporated in Singapore)

ANNOUNCEMENT - SPONSOR

The Board of Directors of FSL Trust Management Pte Ltd, as trustee-manager of First Ship Lease Trust (the "Trustee-Manager"), has been advised that Godan GMBH ("Godan"), the controlling Unitholder of First Ship Lease Trust (the "Trust") and the sole shareholder of FSL Holdings Pte Ltd ("FSL Holdings"), is in discussions with short-listed strategic investors for a potential sale of all of its shares in FSL Holdings. FSL Holdings is the Sponsor of the Trust and Godan is a subsidiary of HSH Nordbank AG. FSL Holdings, through FSL Asset Management Pte Ltd, owns all of the shares of the Trustee-Manager.

A sale of FSL Holdings would result in the change of the beneficial ownership of the Sponsor and the Trustee-Manager. The Trustee-Manager views this as a positive development for the Trust and anticipates that with a long-term strategic investor controlling the Sponsor, prospects for a refinancing and/or extension of the Trust's indebtedness should be greatly improved.

Unitholders are advised to exercise caution in trading their units as there is no certainty or assurance as at the date of this announcement that Godan will enter into any definitive agreements for the sale of FSL Holdings. Unitholders are advised to read this announcement and any further announcements by the Trustee-Manager carefully. Unitholders should consult their stock brokers, bank managers, solicitors or other professional advisers if they have any doubt about the actions that they should take.

BY ORDER OF THE BOARD

FSL Trust Management Pte. Ltd. (Company registration no. 200702265R)

as Trustee-Manager of First Ship Lease Trust

Timothy James Reid

Non-Independent Non-Executive Chairman 21 December 2017