2014

NewLead Holdings Ltd. Announces Revisions to September 18, 2013 Announcement

PIRAEUS, Greece, Oct. 29, 2013 /PRNewswire/ -- NewLead Holdings Ltd. (NASDAQ: NEWL) ("NewLead" or the "Company") announced today that the reference in the press release, dated September 18, 2013, with respect to the acquisition of the Viking Mine should have been to the acquisition of the rights to mine at the Viking Mine. In addition, the Company previously indicated in the same release that the acquisition price for the transactions will be $68 million, however, the acquisition price will be $42 million with funding as follows:

  • $15.0 million Senior Secured Convertible Note ("Viking Note") issued with an 8% coupon, maturing on December 31, 2014 and convertible into equity at market price on each payment date at the sole discretion of the Company, subject to a true up based on the subsequent sales of such shares, which upon issuance of the Viking Note, the Company immediately paid down the Viking Note to $9.0 million through the issuance of $5.875 million of shares of the Company's common stock (38,524,590 pre-split shares) and the cash payment of $0.125 million.
  • $21.0 million Senior Secured Convertible Note ("Additional Note") to be issued with an 8% coupon, maturing on December 31, 2014 and convertible into equity at market price on each payment date at the sole discretion of the Company, subject to a true up based on the subsequent sales of such shares, which upon issuance of the Additional Note, the Company expects to immediately pay down the Additional Note to approximately $15.75 million through the issuance of $5.25 million shares of the Company's common stock, such amount of shares to be determined on the date of issuance of the Additional Note. The Additional Note and shares of common stock will be issued at the closing of the acquisition of the Marrowbone Mine and the Coal Wash Plant.
  • $6.0 million cash payment to be paid at the closing of the acquisition of the Marrowbone Mine and Coal Wash Plant.

Furthermore, at the closing of the acquisition of the additional mine and the coal wash plant, the Company expects to issue $20.0 million of warrants (the "Advisor Warrants"), exercisable at $0.01, for 224,946,575 shares (pre-split) of the Company's common stock.  The Advisor Warrants are being issued to a third party advisor to the Company in connection with the Viking Mine, Marrowbone Mine and Coal Wash Plant transactions, as well as the Five Mile Mine and various short term funding transactions.

About NewLead Holdings Ltd.

NewLead Holdings Ltd. is an international, vertically integrated shipping and commodity company that manages product tankers and dry bulk vessels. NewLead currently controls two dry bulk vessels. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. To learn more about NewLead Holdings Ltd., please visit the new website at www.newleadholdings.com

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release includes assumptions, expectations, projections, intentions and beliefs about future events. These statements, as well as words such as "anticipate," "estimate," "project," "plan," and "expect," are intended to be ''forward-looking" statements. We caution that assumptions, expectations, projections, intentions and beliefs about future events may vary from actual results and the differences can be material. Forward-looking statements include, but are not limited to, such matters as the creditworthiness of our counterparties, the reliability of reserve reports, our ability to extract or acquire coal to fulfill contracts, the consummation of conditional contracts, future operating or financial results; our liquidity position and cash flows, our ability to borrow additional amounts under our revolving credit facility and, if needed, to obtain waivers from our lenders and restructure our debt, and our ability to continue as a going concern; statements about planned, pending or recent vessel disposals and/or acquisitions, business strategy, future dividend payments and expected capital spending or operating expenses, including dry-docking and insurance costs; statements about trends in the product tanker and dry bulk vessel shipping segments, including charter rates and factors affecting supply and demand; expectations regarding the availability of vessel acquisitions; completion of repairs; length of off-hire; availability of charters; and anticipated developments with respect to any pending litigation. 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, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although NewLead believes 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, NewLead cannot assure you that it will achieve or accomplish these expectations, beliefs or projections described in the forward looking statements. 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 changes in charter rates and vessel values, failure of a seller to deliver one or more vessels, and other factors discussed in NewLead's filings with the U.S. Securities and Exchange Commission from time to time. NewLead expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in NewLead's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Investor and Media Relations:
Elisa Gerouki
NewLead Holdings Ltd. 
Telephone: + 30 213 014 8023
Email: egerouki@newleadholdings.com

SOURCE NewLead Holdings Ltd.



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