Navig8 Chemical Tankers Inc. Reports Results for the Three and Nine Months Ended September 30, 2017

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1 NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN OR INTO THE UNITED STATES (INCLUDING ITS TERRITORIES AND THE DISTRICT OF COLUMBIA) OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL Navig8 Chemical Tankers Inc. Reports Results for the Three and Nine Months Ended September 30, 2017 November 20, 2017 Navig8 Chemical Tankers Inc. (the Company ) (N-OTC: CHEMS), an international shipping company focused on the transportation of chemicals, today announced its unaudited financial and operating results for the three and nine months ended September 30, Highlights Generated revenue of $39.0 million and net loss of $4.9 million, or $0.13 per share, for the three months ended September 30, Successfully completed newbuilding program with the delivery of the 25,000 DWT stainless steel chemical tanker, Navig8 Sol. Increase in vessel operating days by 32% in the three months ended September 30, 2017 compared to the same period in the prior year. Following the delivery of our final newbuilding vessel in August, Navig8 Chemical Tankers has one of the largest, most modern fleet of chemical tankers in the world, said Nicolas Busch, Chief Executive Officer of Navig8 Chemical Tankers, Inc. With growing demand for long haul trade and a rapidly declining rate of growth in the global fleet of large chemical tankers, market fundamentals are expected to tighten, which will provide a strong backdrop for operating our fleet. Fleet Update All 32 of the Company s vessels have been delivered and have been deployed in commercial pools managed by the Navig8 Group, including the Chronos8, Delta8 and Stainless8 pools. The Company s fleet is composed of: Eighteen IMO2 37,000 DWT Interline-coated tankers built at Hyundai Mipo, Korea ( A-Class vessels ), all of which have been delivered and have been deployed in the Delta8 pool. Four IMO2 49,000 DWT Interline-coated medium range tankers ( T-Class vessels ) built at STX Offshore & Shipbuilding Co., Ltd. ( STX ), all of which have been delivered and have been deployed in the Chronos8 pool. Two IMO2 49,000 DWT Epoxy-coated medium range tankers built at Hyundai, Vinashin ( V-Class vessels ). Both V-Class vessels were delivered to the Company on bareboat charters in the first quarter of 2015; the 1

2 Company purchased one of these vessels in December 2015 and the other in March 2016 pursuant to purchase obligations. The V-Class vessels are currently deployed in the Chronos8 pool. Six IMO2 25,000 DWT stainless steel tankers built at Kitanihon Shipbuilding Co. Ltd and two IMO2 25,000 DWT stainless steel tankers built at Fukuoka (Japan) (together, S-Class vessels ). The Company took delivery of its final S-Class vessel, Navig8 Sol, in August The Navig8 Sol was delivered under the sale and leaseback arrangements entered into with subsidiaries of SBI Holdings, Inc announced on May 19, The S-Class vessels are deployed in the Stainless8 pool. Results for the three months ended September 30, 2017 For the three months ended September 30, 2017, the Company reported a net loss of $4.9 million, or $0.13 per share, compared to the net income of $3.7 million, or $0.10 per share, for the three months ended September 30, The decrease in net income is mainly attributable to lower gross average daily time charter equivalent ("TCE") 1 rates achieved in the three months ended September 30, 2017 compared to the same period in prior year. Revenue for the three months ended September 30, 2017 was $39.0 million, compared to revenue of $35.8 million for the three months ended September 30, The total number of vessel operating days for the three months ended September 30, 2017 increased by 675 to 2,815 compared to the same time period in the prior year. The TCE rates earned by the A-Class, V-Class, T-Class and S-Class vessels for the three months ended September 30, 2017, were $14,489, $12,933, $14,133 and $13,574 per day, respectively. The A-Class, V- Class, T-Class and S-Class vessels earned $16,773, $17,514, $19,562 and $20,561 per day, respectively, during the same period in the prior year. The Company had 32 vessels operating during the three months ended September 30, 2017, all of which operate in pools from which they derive TCE revenue. Vessel operating expenses were $18.0 million for the three months ended September 30, 2017, an increase of $5.3 million from the three months ended September 30, 2016, when the Company had only taken delivery of 24 vessels compared to 32 vessels at September 30, Average fleet operating costs per day, including technical management fees, were approximately $5,850 per day for the three months ended September 30, 2017, which is marginally higher than the average fleet operating costs per day during the three months ended September 30, Depreciation expense for the three months ended September 30, 2017 was $12.2 million, an increase of $3.5 million compared to the three months ended September 30, The Company begins to depreciate vessels in its newbuilding fleet as they are delivered. General and administrative expenses for the three months ended September 30, 2017, were $1.6 million, a decrease of $0.7 million compared to the three months ended September 30, Interest expense for the three months ended September 30, 2017 was $12.1 million, an increase of $4.2 million from $7.9 million for the three months ended September 30, 2016 when the Company had only taken delivery of 24 of the vessels in its newbuilding program. Conference Call 1 Time charter equivalent, a non-us GAAP measure, is vessel revenues less voyage expenses (including bunkers and port charges but excluding pool commission). 2

3 On Tuesday, November 21, 2017 at 2:00PM GMT, the Company s management team will host a conference call to discuss its results for the three and nine months ended September 30, Participant should dial into the call 10 minutes before the scheduled time using the following number: (UK Toll Free Dial In) or +44 (0) (Standard International Dial In). Please inform the operator you wish to listen to the Navig8 Chemical Tankers Inc. conference call. A telephonic replay of the conference call will be available until November28, 2017 by dialing (Standard International Dial In) and using access code Slides and Webcast There will also be a live webcast of the conference call and slide presentation, available through the Company s website ( Participants on the live webcast should register on the website approximately 10 minutes before the start of the webcast. About Navig8 Chemical Tankers Inc. Navig8 Chemical Tankers Inc. was established in 2013 as a joint venture between the Navig8 Group and funds managed by Oaktree Capital Management to capitalize on significant structural changes in the petrochemical industry and the continuing development of long-haul chemical trades. Its best-in-class 32-vessel fleet is comprised exclusively of large, fuel-efficient vessels with modern eco-designs to take greatest advantage of these shifts and features a complementary mix of primarily Interline-coated and stainless-steel vessels that are capable of servicing the full range of conventional and specialized chemicals cargoes. The Company s fleet is contracted to operate in various chemical tanker pools managed by the Navig8 Group, the world s largest independent pool and commercial management company. Navig8 Chemical Tankers Inc. is listed on the Norwegian OTC market under the symbol CHEMS. For Further Information, Please Contact: Nicolas Busch: Chief Executive Officer Rose & Company: or navig8chems@rosecoglobal.com Visit our website: 3

4 NAVIG8 CHEMICAL TANKERS INC AND SUBSIDIARIES OTHER OPERATING DATA (Unaudited) 37k dwt HMD Third Quarter 2017 Second Quarter k dwt Vinashin 49k dwt STX 25k dwt Kitanihon / Fukuoka 37k dwt HMD 49k dwt Vinashin 49k dwt STX 25k dwt Kitanihon / Fukuoka ( A-Class ) ( V-Class ) ( T-Class ) ( S-Class ) ( A-Class ) ( V-Class ) ( T-Class ) ( S-Class ) on the water at the end of the month Total operating days 1, , Average distributed Gross TCE in $ / day 14,489 12,933 14,133 13,574 14,135 14,016 15,406 16,608 Average OPEX in $ / day 5,893 5,774 5,668 5,851 6,055 5,832 5,520 5,672 4

5 NAVIG8 CHEMICAL TANKERS INC AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) All in US$000, unless otherwise stated For the three months ended 30 September For the nine months ended 30 September Operating Revenue Vessel revenue 39,036 35, , ,259 Total operating revenue $39,036 $35,809 $115,329 $112,259 Operating expenses Vessel expenses (18,038) (12,701) (51,060) (35,385) Depreciation (12,240) (8,768) (34,628) (23,705) General and administrative expenses (1,558) (2,222) (4,808) (5,637) Loss on cancellation of newbuilding contracts - (583) - (583) Total operating expenses ($31,836) ($24,274) ($90,496) ($65,310) Net operating income $7,200 $11,536 $24,833 $46,949 Financial items Interest income Interest expense and finance costs (12,134) (7,856) (34,527) (23,250) Other financial items (3) (14) (17) (22) Net financial items ($12,122) ($7,861) ($34,514) ($23,247) Net income / (loss) ($4,922) $3,675 ($9,681) $23,702 Earnings / (loss) per common share: Basic ($0.13) $0.10 ($0.25) $0.62 Diluted ($0.13) $0.10 ($0.25) $0.62 EBITDA: Net income/(loss) ($4,922) $3,675 ($9,681) $23,702 Depreciation and amortization 12,240 8,768 34,628 23,705 Interest income (15) (9) (30) (25) Interest expense 12,134 7,856 34,527 23,250 Other financial items EBITDA $19,440 $20,304 $59,461 $70,654 5

6 NAVIG8 CHEMICAL TANKERS INC AND SUBSIDIARIES UNAUDITED CONSOLIDATED BALANCE SHEET (Unaudited) All in US$000, unless otherwise stated As at 30 September As at 31 December Assets Current assets Cash and cash equivalents 23,543 28,686 Trade receivables 19,265 23,256 Prepaid expenses and other assets 15,354 14,391 Inventories 3,120 3,008 Total current assets $61,282 $69,341 Non-current assets Restricted cash 18,700 17,430, net 1,190,884 1,049,917 under construction - 51,474 Total non-current assets $1,209,584 $1,118,821 Total assets $1,270,866 $1,188,162 Liabilities and shareholders equity Current liabilities Current portion of loans 54,923 46,138 Accounts payables and accrued expenses 6,495 14,645 Total current liabilities $61,418 $60,783 Non-current liabilities Long-term loans, net of unamortised debt issuance cost 779, ,216 Accrued expenses 1, Total non-current liabilities $780,149 $688,399 Total liabilities $841,567 $749,182 Shareholders equity Common stock, $0.01 par value per share; 38,489,108 shares issued and outstanding as of September 30, 2017 (December 31, 2016: 38,489,108) Paid-in capital 403, ,641 Retained earnings 25,273 34,954 Total shareholders equity $429,299 $438,980 Total liabilities and shareholders equity $1,270,866 $1,188,162 6

7 NAVIG8 CHEMICAL TANKERS INC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) For the nine months period ended 30 September All in US$000, unless otherwise stated Operating activities Net income / (loss) (9,681) 23,702 Adjustments to reconcile net income / (loss) to net cash provided by (used in) operating activities: Loss on cancellation of newbuilding contracts Depreciation of vessels 34,628 23,705 Net debt extinguishment cost (23) - Amortisation of deferred financing charges 1,211 3,572 Changes in operating assets and liabilities: Trade receivables 3,992 (4,657) Prepaid expenses and other assets (963) (2,883) Inventories (113) (552) Accounts payables and accrued expenses (693) 235 Net cash provided by operating activities $28,358 $43,705 Investing activities Change in restricted cash (1,270) (1,430) Refund from cancellation of newbuilding contracts - 20,909 Payments for vessels under construction (130,463) (203,655) Payments for vessels, capital lease - (50) Payments for vessels (169) (242) Net cash used in investing activities ($131,902) ($184,468) Financing activities Proceeds from loans, net of debt issuance cost 188, ,565 Repayment of loans (90,453) (85,127) Payment of obligation under capital lease - (36,149) Net cash provided by financing activities $98,401 $167,289 Increase / (decrease) in cash and cash equivalents (5,143) 26,526 Cash and cash equivalents, beginning of period 28,686 18,438 Cash and cash equivalents, end of period $23,543 $44,964 7

8 Fleet List as of November 20, 2017 Name DWT Yard Built Delivered 1 Navig8 Victoria 49,000 Hyundai Vinashin Q Navig8 Violette 49,000 Hyundai Vinashin Q Navig8 Almandine 37,000 Hyundai Mipo Q Navig8 Amber 37,000 Hyundai Mipo Q Navig8 Amethyst 37,000 Hyundai Mipo Q Navig8 Ametrine 37,000 Hyundai Mipo Q Navig8 Aventurine 37,000 Hyundai Mipo Q Navig8 Andesine 37,000 Hyundai Mipo Q Navig8 Aronaldo 37,000 Hyundai Mipo Q Navig8 Aquamarine 37,000 Hyundai Mipo Q Navig8 Amazonite 37,000 Hyundai Mipo Q Navig8 Amessi 37,000 Hyundai Mipo Q Navig8 Ammolite 37,000 Hyundai Mipo Q Navig8 Axinite 37,000 Hyundai Mipo Q Navig8 Azotic 37,000 Hyundai Mipo Q Navig8 Adamite 37,000 Hyundai Mipo Q Navig8 Azurite 37,000 Hyundai Mipo Q Navig8 Aragonite 37,000 Hyundai Mipo Q Navig8 Alabaster 37,000 Hyundai Mipo Q Navig8 Achroite 37,000 Hyundai Mipo Q Navig8 Turquoise 49,000 STX Q Navig8 Sirius 25,000 Kitanihon Q Navig8 Topaz 49,000 STX Q Navig8 Sky 25,000 Kitanihon Q Navig8 Tourmaline 49,000 STX Q Navig8 Spark 25,000 Kitanihon Q Navig8 Stellar 25,000 Kitanihon Q Navig8 Tanzanite 49,000 STX Q Navig8 Saiph 25,000 Kitanihon Q Navig8 Sceptrum 25,000 Kitanihon Q Navig8 Spica 25,000 Fukuoka Q Navig8 Sol 25,000 Fukuoka Q

9 Forward-Looking Statements and Distribution This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including the Navig8 Chemical Tankers Inc s management's examination of historical operating trends. Although the Company believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, the Company cannot give assurance that it will achieve or accomplish these expectations, beliefs, or intentions. Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the chemicals market as a result of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operating expenses including bunker prices, drydocking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company on the Norwegian OTC trading support system. This communication is not for publication or distribution, directly or indirectly, in or into any state or jurisdiction into which doing so would be unlawful. The distribution of this communication may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions. 9