refers to the announcement released by the Company dated 30 October 2016 where
the Company announced that the Group has reached in- principle agreements with
the substantial majority of its principal bankers on the refinancing of its
financial obligations and the provision of additional working capital facilities
(the " Ongoing Initiatives" ).

The Board wishes to state that the completion of the documentation for the
Ongoing Initiatives, which were originally targeted to be concluded before the
end of the second quarter of financial year 2017, has now been delayed. The
Company has sought an extension of time from its principal bankers to complete
the documentation for the Ongoing Initiatives.

The Board also refers to the announcement dated today (" Ezra' s ECS
Announcement" ) released by the Company' s ultimate holding company, Ezra Holdings
Limited (" Ezra" ), where Ezra announced that its associated company, EMAS CHIYODA
Subsea Limited (" ECS" ) has, together with certain subsidiaries of ECS,
voluntarily filed a petition for relief under Chapter 11 of the United States
Bankruptcy Code (" ECS Chapter 11 Filing" ) to obtain the protection of the United
States Bankruptcy Court while a restructuring of ECS and its subsidiaries is
being pursued.

As disclosed in Ezra' s ECS Announcement, the ECS Chapter 11 Filing may have a
negative impact on Ezra and its subsidiaries and associated companies, including
the Group. The Company is therefore currently seeking advice on the ECS Chapter
11 Filing, as well as assessing the impact of such filing on the Group. The
Group will work closely with its principal bankers to review all options to
finalise the provision of additional working capital facilities as well as the
documentation of the refinancing of its financial obligations. As previously
disclosed by EOL in its unaudited financial information for the first quarter of
financial year ended 30 November 2016, in the event that these efforts do not
achieve a favourable and timely outcome, the Group will be faced with a going
concern issue.

The Company will make further announcements in compliance with the listing
requirements of the Oslo Bors when there are material developments in respect of
the Ongoing Initiatives.

Shareholders of the Company are advised to exercise caution when trading in the
Company' s shares as there is no certainty or assurance as at the date of this
Announcement that the definitive agreements for the Ongoing Initiatives will be
entered into or the Ongoing Initiatives will be undertaken or completed at all.
When in doubt as to the action they should take, shareholders and potential
investors should consult their financial, tax or other advisers.

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This announcement is subject to disclosure pursuant to section 5-12 of the
Norwegian Securitries Trading Act" .