Employee share option plan

The Board of Frontline Ltd (the “Company”) has approved the grant of employee share options in respect of a maximum of 188,500 ordinary shares in the Company. These options have been granted pursuant to the Company’s existing Bermuda Employee Share Option Scheme, as amended.

148,500 of the shares reserved for issue under this grant have been allocated to employees of the Company and its subsidiaries, with the remaining 40,000 reserved for future employees.

The mains terms of the options granted are as follows:

· the options vest on January 22, 2001 and are exercisable for a period of five years thereafter: one third of the options become exercisable in the first quarter of 2002, one third of the options become exercisable in the first quarter of 2003 and one third of the options become exercisable in the first quarter of 2004 for a period of two years thereafter.
· Once the options are vested, they can be exercised on a quarterly basis during a period of 10 working days following the date the Company announces its results for the previous quarter.
· The subscription price for the exercise of the options is NOK 120.
· No premium will be payable on the grant of the options.

The Company has reserved the right to pay cash on the exercise of options in lieu of issuing shares.

January 22, 2001
Hamilton, Bermuda