1. NATURE OF BUSINESS

Nordic American Tankers Limited (the "Company") was formed on June 12, 1995 under the laws of the Islands of Bermuda. The Company's shares trade under the symbol "NAT" on the New York Stock Exchange. We were formed for the purpose of acquiring and chartering double-hull tankers.

We are an international tanker company that currently owns 20 Suezmax tankers, an increase from three vessels owned in the autumn of 2004. We expect that the expansion process will continue over time and that more vessels will be added to our fleet. The 20 vessels we currently operate average approximately 156,000 dwt each.

In 2012, we chartered all of our operating vessels into a spot market arrangement with Orion Tankers Ltd. The Orion Tankers pool was established in November 2011 with Orion Tankers Ltd. as pool manager. In 2011, we chartered all of our operating vessels in the spot market pursuant to a cooperative arrangement with Gemini Tankers LLC, until November 24, 2011, at which time we entered into a spot market arrangement with Orion Tankers Ltd. In 2010, we chartered 15 of our 17 operating vessels into spot market arrangements. In 2010, we had chartered two of our 17 operating vessels on bareboat charters that expired in June 2010, and October 2010, respectively. The Nordic Harrier (former Gulf Scandic) was redelivered to the Company in October 2010 and went directly into drydock. The drydock period was completed in late April 2011, and the vessel was employed in the spot market pursuant to cooperative arrangements on May 1, 2011.

Tanker markets are typically stronger in the fall and winter months (the fourth and first quarters of the calendar year) in anticipation of increased oil consumption in the northern hemisphere during the winter months. Seasonal variations in tanker demand normally result in seasonal fluctuations in spot market charter rates.

Our Fleet

Our current fleet consists of 20 double-hull Suezmax tankers, and all of our vessels are employed in the spot market.

Vessel	Yard		Built	Deadweight Tons	Delivered to NAT
Nordic Harrier	Samsung		1997	151,459	August 1997
Nordic Hawk	Samsung		1997	151,475	October 1997
Nordic Hunter	Samsung		1997	151,401	December 1997
Nordic Voyager	Dalian New		1997	149,591	November 2004
Nordic Fighter	Hyundai		1998	153,328	March 2005
Nordic Freedom	Daewoo		2005	159,331	March 2005
Nordic Discovery	Hyundai		1998	153,328	August 2005
Nordic Saturn	Daewoo		1998	157,331	November 2005
Nordic Jupiter	Daewoo		1998	157,411	April 2006
Nordic Moon	Samsung		2002	160,305	November 2006
Nordic Apollo	Samsung		2003	159,998	November 2006
Nordic Cosmos	Samsung		2003	159,999	December 2006
Nordic Sprite	Samsung		1999	147,188	February 2009
Nordic Grace	Hyundai		2002	149,921	July 2009
Nordic Mistral	Hyundai		2002	164,236	November 2009
Nordic Passat	Hyundai		2002	164,274	March 2010
Nordic Vega	Bohai		2010	163,940	December 2010
Nordic Breeze	Samsung		2011	158,597	August 2011
Nordic Aurora	Samsung		1999	147,262	September 2011
Nordic Zenith	Samsung	2011		158,645	November 2011