1.	NATURE OF BUSINESS

Nordic American Tankers Limited ("NAT") 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. The Company was formed for the purpose of acquiring and chartering out double-hull tankers.

The Company is an international tanker company that currently has a fleet of 33 Suezmax tankers, including three newbuildings expected to be delivered in 2018, an increase from the three vessels owned in the autumn of 2004. The Company expects to expand the fleet over time despite the short-term plan of disposing of certain vessels. The 30 vessels the Company operated per December 31, 2017, average approximately 156,000 dwt each. In 2017, 2016 and 2015, the Company chartered its operating vessels primarily in the spot market.

NAT has the subsidiaries Scandic American Shipping Ltd. ("Scandic"), providing administrative and operational services, and NAT Chartering Ltd ("NATC"), providing services as commercial manager. Accordingly, these financial statements are presented on a consolidated basis for NAT and its subsidiaries ("the Company").

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.

The Company's Fleet

Including three newbuildings, the Company's current fleet consists of 33 Suezmax crude oil tankers of which 31 were built, or are under construction, in Korea.

Vessel	Built	Deadweight Tons		Delivered to NAT
Nordic Harrier	1997		151,459		1997
Nordic Hawk	1997		151,475		1997
Nordic Hunter	1997		151,401		1997
Nordic Voyager	1997		149,591		2004
Nordic Fighter	1998		153,328		2005
Nordic Freedom	2005		159,331		2005
Nordic Discovery	1998		153,328		2005
Nordic Saturn	1998		157,331		2005
Nordic Jupiter	1998		157,411		2006
Nordic Moon	2002		160,305		2006
Nordic Apollo	2003		159,998		2006
Nordic Cosmos	2003		159,999		2006
Nordic Sprite	1999		147,188		2009
Nordic Grace	2002		149,921		2009
Nordic Mistral	2002		164,236		2009
Nordic Passat	2002		164,274		2010
Nordic Vega	2010		163,940		2010
Nordic Breeze	2011		158,597		2011
Nordic Aurora	1999		147,262		2011
Nordic Zenith	2011		158,645		2011
Nordic Sprinter	2005		159,089		2014
Nordic Skier	2005		159,089		2014
Nordic Light	2010		158,475		2015
Nordic Cross	2010		158,475		2015
Nordic Luna	2004		150,037		2016
Nordic Castor	2004		150,249		2016
Nordic Sirius	2000		150,183		2016
Nordic Pollux	2003		150,103		2016
Nordic Star	2016		159,000		2016
Nordic Space	2017		159,000		2017
Newbuilding(1)	2018		157,000		2018(2	)
Newbuilding(1)	2018		157,000		2018(2	)
Newbuilding(1)	2018		157,000		2018(2	)

(1)	Vessel under construction per December 31, 2017.

(2)	Expected delivery during the July, August and October 2018, respectively