NewLead Holdings Ltd. Completes $147 million Acquisition of Five Vessels

- Continues execution of fleet growth strategy - Creating operational scale and platform to support growth - Expands newbuilding program with two Handysize vessels - Secures right of first refusal for three newbuild Kamsarmaxes

PIRAEUS, Greece, July 28, 2010 - NewLead Holdings Ltd. ("NewLead" or the "Company") today announced the successful completion of the dropdown of five dry bulk vessels, including two newbuildings with long-term quality time charters attached and the right of first refusal for three additional newbuildings from Grandunion Inc. ("Grandunion").

Total consideration for the dropdown of the five vessels is approximately $147.0 million, which includes approximately $93.0 million in assumed bank debt and other liabilities. The balance will be payments towards the newbuilding installments and will be financed with committed bank and shipyard credit facilities as well as cash from balance sheet. As a result of this transaction, NewLead's fleet, including newbuildings, consists of 24 vessels - nine product tankers and 15 dry bulk carriers.

Michael Zolotas, President and Chief Executive Officer stated, "NewLead continues to transform its core fleet. Since we took control of the Company in October 2009, we acquired 17 vessels, including five newbuildings, while divesting inefficient non-core vessels. The three vessels in operation, Grand Markela, Grand Spartounta and Grand Esmeralda, are expected to generate approximately $11 million annual vessel EBITDA, based on prevailing market rates."

Michael Zolotas continued, "We are continuously focused on refining our fleet and operations to create operational scale and an appropriate platform to support our growth."

The two newbuildings are 35,000 dwt Handysize vessels, under construction at a first-class shipyard in Korea, scheduled to be delivered in the first quarter of 2011 and third quarter of 2012, respectively. Once delivered, each vessel will immediately be chartered-out for 12 years at a floor rate of $12,000 per day plus 40/60 profit sharing above $14,000 from a first-class European charterer. Upon delivery, the vessels are expected to add approximately $5 million in aggregate vessel EBITDA annually based on prevailing market rates.

As part of the overall transaction, NewLead has also secured the right of first refusal for three additional newbuildings. The three newbuildings are 81,000 dwt Kamsarmaxes, being constructed at a first-class shipyard in Korea, scheduled for delivery in 2013 with long-term charters attached.

NewLead Holdings Ltd.