Black Sea Property AS

Investor Presentation • Jun 29, 2023

Black Sea Property AS

Org. No. NO 914 892 902

Sunrise River Beach Resort

June 2023

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IMPORTANT INFORMATION

This presentation (the "Presentation") has been produced by Black Sea Property AS ("Black Sea Property", "BSP" or the "Company") solely for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. This Presentation is dated 29 June 2023. The Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation.

This Presentation includes, and is based on, among other things forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of their parent or subsidiary undertakings or any such person's officers or employees provide any assurance as to the correctness of such forward-looking information and statements.

By their nature, forward-looking statements involve, and are subject to, known and unknown risks, uncertainties and assumptions as they relate to events and depend on circumstances that may or may not occur in the future. Because of these known and unknown risks, uncertainties and assumptions, the outcome may differ materially from those set out in the forward-looking statements. These forward-looking statements speak only as of the date on which they are made.

The information contained in this Presentation is furnished by the Company and has not been independently verified. No representation or warranty (express or implied) is made as to the accuracy or completeness of any information contained herein. None of the Company or any of its subsidiary undertakings or any such person's directors, officers, employees, advisors or representatives shall have any liability whatsoever arising directly or indirectly from the use of this Presentation. No reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of their parent or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation.

This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. Information in this Presentation should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. This Presentation must be read in conjunction with the Company's recent financial information and the disclosures therein.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of the Norwegian courts with Oslo District Court as exclusive legal venue.

The Resort www.sunriseriver.bg

Facilities and Accommodation for 2023 Season

• Operating Buildings M & N with 358 apartment units, having maximum capacity reaching 1'500 beds, and 24h reception
• Two all-inclusive restaurants in building M, both providing indoor and outdoor seating
• Show cooking snack buffet at the main plaza
• Gift and groceries store
• Two pool bars
• Two swimming pools, including a 50m Olympic pool
• Indoor sports hall and two covered sports halls for gymnastics and power sports
• Outdoor soccer and basketball field
• Beach volleyball field
• Amphitheater
• Camping fire pit
• River access and perimeter running track
• Medical emergency office
• Education and event rooms
• Handicap access

Progress Update

• The first guests at the Resort arrived on June 10 for the 2023 season. With full occupancy level to be reached by the first week in July.
• Most of the essential construction works for the season are now complete, with some supplementary construction activities remaining on the newly erected covered gymnastics sports hall.
• The operational model for the 2023 season is for the Resort to function as a kids camp, with the addition to family orientated accommodation. For this reason the Resort is being promoted to ordinary guests on Booking.com and other platforms.
• The kids camp will operate predominately with children from Ukraine ages from 12 to 17, with the addition of various sports camps for Bulgarian children.
• The majority of staff are Ukrainians.

Financial Achievements

• EPO Aheloy has signed an agreement for a long term EUR 10 million loan with First Investment Bank:
  • EUR 6.5m are provided as Tranche 1 for refinancing of the EUR 4.5m UniCredit loan and EUR 2m for construction works for the current phase (including reimbursement of the Construction Costs occurred year-to- date)
  • Maturity term 15 years
  • Interest rate 5% plus 1% in fees (monthly interest payments)
  • Due to establishment of mortgage collaterals over the assets the loan utilization has been delayed, with realistic expectations for Tranche 1 to be utilized by July 15th.
• Additionally EPO Aheloy in early 2023 secured a short term Bridge Financing of up to EUR 10 million. Out of this facility the company has as today used EUR 6.437 million.
  • In near term, the bridge loan facility will be repaid and reduced down to below EUR 5m

Construction at the resort

• EPO Aheloy has engaged BHP International to monitor the CIW performance, cost and budget control.
• For the 2023 construction season EPO Aheloy has spent approximately to date EUR 1.9m (excluding VAT) for CIW at the resort and they included the following scope of works:
  • Finished the second PMN swimming pool and surrounding sunbed areas
  • Finished the boxing and power sports hall
  • Erected a new gymnastics sports hall
  • Completed the kids club villa
  • Completed a second restaurant and second pool bar
  • Expanded the outside seating area
  • Completed the main plaza façade appearance of K building
  • Made a road and parking to the pumping station
  • Repaired roofs in buildings N&M
  • Made fire suppression system for M building
  • Allowed for ease of beach access
  • Irrigation system and landscaping

etc.

BSP's Forward Focus

• BSP is focused on complying with FIB bank and adapting to fully utilize the newly granted EUR 10m facility, to the best possible use of the EUR 3.5m Tranche 2
• Exploring various options to repay the bridge loan facility by February 2025
• To complete and enter in operation building P for the 2024 season

To find a solution together with the external owners in the P building. The company has already initiated contact with the majority of them and has presented 3 alternatives to chose between:

• pay their monetary participation to complete the building respective to ownership percentage;
• for the external owners to rent out long term (15 years to EPO Aheloy) and have their apartment complete with option for use;
• EPO Aheloy has initiated an investment program limited to EUR 300'000 to buyout apartments in building P priced at EUR 200 per sq. meter.
• The near term Business plan is to operate the resort with income generated from kids camp and family orientated accommodation services, and to reaching capacity of 2'500 guests (when the Resort's first stage (building P, N and M a total of 602 units) are put into operation).

Thank you for your attention.