Black Sea Property AS

Capital/Financing Update • Dec 14, 2022

Black Sea Property: Enters into loan agreement for Bulgarian subsidiary

Black Sea Property: Enters into loan agreement for Bulgarian subsidiary

Reference is made to the decision by the general meeting of Black Sea Property AS (the "Company", and together with its consolidated subsidiaries, the "Group") on 30 November 2022 regarding approval of entry into of a loan agreement by EPO Bulgaria EOOD (the Company's wholly owned subsidiary in Bulgaria, "EPO Bulgaria") for a loan amount of approximately EUR 7.5 million.

A loan agreement in the amount of up to EUR 7.5 million (the "Loan" and the "Loan Agreement") has now been entered into, however with certain variations as to what was approved by the general meeting of the Company. The background for the amended terms has been ongoing discussions between our local Bulgarian partner, Mr. Boyan Bonev, and prospective lenders.

The main terms of the Loan Agreement are as set out below:

- The Loan will be taken up by EPO Aheloy OOD ("EPO Aheloy", the development and property-owning company for the Sunrise Gardens Resort) rather than EPO Bulgaria;

- The lender under the Loan Agreement will be Penchev Consult (the "Lender") rather than SI Finance Group EOOD ("SI Finance");

- The Loan amount will be up to EUR 7.5 million;

- The term of the Loan Agreement will be until 31 December 2024;

- The Loan will carry an interest of 16% pro annum, which is a slightly lower interest rate than what had been agreed with SI Finance;

- 50% of the shares held by both shareholders of EPO Aheloy will be transferred to the Lender as security, which is a better outcome than under the contemplated agreement with SI Finance; and

- A representative of the Lender will be appointed as a third manager of EPO Aheloy.

The disbursement of the Loan is expected to take place in January 2023, and is subject to various customary conditions. The use of proceeds of the Loan will be clarified in connection with the disbursement of the Loan.

The Board considers that this Loan is a better outcome for the Group than the contemplated loan from SI Finance and has therefore entered into the Loan Agreement without seeking a re-newed general meeting approval.

For further information, please contact:

Egil Melkevik, Chairman

Tel: +47 90 77 09 76

E-mail: em@ms-solutions.no

About Black Sea Property AS:

Black Sea Property AS is a real estate company with holdings in a real estate project on the Black Sea

coast called Sunrise Gardens. Sunrise Gardens Resort is a partially completed project and will upon completion comprise approximately 950 apartments as well as significant commercial space. Black Sea Property AS owns indirectly 75% of the project. Black Sea Property AS will work to finalize Sunrise Gardens Resort, to realize the project's added value through the sale of residential units and hotel operations.

This information is considered to be inside information and is subject to disclosure requirements pursuant to the EU Market Abuse Regulation (MAR). The stock exchange announcement was published by Egil Melkevik, Chairman, at the time and date stated in this announcement.