KMC Properties ASA

Capital/Financing Update • May 27, 2020

Storm Real Estate ASA – New standstill agreement

Storm Real Estate ASA – New standstill agreement

Oslo, 27 May 2020. Reference is made to previous announcements by Storm Real Estate ASA (the "Company") relating to a conditional agreement with the Company's lender as well as its largest shareholder Aconcagua Management Ltd, latest announcement of 6 March 2020 and the Company's annual report published on 30 April 2020.

As reported, the mentioned agreement has been subject to certain conditions to completion, including inter alia achieving satisfactory terms on financing from another financing source. As it has proved challenging to conclude these conditions within a reasonable time frame, the Company is pleased to report that the parties have today entered into a new standstill agreement, replacing the previous conditional agreement.

The new agreement extends the agreed standstill period to 30 June 2022. During the standstill period, the Company and (provided equal treatment of shareholders is ensured) Aconcagua Management Ltd will have a right to repay and/or purchase the entirety of the outstanding debt for an amount equal to the sum of the USD equivalent of RUB 558 million (at the exchange rate at time of transaction, however not higher than USD:RUB 65) and USD 2.9 million. The Company has not paid interests or amortisation since year-end 2019. The continued standstill remains subject to certain continuing conditions, including inter alia absence of certain events of default (e.g. not including non-payment or financial covenants). As part of and as a condition for the standstill, the Company has also agreed and undertaken that all available cash shall be paid as interests on the loan, starting 30 June 2020.

The new agreement provides prolonged stability for the Company to seek to conclude a sustainable debt level and capital structure.

Current occupancy in the Gasfield building is 92%, divided on 75 lease agreements.

For more information, please contact:

Kristoffer Holmen, interim general manager

kristoffer@stormcapital.no

Phone: +4792814862