Black Sea Property AS

Share Issue/Capital Change • Feb 13, 2020

BLACK SEA PROPERTY AS: REGISTRATION OF SHARE CAPITAL INCREASE – PRIMARY INSIDER DISCLOSURES

BLACK SEA PROPERTY AS: REGISTRATION OF SHARE CAPITAL INCREASE – PRIMARY INSIDER DISCLOSURES

Reference is made to previous stock exchange announcements and the general meeting's decision to resolve a share capital increase through issuance of 5,268,535 new shares in Black Sea Property AS (the "Company") through conversion of a convertible loan (the "Debt Conversion") at a subscription price of NOK 2.00 per share.

The share capital increase related to the Debt Conversion has now been registered with the Norwegian Register of Business Enterprises. The share capital has been increased with NOK 1,317,133.75 through issuance of 5,268,535 new shares, each with a par value of NOK 0.25.

The Company's new share capital is thus NOK 3,612,268.75 divided into 14,449,075 shares, each with a par value of NOK 0.25.

The following primary insiders subscribed for shares in the Debt Conversion:

- Chairman and CEO Egil Melkevik subscribed for 253,055 new shares through controlled company MTB Invest AS. Following this, Egil Melkevik holds 349,384 shares in the Company (personally and through controlled company MTB Invest AS);

- Board member Erik Sture Larre subscribed for 1,003,958 new shares through controlled company E. Larre Holding AS. Following this, Erik Sture Larre holds 2,984,707 shares in the Company (through controlled companies E. Larre Holding AS and CL-Holding AS);

- Board member Hans Gulseth subscribed for 607,166 new shares through controlled company Gulseth Holding AS. Following this, Hans Gulseth holds 1,498,717 shares in the Company (personally and through controlled companies Gulseth Holding AS and Christinedal AS); and

- Board member Kåre Rødningen subscribed for 151,875 new shares through controlled company Rødningen Invest AS. Following this, Kåre Rødningen holds 339,051 shares in the Company (through controlled company Rødningen Invest AS).

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.