Black Sea Property AS

Share Issue/Capital Change • Jun 11, 2019

BLACK SEA PROPERTY AS: MANDATORY NOTIFICATION OF TRADE - GRANT OF OPTIONS -CONVERSION OF DEBT

BLACK SEA PROPERTY AS: MANDATORY NOTIFICATION OF TRADE - GRANT OF OPTIONS -CONVERSION OF DEBT

Reference is made to the notice of the ordinary general meeting of Black Sea Property AS (the "Company") to be held on 18 June 2019, specifically to item 7 on the agenda relating to a grant of share options and to item 10 on the agenda relating to a conversion of an outstanding bond loan with principal of NOK 12,410,000 raised in December 2017 and incurred interest (the "Bond Conversion").

The Board of Directors has proposed that the ordinary general meeting grants share options to the members of the Board of Directors as set out below:

- Egil Melkevik (chairman): 3,000,000 share options;

- Hans Gulseth: 3,000,000 share options;

- Kåre Rødningen: 1,500,000 share options; and

- Erik Sture Larre: 750,000 share options.

The options are granted free of charge, and each option gives the right to require issuance of one new share in the Company. Please refer to the notice of the ordinary general meeting for further information.

Further, certain of the Company's board members will convert their claims to new shares in the Company in connection with the Bond Conversion. Please find below an overview of the new shares to be subscribed by the board members in connection with the Bond Conversion:

- Hans Gulseth (through Gulseth Holding AS): 5,805,528 new shares;

- Hans Gulseth (through Christinedal AS): 1,597,728 new shares;

- Hans Gulseth personally: 1,139,423 new shares;

- Kåre Rødningen (through Rødningen Invest AS): 1,434,901 new shares;

- Erik Sture Larre (through E. Larre Holding AS): 14,261,654 new shares; and

- Erik Sture Larre (through CL-Holding AS): 5,805,528 new shares.

All of the new shares mentioned above will be subscribed at a subscription price of NOK 0.20 per share.

Completion of the share capital increase relating to the Bond Conversion is subject to approval by the Company's ordinary general meeting on 18 June 2019. Shareholders holding approximately 69 % of the shares in the Company has already committed to vote in favor of the proposed share capital increase.

Following the grant of the share options and subscription of the aforementioned new shares, and subject to approval by the general meeting of these matters, the holdings of the primary insiders will be as set out below:

Egil Melkevik, Chairman, will hold (personally and through MTB Invest AS) 2,408,194 shares in the Company and 4,964,286 share options, corresponding to 3.21% of the issued shares of the Company following the Bond Conversion.

Hans Gulseth, Board member, will hold (personally and through Gulseth Holding AS and Christinedal AS) 22,288,716 shares in the Company and 4,964,286 share options, corresponding to 11.87% of the issued shares of the Company following the Bond Conversion.

Kåre Rødningen, Board member will hold (through Rødningen Invest AS) 4,687,698 shares in the Company and 2,482,143 share options, corresponding to 3.12% of the issued shares of the Company following the Bond Conversion.

Erik Sture Larre, Board member, will hold (through E. Larre Holding AS and CL-Holding AS) 49,518,707 shares in the Company and 1,419,643 share options, corresponding to 22.19% of the issued shares of the Company following the Bond Conversion.

This information is published pursuant to the Continuing Obligations for companies listed on Merkur Market.

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.