Black Sea Property AS

Capital/Financing Update • Apr 11, 2019

BLACK SEA PROPERTY AS: SUNRISE GARDENS RESPRT – STATUS UPDATE – INVITATION TO THE RESORT

BLACK SEA PROPERTY AS: SUNRISE GARDENS RESPRT – STATUS UPDATE – INVITATION TO THE RESORT

Reference is made to earlier stock exchange announcements by Black Sea Property AS (the "Company") regarding a EUR 3 million construction loan (the "Construction Loan") and the planned opening of Sunrise Gardens Resort (the "Resort") for the summer season 2019.

As previously informed, the loan under the second tranche of the Construction Loan, corresponding to EUR 1.5 million, shall be disbursed when the mortgages in favor of the bank has been established. Prior to the establishment of the mortgages, certain existing encumbrances on the relevant properties must be released – originally expected to be in place within the end of April 2019. However, the process of removing these encumbrances are taking longer than expected and thereby The Company`s utilization of the last EUR 1.5 million under the Construction Loan, and thus the process of finalizing the Resort in time for the planned opening of 1 July 2019, has therefore been delayed.

EPO Aheloy is currently working on removing the remaining encumbrances. It is expected that the encumbrances will be removed, and that the remaining of the Construction Loan will be disbursed, within a few months.

On this background, EPO Aheloy has decided to reduce the ambitions for the summer season 2019 to a test based opening in August. The purpose of the test based opening is to make sure that the Resort is functioning according to the expectations. The resort will not be marketed in this period, and EPO Aheloy does therefore not expect any significant operational revenues for the summer season of 2019.

Going forward, the Company will continue its work on the Resort by utilization of the funds disbursed under the first tranche of the Construction Loan (EUR 1.5 million), with its main focus being on the reception building, the outside appearance of the K-building, the sewage pumping station, the onsite sewage piping and the swimming pool. The remaining work for the completion of the Resort will commence as soon as the remaining funds under the Construction Loan is available.

As previously informed, EPO Aheloy has initiated a process of assessing the possibility of raising additional debt capital in order to complete the K- and L-building of the Resort. This process is moving forward, and based on the underlying values in EPO Aheloy we expect that EPO Aheloy will find an acceptable solution if the company decides to raise additional debt capital.

The Company wish to invite shareholders and other stakeholders for a visit to the Resort between 5 September and 9 September 2019, to explore the Resort and to reduce the number of visitors on the sight during the building process in the upcoming months, and thus to avoid disruptions in the building process. The Company will in due time provide further details with respect to schedule and costs for this visit.

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 around 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.