Black Sea Property AS

Capital/Financing Update • Feb 27, 2019

BLACK SEA PROPERTY AS: ENTERS INTO DEFINITIVE LOAN AGREEMENTS – UPDATED VALUATION REPORT – INFORMATION UPDATE

BLACK SEA PROPERTY AS: ENTERS INTO DEFINITIVE LOAN AGREEMENTS – UPDATED VALUATION REPORT – INFORMATION UPDATE

Reference is made to earlier stock exchange announcements regarding a new EUR 3 million construction loan to be taken up by Black Sea Property AS (the "Company") with UniCredit Bulbank as lender (the "New Loan").

The Company is pleased to announce that it has now entered into definitive loan documentation regarding the New Loan. The New Loan will be disbursed in two tranches, whereof the first EUR 1.5 tranche is expected to be disbursed around 8 March 2019. The last EUR 1.5 million tranche will be disbursed as soon as certain existing encumbrances on the properties that will be mortgaged have been released and all agreed security for the New Loan has been implemented and put in place, expected within the end of April 2019.

In light of the extended period used for entering into definitive loan documentation and receiving funds under the New Loan, the Company and its Bulgarian partner has decided to set the expected opening date of the Sunrise Gardens Resort (the "Resort") to 1 July 2019. It has also been decided to reduce the number of units in the K building with 25 units to a total of 75 units, which will bring the total number of units at the Resort to approximately 950. In the view of the Company, this reduction will lead to better common areas and a better Resort, and will reduce the capital needed for full completion of the Resort.

Going forward, the Company will assess the possibility of raising further debt capital in order to be able to complete the K and L buildings of the Resort earlier than currently anticipated.

The Company has further obtain an updated valuation report from Forton AD, an alliance partner of Cushman & Wakefield. The updated valuation report is attached to this stock exchange notice and will also be made available at www.blackseaproperty.no.

For further information, please contact:

Egil Melkevik, Chairman

Tel: +47 90 77 09 76

E-mail: em@mssolutions.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.