Black Sea Property AS

Prospectus • Jan 14, 2019

BLACK SEA PROPERTY AS – START OF SUBSCRIPTION PERIOD IN REPAIR ISSUE – PUBLICATION OF PROSPECTUS

BLACK SEA PROPERTY AS – START OF SUBSCRIPTION PERIOD IN REPAIR ISSUE – PUBLICATION OF PROSPECTUS

Reference is made to the stock exchange announcement from Black Sea Property AS (the "Company") dated 20 December 2018 regarding a private placement with gross proceeds of NOK 8.645 million (the "Private Placement") and a contemplated NOK 3.95 million repair issue (the "Repair Issue"). Reference is furthermore made to the decision of the Company's shareholders to resolve the Private Placement and the Repair Issue, as announced on 7 January 2019.

The subscription period in the Repair Issue commences today at 09:00 CET.

A prospectus (the "Prospectus") has been prepared in connection with the Repair Issue. The Prospectus contains further information about the Company, the Sunrise Gardens and the terms and conditions of the Repair Issue. The Prospectus is not subject to review by the Norwegian Financial Supervisory Authority nor any other authority, but has been submitted to the Norwegian Register of Business Enterprises in accordance with section 7-10 of the Norwegian Securities Trading Act.

The Prospectus is attached hereto, and will also be made available at the Company's website, www.blackseaproperty.no.

Eligible shareholders who wish to participate in the Repair Issue must complete the subscription form found in the Prospectus and submit it to Nordea Issuer Services, as further specified on face of the subscription form, or subscribe through the VPS online subscription system.

Over-subscription will be allowed. Subscription without subscription rights will not be allowed.

For further information, please contact:

Egil Melkevik, Chairman

Tel: +47 90 77 09 76

E-mail: egil.melkevik@imenco.com

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 (previously called Aheloy Beach Resort). Sunrise Gardens is a partially completed project and will upon completion comprise over 1,000 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, to realize the project's added value through the sale of residential units and hotel operations.