Black Sea Property AS

Capital/Financing Update • Dec 10, 2018

BLACK SEA PROPERTY AS: DOWNPAYMENT OF LOAN POSTPONED TO 25 JANUARY 2019 – LIQUIDITY NEED FOR EPO AHELOY

BLACK SEA PROPERTY AS: DOWNPAYMENT OF LOAN POSTPONED TO 25 JANUARY 2019 – LIQUIDITY NEED FOR EPO AHELOY

Reference is made to the company's stock exchange notice dated 12 November 2018 regarding, inter alia, delay in the disbursement of the new EUR 3 million loan (the "New Loan") and that EPO Aheloy (the development company for the Sunrise Gardens Resort (the "Resort")) would initiate discussions with UniCredit Bulbank to postpone a downpayment of EUR 1 million and incurred interests of EUR 350,000 (the "Downpayment") related to earlier constructions loans (the "Old Loan") that falls due in December 2018.

EPO Aheloy has been informed that the bank has granted a postponement of the due date for the Downpayment with one month, which consequently falls due on 25 January 2019. However, due to the delayed disbursement of the New Loan, EPO Aheloy has a liquidity need of approximately EUR 1.3 million in order to pay the Downpayment when due. The disbursement of the New Loan cannot be expected until a solution related to the Downpayment has been reached.

Black Sea Property AS will, together with its Bulgarian partner, review possible alternatives for managing EPO Aheloy's liquidity need, including, but not limited to raising funds from shareholders.

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 Aheloy Beach Resort. Aheloy Beach Resort 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 Aheloy Beach Resort, to realize the project's added value through the sale of residential units and hotel operations.