Black Sea Property AS

Investor Presentation • Jun 20, 2018

Black Sea Property AS

Org. No. 914 892 902

Aheloy Beach Resort

June 2018

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Disclaimer

Black Sea Property AS ("Black Sea Property" or "BSP") has produced this presentation, which speaks as of 20 June 2018. The information contained in this presentation may be subject to change, and Black Sea Property assumes no obligation to update the contents of this presentation. Black Sea Property has made no enquires as to the correctness of the information provided to us by the Developers, and we have not requested or taken part in any due diligence reviews for any of the projects discussed in this report:

Black Sea Property has relied primarily on information provided by the board and management of the Developers in written or oral form;

The information includes non-factual information with regard to forward looking information which intrinsically is subjective and based on "best judgment".

Accuracy and completeness of information:

Although Black Sea Property believes the information to be correct as the time of the issuance of this presentation, there is no certainty that the information is correct or that it is complete. It is fully possible that had Black Sea Property had access to other or more extensive information, the conclusion and information of the report could have been materially different;

The conclusions in this report are made on the basis of a number of important assumptions. Whereas these are made to the best of our ability, based on discussions with management and access to relevant information, there is no certainty with regard to the correctness of these assumptions. Even relatively moderate changes to our assumptions may lead to material changes in the conclusion of this report and the valuation of the developers and developments.

Black Sea Property judgment with regard to non-factual information:

Whereas the information provided to us has been the basis for the valuation and analysis, Black Sea Property has, as far as possible, evaluated the substance of the information independently and made its own opinion with regard to the implication of the information on the value of the developments.

Liability

Black Sea Property expressly disclaim any representation and warranty with regard to the content and conclusions of this presentation;

Black Sea Property will not accept any responsibility for the use of or reliance up on the information contained in this presentation whatsoever.

The Development

Recent Pictures

Achievements and Progress Update

• BSP has successfully finalized a share issue in June 2018 with net proceeds of NOK 13,5m to finance its part of the required by UniCredit Bulbank self participation towards the new construction loan.
• BSP is working towards finalizing the mortgage and increasing the registered capital requirements by the bank as last steps prior to utilizing the new EUR 3m construction loan. With expectations for the final loan contract signing to take place mid July.
• As previously informed the approval for water & sewage connection was granted and documentation for building permission submitted with expectation for a permit to be issued in very near future.
• EPO Aheloy the daughter company of BSP, has won in its favor the court cases for the commercial areas and also the appeals connected to assets distribution of the insolvent Aheloy Residence.

Status Building Works

• All apartment units in buildings "N" and "M" are fully complete, with furniture and appliances installation in place.
• Construction works on the indoor commercial space is progressing well. Outside seating and coverage is also been worked on.
• Finishing of Landscape works carried out as planned and in the concept of the future envisioned improvements.
• The facade of building "L", to be completed in July, evaluating to improve the outside appearance of "P", "N" and "M" by removing all signs of aging.
• Architect and structural engineer have been engaged to redesign building "K" and as a step prior to renewing the building's construction permit. Evaluating size of the building
• Building "P" is currently being worked on with its common areas and the apartment units owned by EPO Aheloy and Dara Properties 135 in total. The building's manager is to sign a contract for the CIW and to follow up with the respective contribution from all owners aiming to complete the building in its entity before year end.
• Applications for building permit for the amphitheater is submitted. Application for building permit for reception is pending.

BSP's Forward Focus

• The resort is planned for opening to tourists in May 2019 for summer 2019 season with total 602 apartments in P, N & M, and the respective commercial areas and landscape. New reception building, amphitheater, pleasant outside appearance of L and K.
• Securing financing. Monitoring liquidity, activity time schedule and budget.
• Completing construction according to budget and timeline.
• Securing an Electrical connection.
• Securing beach access.
• Secure tourist pre-bookings. Staff employment.
• Acquiring permits for use of the buildings, categorization of the rooms and commercial licenses.

Thank you for your attention.