Black Sea Property AS

Share Issue/Capital Change • May 29, 2018

BLACK SEA PROPERTY AS: PRELIMINARY RESULT OF THE REPAIR ISSUE

BLACK SEA PROPERTY AS: PRELIMINARY RESULT OF THE REPAIR ISSUE

Reference is made to previous stock exchange announcements and the general meeting's decision to resolve a repair issue of minimum 1 and maximum 5,000,000 new shares (the "Repair Issue") in Black Sea Property AS (the "Company").

The subscription period for the Repair Issue ended on 28 May 2018 at 16.30 CET. The subscription price per share in the Repair Issue was NOK 0.40.

A preliminary counting of subscribed shares in the Repair Issue indicates that 6,112,265 shares have been subscribed for out of a total of 5,000,000 shares available, implying an oversubscription of 1,112,265 shares. The gross proceeds from the Repair Issue will consequently be NOK 2 million.

Allocation of subscribed shares will be resolved by the Company's Board of Directors later today. Allocation will be made in accordance with the allocation principles resolved by the general meeting of 25 April 2018 and the final result of the Repair Issue will be published shortly thereafter. Letters of allocation, giving notification of shares allocated and the corresponding amount to be paid, will be distributed to the subscribers as soon as possible after the allocation has been made.

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.