Black Sea Property AS

Share Issue/Capital Change • May 9, 2018

BLACK SEA PROPERTY AS: FINAL RESULT OF THE PRIVATE PLACEMENT - MANDATORY NOTIFICATION OF TRADE

BLACK SEA PROPERTY AS: FINAL RESULT OF THE PRIVATE PLACEMENT - MANDATORY NOTIFICATION OF TRADE

Reference is made to previous stock exchange announcements and the general meeting's decision to resolve a private placement of minimum 21 250 000 and maximum 28,750,000 new shares (the "Private Placement") in Black Sea Property AS (the "Company").

The subscription period for the Private Placement ended on 8 May 2018 at 16.30 CET. The subscription price per share in the Private Placement was NOK 0.40. At the end of the subscription period, the Company had received subscriptions for a total of 35,121,493 shares out of 28,750,000 shares available, implying an oversubscription of approximately 6.37 million shares.

The Board of Directors of the Company has approved the final allocation of the shares based on the allocation criteria set out by the general meeting and has allocated 28,750,000 shares in total to the subscribers. A total of 27,418,365 shares have been allocated on the basis of exercised subscription rights and 1,331,635 shares have been allocated to subscribers on the basis of oversubscription. The Private Placement raised gross proceeds of NOK 11.5 million.

Payment for the shares allocated to the subscribers falls due on 15 May 2018. Letters of allocation will be distributed to investors giving notification of allocated new shares and the corresponding amount to be paid by each subscriber.

Reference is furthermore made to the stock exchange notice dated 08 May 2018 regarding subscriptions made by the Company's board members. Please see the enclosed document for an overview of the shares allocated to the Board members and their holdings of shares in the Company following the Private Placement.

The 09th of May 2018, Christinedal A/S (a company controlled by Director Hans Gulseth) entered into an agreement with Total Management (a company controlled by Director Nils Tore Nilsen) to buy 1,216,375 shares at a price of 0.40 per share corresponding to a total purchase price of NOK 486,550.

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.