Black Sea Property AS

Share Issue/Capital Change • May 9, 2018

BLACK SEA PROPERTY AS: PRELIMINARY RESULT OF THE PRIVATE PLACEMENT

BLACK SEA PROPERTY AS: PRELIMINARY RESULT OF THE PRIVATE PLACEMENT

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.

A preliminary counting of subscribed shares in the Private Placement indicates that 34,353,661 shares have been subscribed for out of a total of 28,750,000 shares available, implying an oversubscription of approximately 5.6 million shares. The gross proceeds from the Private Placement will consequently be 11.5 MNOK.

The Board of Directors is very pleased with the significant participation in the private placement, which secures a solid foundation for the further onstruction and development of the Aheloy Beach Resort and the Company's share of the self-participation amount that is a condition precedent for disbursement of a EUR 3 million loan from UniCredit Bulbank to EPO Aheloy.

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 Private Placement 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.