Black Sea Property AS

Environmental & Social Information • Jan 31, 2018

BLACK SEA PROPERTY AS: APPROVAL OF TECHNICAL PLANS FOR SEWAGE AND FRESH WATER SUPPLY CONNECTIONS

BLACK SEA PROPERTY AS: APPROVAL OF TECHNICAL PLANS FOR SEWAGE AND FRESH WATER SUPPLY CONNECTIONS

Black Sea Property AS ("BSP" or the "Company") is pleased to announce that approval of the technical plans for sewage and fresh water supply connections for the Aheloy Beach Resort (the "Resort") has now been given by the relevant local authorities. This implies that the Resort is significantly closer to obtaining sewage and fresh water supply connections for the Resort.

The technical plans that have been approved are in line with the Company's expectations and the detailed plans that have been prepared and communicated to the local municipality by EPO Aheloy (a subsidiary of the Company and the holding company for the Resort). Going forward, a municipality council hearing will be held to approve necessary zoning changes and pipe passage through land and streets owned by the municipality. Following such hearing, the final permit to lay down pipes and connect the Resort to sewage and fresh water supply connections is expected to be obtained in March 2018, and the construction works will start immediately after obtaining that permit.

The Company continues with the preparations for opening of the Resort in time for the summer season 2018, and is, in addition to the above, especially focusing on obtaining electrical connection, securing additional bank loan financing for the construction works and beginning active works on the indoor commercial spaces.

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.