Black Sea Property AS

Capital/Financing Update • Jan 20, 2017

BLACK SEA PROPERTY OFFERS OPTIONS TO BUY APARTMENTS IN AHELOY BEACH RESORT

BLACK SEA PROPERTY OFFERS OPTIONS TO BUY APARTMENTS IN AHELOY BEACH RESORT

Reference is made to announcements made on 21 November

and 22 December 2016, concerning Black Sea Property

AS' ("BSP" or the "Company") renegotiated long term

financing loan with its bank and BSP's decision to

offer options to buy apartments in Aheloy Beach Resort

at favorable terms to finance capital requirements for

making Aheloy Beach Resort operational from Summer

The Board of Directors has today resolved to issue

options to buy apartments in Aheloy Beach Resort on

the following main terms:

- Total number of options shall not exceed 150.

- The option issue is directed towards

shareholders of the company and certain third party

investors upon by the Company's board of directors.

- Each option gives a right to buy an apartment

at the Aheloy Beach Resort at a price of EUR 450 per

square meter.

- The option price is EUR 7,500 (deductible from

purchase price for apartment if the option is

exercised).

- The application period for subscribing the

options will commence on 30 January 2017 at 09:00 CET

and end on 10 February 2017 16:30 CET.

- Payment of option price shall take place on 27

February 2017.

- The options can be exercised for a period of

13 months following completion of Building M, N and P

at the Aheloy Beach Resort (including all necessary

governmental permits being obtained). The Company

expects that the exercise period will commence on 30

April 2018 and end on 31 May 2019. The Company will

inform about the start of the exercise period in due

course.

- The option period can be extended with 12

months against payment of an additional EUR 1,000 up

front.

Example: An investor that acquires an option to buy a

3 room apartment (80 m2) (and pays the option price of

EUR 7,500) will upon exercise of the option (and

payment of the remaining EUR 28,500) receive a fully

furnished apartment for EUR 36 000 including all costs

and VAT, which as of today is equivalent to less than

NOK 330 000.

The detailed terms for the options being offered (Term

Sheet) is enclosed to this stock exchange notice. The

Company will provide additional documentation,

including an update on the construction of the resort,

to support the issuance of options prior to the start

of the application period.

If all the options are issued, the Company will raise

EUR 1,125,000. As communicated earlier, the Company

has a funding need of appr. EUR 2 million. The

remaining capital required is expected to be raised

through a share issue to be carried out following the

issuance of the options.

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.