Black Sea Property AS

Capital/Financing Update • Jul 12, 2021

Black Sea Property AS: Accepts offer for debt financing of up to EUR 12 million

Black Sea Property AS: Accepts offer for debt financing of up to EUR 12 million

Black Sea Property AS ("BSP" or the "Company" and together with its consolidated subsidiaries, the "Group") is pleased to announce that it has received and accepted an offer for a loan of up to EUR 12 million, which will be used to refinance the Group's existing bank debt with UniCredit Bulbank (approx. EUR 7.48 million) and provide additional capital for construction of the Sunrise Gardens Resort (approx. EUR 4.52 million) from a Bulgarian bank. This loan offer comes from a different bank than the one mentioned in the Company's stock exchange notice dated 1 March 2021.

The Group will now work towards formalizing the loan offer and enter into relevant loan agreements, with a view to start utilizing the loan from the beginning of September 2021. Any utilization of the loan will be subject to satisfaction of certain conditions, including but not limited to establishment of pledges and security and the Group making available EUR 2,5 million in own funds in a bank account with the bank providing the loan offer.

For further information, please contact:

Egil Melkevik, Chairman

Tel: +47 90 77 09 76

E-mail: em@ms-solutions.no

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 Sunrise Gardens. Sunrise Gardens Resort is a partially completed project and will upon completion comprise approximately 950 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 Sunrise Gardens Resort, to realize the project's added value through the sale of residential units and hotel operations.