Black Sea Property AS

Regulatory Filings • Mar 12, 2020

BLACK SEA PROPERTY AS – POSTPONES OPENING OF SUNRISE GARDENS RESORT

BLACK SEA PROPERTY AS – POSTPONES OPENING OF SUNRISE GARDENS RESORT

Reference is made to the stock exchange notice from Black Sea Property AS ("BSP" or the "Company") on 2 December 2019 where it was informed, amongst other things, that the Sunrise Gardens Resort (the "Resort") could not be expected to open in May 2020 due to delays in the process for refinancing of the bank debt related to completion of the Resort. The Board of Directors of BSP has now decided to delay the opening of the Resort until the summer season of 2021.

The delay is mainly based on the following events:

- The general tourism market is experiencing a downturn due COVID-19, and the Board of Directors does not consider it expedient to open the Resort for the summer season of 2020 due to this downturn and the current uncertainties surrounding the situation.

- The process for refinancing of bank debt related to completion of the Resort is still pending, and taking into account the current market conditions, the Board expects that this process may take longer time than previously anticipated; and

Positive earnings from the Resort was not expected for the summer season of 2020. The Board of Directors will continue its work to achieve a refinancing of the bank debt related to completion of the Resort.

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.