Black Sea Property AS

Share Issue/Capital Change • Mar 28, 2017

BLACK SEA PROPERTY AS: PRELIMINARY RESULT OF THE RIGHTS ISSUE

BLACK SEA PROPERTY AS: PRELIMINARY RESULT OF THE RIGHTS ISSUE

Reference is made to previous stock exchange announcements

and the general meeting's decision to resolve a rights issue

(the "Rights Issue") of minimum 1 and maximum 32,142,857 new

shares (the "Offer Shares") in Black Sea Property ("BSP" or

the "Company") .

The subscription period for the Rights Issue ended on 27

March 2017 at 16.00 CET. The subscription price in the

Rights Issue was NOK 0.70.

A preliminary counting of subscribed Offer Shares in the

Rights Issue indicates that [34,405,092] Offer Shares have

been subscribed for out of a total of 32,142,857 Offer

Shares available, implying an oversubscription of

approximately 2.2 million Offer Shares. However,

approximately 3 million Offer Shares were subscribed without

the subscribers holding subscription rights and these

subscriptions will therefore be disregarded. The gross

proceeds from the Rights Issue will be approximately NOK 22

million.

The Board of Directors is very pleased with the significant

participation in the Rights Issue, which secures a solid

foundation for the further construction and development of

the Aheloy Beach Resort.

Allocation of Offer 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 8 March 2017 and the final result of the

Rights Issue will be published shortly thereafter. Letters

of allocation, giving notification of Offer 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.