Black Sea Property AS

Share Issue/Capital Change • Feb 13, 2017

BLACK SEA PROPERTY AS - RESULT OF OPTION ISSUE

BLACK SEA PROPERTY AS - RESULT OF OPTION ISSUE

Reference is made to previous stock exchange

announcements made by Black Sea Property AS ("BSP" or

the "Company") and the invitation letter

(the "Invitation Letter") dated 30 January 2017

concerning, inter alia, the issue (the "Option Issue")

of up to 150 options (each an "Option", jointly

the "Options") to buy apartments in Aheloy Beach

Resort (the "Resort").

In the Option Issue, the price payable for one Option

was set to EUR 7,500 or EUR 8,500, depending on

whether the investor desired a one-year extension of

the option period.

The subscription period for the Option Issue ended on

10 February 2017 at 16.30 CET. At the end of the

subscription period, BSP had received subscriptions

for a total of 3 Options.

The Option Issue thus raised gross proceeds of EUR

24,500, which will be used to partially finance the

completion of the Resort. As previously communicated,

the Company currently has a funding need of EUR 2 -

2.5 million. The Company will launch a share issue to

raise the outstanding capital. Information about such

share issue will be given in due time.

Option subscribers should note that the payment for

the Options allocated falls due on 27 February 2017

and that letters of allocation will be distributed to

each subscriber today, 13 February 2017.

Going forward, the Company will intensify its work on

a strategy for sales of apartment in the Resort.

Shareholders who are interested in purchasing options

for apartments or apartments, may contact the Company

for an offer and further details.

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.