KMC Properties ASA

Storm Real Estate ASA - guarantee agreements related to rights offering

Reference is made to notices dated 31/03/2017, 20/04/2017 and

24/04/2017 with information related to the proposal for a rights

offering, which is on the agenda for the Annual General Meeting on

11/05/2017.

The Company has entered into agreements with Aconcagua Management

Ltd., Banan II AS, Aukner Holding AS and Strategic Investments A/S,

companies controlled by Morten E. Astrup, Stein Aukner and Kim

Mikkelsen respectively (all board members), as well as Pactum AS,

which imply that they shall subscribe their relative share of the

Rights Offering, however so that Aconcagua Management Ltd in

addition has guaranteed the subscription of the relative share of

the Rights Offering of an additional 178.060 shares.

This implies that the Company has entered into agreements securing

subscriptions for approximately 48.17% of the proposed Rights

Offering of NOK 28 million. The guarantee obligation equals in total

NOK 13 486 753.60 and this amount will thus be the minimum

subscription amount in the Rights Offering, equal to a minimum share

capital increase of NOK 1 078 905.20 and maximum NOK 28 000 000.

No guarantee consideration shall be paid.

The subscription price has not been determined in connection with

the entering into of the guarantee agreement, which implies that the

Board's proposal for an authorisation to determine the subscription

price between NOK 0.40 and NOK 5 still applies. The subscription

price will be determined prior to the share being listed exclusive

of the right to participate in the rights offering.

For further information, please contact:

Einar Pedersen

Tel: +44 207 409 3369

Morten E. Astrup

Tel: +44 777 8888 0000

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