Return of Capital

RETURN OF CAPITAL

The Black Sea Property Fund Limited (the "Company")

The Board of Directors of the Black Sea Property Fund is pleased to announce the declaration of a special dividend of 2.815 pence (net) per ordinary share payable to shareholders of record as at 28 May 2010. In accordance with the London Stock Exchange's dividend timetable for 2010, the ex dividend date will be 26 May 2010 with payment as soon as practicable thereafter but not later than 25 June 2010.

The Company's Board of Directors has considered many investment opportunities but has determined that none was sufficiently attractive. The Board has further determined that given the Company's resources, lifespan, and projected expenses, returning £6 million of capital is appropriate. The Company continues to be well capitalized with over £6 million of cash after the payment of the special dividend and no debt.

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