Update re Cancellation

The Black Sea Property Fund Limited

("Black Sea" or the "Company")

Update on Cancellation

Further to the announcement made by the Company on 14 December 2015, the Company has been advised that the acquisition of the proposed property investments referred to in the announcement would not be considered by AIM to have substantially implemented the Company's investing policy in accordance with the AIM Rules for Companies.

The admission of the Company's shares to AIM is therefore due to be cancelled with effect from 16 January 2016. The Company will shortly be writing to shareholders to set out the options for the Company and to convene a general meeting of the Shareholders to consider whether: (a) to continue seeking investment opportunities (with or without a listing for the Company's shares); or (b) to wind up the Company and distribute any surplus cash back to Shareholders.

For further information please contact:

The Black Sea Property Fund Limited

Alex Borrelli, Chairman Tel: +44 7747 020600

Cairn Financial Advisers LLP Tel: +44 20 7148 7900

Nominated Adviser

Sandy Jamieson, Emma Earl

Peterhouse Corporate Finance Limited Tel: + 44 20 7469 0930

Sole broker

Heena Karani, Charles Goodfellow