Current Report No. 33/2016

Current report no.: 33/2016

Preparation Date: 19.09.2016

Subject: Signing a Letter of Intent with Enea S.A. on building and operating a power unit at the Ostrołęka Power Plant

Legal basis: Article 17 Section 1 of the Market Abuse Regulation – confidential information

The Management Board of ENERGA S.A. (Company, Energa) hereby reports that on 19 September 2016, the Company signed a Letter of Intent to launch cooperation in respect to preparation, execution and operation a contemporary 1,000 MW class coal unit at the Ostrołęka Power Plant (Investment Project, Ostrołęka C).

The Parties intend to work together to develop an efficient business model for Ostrołęka C, review its project documentation and optimize technical and economic parameters of the new unit. The cooperation also involves development of documents required to launch a tender procedure and to select the general contractor for the Investment Project.

The Parties have agreed that the execution of the Investment Project will have a positive effect on Poland’s energy security, will meet the highest environmental standards and will ensure another stable, highly-efficient and low-emission energy source in the National Electrical Power System.

The Parties assume that the rules of cooperation adopted after signing the letter of intent should contribute to the ultimate decision to announce the tender in 2016 in order to complete the Investment Project in the second part of 2023. Potential expenditures are estimated at about PLN 5.5-6 million per MW. The Parties do not rule out participation of other partners in the Investment Project. Any further parameters and the scale of involvement of each Party will be subject to further analyses.