Current Report No. 9/2017

Subject: Information about an impairment loss on assets in the Ostrołęka B Power Plant

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

The Management Board of ENERGA SA ("Company") hereby reports that, based on the results of impairment tests, a decision was made on 3 February 2017 in consultation with the auditor to recognize, in the Generation Segment, an impairment loss on assets in the Ostrołęka B Power Plant for the total amount of PLN 132 million. The main reason for the impairment loss are the current and projected low prices of electricity.

The above operation is of a non-cash nature. It will be charged to the ENERGA Group's operating result in the Generation Segment, in accordance with the definition adopted in April 2016, without any impact on the EBITDA result.

Following this impairment loss, the book value of the Ostrołęka B Power Plant in the ENERGA Group's consolidated balance sheet is PLN 586 million.

The presented items are estimates and subject to change. The final amount of the charge will be presented in the consolidated 2016 report to be published on 30 March 2017.