Conclusion of a significant agreement by the Issuer

Legal basis: Article 17(1) of the Market Abuse Regulation (MAR) – confidential information.                                        

With reference to the current report No 1/2020 of 2 January 2020, the Management Board of Polimex Mostostal S.A. with the registered office in Warsaw (the “Company”) informs that on 20 January 2020 the Company concluded an agreement with Engineering, Procurement and Construction Office “Energoprojekt-Katowice” S.A. with the registered office in Katowice (the "Contractor"). The subject of the agreement is the development by the Contractor of multidisciplinary project documentation for the purposes of the following contract: "Construction of a Coal-Fired Power Unit in Puławy" (the "Agreement"), as well as performance of the author supervision during the implementation of the contract by the Company. The period of the execution of the subject of the Agreement begins on the day of its signature and ends on 23 January 2023.

The remuneration of the Contractor for the performance of the subject of the Agreement is flat-rate and has been set at PLN 43.200.000,00 net. The Contractor will be obliged to pay contractual penalties to the Company under the circumstances outlined in the Agreement, however, the total amount of penalties will not exceed 25% of the gross remuneration. In case the aggregate amount of penalties does not cover the damage suffered by either Party, each Party to the Agreement will be entitled to seek supplementary damages under general principles to the maximum amount of 100% of the gross remuneration.