Conclusion of an Agreement on establishing mortgages and regarding the priority of the mortgages as well as making a statement on submission to execution

With reference to the current report no. 9/2014 dated 23.01.2014 the Management Board of Polimex-Mostostal S.A. with its registered office in Warsaw at ul. Czackiego 15/17 informs that on 24 January 2014 it concluded with PKO BP S.A. bank an agreement on establishing two mortgages for PKO BP S.A. up to the maximum amount of PLN 597,484,800.00 each and an agreement regarding priority of the mortgages with the encumbrance holders, i.e. Bank Millennium Spółka Akcyjna, mBank Spółka Akcyjna, Bank Zachodni WBK Spółka Akcyjna, Bank Zachodni WBK Spółka Akcyjna and 26 Bondholders and submission of two statements on submission to execution up to the amount of PLN 597,484,800.00 which constitutes a collateral to the Agreement concluded by the subsidiary company on 22.01.2014 on Issuing a Bank Guarantees to the contract for construction of power units No. 5 and No. 6 in PGE Elektrownia Opole S.A. dated 15 February 2012, as a part of which the Bank is obliged to issue the guarantees: performance bond guarantee at the amount of PLN 199,161,600.00 PLN valid until 30.08.2018 and advance payment guarantee at the amount of PLN 199,161,600.00 valid until 15.05.2019 and a collateral to the obligation of the Company as a guarantor of Polimex Projekt Opole Sp. z o.o.

The amount of commission has been agreed upon on market terms.

This information has been deemed significant due to the fact that it regards the agreement the value of which exceeds 10% revenues from sale of Capital Group of the Company for the period of last four working quarters.