Conclusion of a material contract by a subsidiary company of the Issuer

Legal basis: Article 56 (1) (2) of the Act on public offering – current and periodical information

With reference to current report no. 116/2015 dated 25  November 2015, the Management Board of "Polimex-Mostostal" SA having its registered address in Warsaw at ul. Jana Pawła II 12 (hereinafter referred to as the ‘Company’) hereby informs that on 14 March 2016 an Issuer’s subsidiary company, namely Polimex Energetyka Sp. z o.o. (Limited Liability Company) (hereinafter referred to as the ‘Contractor’) received a letter from Górnictwo i Energetyka Konwencjonalna S.A. (Joint Stock Company) (hereinafter referred to as ‘PGE’) pertaining to commencement of performance of the contract for the ‘Modernisation of CFB-670 boilers at units 1-3 of PGE GiEK S.A. Turów Power Plant Division’ (hereinafter referred to as the ‘Contract’) as of 14.03.2016. 

The subject matter of the contract is the modernisation of CFB-670 boilers at units 1-3 of PGE GiEK S.A., and it covers the Contractor providing any and all materials, execution of modernisation and possible construction work aimed at enabling performance of the Contract. The modernisation shall be divided into three phases, and each phase shall be divided into milestones. The Contract shall be executed until 18 January 2020.

Consequently, the condition precedent, that being PGE submitting a declaration of conclusion of the last contract within the framework of separate proceedings, was fulfilled.

Legal basis: § 5 (1) (4) of the Ordinance of the Minister of Finances dated 19 February 2009 on current and periodical information provided by issuers of securities and terms of deeming information required by the regulations of a non-Member State equivalent.