Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN”, “Company") informs that within the process of changing the formula of keeping crude oil obligatory inventories by PKN ORLEN, the Company sold a part of inventories, through assigning the keeping of the inventories to the third party.

On 26 June 2014 PKN ORLEN concluded with Cranbell Sp. z o.o. („Cranbell”) the agreement for the sale of crude oil (“Sales Agreement”) and the agreement for order of creation and keeping of crude oil obligatory inventories (“Agreement for creation and keeping of inventories”).

On the basis of the Sales Agreement PKN ORLEN sold to Cranbell crude oil valued at ca. USD 736 m (i.e. ca. PLN 2 236 m based on USD/PLN average exchange rate as of 26 June 2014, stated by National Bank of Poland). The crude oil price was established according to market quotations.

On the basis of the Agreement for creation and keeping of inventories Cranbell will be providing service of keeping of crude oil obligatory inventories to PKN ORLEN account, whereas PKN ORLEN will guarantee storage of inventories in current location. The Agreement for creation and keeping of inventories was concluded for the period to 28 January 2016. The Company takes into account the possibility of its renewal for the next period.

Above Agreements were concluded after receiving by PKN ORLEN the approval of Material Reserves Agency for the transaction.

Cranbell is a SPV, owned in 19% by RBS Investments Netherlands B.V. and in 81% by Dutch company Cranbell B.V. Cranbell in its statutory activities includes turnover of crude oil.

See also: regulatory announcement no 56/2010 dated 30 March 2010 and regulatory announcement no 240/2013 dated 27 June 2013.