PGNiG: Execution of an annex to a settlement agreement between Elektrociepłownia Stalowa Wola S.A. and Abener Energia S.A.

Further to Current Report No. 52/2021 of December 31st 2021 concerning a settlement agreement between Elektrociepłownia Stalowa Wola S.A. (”ECSW”) and Abener Energia S.A. (“Abener Energia”), the Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”, the “Company”) announces that it was notified that on February 28th 2022 ECSW and Abener Energia (the “Parties”) signed an annex (the “Annex”) to the settlement agreement of December 31st 2021 defining the terms on which ECSW and Abener Energia will settle their mutual claims arising from all court and arbitration proceedings between the Parties conducted in connection with the contract to construct a CCGT unit (the “Settlement”).

Pursuant to the Annex, the time limit for meeting Abener Energia’s obligations (failure to timely perform the obligations is a condition subsequent to the Settlement) including providing documents endorsed with an apostille confirming the consent of the pledgees (under the pledges created over amounts receivable by Abener Energia under the Award of the Court of Arbitration) to the Settlement, has been extended to March 7th 2022 (from February 28th 2022).

Under the Annex, Abener Energia is obliged to present the unconditional and irrevocable consent of the judicial supervisory authority, court commissioner, administrator or other competent authority indicated by the Spanish court conducting bankruptcy proceedings against Abengoa S.A. for the conclusion and implementation of this Annex by March 4th 2022. ECSW has agreed to provide the Supervisory Board’s resolution approving execution of the Annex by March 4th 2022.

PGNiG indirectly holds a 50% equity interest in ECSW through its subsidiary PGNiG Termika S.A.