Ciech : Fulfilment of the condition subsequent for the termination of a significant contract concluded by a subsidiary and acceptance of a new contract

Current Report No.: 20/2017

Date of preparation: 30.11.2017

Abbreviated name of the Issuer: CIECH S.A.

Subject: Fulfilment of the condition subsequent for the termination of a significant contract concluded by a subsidiary and acceptance of a new contract

Legal basis: Art. 17. 1 of the MAR - inside information

Contents of the report:
With reference to current report no. 10/2015 of 13 May 2015 (the 'Current Report'), on the conclusion of a contract for the sale of power coal (the 'Product') between Polska Grupa Górnicza S.A. based in Katowice (formerly: Kompania Węglowa S.A., the 'PGG') and CIECH Soda Polska Spółka Akcyjna with its registered office in Inowrocław (the 'Subsidiary'), under which the Parties, on or before 30 November in each year of its duration, agreed on the commercial terms and the volume for another year of Contract duration (the 'Contract'), the Management Board of Ciech S.A. (the 'Issuer') hereby informs that, as requested by the PGG, the parties decided not to agree on the commercial terms and volume of supplies for 2018 under this Contract, as a result of which, on 30 November 2017, the condition subsequent for the termination of the Contract was fulfilled, and consequently, the Contract will expire on 31 December 2017.

At the same time, the Issuer informs that the PGG submitted its offer for the supply of the Product, including significant terms and conditions of a new contract, and the Subsidiary confirmed its acceptance of the offer. The offer defines the price of the Product, provides for indefinite time of Contract duration, ability to terminate the Contract with a 2-year period of notice, effective as of the end of the calendar year, and supplies of the Product since 2018 amounting to approx. 250,000 - 300,000 tons per each calendar year. The Parties are planning to agree on the remaining conditions of the Contract in the nearest future.

Legal basis: article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1) (the 'MAR')

Signatures of persons representing the Company: