Magnit PAO : PJSC “Magnit” Announces the Results of the BOD Meeting

The price (money value) of JSC "Tander" property, which can be directly or indirectly disposed under the loan agreement (several related loan agreements), can amount to 25 or more percent of the book value of JSC "Tander" assets, determined by the accounting (financial) statements as of the last reporting date, but not more than 50 percent of the book value of JSC "Tander" assets, determined by the accounting (financial) statements as of the last reporting date.

Hereby to provide the Chief Executive Officer of JSC "Tander" with the right to sign the additional agreements to the loan agreement (several related loan agreements), which change the terms and conditions of the loan, including but not limited to the change of the interest rates, the loan amount and the term of the loan provision within the limits hereof".

"To recommend the sole executive body of PJSC "Magnit", which is the sole shareholder of JSC "Tander", to make the following decision at the realization of the voting right on JSC "Tander" shares owned by the Company:

"Under the clause 14.2 of the Charter of JSC "Tander" to approve the conclusion of the additional agreement to the previously concluded General agreement No. 42-0-10/2-2015 on the procedure of the credit transactions conclusion as of 25.08.2015 (hereinafter - the Agreement) by JSC "Tander" (hereinafter - the Borrower) with Joint Stock Company "Russian Agricultural Bank" (hereinafter - the Creditor), which the Borrower plans to execute in future, related to acquisition, disposal and possible direct or indirect company's disposal of the property, the cost of which amounts to 5 and more per cent of the balance sheet value of assets of the company, its subsidiaries, the principal company (in relation to which the company is a subsidiary), as well as other subsidiaries of the principal company (the "Group"), determined on the basis of the latest available consolidated report of the Group, prepared in compliance with the International Financial Reporting Standards with the following essentials of the Agreement (as amended by the additional agreement):

1. the Creditor shall provide the Borrower with the monetary funds in the Russian rubles;

2. the total credit limit under the Agreement (the credits amount which may be granted under the Agreement) shall not exceed 33,000,000,000 (Thirty three billion) rubles;

3. the maximum term of the individual credit granted under the Agreement shall not exceed 60 (Sixty) calendar days;

4. the maximum interest rate for the use of the credits granted under the Agreement - not more than 30 (Thirty) percent per annum;

5. conditions, procedure of granting and repayment of the credit amounts, interest and other payments shall be determined by the Agreement;

6. the Agreement shall remain valid for not more than 24 (Twenty four) months from the date of conclusion of the additional agreement to the Agreement.

Hereby to provide the Chief Executive Officer of JSC "Tander" with the right to sign the additional agreements which change the terms and conditions of the Agreement, including but not limited to the change of the interest rates, the credit amount and the term of the credit provision within the limits hereof".

Magnit is Russia's largest food retailer. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of March 31, 2016, Magnit operated 34 distribution centers and about 12,434 stores (9,715 convenience, 382 hypermarkets, and 2,337 drogerie stores) in 2,385 cities and towns throughout 7 federal regions of the Russian Federation.

In accordance with the audited IFRS results for 2015, Magnit had revenues of RUB 951 billion and an EBITDA of RUB 104 billion. Magnit's local shares are traded on the Moscow Stock Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard

& Poor's of BB+. Measured by market capitalization, Magnit is one of the largest retailers in Europe.