Societatea Nationala Nuclearelectrica : Current report regarding the resolutions of the OGMS and EGMS of 28.09.2017

Report date: 28.09.2017

Name of the issuing entity: Societatea Nationala NUCLEARELECTRICA S.A. Registered office: 65, Polona street, District 1, Bucharest

Phone/fax number: 021-203.82.00 / 021 - 316.94.00

Sole Registration Code with the Trade Register Office: 10874881 Order number: J40/7403/1998

Subscribed and paid share capital: RON 3.015.138.510

Regulated market on which the issued securities are traded: Bucharest Stock Exchange

1. The resolutions of the Ordinary General Meeting of SNN Shareholders of 28.09.2017, 10:00 hours
2. The resolutions of the Ordinary and Extraordinary General Meeting of SNN Shareholders of 28.09.2017, 11:00 hours, respectively 12:00 hours

Societatea Nationala Nuclearelectrica S.A. ("SNN") informs the shareholders and investors that on 28.09.2017, at Capital Plaza Hotel, Ion Mincu room, the Ordinary General Meetings of SNN Shareholders took place starting with 10:00 hours followed by The Ordinary and Extraordinary General Meeting of SNN Shareholders starting with 11:00, respectively 12:00 hours.

Within the Ordinary General Meeting of SNN Shareholders starting with 11:00, the distribution of the amount of 110.000.000 lei as dividends was approved, on the basis of the provisions of art. II and art. III of the Government Emergency Ordinance no. 29/2017, item introduced on the agenda of the OGMS at the request of the Ministry of Energy, the majority shareholder of SNN.

The amount of 110.000.000 lei will be distributed to the shareholders registered at the registration date of 17.10.2017, from the accounting chapter "Other reserves representing the company's own financing sources", representing a gross dividend of 0,364825694 lei/share. The payment date approved by the shareholders if 03.11.2017. SNN will issued a notification for the information of

the shareholders regarding the dividend payment date and methods one month in advance of the payment date.

Within the Extraordinary General Meeting of SNN Shareholders, starting with 12:00, the initiation of phase I of the Strategy for the Unit 1 Cernavoda NPP Refurbishment Project was approved. The refurbishment project of Cernavoda NPP Unit 1 was reintroduced on the agenda of the EGMS at the request of the Ministry of Energy, the majority shareholder, following the abstention in the 11.07.2017 EGMS and the request for additional information about the project and the development stages, information which SNN sent to the Ministry of Energy.

The initial strategy for the refurbishment of Cernavoda NPP Unit 1 was approved by the Extraordinary General Meeting of SNN Shareholders of 23.12.2013. As per the stages of the initial strategy, during 2013-2017 SNN contracted and completed a series of documentations regarding technical evaluations of the equipment status and nuclear safety assessments.

In parallel with the implementation of the refurbishment strategy approved by the shareholders, SNN analyzed the studies completed and the projects implemented in the nuclear industry over the last years in order to identify possibilities for the optimization of the production and for the accumulation of additional funds with the strict observation of the same nuclear safety standards. Thus, due to the fact that more CANDU type units approach their life span of 210.000 operating hours at nominal power (the designed life span of a CANDU unit), the nuclear industry made a series of research on the behavior in time of the fuel channels and ageing mechanisms which affect them, in order to extend the life span of the units beyond the limits estimated at the time of design, more than 30 years ago. The results of these research are successfully implemented at other CANDU type nuclear units around the world, in view of extending the operating period before refurbishment, in the same nuclear safety conditions.

• Bruce - Canada, up to 247.000 hours of operation at nominal power (+37.000 hours);

• Pickering - Canada, up to 247.000 hours of operation at nominal power (+37.000 hours);

• Darlington - Canada, up to 235.000 hours of operation at nominal power (+25.000 hours);

• Embalse - Argentina, over 225.000 hours of operation at nominal power (+15.000 hours). The studies and periodic inspections regarding the in time behavior of Unit 1 components, as well as the monitoring of the "time-limiting" components associated mechanisms, namely the pressure tubes of the reactor, allowed Candu Energy (the design authority) to estimate, at the end of 2015, that the life span of Cernavoda NPP Unit 1 could be extended to at least 220.000 - 230.000 hours of operation at nominal power.

Thus, based on the studies and preliminary analysis carried out so far, phase I of the refurbishment project will include activities necessary for ensuring the operation of Unit 1 for a period of 30 years. SNN concluded in February 2017 a contract with CANDU Energy, as the design authority, valid until the end of 2017 for the completion of the report which will indicate the exact number of operating hours at nominal power, additional to the 210.000 hours estimated by the initial

design, which can be implemented under high nuclear safety conditions during operation and for a measure and activities plan necessary to be implemented in order to reach this target. After the completion of this report, it is necessary to obtain the preliminary agreement of the regulator CNCAN.

Phase I of the Strategy will also include organizational activities related to the project, at the beginning of 2018 when organizational and logistical modifications resulted from the study will be implemented and also the process of completing the support documentation necessary for preparing the Feasibility Study (the last activity of Phase I), including its drafting and approval by the shareholders, in 2021.

The Feasibility Study will integrate all the results of the technical studies and safety analysis, in such a manner as to permit a clear definition of the project, from the technical point of view as well as from the financial one. In this respect, the majority of these studies and technical and safety analysis can only be performed, objectively, by specialized engineering companies, often specialized on certain punctual segments, aspects which exceed the competences of companies that usually draft feasibility studies for investment projects (otherwise stated, for the preparation of the Feasibility Study specialized input is required from nuclear engineering companies, for which reason the project was approached in two phases and, in this context, the drafting of the Feasibility Study was established for a subsequent phase, as an objective necessity). Currently, a series of studies is underway, relevant data regarding certain equipment/structures system and components being obtainable only during planned outages of Unit 1. In this context, the initiation of the Feasibility Study without having all the available entry data can lead to an incomplete and insufficiently substantiated document which would not serve it's intended purpose.

The first phase of the Refurbishment Project of Unit 1 includes the following main activities:

1. The establishment of a Refurbishment Division dedicated to the development of the refurbishment project;

2. The initiation of the recruiting process for the positions included on the organization chart for the refurbishment project, phase I;

3. The initiation of the experience exchange and personnel training activities for phase I;

4. The development of the necessary activities (studies, analysis) for the extension of the operating life of Unit 1 over the 210.000 hours of operation, until 30 years;

5. The continuation of the necessary evaluations in order to identify all the activities which have to be included in the refurbishment project;

6. The preparation of the necessary documentation for the establishment of the project infrastructure (IT, offices, additional spaces and housing) starting with phase II;

7. The preparation and approval by the GMS of the Feasibility Study for the refurbishment of the unit.

After the completion of the stages in phase I, SNN will submit to the approval of the shareholders the other two phases of the project:

Phase 2 - Preparation of the implementation

Phase 3 - Unit outage and refurbishment. Thus, the effective outage is programmed to take place during December 2026 - December 2028, as per the stages of the refurbishment strategy.

Details regarding phases 2 and 3 are available in the substantiation note related to item 3 on the agenda of the EGMS of 28.09.2017, published on SNN website in the Investor Relations section, GMS of 28.09.2017.

The extension of the number of initial operating hours represents an operation efficiency measure due to the continuous delivery of energy into the national power grid by Unit 1 until 2026 and also an opportunity for SNN to accumulate additional internal funds associated to the extended production period for the investment in the refurbishment project, thus reducing the level of external sources which need to be attracted for the financing of the project.

Cernavoda NPP Unit 1 refurbishment project is estimated at 1,5 billion Euro and will be financed by a mix of internal and external sources. Refurbishing Unit 1 ensured the continuation of production, for an estimated additional period of 30 years, at a cost of less than half the cost of a new build.

The resolutions of the Ordinary and Extraordinary General Meetings of Shareholders are attached to the current report.