Zaklady Tluszczowe Kruszwica : Update – information on the predicted impact of a one-off event on the financial results.

Content of the report: With reference to the report no. 18/2016, dated the 17th November 2016, the Management Board of Zakłady Tłuszczowe "Kruszwica" S.A. ("Company") informs that on the 12th December 2016 it received an information that conditions of the conditional sale contract were fulfilled ("Contract 1") and of the contract of sale of property as well as perpetual usufruct of real estate subject to the condition ("Contract 2"; collectively with the contract 1 of the "Contract") concluded on the 17th November 2016 with a third party, concluded by the ZTK Property Management Spółka z ograniczoną odpowiedzialnością [Ltd.] with the seat in Warsaw ("ZTM PM"), as a seller, on which the Company

informed in the report no. 18/2016.

Each of the Contracts was concluded under a suspending clause that the capital city of Warsaw will not exercise the pre-emptive right pursuant to the Article 109, section 1 item 2) of the Act dated the 21st August 1997 on real property management with respect to the real estate covered by the Contract 1. On the 12th December 2016, the Company received information that the capital city of Warsaw submitted a declaration of waiving of the pre-emptive right with respect to the real property covered by the Contract 1.

Thus, with reference to the fulfillment of all the conditions set forth in the Contracts, the ZTK PM intends to conclude contracts transferring the right to perpetual usufruct and the right to real property covered by the Contracts. The Company anticipates that the contracts will be concluded before the 31st December 2016. The Company shall inform about the conclusion thereof by way of a separate current report.

The Management Board of the Company sustains its estimated impact of the above mentioned sale of real property, if contracts transferring the right to perpetual usufruct and property will be concluded and the price will be paid, on the consolidated result (net profit) of the ZT "Kruszwica" S.A. Group in the estimated amount of approximately PLN 43,000,000.

Legal basis: Article 17 section 1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 dated the 16th April 2014, on the market abuse (Market Abuse Regulation) and repealing the Directive 2003/6/EC of the European Parliament and of the Council and the Directive of the Council 2003/124/EC, 2003/125/EC and 2004/72/EC ("MAR Regulation") - confidential information.