ZPC Otmuchow : Current report No. 36/2016

Otmuchow, December 13th 2016

Current report no 36/2016

Subject: Information provided pursuant to art. 69 of the Act on Public Offering.

The Management Board of ZPC Otmuchów SA (The Company, the Issuer) announces that on December 13, 2016, he received pursuant to art. 69 of the Act on Public Offering (...) from Xarus Holdings Limited based in Larnaca (Cyprus) (Xarus) information about the change in the total number of votes in the Company.

Based on article 69a section 1 item 1 in conjunction with article 69 paragraph 4 point 1) - 9) of the Act on Public Offering [...] (the Act) Xarus announced that on December 8th, 2016 it was notified that on 14th November 2016 there was a seizure other than a legal action of legal event, ie. the merger of Xarus with a company belonging to the same Group to which belongs Xarus, ie. the company Nemico Limited, based in Larnaca (Cyprus) (Nemico), as a result of which the company took over the company Xarus Nemico. With the result of the merger mentioned above, Xarus with effect from 14th November 2016 joined all the rights and obligations as a legal successor of Nemico, including acquired belonging to Nemico shares, ie. 6,491,750 shares in the Company, representing 50.92% Company's share capital and entitling to 6,491,750 votes at the general Meeting of the Company, representing 50.92% of the total number of votes at the general Meeting of the Company.

Xarus also announced that:

• There are no other subsidiaries of Xarus that directly or indirectly hold shares of the Company;

  Current report ZPC OTMUCHOW S.A.

• It is not a party to the agreement referred to in article 87 1 point 3) point c) of the Act;

• With respect to the transactions described above, there are no financial instruments referred to in article 69 paragraph 4 section 7-9 of the Act.

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