INITIAL RESULTS OF MAIN AUCTION FOR DELIVERY YEAR 2022

The Management Board of Polenergia S.A. (‘Issuer’), acting pursuant to Art. 17 (1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 2014, p. 1, as amended), with reference to Current Report No. 47/2018 of 5th December 2018, hereby announces that, according to the preliminary results of the main auction for the delivery year 2022 published on 7th December 2018 by Polskie Sieci Elektroenergetyczne S.A., the main auction for the delivery year 2022 ended in the 7th round, with the closing price of PLN 198.00/kW/year.

With the announcement of the preliminary results of the main auction for the delivery year 2022, capacity contracts were signed with the Issuer’s subsidiaries – Polenergia Elektrociepłownia Nowa Sarzyna sp. z o.o. seated in Nowa Sarzyna and Mercury Energia Spółka z ograniczoną odpowiedzialnością i Wspólnicy Spółka Komandytowa seated in Warsaw. The total amount of the capacity obligation resulting from the above-mentioned contracts is 113.8 MW. The contracts were concluded for 1 year. Pursuant to the Act of 8th December 2017, capacity contracts are concluded in accordance with a template, which constitutes an annex to the capacity market regulations.

The capacity contracts were concluded under the condition precedent until the final results of the auction would be announced by the President of the Energy Regulatory Office.