ARBITRAMENT AWARD

Polish Energy Partners S.A. (‘PEP’) hereby announces that on 13th February 2012 PEP received the award on the claim of Mondi Świecie S.A. (‘Mondi’). In the award indicated above, the Court of Arbitration held that, in principle, the method of calculating of the strike price of the so-called Voluntary Call Option – i.e. option of purchasing by Mondi of the shares in Saturn Management Spółka z ograniczoną odpowiedzialnością and (ii) Saturn Management Spółka z ograniczoną odpowiedzialnością i Wspólnicy, Spółka Komandytowa (‘SM’) – indicated by Mondi in the statement of claim is valid. Moreover, the Court of Arbitration Court did not agree with the position of PEP towards the calculation of the so-called Voluntary Call Option. In its award the Court of Arbitration did not indicate the particular strike price of the so-called Voluntary Call Option. Pursuant to the General Agreement of 29th April 2002 (‘General Agreement’), the final calculation of the strike price of the so-called Voluntary Call Option shall be made after the possible commencement of the option exercise procedure by Mondi. It shall be indicated, however, that under the mentioned calculation, made in accordance with the rules established by the Court of Arbitration, PEP shall get a refund of the entire capital contributed to SM along with the discounted, as of the date of the option exercise, interest associated with this capital accrued till the termination of the General Agreement (i.e. April 2022). At this moment PEP has no information on exercising of the so-called Voluntary Call Option by Mondi. PEP does not agree with the award contents and considers it grossly unfair. A decision as to further action of PEP shall be made after a thorough analysis of the reasons for the judgment. The main source of the company value creation is realisation by PEP of the wind farm and biomass power plant projects which are currently at the stage of preparation. Any proceeds received from Mondi in effect of SM redemption shall be used to finance the construction of the mentioned projects. As a result, the growth of the company value due to faster implementation of the mentioned projects shall level out the reduction in the valuation of PEP in the event of the Voluntary Call Option exercise, in accordance with the principles set by the Court of Arbitration.