CONCLUSION OF ANNEXES TO RESERVATION AGREEMENTS WITH THE SUPPLIER OF MONOPAL FOUNDATIONS BY PROJECT COMPANIES IMPLEMENTING OFFSHORE WIND FARM PROJECTS

The Management Board of the company under the name Polenergia S.A. (the “Issuer“), with reference to Current Report No. 14/2023 dated April 20, 2023 (“Report 14/2023“), informs that the project companies MFW Bałtyk II sp. z o.o. and MFW Bałtyk III sp. z o.o. (collectively, the “Companies“), in which the Issuer holds a 50% stake, developing – as part of a joint venture between the Issuer and Equinor Wind Power AS – offshore wind farm projects, i.e. OWF Bałtyk II and OWF Bałtyk III (collectively, the “Projects“), signed on September 29, 2023 with SIF Netherlands B.V. (“Supplier“) annexes (collectively: “Annexes“) to the two agreements referred to in the 14/2023 Report, i.e., agreements for the selection of a preferred supplier and the reservation of production capacity for the production of monopile foundations (“Monopiles“) for wind turbines for each of the Projects (collectively: “Reservation Agreements”).

The subject of the Annexes is to change the assumed date for signing agreements for the production of Monopiles for the Projects (the “Final Date” and “Final Agreements“, respectively). The new Final Date was agreed upon in the Annexes as January 15, 2024. The reason for the change of the Final Date is the ongoing negotiations of the Final Agreements. The change in the Final Date does not affect the implementation schedule of the Projects.

In view of the change in the Final Date, the Issuer will be required to issue new sureties (“New PCGs“) for the Companies’ obligations to pay 50% of the cancellation fees, in accordance with the cancellation fee increase mechanism provided for in the Reservation Agreements. The New PCGs will replace the existing sureties. The maximum total amount of the Issuer’s liability under the New PCGs will be calculated by the Companies and the Provider before the issuance of the New PCGs. As of the date of publication of this report, the amount for the two Projects combined is estimated at approximately EUR 38 million. The New PCGs will have to be issued and delivered to the Supplier no later than November 1, 2023, which will take place after the Issuer obtains the relevant corporate approvals.

legal basis: Article 17 (1) of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ EU. L. of 2014 No. 173, p. 1 as amended).