CONCLUSION OF CO-FINANCING AGREEMENT BY ISSUER’S SUBSIDIARY

The Management Board of the company operating under the business name Polenergia S.A. (“Issuer”) hereby reports that on 27 June 2023, the Issuer’s subsidiaries, namely Polenergia Elektrociepłownia Nowa Sarzyna Sp. z o.o. (“ENS” or “Beneficiary”) concluded with the National Fund for Environmental Protection and Water Management (“NFOŚiGW”) a co-financing agreement (“Co-financing Agreement”) for the project titled “Construction of hydrogen fuelling stations in Rzeszów and Nowa Sarzyna by Polenergia ENS Sp. z o.o.” as part of priority programme “Support for electric vehicle charging and hydrogen refuelling infrastructure” – construction or reconstruction of generally accessible hydrogen stations (“Project”).

The purpose of the Project is construction of two hydrogen fuelling stations along with accompanying infrastructure in two locations: in the area bordering with the Nowa Sarzyna CHP Plant and in Rzeszów.

Pursuant to the Co-financing Agreement, the total amount of co-financing for the Project in the form a subsidy is PLN 20,000,000 (“Subsidy”) which is approx. 43% of the eligible costs of the Project. Pursuant to the Co-financing Agreement, the hydrogen fuelling stations along with accompanying infrastructure should be commissioned by 1 June 2025, while the Co-financing Agreement foresees the possibility of introducing changes to the schedule.

The Beneficiary’s rights with respect to disbursement of funds under the Subsidy depend on the approval of applications for the disbursement of funds, the submission of which may require relevant corporate approvals.

The remaining terms of the Co-Financing Agreement, including the rules of its termination or termination with immediate effect, suspension of co-financing do not diverge from generally applied terms in agreements of this type.

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