CONCLUSION OF RESERVATION AGREEMENTS BY PROJECT COMPANIES IMPLEMENTING OFFROAD WIND FARM CONSTRUCTION PROJECTS AND FOR THE PERFORMANCE OF PRELIMINARY WORKS IN THE FIELD OF DESIGNING AND CONSTRUCTION OF OFFLINE TRANSFORMER STATIONS IN A “TURNKEY FORMULAR”

The Management Board of the company under the name Polenergia S.A. (the “Issuer”) informs that the project companies MFW Bałtyk II sp. z o.o. and MFW Bałtyk III sp. z o.o. (collectively “Companies”), in which the Issuer holds 50% of shares, developing – as part of a joint venture of the Issuer and Equinor Wind Power AS – projects for the construction of two offshore wind farms, i.e. MFW Bałtyk II and MFW Bałtyk III (collectively “Projects”) signed on May 14, 2024, with Iemants NV based in Arendonk (Belgium) (the “Contractor”) (each Company separately) reservation agreements and agreement for the performance of preliminary works in the field of design and construction of offshore transformer stations, one station for each Project (collectively: “Reservation Agreements”).

The subject of the Reservation Agreements is the reservation of the resources of the Contractor and key subcontractors within the assumed schedule and the obligation of the parties to continue negotiations in good faith of the final EPC agreements, i.e. for the design and turnkey construction of offshore transformer stations (“Final Agreements”). The Reservation Agreements also provide for the Contractor to commence the necessary preliminary work and order materials with a long delivery period, enabling the timely implementation of the Projects.

Reservation Agreements may be terminated by the Companies without cause upon payment of remuneration for preliminary work performed and cancellation fees to subcontractors (collectively, “Cancellation Fees”). Cancellation fees may amount to approximately EUR 65.5 million in total for both Projects. The Companies may incur similar costs if, due to the Companies’ fault, the Final Agreements are not signed by August 1, 2024, subject to the possibility of extending this deadline by the parties.

legal basis: art. 17 section 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 (Journal of Laws EU L. of 2014, No. 173, page 1, as amended)