PEP AND KGHM TFI S.A. SIGNED A LETTER OF INTENT

Polish Energy Partners Spółka Akcyjna (“PEP”) hereby informs that on February 9, 2010, PEP and KGHM TFI S.A. (“KGHM TFI”) signed a letter of intent regarding the implementation by PEP and a close-end investment fund managed by KGHM TFI (the “Fund”) of the project involving the construction and operation, under a long-term agreement, of a biomass power plant with the capacity of 30 up to 35 MW to supply power for the purposes of KGHM Group (the “Project”).

The construction of the 100% biomass fuelled power plant for KGHM Group is aimed at increasing the autonomy of KGHM Group in terms of the power supply and implementing the strategy that involves the use of renewable energy sources and, as a consequence, reducing the costs of energy.

By completing the Project, PEP will generate profits on another green energy outsourcing project implemented for a leading industry client in Poland.

Pursuant to the Letter of Intent, PEP will commence the work necessary to prepare the Project implementation and, simultaneously, the Parties will define the detailed terms of the Project implementation that will be worded in the relevant agreements.

If the Project implementation proves to be attractive at the preparatory phase, then PEP and the Fund will take up their respective shares in a special purpose vehicle to be incorporated for the purposes of the Project implementation and the new biomass power plant will be commissioned for operation at the end of 2012/ the beginning of 2013.