Mecanica Ceahlau

AGM Information • Jun 30, 2017

Attention to:

AUTHORITY FOR FINANCIAL MONITORING BUCHAREST [ASF] BUCHAREST STOCK EXCHANGE

CURRENT REPORT

in compliance with the provisions under Law 24/2016 and of the Regulation N^o 1/2006 of CNVM

Report date: 20/06/2017

Issuing entity: S.C. "Mecanica Ceahlău" SA

Registered Office: Municipality of Piatra Neamt, Str. Dumbravei, N^o 6

Phone/Fax: 0233/211104; 0233/216069

Unique Code of Registration with the Office of the Register of Commerce: 2045262

Register of Commerce Incorporation N^o : J.27/8/1991

Social capital, subscribed and paid: Lei 23,990,846.00

Regulated Market on which movables issued are traded: [Bursa de Valori] Bucharest Stock Exchange

Important events to be reported: The Ordinary General Meeting of the Shareholder is hereby convened for the 01/02 August 2017

The Board of Directors of the Company "MECANICA CEAHLAU" S.A. with registered office in the municipality of Piatra Neamţ, str. Dumbravei, N^o 6, county of Neamt, registered in the Registrar of Commerce with N^o J27/8/1991, unique code of registration 2045262, convened in the meeting held on 26/06/2017, in compliance with the provisions of Law 31/1990, republished and amended, hereby convene the Shareholders' Ordinary General Meeting at 13:00, on 01 August 2017, said meetings is to be held at the company's registered office in Piatra, Str. Dumbravei, N^o 6, county of Neamt, for all shareholders registered in the Shareholders' Register at the end of the day 17/07/2017, with the following agenda:

For the Shareholders' Ordinary General Meeting

1. Election of the secretariat of the company Shareholders' Ordinary General Meeting, in compliance with the provisions of Law 31/1990, article 129, paragraph (2);

2. Approval of the appointment of the financial auditor and the duration of the financial audit contract for a period of 2 years (2017-2019)

3. Approval of the date of 18/08/2017 (ex-date 17/08/2017) as the date for the identification of the shareholders who are to benefit from rights and who are to suffer from the effects of the SOGM [AGOA] resolutions.

The shareholders shall attend the ordinary general meeting simply by proof of their identity, i.e., for individual shareholders, with ID, and by special proxy to individual representatives, in case of corporate shareholders and individual shareholders represented in the meeting.

Such special proxy shall be issued, in Romanian or in English, in three original counterparts (one for the company, one for the principal and one for the agent).

Copies of special proxies, containing certification of compliance to the original undersigned by the representative, and a copy of the ID, or of the represented shareholder's certificate of registration, and a copy of the ID or of the certificate of registration of the representative, shall be submitted at the company offices or by e-mail at address asistent.manager@mecanicaceahlau.ro by 16:00 on 28/07/2017.

A shareholder may grant a general proxy valid for no more than three years, empowering their representative to vote as to all aspects submitted to the debate of the shareholders' general meetings of the Company identified therein, including disposition, provided that such proxy is granted by the shareholder, in their capacity of a client, to an agent as per the definition under article 2, paragraph (1), point 14, of Law 297/2004 regarding the capital market, or to an attorney.

The copy of the general proxy, containing certification of compliance to the original undersigned by the representative, and a copy of the ID or of the represented shareholder's certificate of registration, and a copy of the ID or of the certificate of registration of the representative, shall be submitted at the company offices by 16:00 on 28/07/2017.

Shareholders already registered on the reference date (i.e., 17/07/2017) in the shareholders' register could opt for voting via post, before the Shareholders' General Meeting, using the postal vote form.

The postal vote form in original, drafted in Romanian or English, together with the copy of the identification or the shareholder's registration certificate shall be submitted to the company offices by 16:00 [hours] on 28/07/2017.

Further information, materials, and documents related to items on the agenda, e.g., draft projects, shall be made available for shareholders at the company's registered office and on the company's website, i.e., www.mecanicaceahlau.ro, as of 30/06/2017, both in Romanian and in English.

Updated forms of special proxies as well as forms for vote cast via post shall be available to the shareholders at the company offices and on the company's website, i.e., www.mecanicaceahlau.ro, on 18/07/2017, in Romanian and in English.

Votes may be cast as of 18/07/2017.

One or more shareholders holding individually or between them at least 5% of the shares capital are entitled to introduce new items on the agenda of the Ordinary and Extraordinary Shareholders' General Meetings, provided each item is accompanied by an argument or by a draft resolution to be submitted to the general meeting. Propositions shall be sent, in writing, to the company by 16:00 on 14/07/2017. Moreover, one or several shareholders holding individually or between them at least 5% of the social capital are entitled to submit draft resolutions to be added on the agenda of the general meeting. Such draft resolutions shall be sent in writing by t by 16:00 on 14/07/2016.

Shareholders may address their queries as to items on the agenda of the general meeting between the 30/06/2017 and 16:00 on 28/07/2017.

In case a statutory and legal quorum, necessary to conduct the ordinary and extraordinary general meetings, is not reached on the first meeting convened, the following general meetings shall be held on 02/08/2017, with the same agenda, at the same venue and at the same time. For further information, please refer to the company registered office and feel free to call on 0233-211104 extension 117 or contact us at ceahlau@mecanicaceahlau.ro.

Trifa Aurelian-Mirea-Radu Chair of the Board of Directors