Coal Energy S.A.

Quarterly Report • Oct 29, 2021

Unaudited annual accounts

30 June 2021

For the year beginning 1 July 2020 and ending 30 June 2021

Coal Energy S.A.

Société anonyme

205, route d`Arlon, L-1150 Luxembourg Luxembourg: B 154144

Contents

Unaudited annual accounts

Balance Sheet as at 30 June 2021 Profit and Loss Account for the year ended 30 June 2021

Notes to the unaudited annual accounts

• Note 1 General information
• Note 2 Summary of significant accounting policies
• Note 3 Financial fixed assets
• Note 4 Debtors
• Note 5 Prepayments and accrued income
• Note 6 Capital and reserves
• Note 7 Non subordinated debts
• Note 8 Other external charges
• Note 8 Staff costs
• Note 9 Other operating income and charges
• Note 10 Income tax
• Note 11 Off balance sheet commitments and transactions
• Note 12 Related party transactions
• Note 13 Emoluments granted
• Note 14 Advances and loans granted
• Note 15 Subsequent events

BALANCE SHEET

As at	Notes	30 Jun 2021	30 Jun 2020
(expressed in US Dollar)		USD	USD
ASSETS
Fixed assets
Financial fixed assets	3
Shares in affiliated undertakings		72 006 905,28	72 006 905,28
Amounts owed by affiliated undertakings		34 957 456,54	34 957 456,54
Total fixed assets		106 964 361,82	106 964 361,82
Current assets
Debtors	4
Amounts owed by affiliated undertakings
becoming due and payable within one year Other receivables		15 655 015,96	13 313 507,28
becoming due and payable within one year		772,38	15 176,94
Cash at bank, cash in postal cheque accounts,
cheques and cash in hand		510,07	510,07
Total current assets		15 656 298,41	13 329 194,29
Prepayments and accrued income	5		-
TOTAL ASSETS		122 620 660,23	120 293 556,11

BALANCE SHEET

As at	Notes	30 Jun 2021	30 Jun 2020
(expressed in US Dollar)		USD	USD
LIABILITIES
Capital and reserves	6
Subscribed capital Share premium and similar premiums Profit or (loss) brought forward Profit or (loss) for the financial year		450 111,20 80 540 783,11 (14 245 474,82) 2 289 604,12	450 111,20 80 540 783,11 (12 388 643,10) (1 856 831,72)
Total capital and reserves		69 035 023,61	66 745 419,49
Non subordinated debts	7
Amounts owed to credit institutions becoming due and payable within one year becoming due and payable after more than one year		53 028 599,10 -	53 028 599,10 -
Trade creditors becoming due and payable within one year		281 623,78	338 693,19
Tax and social security debts Tax debts		415,94	32 194,14
Other creditors becoming due and payable within one year		274 997,80	148 650,19
Total non subordinated debts		53 585 636,62	53 548 136,62
TOTAL LIABILITIES		122 620 660,23	120 293 556,11

signed signed Viktor Vyshnevetskyy, Director A Arthur David Johnson, Director A

signed signed

Oleksandr Reznyk, Director A Diyor Yakubov, Director B

Coal Energy S.A. Unaudited annual accounts For the year beginning 1 July 2020 and ending 30 June 2021

PROFIT AND LOSS ACCOUNT For the period	Notes	from 1 Jul 2020 to 30 Jun 2021	from 1 Jul 2019 to 30 Jun 2020
(expressed in US Dollar)
CHARGES
Other external charges		37 500,00	31 640,65
Other operating charges	9	14 404,56	-
Interest and other financial charges other interest and similar financial charges Total interest and other financial charges		- -	3 603 461,06 3 603 461,06
Income tax	10	-	-
Other taxes not included in the previous caption		-	-
TOTAL CHARGES		51 904,56	3 635 101,71
INCOME
Other operating income Other interest and other financial income derived from affiliated undertakings other interest and similar financial income Total interest and other financial income		2 341 508,68 - 2 341 508,68	1 769 521,21 8 748,78 1 778 269,99
TOTAL INCOME		2 341 508,68	1 778 269,99
Profit or (loss) for the financial year		2 289 604,12	(1 856 831,72)
signed Viktor Vyshnevetskyy, Director A		signed Arthur David Johnson, Director A
signed Oleksandr Reznyk, Director A		signed Diyor Yakubov, Director B

1 General information

Coal Energy S.A. (hereafter the "Company") was incorporated on 17 June 2010 and organised under the laws of Luxembourg as a Société anonyme for an unlimited period.

The registered office of the Company is established in Luxembourg, 205, route d`Arlon L-1150 Luxembourg and the Company number with the Registre de Commerce is B 154144. The financial year of the Company starts on 1 July and ends on 30 June of each year.

The purpose of the Company is the holding of participations, in any form whatsoever, in Luxembourg and foreign companies and any other form of investment, the acquisition by purchase, subscription or in any other manner as well as the transfer by sale, exchange or otherwise of securities of any kind and the administration, control and development of its portfolio.

The Company may further guarantee, grant loans or otherwise assist the companies in which it holds a direct or indirect interest or which form part of the same group of companies as the Company.

The Company also prepares consolidated financial statements, which are published according to the Luxembourg legal requirements.

2 Summary of significant accounting policies

Basis of preparation

The annual accounts of the Company are prepared in accordance with Luxembourg legal and regulatory requirements.

Accounting policies and valuation rules follow the historical cost convention and are, besides the ones laid down by the law, determined and applied by the Board of Directors.

Financial fixed assets

Shares in affiliated undertakings and participating interests are valued at purchase price including the expenses incidental thereto.

Loans to affiliated undertakings, participating interests and other loans are valued at nominal value including the expenses incidental thereto.

In case of a durable depreciation in value according to the opinion of the Board of Directors, value adjustments are made in respect of fixed assets, so that they are valued at the lower figure to be attributed to them at the balance sheet date. These value adjustments are not continued if the reasons for which the value adjustments were made have ceased to apply.

Debtors

Debtors are valued at their nominal value. They are subject to value adjustments where their recovery is compromised. These value adjustments are not continued if the reasons for which the value adjustments were made have ceased to apply.

Prepayments and accrued income

This asset item includes expenditures incurred during the financial period but relating to a subsequent financial period.

Provisions

Provisions are intended to cover losses or debts of which the nature is clearly defined and which, at the date of the balance sheet, are either likely to be incurred or certain to be incurred but uncertain as to their amount or as to the date on which they will arise.

Provisions may also be created in order to cover charges which have their origin in the financial period under review or in a previous financial period, the nature of which is clearly defined and which at the date of the balance sheet are either likely to be incurred or certain to be incurred but uncertain as to their amount or as to the date on which they will arise.

Accruals and deferred income

This liability item includes income received during the financial period but relating to a subsequent financial period.

Value adjustments

Value adjustments are deducted directly from the related asset.

Foreign currency translation

The Company maintains its accounts in US Dollar ("USD"). Transactions expressed in currencies other than USD are translated into USD at the exchange rate effective at the time of the transaction.

Formation expenses and fixed assets expressed in currencies other than USD are translated into USD at the exchange rate effective at the time of the transaction. At the balance sheet date, these assets remain translated at historical exchange rates.

Cash at bank and all items subject to fair value valuation are translated at the exchange rate effective at the balance sheet date. Exchange losses and gains are recorded in the profit and loss account of the period.

Other assets and liabilities are translated separately respectively at the lower or at the higher of the value converted at the historical exchange rate or the value determined on the basis of the exchange rates effective at the balance sheet date. The unrealised exchange losses are recorded in the profit and loss account. The realised exchange gains are recorded in the profit and loss account at the moment of their realisation. Consequently, only realised exchange gains and losses and unrealised exchange losses are reflected in the profit and loss account.

Where there is an economic link between an asset and a liability, these are valued in total according to the method described above and only the net unrealised loss is recorded in the profit and loss account.

Going concern

The annual accounts are prepared on a going concern basis even though the accumulated losses exceed 75% of the corporate capital of the Company. As a result the Company is depending on the ongoing financial support of the Group.

3 Financial fixed assets

Financial fixed assets held at cost less impairment -		Gross book value -	Additions	Disposals		Transfers Gross book value -
movements gross book value		opening balance				closing balance
Shares in affiliated undertakings		72 006 905,28	-	-	-	72 006 905,28
Amounts owed by affiliated undertakings		34 957 456,54	-	-	-	34 957 456,54
Total		106 964 361,82	-	-	-	106 964 361,82
Financial fixed assets held at cost less impairment -		Net book value -	Additions	Disposals	Transfers	Net book value -
movements net book value		opening balance				closing balance
Shares in affiliated undertakings		72 006 905,28	-	-	-	72 006 905,28
Amounts owed by affiliated undertakings		34 957 456,54	-	-	-	34 957 456,54
Total		106 964 361,82	-	-	-	106 964 361,82
Undertakings in which the Company holds at least 20% in their share capital or in which it is a general partner are as follows:
				Date of last non	Net equity in last	Net result in last non
	Registered			approved	non approved	approved accounts
Name	Office	Ownership %	Net Value	accounts	accounts	(loss)
Nertera Investments Limited	Cyprus	100%	72 006 905 ,28	`31 Dec 2016	66 302 339,00	(2 410 273,00)
Loans to affiliated undertakings				Amount	Interest
Counterparty Nertera Investments Limited		Currency USD	Amount	USD 2 217 083,08	rate 4,50%	Maturity date Nov 2021
Nertera Investments Limited		USD		32 740 373,46	Libor 6m + 5.85%	Jun 2020
Total				34 957 456,54
Debtors Debtors			Within one year	More than one year	30 Jun 2021	30 Jun 2020
Amounts owed by affiliated undertakings			15 655 015 ,96	-	15 655 015,96	13 313 507,28
Other receivables			772 ,38	-	772,38	15 176,94
Total			15 655 788,34	-	15 655 788,34	13 328 684,22
Accrued interest receivable from affiliated undertakings				Amount	Interest	Maturity
Counterparty			Currency	USD	rate	date
Accruals loan interest to Nertera Investments Limited			USD	826 960,84	4,50%	N/A
Accruals loan interest to Nertera Investments Limited			USD	14 828 055,13	Libor 6m + 5.85%	N/A
Total				15 655 015,96
Prepayments and accrued income
Prepayments and accrued income					30 Jun 2021	30 Jun 2020
Total					- -	- -
Capital and reserves
Movements in capital and reserves		Balance as at 30 June 2020	Allocation of preceding year result	Other movements	Net result for current year	Balance as at 30 Jun 2021
Subscribed capital		450 111,20	-	-	-	450 111,20
Share premium and similar premiums		80 540 783,11	-	-	-	80 540 783,11

Total 66 745 419,49 - - 2 289 604,12 69 035 023,61

Profit or (loss) for the financial year

4

5

6

The subscribed capital amounts to USD 450,111.20 and is divided into 45,011,120 shares with a nominal value of USD 0.01 fully paid up at 30 June 2020.

The Company shares were admitted to trading on Warsaw Stock Exchange on 4 August 2011. The offer price for one share was established at PLN 20.00 and the final number of the offer shares was 11,252,780.00.

• • • 2 289 604,12 2 289 604,12

Legal reserve

The Company is required to allocate a minimum of 5% of its annual net profit to a legal reserve, after deducting any cumulated losses, until this reserve equals 10% of the nominal value of the subscribed share capital. This reserve may not be distributed in the form of cash dividends, or otherwise, during the life of the Company.

7 Non subordinated debts

Creditors by category	Within one year	More than one
		year	30 Jun 2021	30 Jun 2020
Amounts owed to credit institutions	53 028 599,10	-	53 028 599,10	53 028 599,10
Trade creditors	281 623,78	-	281 623,78	338 693,19
Tax and social security debts	415,94	-	415,94	32 194,14
Other creditors	274 997,80	-	274 997,80	148 650,19
Total	53 585 636,62	-	53 585 636,62	53 548 136,62
Amounts owed to credit institutions	Within one year	More than one
		year	30 Jun 2021	30 Jun 2020
Accrued interest - Financial institution
	18 028 599,10	-	18 028 599,10	18 028 599,10
Loan - Financial institution
	35 000 000,00	-	35 000 000,00	35 000 000,00
Total	53 028 599,10	-	53 028 599,10	53 028 599,10
Amounts owed to credit institutions
Becoming due and payable after more than one year		Currency	30 Jun 2021	Interest rate
Loan - Financial institution		n/a	-	n/a
Total			-

Other creditors	Wtihin one year	More than one
		year	30 Jun 2021	30 Jun 2020
A.D. Johnson	175 000 ,00	-	175 000,00	137 500,00
M.Vishnevetskaya	5 188 ,93	-	5 188,93	5 188,93
V.Vishnevetskiyy	5 961,26	-	5 961,26	5 961,26
Other creditors	88 847,61	-	88 847,61	-
Total	274 997,80	-	274 997,80	148 650,19

8 Staff costs

During 2021 FY and 2020 FY, the Company did not employ any staff and, consequently no payments for wages, salaries or social security were made.

9 Other operating income and charges

Other operating charges	30 Jun 2021	30 Jun 2020
Director's fees	37 500,00	25 000,00
Total	37 500,00	25 000,00

10 Income tax

The Company is subject to normal taxation under Luxembourg tax regulations.

The tax position until 2018 has been assessed by the Luxembourg tax authorities on the basis of a provisional tax assessment and may still be subject to a review by the authorities within five years following the date of the provisional tax assessment. The issuance of a final tax assessment could result in additional tax payable/ receivable.

11 Off balance sheet commitments and transactions

On 14 March 2014 the Company entered into a surety agreement with OTP Bank to act as a guarantor for securing obligations of "Donantratsit" LLC under factoring agreement Nr FT 14-090/100-3 in an amount not exceeding UAH 39,200,000.00.

12 Related party transactions

There were no transactions with related parties during the 2021 FY and 2020 FY.

13 Emoluments granted to the members of the managing and supervisory bodies and commitments in respect of retirement pensions for former members of those bodies

Remuneration granted to the members of the managing and supervisory bodies acting in that capacity and any commitments arising or contracted in respect of retirement pensions for former members of those bodies for the financial year are broken down:

Remuneration members of managing and supervisory bodies	30 Jun 2021	30 Jun 2020
Managing bodies	37 500,00	25 000,00
Total	37 500,00	25 000,00

14 Advances and loans granted to the members of the managing and supervisory bodies

There are no advances, loans or commitments given on their behalf by way of guarantee of any kind granted to the members of the management and supervisory bodies during 2021 FY and 2020 FY.

15 Subsequent events

Over 2021 FY, due to the escalation of the military unrests in the region of the Company's assets and headquarters, the Company's further development has remained uncertain, as well as the audit procedure for the annual accounts as at 30 June 2021 has been postponed until further notice.

signed signed Viktor Vyshnevetskyy, Director A Arthur David Johnson, Director A

signed signed

Oleksandr Reznyk, Director A Diyor Yakubov, Director B

8

COAL ENERGY S.A. Société Anonyme 205, roude d`Arlon, L-1150 Luxembourg R.C.S. Luxembourg: B 154.144 Capital social: USD 450.111,20 (the Company)

STATEMENT OF MANAGEMENT RESPONSIBILITY

To the best of our knowledge, the financial statements as at 30 June 2021 of Coal Energy S.A. have been prepared in accordance with LUX GAAP accounting standards give a true and fair view of the assets, liabilities, financial position and result of its operations for the year ended 30 June 2021. The annual management report includes a fair review of the information required under article 3(3) of the Transparency Law.

Luxembourg

On behalf of management

Directors A: Director B:

___________signed____________ Chairman of the Board of Directors Viktor Vyshnevetskyy

___________signed____________ Independent Non-executive Director Diyor Yakubov

___________signed____________ Business Development Director Oleksandr Reznyk

___________signed____________ Independent Non-executive Director Arthur David Johnson

Luxembourg, 29 October 2021