Latvijas Gaze

Share Issue/Capital Change • Jul 11, 2016

UNBUNDLING OF THE COMPANY Shareholder's Guide

Shareholders have to make their choice by September 2016!

COMPANY REORGANISATION

In April 2017, the exclusivity period of operation of the company, which is provided for in Latvijas Gāze's privatization agreements, will expire. Therefore, based on the requirements of the European Union, the Saeima (Parliament) has adopted the amendments to the Energy Law, requiring separation of the transmission and storage company from the natural gas trading and distribution company.

On 22 March 2016, it was decided at the Shareholders' Meeting that the newly established company will be a sister company – a joint stock company – and all existing shareholders of Latvijas Gāze will be able to become its shareholders in accordance with the procedure established in the Commercial Law.

The newly established company will be: Joint Stock Company "Conexus Baltic Grid"

RIGHTS TO THE SHARES

Within the framework of the company division process, every shareholder of Latvijas Gāze is entitled to become a shareholder of the new company while retaining his shares of Latvijas Gāze.

The List of Shareholders of the new company will include those shareholders who have voted "for" the reorganization or expressed their wish to become shareholders in writing.

Shareholders who have voted "against" the reorganization or the Articles of Association will be entitled to request redemption of shares. Calculation of the redemption amount will be carried out in accordance with the Commercial Law. The calculation will be carried out by an independent financial expert involved by Latvijas Gāze.

Attention!

Shareholders who have not applied for shares in writing or who have not voted "for" the reorganization at the Shareholders' Meeting will lose the right to the shares of the newly established company. Shareholders who have not participated in the Shareholders' Meeting will lose the opportunity to request the redemption of shares.

Shares will be assigned to those application submitters who will be owners of shares of Latvijas Gāze at the end of the day of scheduled Shareholders' Meeting. ³

Owners of Latvijas Gāze may become shareholders of the new company by submitting the relevant share application or by voting "for" the reorganization at the Shareholders' Meeting 5

ADDITIONAL INFORMATION

In the section Company Reorganization on the website www.lg.lv

• Reorganization Prospectus
• Regulation on Application for Shares
• Share Application Forms
• Materials and news of the Shareholders' Meetings

Report on owned shares from Initial Register of Latvian Central Depository (report price 1,42 EUR):

https://www.lursoft.lv/Latvian\_central\_depository.html

Contacts	Submission of Share Application Forms
Vinsents Makaris	Electronically signed document: info@akcionari.lg.lv
IR@lg.lv	Registered mail or courier mail: Vagonu Street 20, Riga, LV-1009
+(371) 67 369 144	Application in person: Customer Service Centre in Riga, Vagonu Street 20