PCF Group S.A.

Management Reports • Mar 18, 2025

Report Content Decision to resmue work on Project VictoriaWith reference to thecurrent report No. 31/2024 dated 10 December 2024 regarding the decisionto suspend further work on Project Victoria, the Management Board of PCFGroup S.A. with its registered office in Warsaw (the "Company") informsthat on 18 March 2025, it decided to resume work on Project Victoria.

The above decision was made as a result of: (i) performing a detailedanalysis of the request submitted to the Management Board of the Companyto resume suspended works on Project Victoria, containing a proposal fora revised plan for further development work on the game (the"Development Plan"), prepared by a group of former key members of thedevelopment team dedicated to the production of Project Victoria, aswell as (ii) conducting further internal analyses, prepared based on theDevelopment Plan, sales plan and marketing plan, concluded in therecommendation dated 18 March 2025, received by the Management Board ofthe Company, to resume suspended work on Project Victoria, prepared withthe participation of persons responsible for the preparation of thesematerials.

Further work on Project Victoria will continue on the basis of theDevelopment Plan, which provides, among other things, for a revisedscope of the game and a revised release plan that involves acceleratingthe game's early access release and its further development based onfeedback from the community built around the game. Work on ProjectVictoria will be carried out by the Group, as publisher, with theGroup's own funds, i.e. in a self-publishing model, with the intentionof releasing the game in an early access in 2025.

The continuation of work on Project Victoria based on the DevelopmentPlan has been entrusted to an experienced development team ofapproximately 10 people, located primarily in Canada.

Regardless of the above event, the Management Board of the Companymaintains the position contained in the current report No. 31/2024 dated10 December 2024, according to which, in its assessment, there has beenan indication of potential impairment of capitalized expendituresincurred on the Victoria Project, in accordance with InternationalAccounting Standard 36 "Impairment of Assets". In connection with thisand in accordance with the previous declaration, impairment tests onProject Victoria will be carried out, which, in accordance with theCompany's practice, will be performed on the basis of financial data asof 31 December 2024, as part of the preparation of the standalone andconsolidated financial statements for 2024. The result of these testswill allow the Company to assess whether the capitalized expendituresincurred on Project Victoria have actually been impaired. The Companywill provide information on the result of these tests to the public inaccordance with applicable laws.