Frozen Way S.A.

Regulatory Filings • Oct 2, 2024

Report Content Currentreport no.24/2024

Dateof preparation:2024-10-02

Subject:Conclusion of a publishing agreement for the game _quot;Honeycomb: The WorldBeyond_quot;

Legalbasis:Art. 17 item 1 of the Market Abuse Regulation - inside information

Contents:

TheManagement Board of Frozen Way S.A. with its registered office in Cracow(hereinafter: the Issuer) hereby informs that on October 1, 2024 apublishing agreement (hereinafter: the Agreement) was concluded betweenthe Issuer and Snail Games USA Inc. with its registered office in CulverCity, USA (hereinafter: Snail Games), under which Snail Games became thepublisher of the game _quot;Honeycomb: The World Beyond_quot; (hereinafter: Game).

Accordingto the Agreement Snail Games has undertaken to pay the Issuer the lumpsum remuneration specified in the Agreement (hereinafter: theRemuneration) in three equal installments after completion of thefollowing milestones:

-the first installment will be paid within a week of signing theAgreement;

-the second installment will be paid within a week of accepting the Gamefor final testing;

-the third installment will be paid within 30 days after the premiere ofthe Game in the versions for personal computers (hereinafter: PC) andPlayStation 5 _amp; Xbox Series consoles (hereinafter: Consoles).

Inexchange for the Remuneration paid to the Issuer, Snail Games willacquire the right to share part of the net profit from the sales of theGame. Snail Games' share in the net profit from the sales of the Gamewill decrease after Snail Games receives a refund of the Remunerationpaid to the Issuer. The Game will be released from Snail Games'publishing accounts. Additionally, Snail Games has undertaken to coverthe costs of publishing and marketing the Game, which will not beincluded in the Remuneration and thus will not affect the Issuer's sharein the net profit from the sales of the Game.AllIntellectual property rights to the Game, with the exception ofpublishing rights and Snail Games' share in the net profit from thesales of the Game, remain with the Issuer.

Inconnection with the conclusion of the Agreement, the Issuer decided toincrease the Game cost budget for PC and Consoles announced in ESPIreport no. 1/2024 from PLN 5.25 million to PLN 8 million. Thesimultaneous release of the full version of the Game for PC and Consoleshas been postponed from September 2024 to June 2025.

TheIssuer's Management Board decided to publish the above information dueto the fact that it may have a significant impact on the financial andmaterial situation of the Issuer and a potentially significant impact onthe valuation of the Issuer's financial instruments.

Disclaimer:This English language translation has been prepared solely for theconvenience of English speaking readers. Despite all the efforts devotedto this translation, certain discrepancies, omissions or approximationsmay exist. In case of any differences between the Polish and the Englishversions, the Polish version shall prevail. The Issuer, itsrepresentatives and employees decline all responsibility in this regard.