PGE Polska Grupa Energetyczna S.A.

Regulatory Filings • Dec 13, 2023

Agreement with PGG for hard coal supplies

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE", the"Company") discloses that on December 13, 2023 PGE has signed theagreement for supplies of hard coal (the "Agreement") with Polska GrupaGórnicza S.A. ("PGG").

Under the Agreement, the parties estimated the volume of hard coalsupplies for PGE Górnictwo i Energetyka Konwencjonalna S.A. ("PGEGiEK"), KOGENERACJA S.A. and PGE Energia Ciepła S.A. for years2023-2028. Total value of hard coal supplies for years 2023-2028 isestimated at PLN 13.5 billion.The price for 2024 has been agreedthrough negotiation and does not deviate from the conditions prevailingin the domestic market and is comparable to international marketquotations (API2 index). The price conditions for subsequent years ofsupply will be determined by negotiation by the end of the precedingyear.

As of the date of signature of the Agreement, existing contracts areterminated, i.e. a multi-year agreement, about which the Companyreported in current report no. 36/2018, and agreement for units 5 and 6at Opole Power Plant, about which the Company reported in currentreports no. 82/2013 and 38/2018.

In the event of carve-out from the PGE Capital Group of conventionalcoal power generation assets located in PGE GiEK, PGE shall be entitledto transfer the rights and obligations under the Agreement to theentities resulting from the demerger, merger, transformation of PGE GiEKor its subsidiaries.