Ciech S.A.

Legal Proceedings Report • Feb 1, 2023

Textof the report:

TheManagement Board of company under trade name CIECH S.A. ("Company" or"Issuer") hereby informs that on January 31, 2023, it received from thesubsidiary of the Issuer - CIECH Salz Deutschland GmbH (" CSD") aninformation that CSD filed a lawsuit (the "Lawsuit") with the MagdeburgDistrict Court againstEVATHERMAG ("Contractor") for the payment of approx. EUR 20 million (includinginterest and costs of proceedings).

Thelawsuit was filed due to improper performance of the contract, delayedcommissioning of the installation and problems with the operation of theinstallation and the production process at the CSD evaporated salt plantlocated in Sta_#223;furt, Germany ("Plant") launched in 2021 (about which theIssuer informed by way of current report no. 16/2021 dated May 19,2021), resulting in additional costs incurred by CSD and a reduced levelof evaporated salt production compared to the level assumed by the CIECHGroup. Until the date of this report, despite numerous attempts torepair the technical installation, in the opinion of CSD, the defects inthe installation have not been removed by the Contractor.

Onthe basis of currently available information, the Issuer cannot predictthe outcome of the legal proceedings. The Issuer will provide furtherinformation on the next stages of the legal proceedings in a separatereport(s).

Atthe same time, with reference to the current report no. 16/2021, theIssuer indicates that the Plant is currently using approx. 60 % of theexpected production capacity, which is influenced, among others, by thetechnical problems described above, also affecting the increase inproduction costs.

TheIssuer indicates that CSD is currently implementing a number of steps torectify the technical problems described above and to restore theproduction of evaporated salt to the level originally envisaged by theCIECH Group. The company plans to implement these measures by the end of2023. At the same time, CSD is in the process of signing contracts withsalt recipients.

Legalbasis:article 17.1 of the Regulation of the European Parliament and of theCouncil (EU) No. 596/2014 on market abuse (market abuse regulation) andrepealing Directive 2003/6/EC of the European Parliament and of theCouncil and Commission Directives 2003/124/EC, 2003/125/EC and2004/72/EC (Official Journal of the European Union of 2014, L 173/1, asamended).