Energa S.A.

Legal Proceedings Report • Apr 1, 2022

Current report No. 11/2022

Date: 1 April 2022

Subject: Completion of the settlement process of the Coal Project withthe General Contractor under the contract for the construction of theOstrołęka _quot;C_quot; Power Plant

Legal basis: Article 17 (1) of MAR - inside information

With reference to current reports No. 25/2021 of 25 June 2021 and No.41/2021 of 22 December 2021, the Management Board of Energa SA(_quot;Issuer_quot;) informs that on 1 April 2022 it received the information fromthe company Elektrownia Ostrołęka Sp. z o.o. (_quot;EO_quot;) on the completion ofthe settlement on 31 March 31, in accordance with the concludedagreement (referred to in the above mentioned current reports), of theCoal Project under the contract for the construction of the Ostrołęka_quot;C_quot; Power Plant with the General Contractor - consortium GE Power sp. zo. o based in Warsaw (leader) and GE Steam Power Systems S.A.S. based inBoulogne-Billancourt, France. The final value of the receivablesresulting from the settlement was PLN 958 million net and therefore theamount due to the General Contractor, resulting from the differencebetween the above value and the total amounts already paid, was alreadypaid in full by EO. Thus, the process of settlement of the Coal Projectwith the General Contractor was completed. The costs incurred by theIssuer in connection with the settlement of the works of the GeneralContractor amounted to 50% of the above mentioned amount, i.e. PLN 479million net (the same amount of costs was incurred by Enea S.A.).

In relation to the above the Issuer identified the possibility offurther release of the provision - to the level of approx. PLN 16million - created initially in the amount of PLN 218 million to financeEO for the purposes of the settlement of the Coal Project. The impact ofthe above event on the consolidated net result of the Energa Group andstandalone net result of Energa SA for 2022 amounted to approx. PLN 30million (as a result of decreasing of the above mentioned provision fromthe level of PLN 46 million at the end of 2021). The event is of anon-cash nature. It increased the net result without affecting theEBITDA result (operating profit before amortization and impairment ofnon-financial non-current assets).