Energa S.A.

Regulatory Filings • Dec 22, 2020

Current report No 84/2020

Date: 22 December 2020

Topic: Signing of agreements concerning Ostrołęka C project

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

The Management Board of Energa SA (the "Company") informs that on 22December 2020 the following were signed:

1) an agreement between the Company, ENEA S.A. ("ENEA") and ElektrowniaOstrołęka Sp. z o.o. (entity implementing the construction of theOstrołęka C Power Plant) (the "SPV") on the cooperation in the divisionof the SPV ("Division Agreement"),

2) an agreement between the Company and ENEA on the cooperation in thesettlement of Coal Project as defined below (the "Settlement Agreement").

These agreements were signed in connection with the decision to changethe power source for the Ostrołęka C Power Plant under construction,with a capacity of approximately 1,000 MW, from coal (the "CoalProject") to gas (the "Gas Project"), of which the Company informed incurrent report No. 51/2020 of 2 June 2020, and the decision of ENEA onnot participating in the Coal Project as reported by ENEA in its currentreport no. 55/2020 of 22 December 2020.

In accordance with the provisions of the Division Agreement the divisionof the SPV will be made by separating (within the meaning of theCommercial Companies Code) the assets and liabilities (rights andobligations) and other elements comprising the Gas Project. Theseparation of the Gas Project will be made into an acquiring company,designated by the Company and being its subsidiary. The completion ofthe separation of the SPV is planned for the second quarter of 2021.

The Settlement Agreement has been concluded as necessary to implementthe provisions of the Division Agreement requiring the cooperation ofshareholders of the SPV, including the necessary settlement of costsassociated with the Coal Project. The Settlement Agreement expects thatthe costs associated with the Coal Agreement will be settledproportionately by the parties to this agreement in accordance with theexisting rules and within the limits adopted in the agreement concludedbetween the Company and ENEA on 30 April 2019, as reported by theCompany in current report No. 7/2019 of 30 April 2019. The Company willinform of the final settlement of all the costs associated with the CoalProject in a separate current report.