Columbus Energy S.A.

Quarterly Report • Nov 12, 2019

Unaudited annual accounts

30 June 2019

For the year beginning 1 July 2018 and ending 30 June 2019

Coal Energy S.A.

Société anonyme

205, route d`Arlon, L-1150 Luxembourg Luxembourg: B 154144

Contents

Unaudited annual accounts

Balance Sheet as at 30 June 2019 Profit and Loss Account for the year ended 30 June 2019

Notes to the unaudited annual accounts

• Note 1 General information
• Note 2 Summary of significant accounting policies
• Note 3 Financial fixed assets
• Note 4 Debtors
• Note 5 Prepayments and accrued income
• Note 6 Capital and reserves
• Note 7 Non subordinated debts
• Note 8 Other external charges
• Note 8 Staff costs
• Note 9 Other operating charges
• Note 10 Income tax
• Note 11 Off balance sheet commitments and transactions
• Note 12 Related party transactions
• Note 13 Emoluments granted
• Note 14 Advances and loans granted
• Note 15 Subsequent events

BALANCE SHEET

As at	Notes	30 Jun 2019	30 Jun 2018
(expressed in US Dollar)		USD	USD
ASSETS
Fixed assets
Financial fixed assets	3
Shares in affiliated undertakings		72 006 905,28	72 006 905,28
Amounts owed by affiliated undertakings		34 957 456,54	34 957 456,54
Total fixed assets		106 964 361,82	106 964 361,82
Current assets
Debtors Amounts owed by affiliated undertakings	4
becoming due and payable within one year Other receivables		11 543 986,07	9 195 348,83
becoming due and payable within one year		15 211,40	15 243,95
Cash at bank, cash in postal cheque accounts,
cheques and cash in hand		584,21	805,00
Total current assets		11 559 781,68	9 211 397,78
Prepayments and accrued income	5	-	-
TOTAL ASSETS		118 524 143,50	116 175 759,60

BALANCE SHEET

As at	Notes	30 Jun 2019	30 Jun 2018
(expressed in US Dollar)		USD	USD
LIABILITIES
Capital and reserves	6
Subscribed capital		450 111,20	450 111,20
Share premium and similar premiums		80 540 783,11	80 540 783,11
Profit or (loss) brought forward		(11 328 754,41)	(10 439 001,69)
Profit or (loss) for the financial year		(1 059 888,69)	(1 006 423,36)
Total capital and reserves		68 602 251,21	69 545 469,26
Non subordinated debts	7
Amounts owed to credit institutions becoming due and payable within one year becoming due and payable after more than		49 435 138,00	42 571 017,70
one year		-	3 500 000,00
Trade creditors becoming due and payable within one year		329 619,60	335 855,79
Tax and social security debts Tax debts		33 152,57	56 658,55
Other creditors becoming due and payable within one year		123 982,12	166 758,30
Total non subordinated debts		49 921 892,29	46 630 290,34
TOTAL LIABILITIES		118 524 143,50	116 175 759,60

Viktor Vyshnevetskyy, Director A Arthur David Johnson, Director A

Oleksandr Reznyk, Director A Diyor Yakubov, Director B

PROFIT AND LOSS ACCOUNT For the period	Notes	from 1 Jul 2018 to 30 Jun 2019	from 1 Jul 2017 to 30 Jun 2018
(expressed in US Dollar)
CHARGES
Other external charges		46 215,52	74 353,42
Other operating charges	9	4 992,08	25 000,00
Interest and other financial charges other interest and similar financial charges		3 364 553,08	3 264 528,47
Total interest and other financial charges		3 364 553,08	3 264 528,47
Income tax	10	-	-
Other taxes not included in the previous caption		3 983,28	4 535,21
TOTAL CHARGES		3 419 743,95	3 368 417,10
INCOME
Other operating income Other interest and other financial income
derived from affiliated undertakings		2 348 637,24	2 348 637,24
other interest and similar financial income Total interest and other financial income		11 218,02 2 359 855,26	13 356,50 2 361 993,74
TOTAL INCOME		2 359 855,26	2 361 993,74
Profit or (loss) for the financial year		(1 059 888,69)	(1 006 423,36)
Viktor Vyshnevetskyy, Director A		Arthur David Johnson, Director A
Oleksandr Reznyk, Director A
		Diyor Yakubov, Director B

1 General information

Coal Energy S.A. (hereafter the "Company") was incorporated on 17 June 2010 and organised under the laws of Luxembourg as a Société anonyme for an unlimited period.

The registered office of the Company is established in Luxembourg, 205, route d`Arlon L-1150 Luxembourg and the Company number with the Registre de Commerce is B 154144. The financial year of the Company starts on 1 July and ends on 30 June of each year.

The purpose of the Company is the holding of participations, in any form whatsoever, in Luxembourg and foreign companies and any other form of investment, the acquisition by purchase, subscription or in any other manner as well as the transfer by sale, exchange or otherwise of securities of any kind and the administration, control and development of its portfolio.

The Company may further guarantee, grant loans or otherwise assist the companies in which it holds a direct or indirect interest or which form part of the same group of companies as the Company.

The Company also prepares consolidated financial statements, which are published according to the Luxembourg legal requirements.

2 Summary of significant accounting policies

Basis of preparation

The annual accounts of the Company are prepared in accordance with Luxembourg legal and regulatory requirements.

Accounting policies and valuation rules follow the historical cost convention and are, besides the ones laid down by the law, determined and applied by the Board of Directors.

Financial fixed assets

Shares in affiliated undertakings and participating interests are valued at purchase price including the expenses incidental thereto.

Loans to affiliated undertakings, participating interests and other loans are valued at nominal value including the expenses incidental thereto.

In case of a durable depreciation in value according to the opinion of the Board of Directors, value adjustments are made in respect of fixed assets, so that they are valued at the lower figure to be attributed to them at the balance sheet date. These value adjustments are not continued if the reasons for which the value adjustments were made have ceased to apply.

Debtors

Debtors are valued at their nominal value. They are subject to value adjustments where their recovery is compromised. These value adjustments are not continued if the reasons for which the value adjustments were made have ceased to apply.

Prepayments and accrued income

This asset item includes expenditures incurred during the financial period but relating to a subsequent financial period.

Provisions

Provisions are intended to cover losses or debts of which the nature is clearly defined and which, at the date of the balance sheet, are either likely to be incurred or certain to be incurred but uncertain as to their amount or as to the date on which they will arise.

Provisions may also be created in order to cover charges which have their origin in the financial period under review or in a previous financial period, the nature of which is clearly defined and which at the date of the balance sheet are either likely to be incurred or certain to be incurred but uncertain as to their amount or as to the date on which they will arise.

Accruals and deferred income

This liability item includes income received during the financial period but relating to a subsequent financial period.

Value adjustments

Value adjustments are deducted directly from the related asset.

Foreign currency translation

The Company maintains its accounts in US Dollar ("USD"). Transactions expressed in currencies other than USD are translated into USD at the exchange rate effective at the time of the transaction.

Formation expenses and fixed assets expressed in currencies other than USD are translated into USD at the exchange rate effective at the time of the transaction. At the balance sheet date, these assets remain translated at historical exchange rates.

Cash at bank and all items subject to fair value valuation are translated at the exchange rate effective at the balance sheet date. Exchange losses and gains are recorded in the profit and loss account of the period.

Other assets and liabilities are translated separately respectively at the lower or at the higher of the value converted at the historical exchange rate or the value determined on the basis of the exchange rates effective at the balance sheet date. The unrealised exchange losses are recorded in the profit and loss account. The realised exchange gains are recorded in the profit and loss account at the moment of their realisation. Consequently, only realised exchange gains and losses and unrealised exchange losses are reflected in the profit and loss account.

Where there is an economic link between an asset and a liability, these are valued in total according to the method described above and only the net unrealised loss is recorded in the profit and loss account.

Going concern

The annual accounts are prepared on a going concern basis even though the accumulated losses exceed 75% of the corporate capital of the Company. As a result the Company is depending on the ongoing financial support of the group.

3 Financial fixed assets

4

5

Financial fixed assets held at cost less impairment - movements gross book value	Gross book value - opening balance	Additions	Disposals	Transfers	Gross book value - closing balance
Shares in affiliated undertakings	72 006 905,28	-	-	-	72 006 905,28
Amounts owed by affiliated undertakings	34 957 456,54	-	-	-	34 957 456,54
Total	106 964 361,82	-	-	-	106 964 361,82
Financial fixed assets held at cost less impairment -	Net book value -	Additions	Disposals	Transfers	Net book value -
movements net book value	opening balance				closing balance
Shares in affiliated undertakings	72 006 905,28	-	-	-	72 006 905,28
Amounts owed by affiliated undertakings	34 957 456,54	-	-	-	34 957 456,54
Total	106 964 361,82	-	-	-	106 964 361,82
Undertakings in which the Company holds at least 20% in their share capital or in which it is a general partner are as follows:
			Date of last non	Net equity in last	Net result in last non
Registered			approved	non approved	approved accounts
Office Name	Ownership %	Net Value	accounts	accounts	(loss)
Nertera Investments Limited Cyprus		100% 72 006 905,28	`31 Dec 2016	66 302 339,00	(2 410 273,00)
Loans to affiliated undertakings			Amount	Interest
Counterparty	Currency	Amount	USD	rate	Maturity date
Nertera Investments Limited	USD	2 217 083,08	2 217 083,08	4,50%	Nov 2021
Nertera Investments Limited		USD 32 740 373,46	32 740 373,46	Libor 6m + 5.85%	Jun 2020
Total			34 957 456,54
Debtors
Debtors		Within one year	More than one	30 Jun 2019	30 Jun 2018
			year
Formula - Do not Delete Amounts owed by affiliated undertakings		11 543 986,07	-	11 543 986,07	9 195 348,83
Other receivables		15 211,40	-	15 211,40	15 243,95
Total		11 559 197,47	-	11 559 197,47	9 210 592,78
Accrued interest receivable from affiliated undertakings			Amount	Interest	Maturity
Counterparty		Currency	USD	rate	date
Accruals loan interest to Nertera Investments Limited		USD	552 255,13	4,50%	N/A
Accruals loan interest to Nertera Investments Limited		USD	10 991 730,94	Libor 6m + 5.85%	N/A
Total			11 543 986,07
Prepayments and accrued income
Prepayments and accrued income				30 Jun 2019	30 Jun 2018
				-	-
Total				-	-

6 Capital and reserves

Movements in capital and reserves	Balance as at 30 June 2018	Allocation of preceding year result	Other movements	Net result for current year	Balance as at 30 Jun 2019
Subscribed capital	450 111,20	-	-	-	450 111,20
Share premium and similar premiums	80 540 783,11	-	-	-	80 540 783,11 -
Profit or (loss) brought forward	(11 328 754,41)	-	-	-	(11 328 754,41)
Profit or (loss) for the financial year	-	-	-	(1 059 888,69)	(1 059 888,69)
Total	69 662 139,90	-	-	(1 059 888,69)	68 602 251,21

The subscribed capital amounts to USD 450,111.20 and is divided into 45,011,120 shares with a nominal value of USD 0.01 fully paid up at 30 June 2019.

The Company shares were admitted to trading on Warsaw Stock Exchange on 4 August 2011. The offer price for one share was established at PLN 20.00 and the final number of the offer shares was 11,252,780.00.

Legal reserve

The Company is required to allocate a minimum of 5% of its annual net profit to a legal reserve, after deducting any cumulated losses, until this reserve equals 10% of the nominal value of the subscribed share capital. This reserve may not be distributed in the form of cash dividends, or otherwise, during the life of the Company.

7 Non subordinated debts

Creditors by category	Within one year	More than one
		year	30 Jun 2019	30 Jun 2018
Amounts owed to credit institutions	49 435 138,00	-	49 435 138,00	46 071 017,70
Trade creditors	329 619,60	-	329 619,60	335 855,79
Tax and social security debts	33 152,57	-	33 152,57	56 658,55
Other creditors	123 982,12	-	123 982,12	166 758,30
Total	49 921 892,29	-	49 921 892,29	46 630 290,34
Amounts owed to credit institutions	Within one year	More than one
		year	30 Jun 2019	30 Jun 2018
Accrued interest - European Bank for Reconstruction
and Development	14 435 138,00	-	14 435 138,00	11 071 017,70
Loan - European Bank for Reconstruction and
Development	35 000 000,00	-	35 000 000,00	35 000 000,00
Total	49 435 138,00	-	49 435 138,00	46 071 017,70
Amounts owed to credit institutions
Becoming due and payable after more than one year		Currency	30 Jun 2019	Interest rate
Loan - European Bank for Reconstruction and Development		USD	-	6m LIBOR + 5.85%
Total			-
Other creditors	Wtihin one year	More than one
		year	30 Jun 2019	30 Jun 2018
A.D. Johnson	112 500,00	-	112 500,00	100 000,00

M.Vishnevetskaya 5 343,40 - 5 343,40 5 489,20 V.Vishnevetskiyy 6 138,72 - 6 138,72 6 306,21 Other creditors - - - 54 962,89 Total 123 982,12 - 123 982,12 166 758,30

Coal Energy S.A. Notes to the unaudited annual accounts For the year beginning 1 July 2018 and ending 30 June 2019

(expressed in US Dollar)

8 Staff costs

During the year under review, the Company did not employ any staff and, consequently no payments for wages, salaries or social security were made (2017: nil).

9 Other operating charges

Other operating charges	30 Jun 2019	30 Jun 2018
Director's fees	25 000,00	25 000,00
Total	25 000,00	25 000,00

10 Income tax

The Company is subject to normal taxation under Luxembourg tax regulations.

The tax position until 2018 has been assessed by the Luxembourg tax authorities on the basis of a provisional tax assessment and may still be subject to a review by the authorities within five years following the date of the provisional tax assessment. The issuance of a final tax assessment could result in additional tax payable/ receivable.

11 Off balance sheet commitments and transactions

On 14 March 2014 the Company entered into a surety agreement with OTP Bank to act as a guarantor for securing obligations of "Donantratsit" LLC under factoring agreement Nr FT 14-090/100-3 in an amount not exceeding UAH 39,200,000.00.

12 Related party transactions

There were no transactions with related parties (2018: no transactions).

13 Emoluments granted to the members of the managing and supervisory bodies and commitments in respect of retirement pensions for former members of those bodies

Remuneration granted to the members of the managing and supervisory bodies acting in that capacity and any commitments arising or contracted in respect of retirement pensions for former members of those bodies for the financial year are broken down:

Remuneration members of managing and supervisory
bodies	30 Jun 2019	30 Jun 2018
Managing bodies	25 000,00	25 000,00
Total	25 000,00	25 000,00

14 Advances and loans granted to the members of the managing and supervisory bodies

There are no advances, loans or commitments given on their behalf by way of guarantee of any kind granted to the members of the management and supervisory bodies during the financial year (2018: nil).

15 Subsequent events

Over 2019 FY, due to the escalation of the military unrests in the region of the Company's assets and headquarters, the Company's further development has remained uncertain, as well as the audit procedure for the annual accounts as at 30 June 2019 has been postponed until further notice.

Viktor Vyshnevetskyy, Director A Arthur David Johnson, Director A

Oleksandr Reznyk, Director A Diyor Yakubov, Director B