Ciech S.A.

Related Party Transaction • Oct 10, 2018

Subject:Agreement with the strategic brine supplier

Contents of the report:

The Management Board of CIECH S.A. (the "Company" or"Issuer") informs that on 10 October 2018, a tripartite agreement wasconcluded between the Issuer, a subsidiary of the Issuer - CIECH SodaPolska S.A. (the "Subsidiary" or "CIECH Soda Polska") and InowrocławskieKopalnie Soli "Solino" S.A. with its registered office in Inowrocław("IKS Solino") (the "Agreement").

IKS Solino is a strategic brine supplier for theCompany. The brine is processed by the Production Plants of CIECH SodaPolska: in Inowrocław - Mątwy and Janikowo.

The subject matter of the agreement is theconstruction by IKS Solino of a brine pipeline to connect themanoeuvring tank owned by IKS Solino in Inowrocław - Mątwy with theProduction Plant of CIECH Soda Polska in Janikowo (the "Connection").

The construction of the Connection will make itpossible to connect the technological lines of both Production Plants ofCIECH Soda Polska with one brine pipeline. IKS Solino agreed toconstruct the Connection by 30 June 2021.

The Connection will improve the safety of brinesupplies, including ability to supply the brine to both ProductionPlants of CIECH Soda Polska, from one of the IKS Solino mines, inparticular, in the event of a failure, the need to carry out renovationwork or modernisation of the existing transmission infrastructure.

At the same time, the Connection will enable IKSSolino to comply with its obligations under the Act of 16 February 2007on stocks of crude oil, petroleum products and natural gas, theprinciples of proceeding in circumstances of a threat to the fuelsecurity of the State and disruption on the petroleum market.

As part of the Agreement, CIECH Soda Polska agreed toestablishtransmission easements for IKS Solino on the properties through whichthe planned Connection will run, on condition subsequent that theConnection is put into use on or before 31 July 2021.

The Agreement also provides for the regulation of thelegal status of the existing transmission infrastructure and otherinstallations necessary for the implementation of the economicintentions of the Parties, including the sale of the transmissioninfrastructure elements by CIECH Soda Polska to IKS Solino, as disclosedon the list of critical infrastructure. The transmission infrastructurewill be sold at market prices.

In addition, the Parties agreed to discuss furthercooperation in the supply of brine by IKS Solino to the Company, inparticular, brine supplies after 31 December 2025.