Energa S.A.

Report Publication Announcement • May 16, 2018

Current Report No. 16/2018

Date of preparation: 16 May 2018

Subject: ENERGA SA Management Board's recommendation on the dividendpayment

Legal basis: Article 17(1) of the Market Abuse Regulation - confidentialinformation

The Management Board of ENERGA SA ("Company") hereby reports that on 16May 2018 it decided not to recommend to the General Meeting of ENERGA SApayment of dividend for the financial year ended 31 December 2017. Theentire net profit for 2017 amounting to PLN 106,601,622.10 will betransferred to the supplementary capital.

The above decision is reasoned by the implementation of the "Strategy ofthe ENERGA Group for 2016-2025" ("Strategy") adopted on 15 November 2016(Current Report No. 40/2016), pursuant to which the dividend paymentpolicy is adapted to the financial needs of the investment process.

However, the Management Board does not rule out the possibility ofreverting to payment of dividend to the shareholders which level will bedetermined by the implementation of the Strategy.