Energa S.A.

Report Publication Announcement • Jan 17, 2018

Current Report No.: 2/2018

Date of Preparation: 17.01.2018

Subject: Information about reversal of the impairment losses on assets

Legal Basis: Article 17, Section 1 of the Market Abuse Regulation -confidential information

ENERGA SA's Management Board hereby reports that in connection with thechanges in the regulatory environment, in particular the signing, by thePresident of the Republic of Poland, of the Capacity Market Act whichguarantees support for generation entities and the consequent update ofproduct prices forecasts the Company has identified indications whichmay result in reversal of the impairment losses on certain ENERGA Groupassets.

As a result of the asset impairment tests as at Q4 2017 it has beenidentified that the recoverable amount of wind and conventional assetshas increased. On 17 January 2018 a decision was made to recognizereversal of the impairment losses s in the Generation Segment for thetotal amount of PLN 138 m, of which PLN 87 m is for wind assets, and PLN51 m for the Ostrołęka B Power Plant. The total impact exerted by theaforementioned reversal of the impairment losses on the ENERGA Group'sconsolidated net profit for 2017 was PLN 114.9 m. The above operation isof a non-cash nature. It will be charged to the ENERGA Group's operatingresult, without impacting the EBITDA result.

After reversal of the impairment losses, the book value of the windfarms in the ENERGA Group's consolidated balance sheet is PLN 597.3 m,including PLN 8.1 m for future wind power plants, whereas the book valueof the Ostrołęka B Power Plant amounts to PLN 635.8 m.

The presented items are estimates, are subject to audit and may changeafter the auditor verifies the tests and issues an opinion in thismatter. The final result of the tests and the reversal amount will bepresented in the Energa Group's consolidated financial statements for2017 to be published on 15 March 2018.