Ciech S.A.

Legal Proceedings Report • Nov 30, 2017

Subject:Fulfilmentof the condition subsequent for the termination of a significantcontract concluded by a subsidiaryand acceptance of a new contract

Contents of the report:

With reference to currentreport no. 10/2015 of 13 May 2015 (the "Current Report"), on theconclusion of a contract for the sale of power coal (the "Product")between Polska Grupa Górnicza S.A. based in Katowice (formerly: KompaniaWęglowa S.A., the "PGG") and CIECH Soda Polska Spółka Akcyjna with itsregistered office in Inowrocław (the "Subsidiary"), under which theParties, on or before 30 November in each year of its duration, agreedon the commercial terms and the volume for another year of Contractduration (the "Contract"), the Management Board of Ciech S.A. (the"Issuer") hereby informs that, as requested by the PGG, the partiesdecided not to agree on the commercial terms and volume of supplies for2018 under this Contract, as a result of which, on 30 November 2017, thecondition subsequent for the termination of the Contract was fulfilled,and consequently, the Contract will expire on 31 December 2017.

At the same time, the Issuer informs that the PGGsubmitted its offer for the supply of the Product, including significantterms and conditions of a new contract, and the Subsidiary confirmed itsacceptance of the offer. The offer defines the price of the Product,provides for indefinite time of Contract duration, ability to terminatethe Contract with a 2-year period of notice, effective as of the end ofthe calendar year, and supplies of the Product since 2018 amounting toapprox. 250,000 - 300,000 tons per each calendar year. The Parties areplanning to agree on the remaining conditions of the Contract in thenearest future.