Energa S.A.

Report Publication Announcement • Dec 27, 2016

Current Report No.: 53/2016

Date of preparation: 27 December 2016

Subject: Signing of coal supply contract with PGG to supply coal toOstrołęka B

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

The Management Board of ENERGA SA ("Company") reports that on 27December 2016 the subsidiary Elektrownia Ostrołęka SA signed a Contractwith Polska Grupa Górnicza Sp. z o.o. ("PGG") to supply coal toOstrołęka B ("Contract").

The Contract was signed for a definite term from 1 January 2017 to 31December 2030, with an option to extend its term upon agreement of theParties. The signed Contract envisages the supply of no less than 350thousand tons of coal annually by PGG to the Ostrołęka B power plant.For 2017, the Parties agreed on the supply of 450 thousand tons of coal.

The estimated value of the Contract throughout its term, including theprice of coal and transport, is PLN 1.26 billion. According to theContract, the price of steam coal will be negotiated by the Parties foreach successive calendar year of the Contract's term.