Energa S.A.

Earnings Release • Oct 14, 2016

Current report no.: 37/2016

Date of preparation: 14.10.2016

Issuer's abbreviated name: Energa S.A.

Subject: Reversal of the impairment loss on assets of ElektrowniaOstrołęka SA

Legal basis: Article 17 Section 1 of the Market Abuse RegulationTheManagement Board of ENERGA SA hereby reports the reversal of theimpairment loss on fixed assets under construction in the amount of PLN110 million in its subsidiary, Elektrownia Ostrołęka SA. The aboveamount will improve the Energa Group's operating result for Q3 2016 inthe Generation segment and according to the prevailing definition willnot affect its EBITDA result.

The PLN 122.6 million impairment loss was recognized in 2012 when theOstrołęka C power plant project was put on hold. Today's impairment lossreversal is a consequence of the progress of work to build a modern 1000MW coal-fired unit in Ostrołęka, including execution of the GeneralTerms and Conditions of Cooperation with Polska Grupa Górnicza sp. zo.o. setting out the rules of coal supply to the power plant inOstrołęka.

At present, the special-purpose vehicle Elektrownia Ostrołęka SA holdscomplete documentation and administrative decisions allowing it tocommence the work on building the 1000 MW unit after devising a viablebusiness model and securing project financing.