Energa S.A.

Capital/Financing Update • Jun 16, 2016

Date of preparation: 2016-06-16

Subject: Information on purchase of bonds issued by ENERGA SA by asubsidiaryLegal basis: Article 56 Section 1 Item 1 of the Act onOfferings - confidential information

The Management Board of ENERGA SA (Energa, Issuer) hereby announces thaton 16 June 2016, in connection with completion of the negotiationprocess conducted by Energa's subsidiary ENERGA-OPERATOR SA (Subsidiary)and selected Bondholders with regard to the terms and conditions ofpurchase, by the Subsidiary, of series A bonds issued by the Issuer, onthe same day a transaction was concluded under which the Subsidiaryacquired 55,795 series A bonds issued by Energa with the total par valueof PLN 557.95 million (Bonds).

The Bonds were purchased by the Subsidiary at the price of PLN 102.85 aspart of a process of optimization of the Issuer's financing structure,on the basis of resolutions adopted by the Issuer's and the Subsidiary'sManagement Board and Supervisory Board. The purchase of the Bonds wasfinanced with cash and funds from available credit facilities.

Series A Bonds were issued by Energa in 2012 for the total amount of PLN1,000 million under the Domestic Bond Program with the maturity of 18October 2019. The terms and conditions of issue of series A domesticbonds are presented in the prospectus available on the Issuer's website.The prospectus has been prepared to enable trading in the bonds in theregulated market - Catalyst.

The purchase of the bonds is associated with optimization of thefinancing structure and cash management in the ENERGA Group. The aboveactions have been taken in the context of the dynamic changes in thefinancial and legal environment of the ENERGA Group.

As at the date of this current report, ENERGA Group's debt amounted toPLN 5.8 billion and was comparable to the debt level at the end of Q12016. The Management Board evaluates the Issuer's financial standing asstable and providing grounds for dividend payout and continuation of theinvestment processes.

At the same time, the Issuer announces that the information on thecircumstances of commencing the negotiations on the purchase of theBonds by the Subsidiary from the existing bondholders, and the relatednecessity to obtain the required corporate approval, was on 17 May 2016delayed by the Issuer pursuant to Article 57 Section 1 of the Act onPublic Offerings of 29 July 2005 [...] since publication of thisinformation could prejudice the Issuer's legitimate interests.