Polski Holding Nieruchomości S.A.

Share Issue/Capital Change • May 19, 2016

Current report No. 12/2016 of May 19, 2016

The Court registered an increase in the Company's share capital

Legal basis: Article 56.1.2 of the Act on Public Offering - currentand periodical information

The Management Board of Polski Holding Nieruchomości S.A. (the"Company") hereby informs that it received a decision of the DistrictCourt for the Capital City of Warsaw in Warsaw, 12th Commercial Divisionof the National Court Register, informing that on May 4, 2016, the Courtregistered an increase in the Company's share capital through issuing57,895 C series ordinary bearer shares.

After registering the increase, the Company's share capital amounts toPLN 46,722,747.00 and is divided into 46,722,747 shares, which gives atotal of 46,722,747 votes at the General Shareholders Meeting.

The C series shares are taken up as a result of exercising rights underthe Company's A and B series subscription warrants which have beenoffered free of charge to those employees of Warszawski HoldingNieruchomości, Intraco, Budexpo and Dalmor who are entitled to take upshares in a given company free of charge under Article 36 f. of theCommercialization and Privatization Act of August 31, 1996.

Legal basis: Article 5.1.9 in relation with Article 15 of theRegulation of Minister of Finance on current and periodical informationpublished by issuers of securities and the conditions of recognizinginformation required by the regulations of non-member states asequivalent