Energa S.A.

Legal Proceedings Report • Mar 29, 2016

Current Report No. 13/2016

Date of preparation: 29 March 2016

Topic: Information on a material agreement executed between itssubsidiary ENERGA-OPERATOR SA and Polskie Sieci Energetyczne SA

Legal grounds: Art. 56 section 1 pt. 2 of the Act on Offerings - currentand periodic information

The Management Board of Energa SA ("Company", "ENERGA", "Issuer")reports that in connection with the signing on 23 March 2016 by itssubsidiary ENERGA-OPERATOR SA ("EOP") and Polskie Sieci Energetyczne SA("PSE") of a document specifying the detailed rules for cooperationbetween EOP and PSE and the security related thereto, cooperationbetween these entities was launched ("Agreement") as of this very samedate. The subject matter of this Agreement is in particular theprovision of electricity transmission services encompassing domestictransmission services and electricity cross-border exchange servicesrendered by PSE for EOP. This Agreement has been concluded for anindefinite term. The estimated value of the Agreement over a one yearperiod is PLN 916 million, corresponding to PLN 4,580 million over afive year period.

The Agreement does not contain contractual penalty clauses but fornon-performance or improper performance of the Agreement its parties arevested in the right to rebates and fees according to the pertinenttariff approved by the President of the Energy Regulatory Office(Tariff). The parties bear liability according to the general rules incases other than specified in the Tariff.

The remaining terms and conditions of the Agreement, including the onesreferring to the ability to terminate or rescind it, do not deviate fromthe market standards applied in these types of agreements.

At the same time, the Company reports that in connection with commencingcooperation according to the rules prescribed by the Agreement, theagreement in force to date for the provision of electricity transmissionservices executed by and between EOP and PSE on 29 August 2007, whichwas described in the Company's Prospectus approved by the PolishFinancial Supervision Authority on 15 November 2013, has expired.

The Company also reports that besides the aforementioned Agreement,companies belonging to the ENERGA Group have executed agreements withPSE worth a total of PLN 210 million in the last 12 months.

This Agreement has been deemed to be material as its estimated valueexceeds 10% of the Company's equity.