Cemacon S.A.

Capital/Financing Update • Dec 22, 2016

To

• Financial Supervisory Authority
• Bucharest Stock Exchange

CURRENT REPORT

According to the National Securities Commission Regulation no. 1/2006 regarding the securities issuers and operations and according to Law no. 297/2004 regarding the capital market

Report date: 22.12.2016

Name of issuing entity: CEMACON S.A.

Registered office: Cluj-Napoca, 48 Calea Dorobantilor, Cluj County

Tel/Fax: 0260/602.408

Sole registration code with the Trade Register Office: RO 677858

Serial number with the Trade Register: J12/2466/2012

Subscribed and paid capital: 11,399.021.8 lei

Regulated market on which the securities issued are traded: Bucharest Stock Exchange – Standard category.

Important event to report: CEMACON signed the loan refinancing agreements with CEC Bank, obtaining both more advantageous loan conditions and a working capital line for the development projects in progress.

Furthermore, by signing the sales agreement, CEMACON has managed to complete the sale transaction for part of the Zalău platform to DEDEMAN. CEMACON SA has sold two lands to DEDEMAN SRL, from Zalău, one of 22,211 sqm. and another one of 3,104, both located on Strada Fabricii, nr 1.

The transaction amounts to EUR 1.58 million, VAT excluded, at a sales price of EUR 62.5 per sqm., VAT excluded.

'We have managed to successfully meet two of the most important objectives for this end of year, thus fulfilling obligations and objectives towards the bank and shareholders. On the one hand, we are pleased that, by refinancing, we have managed to enter into a partnership with a bank which aims at supporting our development plans, in improved contractual and commercial terms for the company and, on the other hand, that, by the sale of assets in Zalau, we have significantly reduced the group

indebtedness, hereby improving the future perspectives of CEMACON.' as declared Liviu Stoleru, CEO and Chairman of Cemacon Board of Directors.

CEMACON currently operates two production facilities in Salaj County, both having a 100% operational capacity. EVOCERAMIC brick range was completed with additional products – lintels and chimneys – in partnership with strong and competitive producers of Europe.

For the current year, Cemacon aimed at:

• Increasing the turnover by at least 13%
• Strengthening the market share nationwide
• Capitalization of unproductive assets held
• Exploiting growth opportunities on the building materials market to ensure medium and long term development of the business

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ABOUT CEMACON S.A.

CEMACON SA holds the second place in the ranking of ceramic blocks producers from Romania and is one of the market leaders in Transilvania.

The company operates the most modern and largest production capacity in Romania with innovative products which bring added value to users, obtained at very competitive production costs. CEMACON SA is a company listed on the Bucharest Stock Exchange and is owned mainly by institutional shareholders, Romanian and foreign investment funds; the management of the company is professional, independent and has strong expertise in the field.

No other events to report.

Chairman of the Board of Directors

ORION STRATEGY SOLUTION SRL

duly represented by Mr. Stoleru Liviu-Ionel