Ciech S.A.

Regulatory Filings • May 19, 2021

TheManagement Board of CIECH S.A. with its registered office in Warsaw (the"Issuer"),inreference to its Current Reports No. 16/20 of 2 April 2020, No. 07/2018of 27 April 2018, and No. 19/2017 of 23 November 2017, herewith informsthat on 19.05.2021, the Management Board of CIECH Salz Deutschland GmbH("CSLZ") - a subsidiary of the Issuer, and the ManagementBoard of the Issuer received information that the main construction partof the evaporated salt production plant in Staßfurt, Germany (the "ProductionPlant") was completed today and information on the transition to thepre-commissioning phase of the salt production installation (the "Pre-CommissioningPhase").

Thetransition to the Pre-Commissioning Phase is related to the productionof the first batch of wet salt by the Production Plant, in compliancewith the assumed parameters.

ThePre-Commissioning Phase will consist, among others, in the start-up ofindividual elements of the production line and the verification of theircorrect operation. The completion of the Pre-Commissioning Phase isscheduled for the end of the second quarter of 2021. After completion ofthe Pre-Commissioning Phase, the phase of gradual production increasewill begin, which will involve attaining the assumed operatingparameters of the plant. This stage should be completed by the end ofSeptember 2021.

Theexpected production capacity of the Production Plant is planned at thelevel of approx. 450 thousand tonnes of evaporated salt per annum. Thetarget production capacity is planned to be achieved in 2022, along withthe introduction of a full range of products into the offer, including,among others, salt for pharmaceutical applications.

Theeffects of the implemented investment will have a significant impact onthe consolidated financial results of the CIECH Group and may generateapprox. EUR 25 million in EBITDA on an annual basis, assuming the targetproduction capacity is achieved.

Duringthe Pre-Commissioning Phase, CSLZ will be selling trial and test batchesof salt. The commercial launch of salt sales, due to thePre-Commissioning Phase and continuing restrictions in Germany, isscheduled for the third quarter of 2021.

TheProduction Plant is one of the most modern facilities of this type inEurope, having access to its own sources of raw materials (brine) and alow-emission and efficient energy source.

Legalbasis:Article17.1 of the Regulation of the European Parliament and of the Council(EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market AbuseRegulation) and repealing Directive 2003/6/EC of the European Parliamentand of the Council and Commission Directives 2003/124/EC, 2003/125/ECand 2004/72/EC (Official Journal of the European Union L No. 173, p. 1).