Cognor Holding S.A. — Capital/Financing Update 2021

May 20, 2021

Management Board of Cognor Holding S.A. (the “Issuer”) hereby informsthat on May 20th, 2021 Cognor S.A., a subsidiary of the Issuer enteredinto an agreement (the “Agreement”, the “Contract”) with Danieli & C.Officine Meccaniche S.p.a. with its corporate seat in Buttrio, Italy (“Danieli”, the ”Supplier”) on delivery of:

- a complete production line for manufacturing of hot rolled bars, whichshall replace the existing line at the plant of the Issuer in Zawiercie,

- a rebar coiling line (a spooler) to be located at the existing rebarmill of the Issuer in Kraków.

The Agreement, apart from the delivery of machinery and equipment,encompasses also assistance in commissioning of the lines, training ofthe Issuer’s personnel, service and warranty coverage. It containscustomary conditions for such type of contracts including the terms for:warranty, termination, contractual penalties and liquidated damages.

The parties agreed that the conclusion of works under the Agreementshould be finalized within the period of 26 months from the date of thereceipt of the advance payment at the amount corresponding to 15% of theContract value. The Agreement will terminate automatically without anyclaims against any of the parties should the Issuer fail to effect theadvance payment within a period of 90 days.

The total value of the Contract is EUR 38,207,500.00

The above mentioned investment projects shall result in: (i) theincrease of production capacity of the Issuer in terms of manufacturingof finished products, (ii) the reduction of production costs and (iii)broadening of the product portfolio.