Enea S.A. — M&A Activity 2016

Sep 19, 2016

Current Report No.: 28/2016

Date of preparation: 19.09.2016

Short name of issuer: Enea S.A.

Subject: Signing of the Letter of Intent with Energa S.A. relating tothe construction and operation of the power unit in Ostrołęka Power Plant

Legal basis: Article 17 item 1 of MAR - confidential information

Content of report:

The Management Board of Enea S.A. ("Company") informs that on 19September 2016 the Company and Energa S.A. signed a Letter of Intentrelating to undertaking the cooperation on the preparation,implementation and operation of a modern 1,000 MW coal-fired unit inOstrołęka Power Plant ("Investment", "Ostrołęka C").

The Parties' intention is joint elaboration of Ostrołęka C effectivebusiness model, verification of its design documentation andoptimisation of technical and economic parameters of the new unit. Thecooperation will also include drafting of documents necessary for theinitiation of a tender procedure and selecting the Investment's generalcontractor.

In the Parties' agreeable assessment, the Investment implementation willpositively affect the Polish energy security, will satisfy the highestenvironmental standards and will guarantee the next, stable, highlyefficient and low-emission source of energy in the Polish Power System.

The Parties assume that the rules of cooperation agreed upon in theLetter of Intent should contribute to making a decision on the tenderannouncement in 2016 with the aim of completing the Investment in thesecond half of 2023.

The potential expenditures are estimated to ca. 5.5 - 6 mln PLN/MW. TheParties do not rule out the participation of other partners in theInvestment. Its further parameters, such as the scale and commitment ofeach Party will be analysed.