Energa S.A.

Report Publication Announcement • Jul 2, 2018

Current Report No.: 27/2018

Prepared on: 2 July 2018

Subject: Disclosure of reversal of impairment losses on assets

Legal basis: Article 17(1) of the MAR - confidential information

The Management Board of ENERGA SA hereby informs that due to certainchanges in the legislative environment, i.e. the signing by thePresident of the Republic of Poland of the Act of 7 June 2018 on CertainAmendments to the Act on Renewable Energy Sources and some other acts ,it has identified evidence which may result in the reversal ofimpairment losses on certain assets of the ENERGA Group.

The impairment tests carried out in the first six months of 2018revealed an increase in the recoverable amount of wind farms. On 2 July2018 a decision was taken to reverse impairment losses on wind farms inthe Generation Business Line in the total amount of PLN 116.6 million.The estimated effect of the reversal of the above impairment losses onthe consolidated net results of operations of the ENERGA Group for 2018is PLN 94.5 million. No cash flows will be involved. This willpositively affect the operating profit of the ENERGA Group remainingwithout affecting its EBITDA.

After taking into account the reversal of the impairment losses, thebook value of wind farms in the consolidated balance sheet of the ENERGAGroup amounts to PLN 664.36 million.

The presented figures are estimates; they will be audited by an auditorand may change after the auditor has verified the tests and issued anopinion. The final outcome of the tests and the amount of reversal ofthe impairment losses will be presented in the consolidated financialstatements of the Energa Group as at and for the six months ended 30June 2018.