KN Energies AB

Board/Management Information • Jan 31, 2011

Disclosure 284092

Klaipedos Nafta AB - Notification on material event

Establishment of the Audit Committee at AB Klaipėdos nafta

On 28 January 2011, the Manager of AB Klaipėdos nafta (hereinafter - the Company) signed the agreement with newly established Audit Committee members Eimantas Kiudulas, Director of UAB Klaipėda Free Economic Zone Management Company, Simonas Rimašauskas, Project manager at UAB Deloitte Lietuva, and Mindaugas Jusius, Member of the Board and Chairman of Swedbank Life Insurance SE. Members of the Audit Committee were elected by the Supervisory Board of the Company. The Audit Committee consisting of three members shall be monitoring the process for the drawing up of financial statements of the Company and the performance of their audit, the efficiency of the external audit and the implementation of the recommendations submitted by the auditors. The Committee shall also monitor and analyse the operation of the internal control and risk management systems and shall seek to identify the needs for any new systems. The Audit Committee shall not less frequently than twice a year inform the Supervisory Board of AB Klaipėdos nafta of its performance results and will be filing to the Supervisory Board its Activity Report. Although the relevant legal acts require not less than 1/3 members of the committee to be independent, in this particular case all three members of the Audit Committee meet this requirement. This introduction seeks to ensure the actual implementation of the audit committee functions in the Company, the full transparency of its activities and strengthen the confidence of the existing and potential investors in the Company. Johana Bučienė Chief Financier, +370 46 391 636