PGE Polska Grupa Energetyczna S.A.

AGM Information • Jul 12, 2017

Response to the shareholder's questions asked during the OrdinaryGeneral Meeting of the Company on June 27, 2017

The Management Board of PGE Polska Grupa Energetyczna S.A. (the"Company") hereby submits information provided to the shareholderoutside the general meeting in response to the shareholder's questionsasked during the Ordinary General Meeting of the Company on June 27,2017.

Question 1: "How much did PGE spend/ invest in so called "Gubin project"till December 31, 2016?

Total expenditures for Gubin project including costs of ongoingoperations, capital expenditures and net price of Gubin project'sacquisition amounted to PLN 31.6 million, including net price of Gubinproject acquisition by PGE of PLN 16.7 million. Costs of ongoingoperations and capital expenditures amounted to PLN 14.9 million.

In years 2010 - 2016, within the project of obtaining the concession forextraction of lignite from Gubin deposit, a series of elaborations anddocumentation papers (more than 30 expertises) have been made, whichprovided information on the deposit, inter alia on scope ofconstruction, quality parameters, hydrogeology, technical conditionsrelated to the exploitation of lignite. Besides that, communication washeld in order to increase the public awareness on the importance oflignite for the country and the region and benefits resulting from theuse of deposit for local community.

Question 2: "When will begin the construction of Gubin power plantannounced in letters of the President of the Management Board of PGEGubin sp. z o.o. and in PGE's advertisements in local media in Lubuskievoivodship?"

One of the elements of PGE's mission that was adopted last year, isproviding security and growth based on reliability of supply. Overallobjectives of PGE Capital Group include: value creation for shareholdersand key role in ensuring Poland's security of power supply. In order tomaintain a leading position in generation, PGE Group has three strategicoptions, dependent on market development and regulations after 2020. Oneof the options is utilization of new lignite deposits, in case there isa significant easing of the climate policy.

From the investor's (i.e. PGE Group's) perspective, the next key step inthe project is obtaining of the mining concession. According to thedocumentation, obtaining of the concession is scheduled for September30, 2020.

Commencement of the investment in Gubin is conditioned by the country'starget fuel mix and determining the economic predictability frameworkfor investment through indication of the long-term support schemes.

PGE Group is in dialogue with public administration and activelyparticipates in activities of the work teams dealing with this topic.

Legal ground: § 38 section 1 point 12 of the Regulation of the Ministerof Finance dated February 19, 2009 on current and periodic informationpublished by issuers of securities and on conditions under which suchinformation may be recognized as being equivalent to informationrequired by the regulations of law of a state which is not a memberstate (Dziennik Ustaw of 2014, item 133).