PGE Polska Grupa Energetyczna S.A.

M&A Activity • Oct 1, 2020

Signing of a letter of intent regarding sale of shares in PGE EJ 1 sp. zo.o.

The Management Board of PGE Polska Grupa Energetyczna S.A. (the"Issuer") discloses that on October 1, 2020 the Issuer and the PolishState Treasury (the "State Treasury") signed a letter of intentregarding the acquisition by the State Treasury of 100 % shares in PGEEJ 1 sp. z o.o. (the "Letter of intent").

The Letter of intent was signed by all shareholders of PGE EJ 1 sp. zo.o. (apart from the Issuer those are Enea S.A., KGHM Polska Miedź S.A.and TAURON Polska Energia S.A.), which is responsible for preparationand realization of investment involving construction and exploitation ofPoland's first nuclear power plant. The Issuer holds 70% of shares inPGE EJ 1 sp. z o.o.

The entities signing the Letter of intent undertook to carry out, ingood faith, all activities necessary to prepare and conclude atransaction consisting in the acquisition by the State Treasury ofshares in PGE EJ 1 sp. z o.o. (the "Transaction"). The intentionexpressed in the Letter of intent is that the State Treasury acquiresshares in PGE EJ 1 sp. z o.o. by December 31, 2020, but the Parties havenot specified the validity period of the Letter of intent. The Letter ofintent does not oblige the parties to conclude the Transaction. Thedecision to carry out the Transaction will depend on result ofnegotiations in this area and fulfilling other conditions specified inlegal regulations or corporate documents.