PGE Polska Grupa Energetyczna S.A.

Share Issue/Capital Change • Apr 1, 2021

Fulfilment of conditions necessary to sign a contract for constructionof gas and steam CHP plant in Siechnice (New Czechnica CHP plant)

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE"), withreference to the current report no. 7/2021 of the subsidiary ZespółElektrociepłowni Wrocławskich KOGENERACJA S.A., informs that theManagement Board of Zespół Elektrociepłowni Wrocławskich KOGENERACJAS.A. (the "Company") has disclosed that:

• on March 5, 2021 the Supervisory Board of the Company adoptedresolution on giving consent to pursue development turn-key investmentconsisting of construction of CCGT combined heat and power plant forZespół Elektrociepłowni Wrocławskich KOGENERACJA S.A. in Siechnice, inconnection with which new fixed assets will be created with a valueexceeding PLN 10 000 000, provided that the Energy Regulatory Office(ERO) President grants a co-generation individual premium to the Companyfor unit New Czechnica CHP plant, on the ground of the Act of December14, 2018 on promotion of electricity from highly-efficientco-generation, and gave a positive opinion on the draft resolutionsincluded in the agenda of the Extraordinary General Meeting convened forApril 1, 2021.,

• on March 12, 2021 the Company received a co-generation individualpremium for unit New Czechnica CHP plant, on the ground of the Act ofDecember 14, 2018 on promotion of electricity from highly-efficientco-generation, by the decision by the ERO President,

• on April 1, 2021 the Extraordinary General Meeting of the Company hasadopted resolution on giving consent to acquisition of non-currentassets, within the meaning of the Accounting Act of September 29, 1994,exceeding PLN 10 000 000 through giving consent to pursue developmentturn-key investment consisting of construction of CCGT combined heat andpower plant for Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A. inSiechnice, in connection with which new fixed assets will be createdwith a value exceeding PLN 10 000 000, on the ground of agreements witha syndicate of: Polimex Mostostal S.A., al. Jana Pawła II 12, 00-124Warsaw, NIP: 8210014509 - Consortium Leader and Polimex Energetyka sp. zo.o., al. Jana Pawła II 12, 00-124 Warsaw, NIP: 6760101371- ConsortiumPartner, with a value of PLN 1 277 021 671.15 net, i.e. PLN 1 570 736655.52 gross, including:

- EPC contract: PLN 1 159 180 000.00 net, i.e. PLN 1 425 791 400.00gross,

- LTSA: PLN 117 841 671.15 net, i.e. PLN 144 945 255.52 gross.

Thus, on April 1, 2021 the last condition was fulfilled with regard tothe acceptance of the selection of the consortium consisting of PolimexMostostal S.A. (Consortium Leader) and Polimex Energetyka sp. z o.o.(Consortium Partner) submitted in the procurement procedure titled"Turn-key construction of CCGT combined heat and power plant for ZespółElektrociepłowni Wrocławskich KOGENERACJA S.A. in Siechnice" and theagreement shall be signed with the above mentioned consortium to pursueNew Czechnica CHP plant. The Company will inform about the agreement ina separate report.