PGE Polska Grupa Energetyczna S.A.

Share Issue/Capital Change • Jan 18, 2022

Delayed disclosure of the inside information - Decision of the PGEManagement Board on commencement of recapitalisation of the Company byway of share issue

The Management Board of PGE Polska Grupa Energetyczna S.A. (_quot;PGE_quot;, the_quot;Company_quot;, the _quot;Issuer_quot;), acting pursuant to Art. 17 sect. 1 and 4 ofthe Regulation (EU) No. 596/2014 of the European Parliament and of theCouncil of April 16, 2014 on market abuse and repealing Directive2003/6/EC of the European Parliament and of the Council and CommissionDirectives 2003/124/EC, 2003/125/EC and 2004/72/EC (_quot;MAR Regulation_quot;)discloses to the public the contents of the inside information whosedisclosure was delayed on January 18, 2022 pursuant to Article 17(4) ofthe MAR Regulation.

Inside information the disclosure of which was delayed was informationabout the resolution of the Management Board of PGE dated January 18,2022 on commencement of the recapitalization of PGE Polska GrupaEnergetyczna S.A.

The content of the delayed inside information:

_quot;The Management Board of PGE informs that on January 18, 2022 theManagement Board of PGE adopted the resolution on commencement of therecapitalization of the Company in connection with planned investmentprojects in the area of renewable energy, decarbonisation anddistribution (the _quot;Resolution_quot;).

The resolution provides for a proposal to the Extraordinary GeneralMeeting of the Company to adopt a resolution on lowering the sharecapital by way of reducing the par value of shares and simultaneouslyincreasing the share capital by way of issuing series E shares under theprivate subscription procedure, depriving the existing shareholdersentirely of the preemptive right to all series E shares, applying foradmission and introduction of series E shares or rights to series Eshares to trading on the regulated market of Giełda PapierówWartościowych w Warszawie S.A. [Warsaw Stock Exchange], dematerialisingseries E shares or rights to series E shares, as well as amending theCompany Statutes.

The intention of the Management Board of the Issuer is to obtain frominvestors an amount exceeding PLN 3 billion in the course of the capitalincrease process.

The issue proceeds are intended to support PGE's investments in threeareas:

1. development of renewable energy sources;

2. decarbonisation through development of low-carbon sources;

3. development of distribution.

The Company shall inform about the stages of the process ofrecapitalization of the Company, in particular about convening theExtraordinary General Meeting of the Company, in separate currentreports._quot;

Disclosure of the aforementioned inside information has been delayeduntil the Supervisory Board has adopted a resolution on presenting itsopinion on the proposal of the Management Board of the Company to theExtraordinary General Meeting of Shareholders of the Company to adopt aresolution and consent to the factual and legal actions required tocarry out the recapitalization of the Company. The said resolution ofthe Supervisory Board was adopted on January 18, 2022.