Tauron Polska Energia S.A.

Capital/Financing Update • Dec 21, 2017

Current report no. 41/2017

TAURON ratings and outlooks affirmed; rating assigned to the hybridbonds program

Management Board of TAURON Polska Energia S.A. would like to inform thaton December 21, 2017 Fitch rating agency ("Fitch") affirmed long-termforeign and local currency IDRs of TAURON Polska Energia S.A. at 'BBB'with a stable outlook and assigned local currency subordinated rating of'BB+' and national subordinated rating of 'BBB+(pol) to the PLN400million hybrid bonds program.

Full list of rating actions includes:

- long-term foreign and local currency IDRs affirmed at 'BBB'; stableoutlook,

- short-term foreign and local currency IDRs affirmed at 'F3',

- existing hybrid bonds affirmed at 'BB+',

- national long-term rating affirmed at 'A+(pol)'; stable outlook,

- national senior unsecured rating affirmed at 'A+(pol)',

- foreign currency senior unsecured rating of Eurobonds affirmed at'BBB',

- ratings assigned to PLN400 million hybrid bonds program: localcurrency subordinated rating of 'BB+' and national subordinated ratingof 'BBB+(pol).

Fitch report is available on the website: www.fitchratings.com.