Tauron Polska Energia S.A.

Capital/Financing Update • Dec 19, 2018

Current report no. 38/2018

Signing of the loan agreement with Bank Gospodarstwa Krajowego

TAURON Polska Energia S.A. ("Company") informs that on December 19,2018, the Company and Bank Gospodarstwa Krajowego ("BGK") signed a loanagreement for the amount of PLN 1 000 000 000 ("Loan Agreement"), theproceeds from which will be used to:

1) refinance the Company's bonds underwritten by BGK in 2014-2015 withmaturity dates falling in 2019-2020 (in the total amount of PLN 270 000000),

2) finance TAURON Group's capital expenditures.

In accordance with the Loan Agreement the funds will be made availableby December 31, 2020, and they will be repaid in equal principalinstallments from 2024 to 2033. The interest rate will be set based on afloating interest rate (WIBOR 6M) increased by BGK's margin.

The signing of the Loan Agreement will contribute to strengthening ofthe Company's financial stability as a result of obtaining a new sourceof financing and extending the debt maturity date.

The loan will be launched after the standard suspending conditions incase of this type of financing have been met.

Legal basis: Art. 17, clause 1 of MAR - inside information