Tauron Polska Energia S.A.

Capital/Financing Update • Dec 13, 2018

Current Report No. 37/2018

Increase of the amount of hybrid financing from the European InvestmentBank

In reference to the current report no. 36/2018 of December 11, 2018, onobtaining hybrid financing from the European Investment Bank ("EIB") inthe amount of PLN 400 000 000 ("A Issue") TAURON Polska Energia S.A.("Company") informs that the Company and the European Investment Bank("EIB") signed the following agreements on December 13, 2018:

a) subscription agreement ("Subscription Agreement") constituting thebasis for issuing hybrid bonds ("Bonds") with the total nominal value ofPLN 350 000 000 ("B Issue"),

b) project related agreement ("Project Agreement") defining detailedrequirements related to the financing of an investment project.

B Issue constitutes a supplement to the A Issue and thus the Companysigned with the EIB subordinated bond issue agreements worth PLN 750 000000 in December 2018.

In accordance with the Subscription Agreement the Bonds will be issuedin a single series. The Bond issue date has been set for December 19,2018. The other terms and parameters of the Bonds are in accordance withthe description provided in the current report no. 36/2018 of December11, 2018.

The issue will be carried out after the standard suspending conditionsin case of this type of financing have been met.

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