Teraplast SA — Capital/Financing Update 2016

Aug 3, 2016

AD HOC REPORT

In accordance with Law no. 297/2004 and NSC Regulation no. 1/2006

Report date: August 3 rd 2016 Name of issuer: TERAPLAST S.A. Headquarters: Teraplast Industrial Park, DN 15A, KM 45+500, Bistrita-Nasaud County Telephone/Fax: 0263/238.202 / 0263/231.221 Trade Register No: J06/735/1992 Sole registration number at the Trade Register Office: RO3094980 Share capital: 56,643,266 lei Regulated market on which the issued shares are traded: Bucharest Stock Exchange

Major events to be reported

• a) Changes in the control over the company – N/A
• b) Substantial acquisitions and alienations of assets – N/A
• c) Bankruptcy – N/A
• d) Transactions as listed in art. 225 of Law 297/2004– N/A
• e) Other events

Board of Directors of Teraplast SA inform its shareholders and potential investors about the decision to extent for an year the credit line worth 13,250,000 lei and the multicurrency threshold for letters of guarantee worth 1,750,000 lei, both accessed from Banca Transilvania SA.

In order to ensure a complete and accurate information of the shareholders and potential investors, we reproduce the decision taken by the Board of Directors of Teraplast SA:

DECISION

of the Board of Directors of Teraplast SA. J06/735/1992, RO 3094980

No. 32, dated August 3rd 2016

According to the provisions of the art. 153^20 and Companies Law No. 31/1990, republished, the provisions of the Capital Market Law No. 297/2004 on the capital market and the Regulation No.1/2006 of NSC regarding issuers and operations with securities, modified by the Regulation No. 31/2006 of NSC and Art. 18.4, paragraph (7) of the Articles of Association of Teraplast SA, headquartered in Bistrita, Teraplast Industrial Park, DN 15A, km 45+500, postal code 427298, Bistrita-Nasaud county, registered with the Trade Registry Office under No. J06/735/1992, VAT registration

No. 309498, in the on-line meeting attended by all Board members, namely: Magda Eugenia Palfi-Tirau, Dorel Goia, Emanoil Ioan Viciu, Razvan Stefan Lefter and Teofil-Ovidiu Muresan,

Considering:

a. the decission no. 1 of the Extraordinary General Meeting of Shareholders, dated April 28th 2016, by which it was approved the value of 68,000,000 lei as maximum limit of indebtedness that the company can contract in the 2016 financial year, including the warranty of credit and/or leasing contracts which are going to be accessed within the limit established, with security interest in real estate/pledge, assignments of current and future receivables rights, assignments related to current and future cash, resulting from current accounts and assignments of rights resulted from the insurance policies.

b. the company's intention to extent by 1 year the credit line from Banca Transilvania, structured as follows: credit line worth 13,250,000 lei and the multicurrency threshold for letters of guarantee worth 1,750,000 lei;

After deliberations, the Board of Directors, with the favorable vote of all its members,

DECIDES

1. Approves the extension of the credit line from Banca Transilvania, worth maximum 13,250,000 lei, for 12 months

2. Approves the extension of the multicurrency threshold for letters of guarantee worth 1,750,000 lei from Banca Transilvania, for a period of 12 months.

3. Empowers Mr. Alexandru Stânean, acting as CEO, and Mrs. Eniko-Edit Orban, acting as CFO, in order to sign the documents or other instruments that are accessories related to or referenced in credit agreements, guarantees contracts or other documents and to sign any forms, applications that may be necessary and useful in connection with this transaction concluded with Banca Transilvania S.A.

4. Empowers Mr. Dorel Goia, Chairman of the Board of Directors and Mrs. Magda-Eugenia Palfi-Tirau – Non-Executive Director, to sign the present decision, in the name and on behalf of the Board of Directors.

5. Empowers the legal adviser, Mrs. Diana Bretfelean, to accomplish all formalities regarding registration of the Board of Directors Decision at the Trade Register of Bistrita-Nasaud Law Court.

The present decision was adopted and signed on August 3rd 2016, in 4 (four) original copies.

Chairman of the Board of Directors

Dorel Goia

For additional information please contact the Investor Relations Department of Teraplast, phone 0752-101.639, e-mail: anca.rif@teraplast.ro, contact person Anca Rif – Investor Relations Manager.