Teraplast SA — Capital/Financing Update 2016

Aug 22, 2016

AD HOC REPORT

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

Report date: August 22nd 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 file for a government assistance in order to develop an investment project in amount of LEI 65.63 million, according to the government decision no. 807/2014.

The investment project aims the establishment of a new production plant in the current location, Bistrita-Nasaud County, Teraplast Industrial Park, DN15A, km 45+500.

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. 35, dated August 19th 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, dated August 19th 2016, to which attended and voted favorably all Board members,

Considering the followings:

• a) The writing of a government assistance project, named "The development of Teraplast SA production activity by acquisition of new equipment, including the construction of the associated buildings".
• b) The company's intention to establish a new production capacity in the Teraplast Industrial Park, DN15A, km 45+500, Bistrita-Nasaud County, which means an investment plan in amount of LEI 65.63 million.

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

DECIDES

1. Approves the present of the financing request on 22.08.2016, both with the associated documentation to the Public Finance Ministry, in order to grant the regional state aid for the project "The development of Teraplast SA production activity by acquisition of new equipment, including the construction of the associated buildings", project in total value of LEI 65.63 million.

2. Empowers Mr. Alexandru Stanean, as Chief Executive Officer, to sign the project mentioned at point 1.

3. Approves the sending of the ad hoc report to the Bucharest Stock Exchange and to the Financial Supervisory Authority.

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 19th 2016, in 2 (two) original copies.

Chairman of the Board of Directors

Dorel Goia

Non executive Director Legal Advisor Magda-Eugenia Palfi-Tirau Bretfelean Diana

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.