Annex to the Opole units 5&6 construction agreement; Reopening of the Opole II project

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that on August 13, 2013 the Supervisory Board of PGE Górnictwo i Energetyka Konwencjonalna S.A. (“PGE GiEK”), subsidiary of PGE, concluded Annex no. 3 (the „Annex”) to the agreement with Rafako S.A., Polimex-Mostostal S.A. and Mostostal Warszawa S.A. forming a syndicate (later referred to as the „General Contractor”) for construction of units no 5&6 in Opole Power Plant.

According to the Annex the Notice To Proceed (“NTP”) will be issued only if conditions regulating relations between Contracting Entity and General Contractor and/or Subcontractor and PKO Bank Polski S.A., i.a. on financial rules, conditions and payment guarantee and guarantee of execution.

NTP may be issued not earlier than 120 days from the date of issuing the notification on planned issue of the NTP by the Contracting Entity.

During that time works will be conducted in order to introduce mechanisms for reduction of the investment risk and improvement of the profitability of the Opole II project.

Moreover, The Management Board of PGE discloses that on August 13, 2013 the Supervisory Board of PGE GiEK allowed Management Board of PGE GiEK to change the resolution dated on April 4, 2013 by reopening the investment project Opole II.

The Management Board of PGE GiEK issued the notification on planned issue of the NTP on August 13, 2013.