Delayed disclosure of the inside information - Decision of the PGE Management Board on commencement of recapitalisation of the Company by way of share issue

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE", the "Company", the "Issuer"), acting pursuant to Art. 17 sect. 1 and 4 of the Regulation (EU) No. 596/2014 of the European Parliament and of the Council of April 16, 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC ("MAR Regulation") discloses to the public the contents of the inside information whose disclosure was delayed on January 18, 2022 pursuant to Article 17(4) of the MAR Regulation.

Inside information the disclosure of which was delayed was information about the resolution of the Management Board of PGE dated January 18, 2022 on commencement of the recapitalization of PGE Polska Grupa Energetyczna S.A.

The content of the delayed inside information:

"The Management Board of PGE informs that on January 18, 2022 the Management Board of PGE adopted the resolution on commencement of the recapitalization of the Company in connection with planned investment projects in the area of renewable energy, decarbonisation and distribution (the "Resolution").

The resolution provides for a proposal to the Extraordinary General Meeting of the Company to adopt a resolution on lowering the share capital by way of reducing the par value of shares and simultaneously increasing the share capital by way of issuing series E shares under the private subscription procedure, depriving the existing shareholders entirely of the preemptive right to all series E shares, applying for admission and introduction of series E shares or rights to series E shares to trading on the regulated market of Giełda Papierów Wartościowych w Warszawie S.A. [Warsaw Stock Exchange], dematerialising series E shares or rights to series E shares, as well as amending the Company Statutes.

The intention of the Management Board of the Issuer is to obtain from investors an amount exceeding PLN 3 billion in the course of the capital increase process.

The issue proceeds are intended to support PGE's investments in three areas:

1. development of renewable energy sources;

2. decarbonisation through development of low-carbon sources;

3. development of distribution.

The Company shall inform about the stages of the process of recapitalization of the Company, in particular about convening the Extraordinary General Meeting of the Company, in separate current reports."

Disclosure of the aforementioned inside information has been delayed until the Supervisory Board has adopted a resolution on presenting its opinion on the proposal of the Management Board of the Company to the Extraordinary General Meeting of Shareholders of the Company to adopt a resolution and consent to the factual and legal actions required to carry out the recapitalization of the Company. The said resolution of the Supervisory Board was adopted on January 18, 2022.