Response to the shareholder’s questions asked during the Ordinary General Meeting of the Company on June 27, 2017

The Management Board of PGE Polska Grupa Energetyczna S.A. (the "Company") hereby submits information provided to the shareholder outside the general meeting in response to the shareholder’s questions asked during the Ordinary General Meeting of the Company on June 27, 2017.

Question 1: „How much did PGE spend/ invest in so called “Gubin project” till December 31, 2016?

Total expenditures for Gubin project including costs of ongoing operations, capital expenditures and net price of Gubin project’s acquisition amounted to PLN 31.6 million, including net price of Gubin project acquisition by PGE of PLN 16.7 million. Costs of ongoing operations and capital expenditures amounted to PLN 14.9 million.

In years 2010 – 2016, within the project of obtaining the concession for extraction of lignite from Gubin deposit, a series of elaborations and documentation papers (more than 30 expertises) have been made, which provided information on the deposit, inter alia on scope of construction, quality parameters, hydrogeology, technical conditions related to the exploitation of lignite. Besides that, communication was held in order to increase the public awareness on the importance of lignite for the country and the region and benefits resulting from the use of deposit for local community.

Question 2: „When will begin the construction of Gubin power plant announced in letters of the President of the Management Board of PGE Gubin sp. z o.o. and in PGE’s advertisements in local media in Lubuskie voivodship?”

One of the elements of PGE’s mission that was adopted last year, is providing security and growth based on reliability of supply. Overall objectives of PGE Capital Group include: value creation for shareholders and key role in ensuring Poland’s security of power supply. In order to maintain a leading position in generation, PGE Group has three strategic options, dependent on market development and regulations after 2020. One of the options is utilization of new lignite deposits, in case there is a significant easing of the climate policy.

From the investor’s (i.e. PGE Group’s) perspective, the next key step in the project is obtaining of the mining concession. According to the documentation, obtaining of the concession is scheduled for September 30, 2020.

Commencement of the investment in Gubin is conditioned by the country’s target fuel mix and determining the economic predictability framework for investment through indication of the long-term support schemes.

PGE Group is in dialogue with public administration and actively participates in activities of the work teams dealing with this topic.

Legal ground: § 38 section 1 point 12 of the Regulation of the Minister of Finance dated February 19, 2009 on current and periodic information published by issuers of securities and on conditions under which such information may be recognized as being equivalent to information required by the regulations of law of a state which is not a member state (Dziennik Ustaw of 2014, item 133).