Signing of a letter of intent regarding a cooperation regarding the development of a nuclear power plant

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”), discloses that on October, 31 2022 PGE, Korea Hydro & Nuclear Power Co. Ltd. and ZE PAK S.A. (the “Parties”) have signed the letter of intent (the “Letter of Intent”).

The Parties’ intention is to cooperate within the strategic Polish-Korean project of construction of nuclear power plant in Pątnów (the “Project”). The Parties have decided to start the cooperation in order to develop plan for the nuclear power plant based on the Korean technology APR1400, particularly to perform analysis of data regarding geotechnical, seismic and environmental conditions, develop an estimated budget for the preparatory work, construction phase and production phase along with the proposed Project financing model as well as to create an expected Project implementation schedule along with the definition of dates for key milestones. The Parties intend to prepare a development plan by the end of 2022.

Pątnów area is indicated in the Energy Policy of Poland until 2040 and in the Polish Nuclear Power Programme, adopted by the Council of Ministers of the Republic of Poland respectively on February 2, 2021 and on October 2, 2020, as one of four possible locations of nuclear power plant in Poland.

The Letter of Intent will expire after three years and may be extended for a further year with consent of all Parties.