Signing of a letter of intent regarding sale of shares in PGE EJ 1 sp. z o.o.

The Management Board of PGE Polska Grupa Energetyczna S.A. (the ”Issuer”) discloses that on October 1, 2020 the Issuer and the Polish State Treasury (the “State Treasury”) signed a letter of intent regarding the acquisition by the State Treasury of 100 % shares in PGE EJ 1 sp. z o.o. (the “Letter of intent”).

The Letter of intent was signed by all shareholders of PGE EJ 1 sp. z o.o. (apart from the Issuer those are Enea S.A., KGHM Polska Miedź S.A. and TAURON Polska Energia S.A.), which is responsible for preparation and realization of investment involving construction and exploitation of Poland’s first nuclear power plant. The Issuer holds 70% of shares in PGE EJ 1 sp. z o.o.

The entities signing the Letter of intent undertook to carry out, in good faith, all activities necessary to prepare and conclude a transaction consisting in the acquisition by the State Treasury of shares in PGE EJ 1 sp. z o.o. (the “Transaction”). The intention expressed in the Letter of intent is that the State Treasury acquires shares in PGE EJ 1 sp. z o.o. by December 31, 2020, but the Parties have not specified the validity period of the Letter of intent. The Letter of intent does not oblige the parties to conclude the Transaction. The decision to carry out the Transaction will depend on result of negotiations in this area and fulfilling other conditions specified in legal regulations or corporate documents.