Signing of the agreement settling the contract for designing and turn-key construction of power unit no. 7 in Turów power plant with the contractor

The Management Board of PGE Polska Grupa Energetyczna S.A. (”PGE"), with reference to the current report no. 33/2022 of May 26, 2022 and the information presented in the periodic reports, discloses that on June 17, 2026 PGE Górnictwo i Energetyka Konwencjonalna S.A. (”PGE GiEK” – a PGE’s subsidiary) in front of the mediators of the General Prosecutor's Office of the Republic of Poland signed a settlement (the “Settlement”) regarding the contract for designing and turn-key construction of power unit no. 7 in Turów power plant (the “Contract”) carried out by the consortium of companies MPE Deutschland GmbH (previously Mitsubishi Power Europe GmbH), Budimex SA and Tecnicas Reunidas SA (the “Consortium”, the “Contractor”).

As part of the Settlement the members of the Consortium pledge jointly to pay to PGE GiEK a total amount of PLN 135 000 000.00 (the “Settlement Amount”). In addition, taking into account the claims of both parties to the Contract, that are subject to lawsuits, as a result of the Settlement’s provisions:

- the price of the Contract was lowered by PLN 56 800 000.00 net,

- the Contractor will not pursue the unpaid part of the remuneration in amount of PLN 164 275 000.00 net,

- the Contractor will not pursue the return of amount collected from the performance bond in amount of PLN 134 560 428.55 net.

The parties waive, as of the moment of the payment of the Settlement Amount, all existing and future mutual claims arising from the Contract.

The Settlement at the parties’ request will be filed with the court in order to be approved. The Settlement Amount will be due within 30 days from the date when the court’s decision on validity of the Settlement becomes legally binding.