Report 5/2018: Concluding a significant contract by the subsidiary

Preparation date: 2018-01-26

Current report no. 5 / 2018

Abbreviated name of the Issuer: Abadon Real Estate S.A.

Topic: Concluding a significant contract by the subsidiary

Legal grounds: Art. 17 section 1 MAR-confidential information

Contents of the report:

Management Board of the company trading under the name ABADON REAL ESTATE S.A. with its registered offices in Bielsko-Biała ("the Issuer") hereby informs you that on 26 January 2018,the Issuer'ssubsidiary, i.e. the company trading under the name Partner S.A. with its registered offices in Bielsko-Biała (KRS [National CourtRegister] no. 0000349105) ("Partner")concluded a loan contractwith Murapol Projekt 32 Spółka z ograniczoną odpowiedzialnością with its registered offices in Bielsko-Biała (KRS: 0000662859) ("Murapol Projekt 32") i.e.subsidiary of the Issuer's parent company i.e. Murapol S.A. with its registered offices in Bielsko-Biała (KRS: 0000275523) (hereinafter: "Murapol"), pursuant to which the Partner granted to Murapol Projekt 32 a loan in the amount of PLN 19,050,000 (nineteen million fifty thousand zlotys). The interest rate of the loan is fixed, it should be repaid until 24 January 2019. The loan was granted for purchasing by Murapol Projekt 32 a perpetual usufruct right of land located at ul. Posag 7 Panien in Warsaw.

Loan interest rate and other terms and conditions of the loan contract do not deviate from standard provisions for these types of contracts.