Ferrum : Information on the turnover generated between FERRUM S.A. and LOGSTOR

Established in 1874

Steel pipes

Hollow sections

Coating

Current Report: 72/2016 Date: 2016-09-15 Name of the Issuer: FERRUM S.A. Title: Information on the turnover generated between FERRUM S.A. and LOGSTOR Legal basis: Art. 17 item 1 MAR - inside information Content of the Report:

The Management Board of FERRUM S.A. ("Issuer") informs that in relation to the conclusion of subsequent orders on 15th September 2016 for the delivery of bare steel pipes by the Issuer to the companies of the LOGSTOR Capital Group ("LOGSTOR"), the estimated value of orders to be implemented by the Issuer for the LOGSTOR Capital Group companies in the period from 8th December 2015 (i.e. from the day on which the Issuer published the current report no. 77/2015 regarding turnover between the Issuer and LOGSTOR) amounted to app. PLN 27.6 mio net.

The biggest order of the period was accepted for execution on 12th February 2016 and related to the delivery of bare steel pipes for LOGSTOR Polska Sp. z o.o. ("Receiver") of the value of app. PLN 1.7 mio net. The order lead-time has been agreed for March 2016.

In case the Issuer fails to execute the obligations resulting from execution of the order as mentioned above, including delays in deliveries, the Receiver is entitled to contractual penalty in the amount of

0.5 % for each day of delay, however in total not more than 5% of value of a respective delivery. In case of the contract breach by the Issuer, the Receiver has the right to demand execution of the obligation, to terminate the contract and in case of a significant breach and/or to demand compensation and payment of the agreed contractual penalty. Payment of the contractual penalty does not exclude the right to claim damages exceeding the amount of penalties specified hereinabove.

The remaining conditions of the orders do not differ from the ones applied in these type of transactions.

SIGNATURES OF PERSONS REPRESENTING THE COMPANY
Date	Position	First name and surname
2016-09-15	Vice-President of the Management Board	Włodzimierz Kasztalski
2016-09-15	Holder of a Commercial Power of Attorney	Barbara Sterkowicz