Ferrum : Information on the value of orders completed between FERRUM S.A. and Centrala Zaopatrzenia Hutnictwa S.A.

Established in 1874

Steel pipes

Hollow sections

Coating

Current Report: 74/2016 Date: 2016-10-18 Name of the Issuer: FERRUM S.A. Title: Information on the value of orders completed between FERRUM S.A. and Centrala Zaopatrzenia Hutnictwa S.A. Legal basis: Art. 17 item 1 MAR - inside information Content of the Report:

The Management Board of FERRUM S.A. (Issuer, Company) informs that on 18th October 2016 the total value of orders for steel products completed by Centrala Zaopatrzenia Hutnictwa S.A. (CZH) for the Issuer in the period from 27th January 2016 (i.e. from the day on which the Company published the current report no. 15/2016 about the turnover generated with CZH) amounted to app. PLN 28.1 mio. net.

Order of the biggest value was accepted for execution on 12th July 2016 and referred to the purchase by the Issuer of hot-rolled coils valued to app. EUR 1.06 mio. net, which equals to app. PLN 4.8 mio. net according to the exchange rate of the National Bank of Poland binding as of the day of accepting the above mentioned order (Order) for execution.

The Order referred to hereinabove was accepted for execution under the commercial cooperation agreement, the subject of which is to establish the terms of cooperation for sale of steel products by CZH to the benefit of the Issuer. The Company informed about the agreement in the current reports no. 70/2014 of 23rd December 2014 and 79/2015 of 17th December 2015 respectively.

With reference to the commercial cooperation agreement, the sales transactions are performed based on the individual orders placed by the Issuer and approved by CZH for execution, defining the quantity, specification, price, manufacturer/supplier, dates and place of deliveries as well as the terms of guarantee and warrantee.

The Order does not settle the matters of payment of damages and contractual penalties, therefore in this scope the general conditions for concluding agreements apply adopted by the Issuer and CZH.

The remaining conditions of the Order do not differ from the terms applied in the transactions of this kind.

SIGNATURES OF PERSONS REPRESENTING THE COMPANY
Date	Position	First name and surname
2016-10-18	Vice-President of the Management Board	Włodzimierz Kasztalski
2016-10-18	Holder of a Commercial Power of Attorney	Jakub Podsiadło