Grupa Lotos : Information on delayed implementation of the EFRA Project

Information on delayed implementation of the EFRA Project

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Report no. 2/2018 • 2018-01-12 16:12

Information on delayed implementation of the EFRA Project

In addition to the information announced by Grupa LOTOS S.A. ("Company") in the Management's Discussion and Analysis of Q3 2017 consolidated results ("Management's Discussion"), the Company's Management Board announces that:

1) The risk of failure to meet the contractual target date of reaching the Ready for Start Up (RFSU) status by the Delayed Coking Unit (DCU), as announced in the Management's Discussion, will materialise;

2) As a result of the delay in the contractual RFSU date, the assumed financial effects of the EFRA Project completion (as announced in Current Report No. 24/2015 and the Company's subsequent public announcements) will not yet show fully in the Group's consolidated results for 2018.

These conclusions are based on the results of the Management Board's own analyses and current status of talks concerning the EFRA Project between LOTOS Asfalt Sp. z o.o. (a subsidiary of Grupa LOTOS S.A., "LOTOS Asfalt"), the Company and KT-Kinetics Technology S.p.A. (the General Contractor of the EFRA Project, "KT") .

The Company's Management Board emphasises that the delays in the EFRA Project are not caused by the Company or its Group companies.

The Company will promptly disclose any significant matters affecting the EFRA Project in current reports.

Legal basis: Article 17(1) of MAR - inside information.