Warsaw, January 30th 2014

Annex to significant contract with KGHM Polska MiedźSA

Current Report No. 14/2014
The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA ("PGNiG") announces that on January 30th 2014 an annex was signed to the comprehensive gas fuel supply contract (the "Contract") of July 30th 2010 with KGHM Polska Miedź SA of Lublin ("KGHM"), on which PGNiG reported in Current Report No. 48/2010.
The Contract provides for the sale of natural gas to be used as a power generation fuel in two approx. 45MWe combined-cycle gas turbine (CCGT) units, and will remain in force until June 30th 2033. Under the annex, the annual volume of gas supplies was lowered from 266m cubic metres to 41.5m cubic metres. The change follows from a decision by KGHM to reduce the output of co-generated electricity and heat due to changes in the co-generation support mechanisms in 2013 and low prices of electricity. The estimated value of the Contract after the signing of the annex is PLN 830m. The parties do not rule out restoring the original supply volume in future if and when the regulatory and macroeconomic environment improves.
The parties also signed annexes to the three other contracts for gas fuel supplies to KGHM: i) of September 25th 2001, ii) of January 4th 1999, and iii) of October 1st 1998. The annexes changed only the duration of the contracts, from an indefinite term to up to June 30th 2033. They secure long-term trading partnership with one of PGNiG's most important customers for nitrogen-rich gas. The estimated aggregate value of the three contracts over their entire term is approximately PLN 2.8bn.

Legal basis:

Par. 5.1.3 and Par. 9 of the Minister of Finance's Regulation on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state, dated February 19th 2009 (Dz. U. No. 33, item 259).

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