The Management Board of Grupa LOTOS S.A. reports that on December 17th 2007 Petrobaltic S.A. (in which Grupa LOTOS S.A. holds a 69% equity interest) received decisions issued by the Minister of the Environment, extending the term of seven licences for prospecting and exploration of oil and gas deposits situated at the sea areas of the Republic of Poland. The terms of the licences were extended as follows: -in the Rozewie, Łeba, Sambia E, Sambia W, and Gaz Północ areas – by three years (until December 14th 2010); -in the Gaz Południe area – by five years (until December 14th 2012); -in the Wolin area – by six months (until June 14th 2008). Moreover, the Minister of the Environment and Petrobaltic S.A. executed annexes to mining usufruct agreements with a view to prospecting and exploring oil and gas deposits in the above areas. The annexes extend the term of the agreements to reflect the changes in the license terms as described above. Legal basis for publishing the report: Art. 56.1.1 of the Public Offering Act – inside information.