B8 oilfield –Crude Oil and Natural Gas Production License
Report no. 96/20052006-10-05

In reference to Current Report No. 51/2006 of August 24th 2006, the Management Board of Grupa LOTOS S.A. reports that on October 5th 2006 it was notified that Przedsiębiorstwo Poszukiwań i Eksploatacji Złóż Ropy i Gazu Petrobaltic S.A. (subsidiary undertaking of Grupa LOTOS S.A.) received a letter from the Ministry of Environment, dated August 28th 2006, granting the company a crude oil and natural gas production license for B8 oilfield (Licence No. 1/2006). The license is valid for 10 years. The licensed operations should commence within 24 months from the date of issue, i.e. September 5th 2006. The B8 oilfield is located nearly 68 km from the coast, off the Hel peninsula, and lies 2.1 km below the seabed. The field is planned to be commercially operational for 10 years. Legal basis for the report: Art. 56.1.1 of the Act on Offering – Inside Information