Significant Agreement between Grupa LOTOS S.A. and PGNiG SA
Report no. 25/20102010-06-16

The Management Board of Grupa LOTOS S.A. hereby reports that on June 16th 2010 Grupa LOTOS S.A. and Polskie Górnictwo Naftowe i Gazownictwo SA of Warsaw entered into an agreement providing for the supply of natural gas to Grupa LOTOS S.A. starting from December 16th 2011.  In accordance with the agreement, on justified request by Grupa LOTOS S.A., the starting date of the gas supplies may be postponed by six months, i.e. until June 15th 2012. The agreement has been concluded for an indefinite term. The estimated value of the agreement in the period of five years amounts to approximately PLN 2,208m. The estimated maximum contractual penalties may exceed 10% of the agreement’s value, and their amount depends on the quantity of gas ordered but not taken off by Grupa LOTOS S.A. The agreement does not contain any provisions permitting to seek additional compensation in excess of the contractual penalties. The other terms and conditions of the agreement do not differ from standard provisions commonly applied in agreements of such type.
The agreement has been concluded in order to ensure higher supplies of network gas to Grupa LOTOS S.A.’s refinery, which will replace the fuels currently used, including LPG, light gasoline, and – to some extent – fuel oil. LPG is currently used in the fuel gas system and together with light gasoline is used to produce hydrogen. The estimated annual supplies of natural gas in 2012 will be 403 million cubic meters, and the target annual volume is 447 million cubic meters. In addition to savings which will be generated thanks to the replacement of the abovementioned fuels with network gas, the change will increase the production of liquefied fuels and limit CO2 emissions by Grupa LOTOS S.A.’s refinery.
The agreement is considered significant as its estimated value exceeds 10% of the equity of Grupa LOTOS S.A.

Legal basis:
Par. 5.1.3 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.