Significant Agreement between Grupa LOTOS S.A. and Mitsubishi International GmbH
Report no. 30/20102010-11-15

The Management Board of Grupa LOTOS S.A. hereby reports that on November 15th 2010 Grupa LOTOS S.A. executed an agreement with Mitsubishi International GmbH of Duesseldorf, Germany, whereby it will be selling mixed xylenes to Mitsubishi International GmbH.

Supplies of mixed xylenes under the agreement are due to start between May 15th 2012 at the earliest and November 15th 2012 at the latest. The agreement was concluded for a term of 42 months, counting from the day on which the supplies start.
Each party has the right to terminate the agreement in the period of six months after the supplies start, if any of the circumstances specified in the agreement arise. The estimated value of the agreement over its term will amount to PLN 805.3m (net of VAT).

The agreement does not provide for any contractual penalties and so each party may only assert claims up to the value of the agreement.
The other terms and conditions of the agreement do not differ from the terms and conditions commonly used in agreements of such type.
The objective behind the conclusion of the agreement is to further diversify Grupa LOTOS S.A.'s product portfolio, while reducing the share of aromatic hydrocarbons in gasoline blending pool produced by the Gdańsk refinery, as some of the product leaving the catalytic reforming unit (reformate) will be further processed at the xylene separation unit.  At present, any surplus volumes of reformate are exported. Thanks to the production and sale of mixed xylenes, which is used as petrochemical feedstock, Grupa LOTOS S.A. will be able to generate a sustainably higher margin on sales, compared with that generated on reformate exports.

The agreement was classified as significant as its estimated value exceeded 10% of Grupa LOTOS S.A.’s equity.
The legal basis for the publication of this Current Report is 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.