Conclusion of an annex to the contract for crude oil supplies between Rosneft Oil Company and Grupa LOTOS S.A.
Report no. 2/20162016-01-22

The Management Board of Grupa LOTOS S.A. announces that on January 22nd 2016 Grupa LOTOS S.A. and Rosneft Oil Company of Moscow, the Russian Federation, signed an annex to the term contract of December 20th 2013 for crude oil supplies to Grupa LOTOS S.A., the conclusion of which was announced by the Management Board of Grupa LOTOS S.A. in Current Report No. 36/2013 of December 20th 2013 (the “Annex”).

The Annex covers supplies to be delivered in 2016−2017, providing that they should reach 5.4m−6.0m tonnes of crude oil. Pursuant to the Annex, the supplies will be transported via the Druzhba pipeline or by sea. The value of supplies covered by the Annex is estimated at approximately PLN 5.0bn as at the Annex date.

The contract provides for compensation in the event of failure to deliver or accept the crude oil, in an amount not exceeding approximately PLN 2.8m on an average monthly basis relative to the agreed annual volumes. Payment of the above amounts does not preclude the possibility of seeking damages in excess of those amounts.

The terms and conditions of the contract do not differ materially from the terms and conditions commonly applied in contracts of such type.

The Annex has been classified as significant as its estimated value exceeds 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.