Current Report no. 45/2021

Subject: Disclosure of inside information concerning initiation ofnegotiations and conclusion of a Settlement Term Sheet

Legal basis: Art. 17 of MAR - Inside information

The Management Board of CD PROJEKT S.A. with a registered office inWarsaw, Jagiellońska 74 (hereinafter referred to as "the Company"),hereby publicly discloses inside information which arose on 7 December2021 and was subjected to delayed disclosure under Art. 17 section 4 ofRegulation (EU) No 596/2014 of the European Parliament and of theCouncil of 16 April 2014 on market abuse (Market Abuse Regulation) andrepealing Directive 2003/6/EC of the European Parliament and of theCouncil and Commission Directives 2003/124/EC, 2003/125/EC and2004/72/EC (hereinafter referred to as "MAR"), to wit:

"In the framework of negotiations concerning a potential settlementagreement in a case pending before the US District Court for the CentralDistrict of California (hereinafter referred to as "the Court"), aproposal regarding key terms, which - if agreed upon - would provide thebasis for a prospective written settlement agreement was officiallyformulated on 7 December 2021. According to these terms, members of theclass (including the plaintiffs) would relinquish all claims against theCompany and members of its Management Board. Furthermore, under theagreement, a settlement in the amount of 1 850 000 (one million eighthundred and fifty thousand) USD would be paid out to the class by theCompany and its insurer - Colonnade Insurance S.A."

In relation to the above information, the Management Board of theCompany wishes to inform that following the conclusion of negotiationson 15 December 2021 (of which the Company received notice on 16 December2021) the sides signed a binding Settlement Term Sheet (hereinafterreferred to as "the Term Sheet") specifying key provisions of thesettlement agreement. The Term Sheet stipulates that the settlementshall cover all parties to the case (including members of the class).

According to the Term Sheet, members of the class (including theplaintiffs) shall relinquish any and all claims against the Company andmembers of its Management Board. In return, a settlement in the amountof 1 850 000 (one million eight hundred and fifty thousand) USD shall bepaid out to the class by the Company and its insurer.

As expressly stated in the Term Sheet, execution of the Term Sheet doesnot imply admission of any responsibility on the part of the Company orany of the other defendants named in the case.

The Company wishes to announce that its decision to enter into thissettlement agreement was motivated by (i) the duration and costs relatedto further legal proceedings in the U.S., which might arise irrespectiveof the Court's findings; (ii) acceptance of the key provisions of thesettlement agreement by the Company's insurer; (iii) opinion expressedby the U.S. law firm representing the Company and the other defendantsnamed in the case recommending acceptance of the agreement; (iv) thegeneral practice in the U.S. of concluding such litigation by way of anout-of-court settlement._#160;

As a follow-up to the Term Sheet, the Company, the other defendantsnamed in the case, and the plaintiffs shall draw up a document whichformalizes the settlement agreement. Subsequently, but not later than on13 January 2022, the plaintiffs shall petition the Court for preliminaryapproval of the settlement (which will not be opposed by the Company orthe other defendants named in the case). It is expected that furthersteps will involve (i) the Court's preliminary ruling on whether toapprove the settlement agreement; (ii) notifying members of the class;(iii) the Court's final ruling on whether to approve the settlementagreement.

According to information received by the company, the above procedure isexpected to conclude in several months.

Disclaimer: This English language translation has been prepared solelyfor the convenience of English speaking readers. Despite all the effortsdevoted to this translation, certain discrepancies, omissions orapproximations may exist. In case of any differences between the Polishand the English versions, the Polish version shall prevail. CD PROJEKT,its representatives and employees decline all responsibility in thisregard.