Current Report No. 18/2017

Date of Preparation: 29 March 2017

Subject: Decision on recapitalizing Polska Grupa Górnicza

Legal Basis: Article 17 Section 1 of the Market Abuse Regulation -confidential information.

In reference to Current Report No. 17/2016 of 28 April 2016, theManagement Board of ENERGA SA ("Company") reports that on 29 March 2017it made a directional decision on recapitalizing Polska Grupa GórniczaSp. z o.o. ("PGG") with the amount of PLN 100 million by its subsidiaryENERGA Kogeneracja Sp. z o.o.

This amount will support PGG in expanding its activities and obtainingsynergies from incorporation of KHW's production assets into PGG. Theclosing of the investment process will be announced by the Company in aseparate current report.