Decision to suspend further work on Project VictoriaWithreference to the current report No. 29/2024 dated 10 December 2024regarding the completion of the strategic options review, the ManagementBoard of PCF Group S.A. with its registered office in Warsaw (the"Company") informs that on 10 December 2024 it decided to suspendfurther work on Project Victoria, developed by the capital group of theCompany (the "Group") in a self-publishing model, i.e. by the Group aspublisher, with the Group's own funds.

The suspension of further work on Project Victoria is a consequence ofthe Group's failure to secure funds to cover the expenses associatedwith the continued production and release of Project Victoria.

As a consequence of the decision to suspend further work on ProjectVictoria:

- part of the members of the development team dedicated to theproduction of Project Victoria will be subject to a temporary layoff,which consists in maintaining the employment relationship for a periodof time specified by the laws of the relevant jurisdictions, after whichit is terminated, with no obligations to provide work and payremuneration during this period, with the possibility of reinstatementno later than before the end of this period;

- the remaining part of the members of the development team dedicated tothe production of Project Victoria will be subject to a redundancy;

- the production and release schedule for Project Victoria, according towhich the Company had planned to release the game under the early accessformula in 2026, is also suspended.

Moreover, the Company's Management Board informs that, in its opinion,the occurrence of this event is an indication to recognize a potentialimpairment of the capitalized expenditures incurred for ProjectVictoria, in accordance with International Accounting Standard 36"Impairment of Assets". Accordingly, the Company's Management Board hasdecided to carry out impairment tests on Project Victoria, which, inaccordance with the Company's practice, will be performed on the basisof financial data as of 31 December 2024, as part of the preparation ofthe standalone and consolidated financial statements for 2024. Theresult of these tests will allow the Company to assess whether thecapitalized expenditures incurred on Project Victoria have actually beenimpaired. The Company will provide information on the result of thesetests to the public in accordance with applicable laws.

The Company's Management Board has not specified the length of time forwhich further work on Project Victoria is suspended. The Company'sManagement Board will continue to work on seeking new sources offinancing for the Group's operations, including funds that could be usedto complete and release Project Victoria. Depending on the outcome ofthese actions, the Management Board may decide in the future to resumework on Project Victoria or decide to discontinue further work onProject Victoria. The Company will provide further information in thisregard to the public in accordance with applicable laws.