Recapitalisation of PGG (Polish Mining Group) with PLN 100 million

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE")discloses that on March 29, 2017 PGE Górnictwo i EnergetykaKonwencjonalna S.A. ("PGE GiEK"), the subsidiary of PGE, decided torecapitalize Polska Grupa Górnicza Sp. z o.o. ("PGG" - Polish MiningGroup) in amount of PLN 100 million.

The above decision is related to planned acquisition by PGG of assets ofKatowicki Holding Węglowy (KHW). PGE will inform about the closing ofthe investment process in a separate current report.