Signing of the agreement for construction of the power unit in Rybnik

The Management Board of PGE Polska Grupa Energetyczna S.A. ("PGE_quot;)discloses that on February 9, 2023 Rybnik 2050 sp. z o.o., a subsidiaryof PGE, signed an agreement (the "Agreement") with consortium of:Polimex Mostostal S.A. (consortium leader), Siemens Energy Sp. z o.o.(consortium member), Siemens Energy Global GmbH _amp; Co. KG (consortiummember) (jointly later referred to as the "Contractor_quot;).

The subject matter of the Agreement is the performance of constructionand assembly works and other works by the Contractor, in order to builda gas and steam unit in Rybnik with a gross capacity of 882 MWe. Theunit will be constructed in CCGT technology in two-stage system.According to the provisions of the Agreement, the commissioning of theunit will take place by December 31, 2026.

The value of the Agreement amounts to PLN 3 050 000 000.00 net. Inconnection with the Agreement, a service agreement was also signed withregard to gas turbine for the period of at least 12 years starting fromthe commissioning date of the unit. The value of the service agreementamounts to PLN 762 484 777.60 net. Total value of all signed agreementsamounts to PLN 3 812 484 777.60 net.

The Agreement provides for contractual penalties for the Contractorrelated to, among others, failure to meet the deadline for commissioningof the unit, failure to comply with the guaranteed net rated capacity,failure to deliver the guaranteed level of availability and failure tomeet guaranteed net efficiency of the unit.

The total sum of contractual penalties resulting from all failurescannot exceed 20% of the net value of the Agreement.

In case of withdrawal from the Agreement in full or in the scope of theunfulfilled part for reasons for which one of the parties is liableunder the Agreement the other party is entitled to charge theresponsible party with a contractual penalty in the amount of 10% of thevalue of the Agreement.

The Agreement also includes an indexation clause which takes intoaccount potential increase of the Contractor's remuneration by half ofthe cumulative increase in the prices of construction and assemblyproduction which are published on the website of the Central StatisticalOffice of Poland. The maximum indexation of the remuneration due to theabove cannot exceed 15% of the Agreement's value.