Current Report No. 37/2017

Submission of further claims in connection with the termination oflong-term contracts for the purchase of power and property rights

In reference to the current report no. 35/2017 of July 20, 2017 theManagement Board of TAURON Polska Energia S.A. (the "Issuer") informsthat today it has received information on the submission, on August 2,2017, to the Issuer's power of attorney appointed in the lawsuitconducted before the Regional Court in Cracow, file reference no. IX GC983/14, filed by Dobiesław Wind Invest sp. z o.o. with its registeredoffice in Warsaw against the Issuer and the Issuer's subsidiary, i.e.Polska Energia - Polska Kompania Handlowa sp. z o.o. (to prevent theimminent danger of damage to Dobiesław Wind Invest sp. z o.o., byobligating the Issuer and Polska Energia - Polska Kompania Handlowa sp.z o.o. to revoke the liquidation of Polska Energia - Polska KompaniaHandlowa sp. z o.o. ), of a pleading of Dobiesław Wind Invest sp. z o.o.containing a change to the lawsuit.

The plaintiff changed the lawsuit's claim in such a manner that it hadwithdrawn its original legal action against Polska Energia-PolskaKompania Handlowa sp. z o.o., while it changed the legal action againstthe Issuer from the claim to prevent the imminent danger of damage intothe claim for the payment of compensation.

Dobiesław Wind Invest sp. z o.o. is demanding:- payment of PLN34.7m including statutory interest accrued from the day the claim wasfiled until the payment date,- determination that the Issuer isliable towards Dobiesław Wind Invest sp. z o.o. for damages that mayarise in the future, estimated by the plaintiff at PLN 254m (andstemming from the Issuer's alleged torts),- that injunctiverelief be granted against the Issuer for the amount of PLN 254m in casethe court does not find the Issuer liable for the damages that may arisein the future.

The factual basis for the lawsuit, according to the plaintiff, is thetermination by the Issuer's subsidiary: Polska Energia - PierwszaKompania Handlowa sp. z o.o. with its registered office in Warsaw of thelong-term contracts for the purchase of electricity and property rightsarising from certificates of origin, as described by the Issuer in thecurrent report No. 7/2015 of March 19, 2015.

The Issuer proceeded to analyze the submission and the documentsattached as well as to draft the response to the submission filed by theplaintiff by the 6-week deadline set by the court. The preliminaryassessment of the justification for the claims contained in the lawsuitindicates that they are completely groundless.