Current Report No. 38/2017

Receiving another lawsuit in connection with termination of long-termcontracts for the purchase of energy and property rights

In reference to the current reports No. 35/2017 of July 20, 2017 and No.37/2017 of August 3, 2017 the Management Board of TAURON Polska EnergiaS.A. (the "Issuer") informs that on 21 August 2017 the Issuer received alawsuit of 30 June 2017, lodged by Pękanino Wind Invest sp. z o.o. withits registered office in Warsaw, against the Issuer for the payment ofcompensation in the amount of PLN 28.5 million and determining theliability for damages which may stem in the future from prohibited acts,including the acts of unfair competition, of the value estimated by theclaimant amounting to PLN 201.6 million. This is another, third out offour expected lawsuits lodged by companies of Wind Invest Group in thesubject matter.

The case is pending before the Regional Court in Katowice. According tothe statement of the claimant company, the actual basis for the suit isthe termination by a subsidiary of the Issuer: Polska Energia - PierwszaKompania Handlowa sp. z o.o. with its registered office in Warsaw oflong-term contracts for the purchase of electricity and property rightsarising from certificates of origin. The Issuer informed of thetermination of the aforementioned contracts in the current report No.7/2015 of 19 March 2015.

The Issuer commenced the analysis of the letter and the encloseddocuments and drafting the response to the claim within the 30-day timelimit outlined by the court.

The preliminary assessment of the rationale of the claims contained inthe lawsuit indicates their full illegitimacy.

Legal basis: Art. 17.1 of MAR - inside information