Current Report No. 40/2017Estimated results of TAURON PolskaEnergia Group for the first 9 months of 2017 and Q3 2017TheManagement Board of TAURON Polska Energia S.A. ("the Company") announcesselected estimated consolidated financial results and operating data ofTAURON Polska Energia S.A. Capital Group ("TAURON Group") for the first9 months of 2017 and Q3 2017.

Selected estimated financial results for the first 9 months of 2017:Salesrevenue: PLN 12,875 millionEBITDA (operating profit increased bydepreciation, amortization and write-offs for non-financial assets): PLN2,877 million, including:a) Mining Segment's EBITDA: PLN (42) millionb)Generation Segment's EBITDA: PLN 386 millionc) DistributionSegment's EBITDA: PLN 1,795 milliond) Supply Segment's EBITDA:PLN 691 millionEBIT (operating profit): PLN 1,580 millionNetprofit: PLN 1,194 millionCAPEX: PLN 2,217 millionSelectedestimated operating data for the first 9 months of 2017:Commercialcoal production: 4.68 million tonsCommercial coal sales: 5.01million tonsGross electricity production: 14.03 TWhHeatproduction: 7.91 PJDistribution of electricity: 38.31 TWh (includingto final consumers: 36.47 TWh)Retail electricity sales: 25.56 TWh

Selected estimated financial results for Q3 2017:Sales revenue: PLN4,120 millionEBITDA (operating profit increased by depreciation,amortization and write-offs for non-financial assets): PLN 783 million,including:a) Mining Segment's EBITDA: PLN (37) millionb)Generation Segment's EBITDA: PLN 80 millionc) DistributionSegment's EBITDA: PLN 591 milliond) Supply Segment's EBITDA:PLN 146 millionEBIT (operating profit): PLN 343 millionNetprofit: PLN 189 millionCAPEX: PLN 722 millionNet debt as of30.09.2017: PLN 7.9 billionNet debt/EBITDA as of 30.09.2017: 2.1x

Selected estimated operating data for Q3 2017:Commercial coalproduction: 1.36 million tonsCommercial coal sales: 1.45 million tonsGrosselectricity production: 4.57 TWhHeat production: 0.82 PJDistributionof electricity: 12.61 TWh (including to final consumers: 12.04 TWh)Retailelectricity sales: 8.35 TWhSignificant factors impacting Q3 2017earnings (versus Q3 2016):- decrease of the volume of coal sold by0.2 million tons, i.e. 11.2 percent, as a result of coal faces'reinforcement works as well as mining and geological issues (Miningsegment),- significant drop of the costs of redeeming propertyrights due to the lower price of purchasing green certificates by theSupply segment, as a consequence of the declining market prices of greencertificates,- financial costs due to the negative FX differences onthe EUR denominated debt which led to a decrease of TAURON Group's grossfinancial result in Q3 2017 by PLN 64 million. In Q3 2016 the FXdifferences on the EUR denominated debt led to an increase of TAURONGroup's gross financial result in Q3 2017 by PLN 20 million.

The Company reserves that the figures presented above representestimated values and may be subject to change. The final values will bepresented in the consolidated report for Q3 of 2017, scheduled to bepublished on November 8, 2017.

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