Current report no. 5/2018

Financing for Elektrociepłownia Stalowa Wola S.A.

In reference to the current report no. 11/2017 of March 31, 2017 withrespect to the information on actions related to obtaining new financingfor the CCGT unit construction project at Stalowa Wola, the ManagementBoard of TAURON Polska Energia S.A. ("Issuer") announces that on March8, 2018 Elektrociepłownia Stalowa Wola S.A. (entity in which the Issuerholds indirectly, via its TAURON Wytwarzanie S.A. subsidiary, a 50%stake in the share capital; "Loan Taker") signed a loan agreement withBank Gospodarstwa Krajowego ("BGK") and Polskie Górnictwo Naftowe iGazownictwo S.A. ("PGNiG").

Under the above mentioned agreement BGK and PGNiG will grant the LoanTaker a loan in the amount of PLN 450 mln each, to be used to refinancethe Loan Taker's debt towards the Issuer and PGNiG (PLN 600 mln) and tocover new capital expenditures (PLN 300 mln) allowing the Loan Taker tocomplete the project. The final loan repayment date is June 14, 2030.

As of the day of disclosing this current report the Loan Taker's loanliabilities towards the Issuer were approximately PLN 610 mln.

The loan agreement provides for the funds to be paid out to the LoanTaker after the suspending conditions have been met, with one of thembeing presenting to BGK of a bank guarantee issued at the Issuer'sinstruction and securing the Loan Taker's debt towards BGK. The bankguarantee will be renewed annually, and its value will not exceed PLN517.5 mln.