Current Report No. 29/2018

Estimated results of TAURON Polska Energia Capital Group for 9 months of2018 and Q3 2018

The Management Board of TAURON Polska Energia S.A. ("the Company")announces selected estimated consolidated financial results andoperating data of TAURON Polska Energia S.A. Capital Group ("TAURONGroup") for 9 months of 2018 and Q3 2018.

Selected estimated financial results for:

(a) 9 months of 2018:

Sales revenue: PLN 13,302 million

EBITDA (operating profit increased by depreciation, amortization andwrite-offs for non-financial assets): PLN 2,972 million, including:

- Mining Segment's EBITDA: PLN (94) million

- Generation Segment's EBITDA: PLN 649 million

- Distribution Segment's EBITDA: PLN 1,957 million

- Supply Segment's EBITDA: PLN 451 million

EBIT (operating profit): PLN 1,306 million

Gross profit: PLN 1,088 million

Net profit: PLN 855 million

CAPEX: PLN 2,325 million

(b) Q3 2018:

Sales revenue: PLN 4,476 million

EBITDA (operating profit increased by depreciation, amortization andwrite-offs for non-financial assets): PLN 778 million, including:

- Mining Segment's EBITDA: PLN (29) million

- Generation Segment's EBITDA: PLN 57 million

- Distribution Segment's EBITDA: PLN 621 million

- Supply Segment's EBITDA: PLN 125 million

EBIT (operating profit): PLN 351 million

Gross profit: PLN 363 million

Net profit: PLN 286 million

CAPEX: PLN 844 million

Net debt as of 30.09.2018: PLN 8,166 million

Net debt/EBITDA as of 30.09.2018: 2.24x

Selected estimated operating data for:

(a) 9 months of 2018:

Commercial coal production: 3.61 million tons

Commercial coal sales: 3.54 million tons

Gross electricity production: 11.90 TWh

Heat production: 7.42 PJ

Distribution of electricity: 38.84 TWh (including to final consumers:37.25 TWh)

Retail electricity sales: 25.37 TWh

(b) Q3 2018:

Commercial coal production: 1.09 million tons

Commercial coal sales: 1.04 million tons

Gross electricity production: 4.35 TWh

Heat production: 0.70 PJ

Distribution of electricity: 12.83 TWh (including to final consumers:12.25 TWh)

Retail electricity sales: 8.17 TWh

Significant factors impacting Q3 2018 earnings (versus Q3 2017):

a) lower volume of commercial coal production resulting from thelongwall retooling schedule at three mining plants of TAURON Group anddifficult mining and geological conditions (Mining segment),

b) higher costs of the provision related to the purchase of CO2 emissionallowances resulting from the increase in market prices of allowancesand higher unit costs of hard coal consumption (Generation segment),

c) financial income from positive exchange rate differences on debtdenominated in euro, which resulted in PLN 85 million increase in thegross financial result of TAURON Group in Q3 2018. In Q3 2017, therecognition of exchange rate differences on euro-denominated debtcontributed to the reduction of gross financial result of TAURON Groupby PLN 60 million (no impact on EBITDA).

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 2018, scheduled to bepublished on November 6, 2018.

Legal basis:

Art. 17, clause 1 of MAR - inside information