Current Report No.: 48/2019

Date of preparation: 05.12.2019

Abbreviated name of the Issuer: CIECH S.A.

Legal basis: Art. 17.1 of the MAR – inside information

Subject: Execution of a letter of intent regarding an investment consisting in the construction of a salt mine and underground gas storage, as well as brine supplies to the CIECH Group production plants

Contents of the Report:

The Management Board of CIECH S.A. with its registered office in Warsaw (the "Issuer" or "CIECH") herewith informs that on 5 December 2019, a letter of intent was signed between CIECH and an Industrial Gas Pipeline Operator, GAZ-SYSTEM Spółka Akcyjna (hereinafter referred to as "GAZ -SYSTEM") on establishing cooperation in the implementation of an investment, consisting in the construction by GAZ -SYSTEM of a salt mine (the "SM") and an underground gas storage facility (the "UGS") at the Damasławek salt dome, together with a line infrastructure (jointly referred to as the "Investment"), and cooperation in the supply of salt brine to CIECH Soda Polska S.A. production plants (hereinafter referred to as "CIECH Soda Polska").

The parties are to conduct negotiations, the purpose of which will be to develop solutions taking into account the interests of the parties, and to sign the Term Sheet document regulating, among others, conditions for the implementation of the Investment, including the estimated cost and schedule of the Investment, the principles of its financing by each party and key cooperation assumptions after the completion of the Investment, which then will be detailed under investment agreements and a long-term commercial contract for the supply of brine.

The execution of the letter of intent is one of the steps towards ensuring the security of brine supply for the production plants of CIECH Soda Polska after 2025.

The execution of the letter of intent does not affect relations with existing business partners.

Legal basis: Article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1).