Announcement of the judgment of the Court of Appeal in Warsaw, the 1st Civil Division in the case against PERN S.A.

With reference to the information in the interim reports of PROCHEM S.A. (The “Issuer”) concerning a court proceeding which pertains to settlement of accounts for a contract in the formula of GRI (Management Contracting) between PERN SA and Consortium the Leader of which was the Issuer, for the implementation of the investment project under the name of “Rurociąg w relacji ST-1 Adamowo-Baza Surowcowa Plebanka”, and which was suspended on November 10, 2005, and also with reference to Current Report No. 17/2017 of 16 October 2017, the Management Board of the Issuer informs that on 30 October 2017 the Court of Appeal in Warsaw, the First Civil Division announced the judgment, in which:

I. dismissed the appeal of PERN S.A.
II. adjudged from PERN the amounts being the cost of the legal representation:
1) for the benefit of PROCHEM S.A. in the amount of PLN 16,200
2) for the benefit of the member of the consortium PLN 5,400

In connection with the dismissal of the appeal filed by PERN S.A., become final the judgment of the District Court in Warsaw, XXVI Commercial Division, of 22 October 2015, in which the District Court:

I. it was adjudged from PERN S.A., jointly and severally for the benefit of the Issuer and a member of the consortium:
1) amount of PLN 35,086,589.26 with statutory interest from 23 March 2006 until the date of payment;
2) amount of PLN 4,879,883.58 with statutory interest from 23 March 2006 until the date of payment;
3) amount of PLN 126,400.44 with statutory interest from 16 January 2007 until the date of payment;
II. dismissed the counterclaim of PERN in its entirety.

In the amount adjudged, the Issuer’s share amounts to about 50%.

The Management Board of the Issuer’s company decided that the above information meets the criteria for confidential information specified in Art. 7 section 1, 2 and 4 of MAR due to the value of the subject in dispute.