The increase in cost of execution of the contract with Mineral Wax Factory S.A. located in the Republic of Belarus in Swisłocz

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Date of publication: 29.07.2016

The Management Board of PROCHEM S.A. with its seat in Warsaw informs that in connection with the occurrence of unexpected technical and formal problems at the final stage of construction, at the stage of launching of the system for the production of highly purified paraffin oils and lubricants along with the extension of energy complex, implemented within an agreement with Mineral Wax Factory in the Republic of Belarus, in Swisłocz, what resulted in the need to postpone the date of completion, there has been an increase in the estimated total costs of the construction by approx. PLN 15 million. Currently, the Company analyzes the impact of the above events on the Company’s financial results.

Due to the fact that above amount of PLN 15 million exceeds 10% of the equity of the Issuer, the Management Board of the Issuer decided that the above information meets the criteria for confidential information referred to in Article. 7 paragraph 1, 2 and 4 of MAR.