The Management Board of Mostostal Warszawa S.A. ("Issuer") with reference to current reports 56/2019, 60/2019, 64/2019, 5/2020, 6/2020, 9/2020, 13/2020, 23/2020 and 30/2020, informs that on 13 November 2020, the Issuer obtained from Rafako SA ("Rafako" or "Lider") which is the leader of the consortium (99.99% share in the consortium), in which the Company is a partner (0.01% share in the consortium) ("Consortium") information on the contract for the construction of a power unit 910 MW for supercritical parameters at Jaworzno III Power Plant - Power Plant II - in the scope of steam boiler, turbine set, main building, electrical and I&C part of the unit ("Unit", "Contract"), with the following content:

With reference to the current report, in which the Leader informed that together with the Employer - Nowe Jaworzno Grupa TAURON sp.z o.o. ("Employer", "NJGT") will regulate mutual relations and settlements in an agreement separate from Annex No. 8, the Leader's Management Board announced that on 13 November 2020 as a result of the completion of the Trial Run, which confirmed that the Block fulfilled the Contractual requirements, the Parties accepted the Block, which was put into operation. The unit operates in the national grid system.

Moreover, the Employer, E003B7 sp.z o.o. (a company 100% controlled by the Leader) and the Leader, acting with the consent of the supervisor of the arrangement in the simplified restructuring proceedings of the Leader, signed a settlement ("Settlement"), which is the result of mediation conducted before the Arbitration Court at the General Prosecutor's Office of the Republic of Poland and regulates in particular the following issues:

1. The parties, i.e. the Leader and the Employer, have waived their mutual equivalent claims arising from the performance of the Contract that arose until the date of the Settlement, with the exception of the Leader's claims for work performed in accordance with the Contract and NJGT's claims under warranty or guarantees and recourse claims against the Leader for the payment of claims of further subcontractors.

2. The leader will extend the technical guarantee for the high-pressure part of the boiler by 6 months (up to 36 months) and will grant the right to use computer programs (licenses) that are not covered by the Contract. At the same time, Rafako will provide additional services, including work to optimize the Unit's operation, which will result in, among other things, reducing the unit's technical minimum from 40 percent up to 37 percent.

The Settlement Agreement will enter into force after the fulfilment of the conditions precedent, among which the key are:

1.Signing by Rafako and the Employer of the protocol for taking over the unit at the Jaworzno Power Plant for operation by 15 November 2020 - (the condition has been met),

2. presentation by the Leader of an agreement in the form of a promise with financial institutions, i.e. Powszechny Zakład Ubezpieczeń S.A., mBank S.A., Powszechna Kasa Oszczędności Bank Polski S.A. and Bank Gospodarstwa Krajowego on how to obtain funds that are necessary to complete the proper performance of the Contract - (the condition has been met).

The settlement will be referred to the competent common court of law with a request for its approval by the court. After legally valid court approval, the settlement will have the legal force of a court settlement.

In addition, on 13 November 2020, the Employer and the Leader concluded, with the consent of the supervisor of the arrangement in the simplified restructuring proceedings of Rafako, Annex No. deadlines for their implementation and related payment terms.

Rafako's remuneration resulting from the signed Contract and the annexes concluded thereto will total PLN 4.6 billion and will secure the proper performance of the Contract in financial terms.