The Management Board of Mostostal Warszawa S.A. (“Company”) informs that today, the Company signed an agreement with Mennica Polska S.A. for performance of construction work as part of an investment task under the name: construction of a multi-family residential building with service functions and underground garage, area management, entry to the real property and the necessary technical infrastructure, including municipal transformer stations, located in the area of plots with Nos. 110/1, 110/3, 110/4 within area 6-01-06, constructions of exits on fragments of road lanes of ul. Pereca, plot No. 10/1 within area 6-01-06 and construction of the necessary technical infrastructure on plots with No. 6, 10/1 within area 6-01-06 at ul. Waliców 11 in Warsaw, along with disassembly of a part of the Aurum office building located on plot with No. 110/3 within area 6-01-06 at ul. Waliców 11 in Warsaw.

Completion deadline of the agreement: 31 May 2019.

The value of the agreement amounts to: PLN 103.150 million net + VAT.

Payment deadline: 30 days from invoice receipt.

Guarantee period:

- 6 years for the investment task in total, encompassing, in particular, construction work and additional work, including finishing work;

- a minimum of 24 months for equipment and machines or for a longer period of time resulting from a guarantee indicated by the manufacturer of the equipment.

Performance bond for the contract: bank performance bond for the total amount of 10% of the net contract value.

The Management Board of Mostostal Warszawa S.A. (“Company”) informs that as of today, the Company received the decision of the Court of Arbitration by the National Chamber of Appeal of 29 September 2017 in a case initiated by the petition of Mostostal Warszawa S.A. and Acciona Construccion S.A. (“Petitioners”) against Lubelski Węgiel Bogdanka S.A. in Bogdanka (“LWB”, “Defendant”) for payment of PLN 16,274,365.23.

The Petitioners, on 10 June 2016, filed a petition to the Court of Arbitration against LWB with respect to adjudication, from LWB for the benefit of Mostostal, of the amount of PLN 16,274,365.23 which includes return of the amount obtained from LWB from bank guarantee, compensation for costs sustained as a result of disbursement of bank guarantee and capitalisation of interest from the agreement of 29 June 2010 for the performance of contract under the name “Extension of  Mechanical Coal Processing Plant in Lubelski Węgiel “Bogdanka” S.A. within a scope encompassing performance of execution designs, construction of facilities, supply of equipment and devices, assembly at the construction site, start-up of machines and devices and procurement of occupancy permit.” The Company informed about conclusion of the contract in current report No. 40/2010 of 29 June 2010.

The Court of Arbitration dismissed the petition in whole and adjudged costs of court procedure for the benefit of LWB in the amount of PLN 1,427,857.75.

The Company is analysing the grounds of the decision with respect to filing a complaint on dismissal of the decision of the Court of Arbitration.