Review of selected agreements and contracts

We would like to inform you that with reference to the current reports published recently regarding the conclusion of agreements or contracts for the supply of goods, we have revised them in order to analyze their feasibility and update the potential of contractors to fulfill them. A critical review has been carried out in order to present their actual status as of the date of publication of this report in the context of the current contracts for the supply of refined and unrefined rapeseed oil and ICUMSA45 beet sugar. Thus, the Company’s management would like to focus on the best possible fulfillment of contracts that bring the Issuer real and systematic revenue. At the same time, we want to provide Shareholders with data and information that can influence their investment decisions.

The Board of Directors of the Company, with reference to Current Report No. 16/2022 dated. July 28, 2022 on the conclusion of a framework agreement for the supply of EN590 diesel fuel to a port in Ukraine (in conjunction with subsequent reports on the matter) notifies that the contractor to date has not been able to provide an adequate and secure logistics base on the recipient’s side. Nor has it led to the opening of a financial instrument acceptable to the selected EU-based bank. In addition, due to the ongoing war and the bombing of the port of Reni by Russian forces in recent days, it now seems impossible to fulfill the contract. In view of the above, the Issuer’s Management Board decided to suspend the execution of the aforementioned agreement until further notice.

The Company’s Board of Directors, with reference to Report No. 1/2023 dated. January 11, 2023 on the signing of a strategic contract for the sale of hard coal (in conjunction with subsequent reports on the matter) announces that the counterparty has made a proposal to renegotiate the prices contained in the contract. Unfortunately, the proposed commercial terms differ significantly from those originally agreed upon and call into question the profitability of the venture. In addition, to date, the contractor is awaiting advance payment for coal deliveries from the end customer. The unacceptable prolongation of the deadline for these payments and the significant reduction in coal prices in the markets, including Poland in particular, puts a question mark over the actual execution of the contract. In view of the above, the Issuer’s Management Board decided to suspend the execution of the aforementioned agreement until further notice.

At the same time, the Issuer’s Management Board informs that the aforementioned. Suspended contracts can be reinstated at any time. Behind such a decision must be the certainty of at least the start of their implementation and the full cooperation and solvency of the contractor. The decision to suspend performance of the contracts does not trigger any contractual penalties against the Company. The Company will inform about any changes in the status by relevant ESPI current reports.