Reduction of the value of the advance payment guarantees issued to OGP Gaz-System S.A.

The Board of Stalprofil S.A. on 31 August 2015 obtained information that PKO Bank Polski S.A. with its registered seat in Warsaw, with consent of OGP Gaz-System S.A., reduced advance payment guarantees, which, at the request of Stalprofil, PKO BP SA granted to the beneficiary - OGP Gaz-System S.A.
Total advance payments covered by the guarantee received by the Consortium Leader - ZRUG Zabrze S.A. (Contractor) from OGP Gaz-System S.A., and used to finance the execution of the contract "Construction of the pipeline DN700 Szczecin-Gdańsk: Phase II Karlino-Koszalin, Phase III Koszalin-Słupsk and Phase IV Słupsk-Wiczlino amounted to PLN 51.5 million (gross).
In connection with the effective settlement by the Contractor and the Contractor's installment of advances granted in the amount of PLN 20,049,000 and partially the second installment in the amount of PLN 5,275,612.96 above-mentioned total amount of the advance payment guarantees was reduced to the amount of PLN 26,175,387.04.
According to the annexes of June 30, 2015 the advance payment guarantees issued by PKO Bank Polski S.A., about which the Company informed in the current report 26/2015, these guarantees remain valid until the date falling 60 days after the final acceptance, no later than 29 October 2015.
The financial terms on which the guarantees were granted are similar to those expected for this type of agreements. The original value of guarantees issued by the issuer to Gaz-System S.A. exceeded 10% of the equity of the issuer.