Extension of validity of the warranty relating to the contract "Construction of the pipeline DN700 Szczecin-Gdańsk"

The Board of Stalprofil S.A. informs that on September 9, 2015 it was notified about signing by PKO Bank Polski S.A. with its registered seat in Warsaw annexes to guarantee repayment of advances, which prolong the period of validity of the guarantees granted at the request of Stalprofil by PKO BP S.A., to the beneficiary - OGP Gaz-System S.A.
According to the annexes to the advance payment guarantees issued by PKO Bank Polski S.A., guarantees entered into force on the date of issue and shall remain valid until the date falling 60 days after the final acceptance, no later than 8 December 2015. Total advance payments received by the Consortium Leader - ZRUG Zabrze S.A. - from OGP Gaz-System S.A. and allocated to the financing of the contract amounted to PLN 51.5 million (gross). In connection with the effective settlement of the Contractor installment and partially second installment of the advance, the above-mentioned total amount of the advance payment guarantees was reduced by the bank and at the date of this report amounts to PLN 26,175,387.04 (gross).
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.
The term of validity of the above guarantees has been extended at the request of Gaz-System S.A. in connection with another postponement of execution of the contract, signed on 10 May 2012 between the consortium composed of: ZRUG Zabrze S.A. (consortium leader), Stalprofil S.A.(consortium member) and Gas Transmission Operator Gaz-System S.A. with its registered seat in Warsaw, for general investments under the name "Construction of the pipeline DN 700 Szczecin-Gdańsk: Phase II Karlino-Koszalin, Phase III Koszalin-Słupsk and Phase IV Słupsk-Wiczlino".