Conclusion of annex to commercial contract with Hemat Trade Ostrava a.s.

On 22 December 2011 the Management Board of Stalprofil SA was notified about the conclusion (signing) of annex to the commercial contract with the company Hemat Trade Ostrava a.s. based in Ostrava (Czech Republic), which for two consecutive years (from 1 January 2012 to December 31, 2013) extended the validity of the contract concluded between the parties on 05 November 2010 (Current report no. 24/2010).
The subject of the contract concluded between the parties is sale by Stalprofil SA to the company Hemat Trade Ostrava a.s. of steel products including hot-rolled profiles, angles, rails and other steel products mainly for the Czech market and the markets of other European Union countries.
Deliveries of steel products will be implemented by Stalprofil SA on the basis of orders placed by the recipient, gradually throughout the duration of the contract, ie from 01.01.2012 to 31.12.2013.
The total estimated value of the supplies covered by the contained contract Stalprofil SA estimated to about 60 million PLN net (Stalprofil SA estimates that each year of the contract, ie: 2012 and 2013, the value of sales resulting from this contract will amount to PLN 30 million net).
Conditions of the contract does not deviate from the commonly used terms for such agreements. The agreement does not contain any penalty clauses.
The contract meets the criterion of a significant agreement because its expected value exceeds 10% of the equity of the issuer.