Construction of the power unit in Koksownia Przyjaźń

As part of continuation of the process of increasing the power efficiency as a result of reduction of electricity consumption and gradual attainment of the Group’s power self-sufficiency, on 21 December 2011 Koksownia Przyjaźń concluded an agreement with the General Investment Contractor for construction of the power unit increasing the production capacity by 71 MWe. The investment will reduce electricity acquisition costs in the Group through use of coking gas for electricity generation, which will diversify the Group’s coking gas sales, which directly translates into revenues from the coal derivative segment. The expected date of completion of the construction project is 2014. In 2012, PLN 40.9 million was spent in connection with its execution. The remaining capital expenditures planned after 2012 under the project are estimated at PLN 184.1 million.