Conclusion by Izostal S.A. of ten Framework Agreements with PGNiG S.A. for the delivery of casing and extraction pipes including equipment.

Legal basis: Art. 17 Clause 1 MAR - confidential information.
 
CONTENT OF THE REPORT:
In reference to current report 22/2017 dated December 30, 2017, the Izostal S.A. Management (Company, Seller) hereby informs that on February 20, 2018, as the result of the unlimited tender procedure titled: „Providing of deliveries of casing and extraction pipes including equipment for the needs of works carried out by PGNiG S.A. - case reference: ZP/PGNG/17/0085/GE/DWR” it concluded ten Framework Agreements with Polish Petroleum and Gas Mining (Buyer - PGNiG S.A.) for parts from 1 to 9 and 12.

The concluded Framework Agreements specify the terms of granting and performing Executive Commissions that may be concluded with the Company by the Buyer as one of the potential Sellers throughout the term of Framework Agreements.

The subject of Executive Orders granted under the Framework Agreements will be the delivery of factory-new casing and extraction pipes including equipment (i.e. pup joints) for the needs of works carried out by PGNiG S.A.

According to the provisions of Framework Agreements, the Buyer shall invite all the Sellers with whom he concluded the Framework Agreement for submitting executive offers. The criterion for assessing the submitted executive offers will be gross price. The basis for performing the Executive Order will be an Executive Agreement concluded with this Seller whose offer is selected as the most advantageous.

The completion time for the Executive Order will not be shorter than 90 days and longer than 360 days from the day of granting the Executive Order (the conclusion of Executive Order). In particularly justified cases (e.g. significant changes to the planned works), the Buyer will be able to specify a delivery time shorter than 90 days.

The total value of Executive Orders performed based on the above-mentioned Framework Agreements between the Company and PGNiG cannot exceed the amount of EUR net 19.399 thou. which, after conversion at the Polish National Bank rate announced on February 20, 2018, amounts to PLN 80.452 thou. All the settlements between

Buyer and Seller will be effected in euro currency.

The Framework Agreements are concluded for a period of 24 months counted from their signing date.
 
Substantial terms on which the Executive Agreements which the Buyer may conclude with Izostal S.A. as one of the potential Sellers will be concluded, including the scope and amount of significant contractual penalties for the performance or unduly performance of a specific Executive Order, will be set forth in the Executive Agreement, of which the Company will be informing from time to time upon its concluding.

All the other terms of the Framework Agreements do not differ from the standard terms used for this type of contracts.

The Company management deems the described Framework Agreements to be significant due to their high value. The execution of Framework Agreements which the Company may conclude as part of the above mentioned Framework Agreements may have significant impact on the increase of Company's income.

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board Vice President, Michał Pietrek 2018-02-20
Proxy, Marek Matheja 2018-02-20
 
INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer:  IZOSTAL S.A.
Sector based on the classification of Warsaw Stock Exchange:  Other industry
Address: 47-113 Kolonowskie Opolska 29
Telephone: +48 77 405 65 00
Fax: +48 77 405 65 01
e-mail: info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678