Conclusion of a significant agreement.

Date  of issue: 2012-05-15

Legal basis: Art. 56 Clause 1 Item 2 of the Offering Act - current and periodic information.

SUBJECT: Conclusion of a significant agreement.

CONTENT OF THE REPORT:
On May 15, 2012 Izostal S.A. concluded the agreement with the company ZRUG Zabrze Sp. z o.o., being part of Stalprofil S.A. Group, as a result of which the total value of the agreements concluded by the Company with Stalprofil S.A. and its subsidiaries calculated from February 3, 2012 (current report no. 9/2012) exceeded 10% of equity of Izostal S.A. and amounted to PLN  17,637,808.24 PLN (net).

In the discussed period, the largest value agreement was the Loan agreement concluded on May 15, 2012 between izostal S.A. (Lender) and ZRUG Zabrze Sp. z o.o. (Borrower). According to this Agreement, the Lender undertakes to lend PLN 10 million to the Borrower, to be paid in tranches starting from July 31, 2012.

The exclusive purpose of the loan will be the financing of the project implemented within a consortium comprising ZRUG Zabrze Sp. z o.o. seated in Zabrze (consortium leader),  Stalprofil S.A. seated in Dąbrowa Górnicza (consortium member) and  Nafta – Gaz – Serwis S.A. seated  in Sanok (consortium member), said project involving the construction (for Operator Gazociągów Przesyłowych Gaz-System S.A.) of the DN 700 pipeline Szczecin - Gdańsk: Stage II pipeline DN 700 Karlino - Koszalin, Stage III pipeline DN 700 Koszalin – Słupsk, Stage IV pipeline DN 700 Słupsk – Wiczlino.

The loan will bear an annual interest rate calculated on the basis of arithmetic WIBOR ratek for monthly deposits plus margin.

The loan will be repaid by December 31, 2013. The repayment of the loan is secured by a blank promissory note drawn by the Borrower with a respective promissory note agreement.

The other conditions of the agreement do not differ from the conditions applied commonly for such agreement.

The transactions concluded with Stalprofil S.A. and its subsidiaries in the aforementioned period meet the criterion of a significant agreement as their total value exceeds 10% of the Company equity.

Specific legal basis: §5 clause 1 item 3 of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws No. 33, item 259 as amended).

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, Marek Mazurek 2012-05-15
Proxy, Marek Matheja 2012-05-15

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: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00
Fax: (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