Execution of an Annex to the Multi-purpose Credit Limit Agreement and Agreement for Establishment of Registered Pledge with Bank Polska Kasa Opieki Spolka Akcyjna.

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

CONTENT OF THE REPORT:
The Management Board of Izostal S.A. (Company, Borrower) informs that on 8 February 2016 it executed an annex to the multi-purpose credit limit agreement no. 25/2014/DDF/K concluded on 25 June 2014 with Bank Polska Kasa Opieki Spolka Akcyjna (Bank) with its registered office in Warsaw.

On the basis of the annex the Bank granted a multi-purpose credit to the Company in the amount of PLN 25,000 thousand for financing the current operations of the Borrower.

Within the scope of the granted credit, the Company may use the following products:
1. Overdraft facility up to PLN 12,000 thousand. It may be used in PLN, EUR and USD.
2. Bank guarantees of each type with the period of validity of 12 months up to PLN 10,000 thousand.
3. Letters of credit with the period of validity to 6 months up to PLN 10,000 thousand.

Legal collateral of the products mentioned above consists of:
a. power of attorney to dispose of the Borrower’s bank accounts;
b. promissory note of the Borrower with a promissory note declaration up to the amount of 120% of the Limit;
c. assignment of commercial debts and registered pledge on stocks without the assignment of insurance policy at least up to 100% of the value of the granted credit.

4. Overdraft facility up to PLN 13,000 thousand for financing the contracts concluded with the Gas Transmission Operator GAZ-SYSTEM S.A. It may be used in PLN, EUR and USD.

Legal collateral of the limit mentioned above consists of assignment of commercial receivables.

The credit limit has been made available since the day of making the limit available until 30 June 2016.

Interest rate of the credit is based on WIBOR 1M, EURIBOR 1M and LIBOR 1M rates increased by the Bank’s margin.

Other financial terms of the granted credit do not vary from the commonly applied in this type of agreements.

The Company deems the aforementioned agreement significant, as its total value exceeds 10% of Izostal S.A. home equity.

Moreover, on the 8 February 2016 IZOSTAL S.A. concluded an Agreement for Establishment of Registered Pledge with Bank Polska Kasa Opieki S.A. (“Bank”) with its registered office in Warsaw, basing on which the Company establishes a registered pledge for the benefit of the Bank on the commercial goods and materials for production. The registered pledge was established up to the maximum value of the collateral in the amount of PLN 18,000 thousand. The pledge constitutes a credit collateral on the current account up to PLN 12,000 thousand within the scope of the Multi-purpose Credit Limit Agreement that is mentioned above. The total value of the pledged movables, according to fixed prices of 31.12.2015 was: PLN 7,347 thousand.

Upon conclusion of the Agreement for Establishment of Registered Pledge, a record in the Registry of Pledges will be made.

The registered pledge’s value is larger than the value expressed in PLN being an equivalent of EUR 1 mil. exchanged basing on average exchange rate of the National Bank of Poland (NBP) of the date of concluding the Agreement for Establishment of Registered Pledge, and as such is deemed as significant value asset.

According to the Company’s best knowledge, there are no interrelations between Izostal S.A. and persons managing or supervising the Company and Bank Polska Kasa Opieki S.A., and its management, to which the registered pledge was established.

Specific legal basis: §5 clause 1 item 1 and 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 Vice President, Michał Pietrek 2016-02-09
Proxy, Marek Matheja 2016-02-09

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: (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