Information on withdrawal from application of selected principles contained in the Code of Best Practice for WSE Listed Companies

The Management Board of PKP CARGO S.A. (“Company”) hereby announces that it has decided to withdraw from application of principles contained in Chapter IV sec. 10 of the Code of Best Practice for Warsaw Stock Exchange Listed Companies, pursuant to which the Company should provide shareholders with the opportunity to participate in the General Meeting by means of electronic communication.

The decision not to apply the rules under which the Company should, inter alia, provide bilateral real time communication, within which shareholders may take the floor during the general meeting from a location other than the place of the meeting, was made due to legal, organizational and technological risks, which in case of ensuring this way of communication, could put the proper conduct of the general meeting of shareholders in jeopardy.

In the opinion of the Company, currently applicable rules of participation in general meetings allow shareholders to effectively exercise all rights attached to the shares and protect the interests of all shareholders.

At the same time, the Management Board of the Company informs, that it has decided to withdraw from application of principles contained in Chapter II sec. 1 item 9a) of the Code of Best Practice for Warsaw Stock Exchange Listed Companies, pursuant to which the Company maintains a corporate website and publishes, in addition to the information required by law, an audio or video record of the proceedings of the general meeting.

In the opinion of the Management Board of the Company, non-compliance with that rule will not affect the reliability of the information policy or completeness of the relevant information provided to the shareholders.

The Company does not preclude application of the aforementioned rules in the future.

Legal basis: GPW Rules §29 sec. 3