Fabryka Kotlow Rafako : CR 2/2018 Approval of Supplement No. 2 to RAFAKO share prospectus by Polish Financial Supervision Authority. 9 january 2018

CURRENT REPORT FILED WITH THE POLISH FINANCIAL SUPERVISION

AUTHORITY

DATE: January 9th 2018

(RAFAKO spółka akcyjna with its registered office at ul. Łąkowa 33, Racibórz, Poland, entered in the Register of Businesses of the National Court Register under No. 0000034143)

Subject: Approval of Supplement No. 2 to RAFAKO share prospectus by Polish Financial Supervision Authority(Current Report No. 2/2018)

Contents:

Current Report No. 2/2018

The Management Board of RAFAKO S.A. (the "Company") announces that on January 9th 2018 it was notified that the Polish Financial Supervision Authority approved Supplement No. 2 ("Supplement No. 2") to the Company's prospectus prepared for the public offering of 42,500,000 Series K ordinary bearer shares with a par value of PLN 2 (two zloty) per share (the "New Shares"), offered with pre-emptive rights of the existing shareholders retained, and in connection with the seeking of admission and introduction of 84,931,998 individual pre-emptive rights, up to 42,500,000 allotment certificates for New Shares, and up to 42,500,000 New Shares to trading on the main market of the Warsaw Stock Exchange.

Supplement No. 2 was prepared in connection with the conclusion by the Company as a consortium member, on December 29th 2017, of a conditional agreement to construct two coal-fired steam units (2x50 MW) on the island of Lombok in Indonesia. The Company announced detailed information on the execution and terms and conditions of the agreement in its current report of December 29th 2017 (Current Report No. 66/2017).

Supplement No. 2 will be made available to the public in the same manner as the prospectus, i.e. in electronic form on the Company's website at (www.rafako.com.pl) and also, for information purposes, on the websites of Powszechna Kasa Oszczędności Bank Polski S.A. Oddział - Dom Maklerski PKO Banku Polskiego w Warszawie (www.dm.pkobp.pl) and Trigon Dom Maklerski S.A. (www.trigon.pl).

Disclaimer

This material or any part hereof is not intended for distribution, directly or indirectly, in or to the United States, Canada, Japan, Australia or any other jurisdiction where public distribution of the information contained in this material may be limited or prohibited by law.

This material does not constitute an offer or invitation to subscribe for or purchase any securities issued by RAFAKO S.A. (the "Company"). Upon approval by the Polish Financial Supervision Authority, the issue prospectus, prepared in connection with the public offering of Company shares in Poland (the "Offering") (the "Prospectus"), will be, together with any published supplements and update notices concerning the Prospectus, the only legallybinding document containing information on the Company and the public offering of its shares in Poland. The Prospectus has been published and made available on the Company's website (www.rafako.com.pl) and also, for information purposes, on the websites of Powszechna Kasa Oszczędności Bank Polski S.A. Oddział - Dom Maklerski PKO Banku Polskiego w Warszawie (www.dm.pkobp.pl) and Trigon Dom Maklerski S.A. (www.trigon.pl).

This material does not represent advice recommending or suggesting an investment strategy, including an investment recommendation, within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.

This material does not constitute an offer to sell or an invitation to subscribe for or purchase any Company securities in the territory of the United States. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), and may not be offered or sold in the United States unless they are registered under the US Securities Act or exempted from the registration requirements of the US Securities Act. There will be no public offering of the securities in the United States.

The Company, its subsidiaries and other related entities are not liable for any loss or damage arising from the use of this material, any part hereof or any information contained herein, or for any loss or damage arising otherwise in connection with this material.

Legal basis: Art. 17.1 of the Market Abuse Regulation

Agnieszka Wasilewska-Semail, President of the Management Board Jarosław Dusiło, Vice President of the Management Board