Wikana : Significant contract executed by subsidiary

Current report 27/2017 Report date: 30 June 2017 Issuer's abbreviated name: WIKANA Subject: Significant contract executed by subsidiary

Legal basis: Art. 17 sec. 1 MAR - confidential information Report content:

The Management Board of WIKANA S.A. ("Issuer") announces that on 30 June 2017 a subsidiary of the Issuer - WIKANA PROPERTY Sp. z o.o. ZIELONE TARASY Sp.k., based in Lublin ("Subsidiary"), executed an agreement with HEN-BUD Sp. z o.o., based in Lublin, ("Contractor") concerning comprehensive performance of construction work ("Contract") consisting of the development of three residential multi-family buildings (B2, B3 and B6) with services and a multi-space underground parking lot, together with internal installations and associated infrastructure as the first phase of the Osiedle Marina B investment in Lublin. The Issuer points out that three buildings have been completed under phase A of the investment, with two other buildings currently being developed.

48 residential units will be developed under the stage covered by the Contract. As per the Contract, the task will be completed by 4 December 2018.

Remuneration for the performance of the Contract is a flat fee of PLN 7 148 000 net.

The Contract provides for contractual penalties for the Contractor, including for failure to complete the Agreement within the specified deadline, failure to remove faults under warranty within the given deadline and termination of the Contract by the Subsidiary due to Contractor fault. The Subsidiary has the right to seek supplementary compensation up to the amount of damages actually suffered, provided that the amount of damage exceeds the amount of contractual penalties received. The Contractor is entitled to receive a contractual penalty from the Subsidiary for withdrawal from the Contract at the Subsidiary's fault or delay in final handover. Contractual penalties may be calculated in aggregate, provided that the total does not exceed 7.5% of the value of the Contract.

The Contract does not contain conditions or deadlines precedent.

The other terms of the Contract do not differ from the terms typically applied to this type of agreement.

Marta Kruk

Member of the Management Board

Paweł Chołota

Member of the Management Board