Current Report No. 24/2014 - Execution of significant agreement for sale of PULREA (urea)

Legal basis: Art. 56.1.2 of the Public Offering Act - current and periodic information

Text of the report: The Management Board of Grupa Azoty Zakłady Azotowe PUŁAWY S.A. ("Company") reports that on October 8th 2014 the Company executed an agreement for sale of PULREA (urea) ("Agreement") with Kronospan Mielec Sp. z o.o., Diakol Strazske S.R.O. of Slovakia, and Dukol Ostrava S.R.O. of the Czech Republic (jointly referred to as the "Buyers"), effective from July 1st 2014 to December 31st 2018.

Pursuant to the Agreement, the Company agreed to deliver the product (PULREA), and the Buyers agreed to collect and pay for the deliveries. The Agreement specifies the minimum amount of the product to be delivered to the Buyers under the Agreement. Prices will be negotiated on a monthly basis. The estimated value of the agreement is PLN 305m.

The other terms of the agreement do not differ from standard terms used in agreements of this type.
Given that the total value of the Agreement exceeds 10% of the Company's equity (as at August 14th 2014 the Company's equity stood at PLN 2,606,165), the Agreement meets the criteria of a significant agreement.

Legal basis: Par. 5.1.3 of the Minister of Finance's Regulation on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state, dated February 19th 2009 (consolidated text: Dz.U. of 2014, item 133).

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