Current Report No. 7/2015 - Execution of significant agreement for sales of melamine

The Management Board of Grupa Azoty Zakłady Azotowe PUŁAWY S.A. ("Company") reports that on February 9th 2015 the Company executed a melamine sales agreement ("Agreement") with Kronopol Sp. z o.o. of Żary ("Buyer"), effective from January 1st 2015 to December 31st 2019. The term of the Agreement will be automatically extended for two calendar years unless it is terminated by either party prior to its expiry date on six months' notice with effect from December 31st 2019.

Pursuant to the Agreement, the Company agreed to deliver melamine, and the Buyer agreed to collect and pay for the deliveries. The estimated value of the Agreement is PLN 297m. The selling prices will be negotiated on a quarterly basis, taking into account current conditions and price trends on the European melamine market.

The other terms of the Agreement do not differ from standard terms used in agreements of this type.

The total value of the agreements (including the above Agreement) executed by the Company with the Buyer over the last twelve months is estimated at PLN 301m, with the Agreement being the highest value agreement.

Given that the value of the Agreement and the total value of agreements executed by the Company with the Buyer over the last twelve months exceeds 10% of the Company's equity (as at September 30th 2014 the Company's equity stood at PLN 2,603,753,000), 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).

distributed by