Information about a rule in effect in PEKAES SA governing change of the entity authorized to audit financial statements.

Pursuant to § 24 par. 1 item 5 of the Statute of PEKAES SA and § 5 par.1 item 5 of the Regulations of PEKAES SA Supervisory Board, the appointment of the entity authorized to audit financial statements of the Company belongs to the competencies of the Company's Supervisory Board. The Supervisory Board decides based on the recommendations made by the Audit Committee of PEKAES SA Supervisory Board.

When selecting the entity authorized to audit financial statements, the Company's Supervisory Board follows the principle of ensuring independence of the above persons in performance of the entrusted work.

In order to ensure the observance of the said independence principle, the Company changes the entity authorized to audit financial statements at least once in 5 years. Re-appointment of the same entity for the next succeeding term is not acceptable. The Company follows the principle according to which it should not use services of the same entity to conduct audits in a longer period of time.

Further, the Company observes art. 89 par. 1 and 2 of the act dated 7 May 2009 on statutory auditors, their self-government organizations, entities authorized to audit financial statements and on public supervision (Dz. U. Nr. 77, item 649 as amended).