Investor relations

Legal basis:Art. 56, par. 1, item 2 of Offer Act - current and periodic information

Report Subject: establishment of a mortgage

Acting in pursuance of § 5, par. 1 of the Regulation of the Minister of finance of 19 February 2009 on the current and periodic information provided by issuers of securities and the conditions for recognition as equivalent the information required by national laws of the country which is not a member state (Journal of Laws 2009, No. 33, item 259) (“the Regulation”) J.W. Construction holding S.A. with its registered office in Ząbki (“the Issuer”) hereby reports that on 19 May 2016, it received a notification from the District Court in Pruszków, 6th Department of land and mortgage registers, stating that on 12 May 2016, the said department entered the mortgage register of PLN 28,050,000 (“the mortgage”) for the benefit of Towarzystwo Budownictwa Społecznego Marki sp. z o.o. with its registered office in Warsaw (“TBS”) in Section IV of the land and mortgage register for the property right to the real estate constituting a land plot no. 1/2 and 1/3 located in PGR Kręczki Kaputy in the commune of Ożarów Mazowiecki, for which the District Court in Pruszków, 6th Devision of land and mortgage registers keeps the mortgage register KW No. WA1P/00068658/8 (“the real estate”).

The mortgage secures the repayment of loans granted by TBS to the Issuer in the total amount of PLN 18,700,000, interest and other costs.

The value of the encumbered property in the accounting books of the Issuer amounts to PLN 16,355,739.10.

Currently, the property is leased to a third party for agricultural activity.

TBS is a wholly-owned subsidiary of the Issuer, the TBS Supervisory Board composed of the members of MB and SB of the Issuer.

The basis of this report is that the value of the mortgage established exceeds the equivalent of 1,000,000 EUR converted at the average rate published by the National Bank of Poland on the day on which the information obligation was created.