Investor relations

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

Report Subject: establishment of mortgages

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 “Company”) hereby informs that on 20 January 2015 it became aware that the District Court for Łódź Śródmieście in Łódź, 16th Mortgage Register Division - on 19 March 2015 - entered a mortgage in Section IV of the land and mortgage register no. LD1M/00111879/7:

1) a contractual mortgage of PLN 10,444,200 million for the benefit of Bank Polskiej Spółdzielczości S.A., 3rd Branch in Warsaw;

2) a contractual mortgage of PLN 4,251,325 million for the benefit of Bank Spółdzielczy in Zgierz;

3) a contractual mortgage of PLN 3,826,450 million for the benefit of Bank Spółdzielczy in Piaseczno;

4) a contractual mortgage of PLN 3,826,450 million for the benefit of Bank Spółdzielczy in Skierniewice;

5) a contractual mortgage of PLN 3,401,575 million for the benefit of Bank Spółdzielczy in Aleksandrów Łódzki;

6) a contractual mortgage of PLN 595,000 million for the benefit of Bank Polskiej Spółdzielczości S.A., 3rd Branch in Warsaw;

The mortgages referred to under items 1-5 have been established with equal priority.

The mortgages are charged to the property rights of the real estate constituting the plot of land No. 104/5 with the area of 0.7014 hectares located in Łódź at 16A Tymienieckiego street (the “real property”), constituting the property of Łódź Invest Sp. z o. o. with its registered office in Ząbki – an entity dependent (in 100%) on the Company.

The mortgages referred to under items 1-5 were established as a collateral for the syndicated loan granted to Łódź Invest Sp. z o. o. by the aforementioned Banks in the amount of PLN 15,141,884.39. The loan is intended to finance part of the costs related to the residential real estate project including the construction of 96 housing premises for sale.

The mortgage referred to under item 6 was established as a collateral for the revolving loan granted to Łódź Invest Sp. z o. o. by Bank Polskiej Spółdzielczości S.A., 3rd Branch, in Warsaw, in the amount of PLN 350,000. The credit is intended to cover VAT in connection with the residential real estate investment.

The net value of the encumbered real estate in the accounting books of Łódź Invest Sp. z o.o. is PLN 3,500,000, corresponding to the purchase price.

There are no links between the Company, Łódź Invest sp. z o.o., their managers, and the Banks or their managers.

The basis of this report is that the value of the mortgages 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.