FEERUM SA (3/2024) Conclusion of an agreement by a subsidiary of the Issuer

Management Board of Feerum S.A. based in Chojnów (hereinafter referred to as the “Issuer”) informs that on March 29, 2024, it received an agreement (“Memorandum of Understanding”) (hereinafter referred to as the “Agreement”) concluded on March 27, 2024 in Egypt between a company under the name ” Feerum Egypt for Silos and Storage Company (Feerum Egypt) S.A.E” (hereinafter “Feerum Egypt”), i.e. a subsidiary of the Issuer, in which the Issuer holds 50% of the shares, established and operating in accordance with Egyptian law, and a company under the name “East Port Said Integrated Development” (hereinafter “EPSID”), i.e. a company established and operating in accordance with Egyptian law, managing a special economic zone called “East Port Said Special Economic Zone” located near the city of Port Said in Egypt (hereinafter “EPSSEZ Zone” “).

Pursuant to the Agreement, Feerum Egypt expressed its intention to implement a project in the EPSSEZ Zone consisting in the construction of a production plant for components and spare parts intended for the construction and operation of storage and drying facilities for storing grain products (hereinafter referred to as the “Production Plant”), and EPSID expressed its intention to locate the Plant Production in the EPSSEZ Zone. EPSID also expressed its intention to lease to Feerum Egypt, for a period of 50 years, land located in the EPSSEZ Zone with a total area not exceeding 51,950 m2 for the construction of a Production Plant.

The parties to the Agreement also declared their willingness to undertake further talks and work aimed at agreeing on the detailed conditions for the location of the Production Plant in the EPSSEZ Zone, as well as concluding a binding agreement in this regard in the future.

The conclusion of the Agreement is part of Feerum Egypt’s current analysis of sales opportunities in Egypt and in neighboring countries of the products offered by the Issuer. As part of these analyses, an investment is being considered consisting in the construction of a Production Plant in the EPSSEZ, including in partnership with local industry entities, with an estimated value of EGP 1.6 billion (i.e. the equivalent of PLN 133,280,000 at the current average exchange rate of the Egyptian pound published by the National Bank of Poland on March 27, 2024 amounting to 1 EGP = PLN 0.0833).

The Issuer will inform about progress in implementing the above-described investment plans in subsequent current reports.