Dear All,

2012 was another successful year for Grupa LOTOS.
The Company maintained and developed its tradition of growth in a difficult macroeconomic climate. The results achieved by LOTOS in 2012 are remarkable, and give grounds for optimism for the future development of the company.

Grupa LOTOS saw PLN 33.1bn income last year, a more than 13% increase on 2011. We are also extremely satisfied with the increase of our crude oil processing to a record level of 9.7m tonnes. Even more significantly, extraction of crude oil increased by over 15% to 262,000 tonnes. This is not yet the target scale, but is strong proof of a consistently realised development strategy, whose fundamental direction is in increasing our own extraction rate. This should be helped enormously by our cooperation with PGNiG.

Our high tax contributions are also worth mentioning on this occasion. Poland's state budget received almost PLN 9.5bn from Grupa LOTOS in various forms of taxation. Local, municipal, county and provincial authorities all also received sizeable contributions from the Company.

The efficiency of our installations also rose systematically, with the uptime ratio now at 99.2%. LOTOS continues to successfully modernise the refinery, despite having already concluded the 10+ Programme. Thanks to the creative concepts devised by LOTOS engineers, the MHC hydrocracking installation was also improved, and conversion efficiency increased from the projected 60% to 85%. The Company also launched production of xylene, a high-margin petrochemical semi-product, which is currently in high demand.

Dynamic development of the service station chain systematically increased Grupa LOTOS' share in the retail market, which in 2012 was 8%. As at the end of 2012, altogether 405 stations operated under LOTOS colours, including 101 LOTOS Optima stations.

The Board of Grupa LOTOS operates with remarkable efficiency, even in difficult market environments. One of its defining traits is its ability to respond promptly to changes occurring in the economic environment. In 2012, the Board introduced an efficiency and savings enhancement plan, the Optimal Expansion Programme. As a result, savings of PLN 446m were made, although the plan had only envisaged a total of PLN 257m. It is important to note that the reduction of costs did not in any way interfere with the LOTOS Group's dynamic development.

Grupa LOTOS' measured development concepts also include a new area of growth, in the agreement with Zakłady Azotowe w Tarnowie Mościcach (Azoty Tarnów). This opens new prospects for the addition of a petrochemical complex to the refinery, creating a strong, beneficial synergy between LOTOS' and Azoty's technical resources.

I consider the high quality of the the LOTOS Group's management to be of primary importance and a key factor in the evaluation of the future perspectives for the development of the company, and it is maintained at a remarkably high level - not easy when faced with the challenges of an increasingly competitive market. This involves strong ethical accents, an understanding of the modern concept of social business responsibility, and very efficient communication with employees and the external world. Grupa LOTOS is a company based on a culture of values. Professionalism, respect, transparency and cooperation are all defined as the most important principles in the company. Taken together, they become a very strong asset of Grupa LOTOS.

With the increasingly uncertain macroeconomic situation we can be sure that the future of Grupa LOTOS is built on solid foundations. Application of the latest technology, efficient management and a strong community spirit shared by all employees opens new growth perspectives and guarantees market success.

Yours faithfully,

Wiesław Skwarko
Chairman of the Supervisory Board
Grupa LOTOS S.A.