Change in the liability secured by the Pledge Agreement No. 11/008/11 concluded with BRE Bank S.A.

Date of issue: 2011-12-02

Legal basis:  Art. 56 clause 1 item 2 of the Offering Act - current and periodic information.

SUBJECT:
Change in the liability secured by the Pledge Agreement No. 11/008/11 concluded with BRE Bank S.A.

CONTENT OF THE REPORT:
On December 1, 2011 Izostal S.A. ("Company") concluded the multi-currency overdraft facility agreement No. 11/158/11/Z/VW with  BRE Bank S.A. ("Bank”) seated in Warsaw, said funds to be used for the financing of ongoing Company operations (Agreement).

Said Agreement supersedes the overdraft facility agreement mentioned by the Company in its current reports no. 30/2011 and 42/2011 (Loan Agreement No. 11/046/11/Z/VV of April 28, 2011).

Following the agreement, the Company gets a loan of a total amount of up to PLN 10,000,000. Izostal S.A. may utilize this loan in PLN and EUR without necessity to submit separate loan applications, in the period from 02.12.2011 to18.04.2012.
The repayment of the loan is secured by a registered pledge on the stocks of goods, materials for production and finished products in the form of coated steel pipes, in the amount of PLN 10,000,000.

Conclusion of the multi-currency overdraft facility agreement reflects the needs of the company related to its import activity, and in a situation of unstable financial markets it lets the company be more flexible in the repayment of obligations in foreign currencies..

In connection with the conclusion of said multi-currency overdraft facility agreement the Company signed an appendix to the Pledge Agreement No. 11/008/11 concluded on April 28, 2011 (current report no. 30/2011 and 42/2011). The appendix to the Pledge Agreement secures the repayment of the loan, interest, commissions and charges arising under the multi-currency overdraft facility agreement.  The other significant terms and conditions of the Pledge Agreement did not change.

To the best of the Company's knowledge, there are no connections between Izostal S.A. and persons managing or supervising the Company and BRE Bank S.A. as the holder of the registered pledge BRE Bank S.A. or any persons managing the bank.

The amount of the registered pledge established on the basis of the Pledge Agreement No. 11/008/11 of April 28, 2011, is higher than the equivalent of the amount of EUR 1,000,000, and therefore it meets the criterion of a significant asset.

Specific legal basis: §5 clause 1 item 1) of the Ordinance of the Minister of Finance of February 19, 2009 on current and periodic information disclosed by the issuers of commercial papers and the conditions for recognizing as equivalent the information required by the laws of a non-member state (Journal of Laws of 2009 No. 33, item 259).

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director Marek Mazurek 2011-12-02
Management Board Vice President, Commercial Director Jacek Podwiński 2011-12-02

INFORMATION ON THE ENTITY:
Full name of the issuer: IZOSTAL SPÓŁKA AKCYJNA
Abbreviated name of the issuer:  IZOSTAL S.A
Sector based on the classification of Warsaw Stock Exchange:  Other industry
Address: 47-120 Zawadzkie Polna 3
Telephone: (77) 405 65 00            
Fax: (77) 405 65 01
e-mail:info@izostal.com.pl
www.izostal.com.pl
VAT No. [NIP]:756-00-10-641
Statistical No. [REGON]: 530884678