Conclusion of the Loan Agreement with BRE Bank S.A.

Date of issue: 2011-12-09

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

SUBJECT:
Conclusion of the Loan Agreement with BRE Bank S.A.

CONTENT OF THE REPORT:
On December 8, 2011 Izostal S.A. ("Company") concluded the EUR working capital loan agreement 11/169/11D/OB with  BRE Bank S.A. ("Bank”) seated in Warsaw.

Under this agreement the Bank provided the company with a working capital loan (in EUR), in the amount of EUR  5,000,000.00  (that is PLN 22,346,000.00 after conversion according to the mean exchange rate of the National Bank of Poland as on the day of signing the agreement). The financial means of the loan will be utilized for the financing of the contracts concluded by Izostal S.A. on behalf of the consortium with OPG GAZ – SYSTEM S.A. for the supply of coated pipes to be used for the construction of the pipelines Gustorzyn – Odolanów and Rembelszczyzna – Gustorzyn.

The loan funds will be transferred in the period from December 8, 2011 to March 2012.

The final loan installment repayment date expires on June 29, 2012.

Repayment of the loan is secured by the assignment to the Bank of the receivables from OPG GAZ-SYSTEM S.A. due to the Loan User, said receivables to be paid for the execution of Partial Agreements of September 21, 2011, mentioned by the Company in its Current Report No. 47/2011 of September 21, 2011. Until the Bank receives the confirmation that a debtor has been informed on the assignment of receivables, loan utilization may not exceed EUR 2,500,000.00 (that is PLN 11,173,000.00 as converted according to the mean exchange rate of the National Bank of Poland as on the day of signing the contract)

The loan bears an interest rate based on  EURIBOR1M plus Bank's margin.

The other financial conditions of the loan do not differ from the ones used commonly for such agreements.

The Company considers this Agreement a significant one as its value exceeds 10% of equity of Izostal S.A.

Total value of agreements concluded by the Company with BRE Bank S.A. since January 5, 2011 has amounted to PLN  32,346,000.00.

Specific legal basis: §5 clause 1 item 3 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 No. 33, item 259 as amended).

SIGNATURES OF PERSONS REPRESENTING THE COMPANY:
Management Board President, General Director Marek Mazurek 2011-12-09
Proxy Marek Matheja2011-12-09

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