Klaipedos Nafta AB - Notification on material event

Regarding the adopted decision by the court of first instance in the case between Naftos grupė UAB and the company

On 20 May 2013 Vilnius Regional Court adopted a decision in the case according
to claim of claimant Naftos grupė UAB to Klaipėdos nafta AB (hereinafter, the
“Company“) for the compensation of allegedly incurred losses of LTL 17 mill.,
for reimbursement of surplus of oil products to claimant allegedly belonging to
Naftos grupė UAB and held by the Company and for recognition the cancellation
of Service contract No. 12-12-2005, dated 22-12-2004 due to Company's supposed
fault (the Company announced on the acceptance of the claim and on provision of
counterclaim in the case on 20 April 2011 and 5 July 2011 respectively, by
notifying the notifications on material event). 

The court inter alia decided:

(i) to admit that the Agreement was terminated through the fault of the Company;

(ii) to award Naftos grupė UAB damages in the amount of LTL 9,744,590.67, 6
percent annual interest on the awarded amount for the period from the
initiation of the legal proceedings (18 April 2011) till full enforcement of
the court judgement, the stamp duty in the amount of LTL 17,235 and the legal
expenses in the amount of LTL 25,000 to be paid by the Company; 

(iii) to reject the counterclaim of the Company against Naftos grupė UAB for
invalidation of the Agreement, indemnification for damages and unjust
enrichment. 

In the opinion of the management of the Company, this judgement of the Vilnius
Regional Court is unlawful and unreasonable in its part on rejection of the
counterclaim and on partly satisfying the requests of the claim inter alia for
the reasons that according to it the court did not take into consideration the
opinions of the state institutions (the National Audit Office and the
Competition Council) regarding separate provisions of the Agreement and
possible breaches of the applicable legal acts, as well as that Naftos grupė
UAB did not justify the amount of allegedly non-received income due to
termination of the Agreement. The Company had terminated this obviously
economically disadvantageous agreement in order to secure the best interests of
the Company's shareholders. 

The above-indicated judgement of the Vilnius Regional Court may be appealed
against with the Court of Appeal of Lithuania within 30 days after its
announcement and the Company is going to file its appeal within the established
time limit. 




         Mantas Bartuška, Director of Finance and Administration Department
(+370 46) 391 763