Wednesday, 1st June 2016, Velenje, Slovenia

Gorenje position regarding the sale of Gorenje Surovina

This morning, in the Elemental Holding announcement on the website of the Warsaw Stock Exchange we read about the Tesla Recycling's intent to terminate the Agreement on the sale and purchase of shares of Gorenje Surovina, d.o.o. (hereinafter referred to as the SPA). In Gorenje, d. d., we only received the official notification today after the above mentioned announcement. In the announcement, Tesla Recycling states that Gorenje, d.d., has failed to meet the conditions specified in the SPA concerning Gorenje Surovina shares. Gorenje, d.d., hereby opposes such allegations, as we strongly believe that Gorenje has fulfilled the conditions precedent as agreed in the SPA. Evidence confirming the fulfilment of conditions precedent has been repeatedly sent to Tesla, yet Tesla Recycling has failed to provide any formal feedback. Despite our repeated notifications/requests, Tesla Recycling have failed to provide the irrevocable surety as per Clause 5.1.2 (c) of the SPA, which is a condition precedent to be fulfilled by Tesla.

Gorenje informed Tesla Recycling on May 31, 2016, that Gorenje intends to terminate the SPA with immediate effect if the aforementioned condition is not met within 30 business days from the day when Tesla receives the notification of such Gorenje's intent.

Gorenje's subsequent actions and decisions shall be consistent with the provisions of the SPA.

Disclaimer: The English text for all announcements is for information purposes only!