The subject of the contract is the execution of drilling works as well as geological and hydrogeological research related to the execution of the Gąsawa GT-1 borehole. The purpose of the well is to identify and document the exploitation resources of the geothermal aquifer of the Lower Jurassic and to recognize the hydrogeothermal conditions of the Lower Cretaceous reservoir in Gąsawa. It is assumed that the well will ultimately serve as a production well. The task includes the intake of the waters of the Lower Jurassic aquifer. The solution to the geological task was designed in one stage, including the drilling of the Gąsawa GT-1 borehole with a depth of 3600m±10% and conducting the necessary research to identify and document the operational properties of the Lower Jurassic aquifer.

The subject of the contract is the construction of the Gąsawa GT-1 geothermal borehole on plot number 2, Gąsawa precinct. The scope of execution includes geological and mining works including the execution of a research and exploitation well along with all necessary works and measurements necessary for its execution and provided for it. The drilling of the well will be carried out in accordance with the geological and technical drilling projects prepared by the Contractor, on the basis of the approved Geological Works Project for the execution of the Gąsawa GT-1 research and exploitation well for the recognition of thermal water resources and determining the possibilities of their use and the Description of the subject of the contract.

Note: The Geological Works Project for the construction of the Gąsawa GT-1 exploration and exploitation well for the exploration of thermal water resources and determination of the possibilities of their use include alternative and variant solutions for the construction and construction of the Gąsawa GT-1 borehole. In this Description of the subject of the contract, based on the provisions of the above-mentioned Project, the manner and scope of work, research and construction of the hole were finally defined. Only the Description of the subject of the contract constituting an attachment to the SWZ should be treated as required and binding on the Contractor, regardless of certain variant solutions of works and tests specified in the Project.

It is assumed that a research and exploitation hole will be drilled, which will include the works of the Lower Jurassic in the depth interval of 3430-3570 m below sea level. As a real depth criterion, it is assumed that up to 30 m of the Upper Triassic formations will need to be drilled (for the installation of a sub-filter column). The solutions also take into account the need to recognize the Lower Cretaceous geothermal reservoir.

The drilled aquifers will be hydraulically isolated by cementation of casing pipes. The Gąsawa GT-1 hole filter column will be made using corrosion-resistant materials.

A maximum angle of deviation from the vertical axis of up to 3° is allowed along the entire length of the drilled hole, but the maximum increase in the spatial curvature angle (DLS) should not exceed 1°/30m. During drilling, point measurements of the deflection angle and azimuth should be made with an inclinometer every 100 m and before each cable is pulled out. In order to measure the azimuth, a non-magnetic weight must be placed in the drill line kit.

The location of the hole should be defined geodesic in the field, in accordance with the approved Geological Works Project. After delineation and after completion of the hole, a geodetic operat must be drawn up and the coordinates in the applicable State Coordinate System shall be determined.

In the scope of works there are m.in.:

• execution of geological and technical design of drilling and borehole construction

• technical and organizational design;

• development and approval of the Plant Operation Plan and the Mining Waste Management Plan;

• making all necessary formal and legal arrangements, including notification of the commencement of works to the competent supervisory and administrative authorities related to entering the area in connection with the implementation of the Subject of the Contract, as well as arrangements, permits and permits for construction, energy, waste management and nature protection required by law;

• preparation and marking of access roads and drilling yard as well as a storage tank for pumped out brine;

• proper protection of the access road to the drilling site, and after drilling the hole, repairing the damage and restoring the road to its current state;

• construction of a vertical research and exploitation hole with a vertical depth (TVD) of about 3600 m below sea level ±10% of p.p.t.

• supplying drilling sites with the necessary utilities and removal and neutralization of wash waste and other waste generated during the implementation of the task in accordance with the Act of 14.12.2012 waste and the Act of 10.07.2008 on mining waste.