Fondul Proprietatea Regulatory News (FP.)

To: Bucharest Stock Exchange

Financial Supervisory Authority

London Stock Exchange

Current report according to Article 99 (s) of the Code of the Bucharest Stock Exchange Market Operator, Title II, Issuers and Financial Instruments

Events to be reported:

The Financial Supervisory Authority partially endorsed the amendments to the Constitutive Act of Fondul Proprietatea SA

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch ("the Investment Manager"), in its capacity as investment manager of Fondul Proprietatea SA ("the Fund"), would like to inform shareholders that the Financial Supervisory Authority issued Endorsement no. 267 / 19 September 2019 (the "FSA Endorsement"), whereby it endorsed, with comments, the amendment of Article 19 paragraph (1) of the Fund's Constitutive Act approved by the Fund's Extraordinary General Shareholders' Meeting Resolution no. 3 of 28 June 2019.

As per the FSA Endorsement, the Fund has the obligation to call a new General Shareholders Meeting having on the agenda the approval of the new wording proposed for Article 19 para (1) of the Fund's Constitutive Act.

For your ease of reference, you can find in Annex 1 herein a comparative table describing the amendments of Article 19 paragraph (1), along with the English translation of FSA Endorsement no. 267/19 September 2019 (Annex 2 herein).

Franklin Templeton Investment Management Ltd. United Kingdom Bucharest Branch, in its capacity as Investment Manager of FONDUL PROPRIETATEA S.A.

Johan Meyer

Legal representative

Report date:

20 September 2019

Name of the issuing entity:

Fondul Proprietatea S.A.

Registered office:

78-80 Buzesti Street

7th floor, district 1,

Bucharest, 011017

Phone/fax number:

Tel.: + 40 21 200 9600

Fax: + 40 21 200 9631

Email:

office@fondulproprietatea.ro

Internet:

www.fondulproprietatea.ro

Sole Registration Code with the Trade Register Office:

18253260

Order number in the Trade Register:

J40/21901/2005

Subscribed share capital:

RON 4,733,020,898.32

Paid-up share capital:

RON 4,543,838,476.32

Number of shares in issue:

9,101,963,266

Number of paid shares:

8,738,150,916

Regulated market on which the issued securities are traded:

Shares on Bucharest Stock ExchangeGDRs on London Stock Exchange

Article 19 para. (1) of the Fund’s Constitutive Act in force

Article 19 para. (1) of the Fund’s Constitutive Act as approved by EGM Resolution no. 3/28 June 2019

Article 19 para. (1) of the Fund’s Constitutive Act as endorsed with comments by FSA Endorsement no. 267/19 Sepember 2019

(1) Fondul Proprietatea has appointed FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l., a société à responsabilité limitée qualifying as an alternative investment fund manager under Article 101-1 of the Luxembourg Act of 17 December 2010 concerning undertakings for collective investment, as amended from time to time, whose registered office is located at 8A rue Albert Borschette, L-1246 Luxembourg and registered with the Luxembourg Register of Commerce and Companies under number B 36.979, as its alternative investment fund manager, referred to throughout this document as the Alternative Investment Fund Manager. In addition, FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l. is also Fondul Proprietatea's Sole Director and is represented in its capacity as sole director in Romania by the individuals as permanent representatives (in Romanian language "reprezentanti permanenti persoane fizice") appointed by FRANKLIN TEMPLETON INTERNATIONAL SERVICES S.à r.l., upon its appointment as Fund Manager by the shareholders, and in accordance with Article 15313 of Companies' Law no. 31/1990.

(1) Shareholders of Fondul Proprietatea appoint the Sole Director according to legislation in force. The sole director acts as an alternative investment fund manager, according to legislation in force.

(1) The shareholders of Fondul Proprietatea appoint the Alternative Investment Fund Manager (AIFM) for the purpose of managing it. The AIFM also acts as sole director.