Regarding the answers to the shareholders questions

Klaipedos nafta AB

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1. What is the total price of the transaction to purchase a liquefied gas (LNG) ship-to-store by 2024? price. What portion of the above transaction will be borrowed from the Nordic Investment Bank?

The submitted question is not related to the agenda items of the General Meeting of Shareholders to be convened on 27 November 2019 and 12 December 2019.

On the other hand, the Company informs that, as a LNG terminal operator, will fulfill the requirement of the Law on the Liquefied Natural Gas Terminal of the Republic of Lithuania and will select the most economically advantageous tender for the acquisition of the floating liquefied natural gas storage facility.

The terms of the specific acquisition of FSRU and the final decision will be approved at a separate board meeting. The Company announced this in the notification of the material event on 5 November 2019. Reference to the material event:

https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=909758&messageId=1146044

The Company reminds that, 11 April 2018 Experts from the international company Pöyry Management Consulting presented a study stating that the estimated final price of the ship could range from 120 million to 160 million euros. The entire studio is accessible by clicking the following link: https://www.kn.lt/uploads/files/dir49/dir2/9_0.php

2. How much has already been issued by AB Klaipedos nafta (including related companies) and how much will AB Klaipedos nafta cost to issue the guarantees specified in the agendas of the Extraordinary General Meeting of Shareholders convened on 27 November 2019 and 12 December 2019?

The submitted question is not related to the agenda items of the General Meeting of Shareholders to be convened on 27-11-2019 and 12-12-2019.

In addition, all warranties will be acquired through public procurement by the lowest price criterion. Information on guarantees and their values will be made public in the public procurement information system of the Republic of Lithuania in the manner and to the extent prescribed by law.

3. On what basis the bank guarantee up to 20 million EUR will be issued in favor of Höegh LNG Ltd as security for the liabilities of Klaipedos Nafta AB under the lease agreement dated 02 March 2012 between Klaipedos Nafta AB and Hoegh LNG UAB Klaipeda?

The basis for the issuance of the bank guarantee is the ship Lease Agreement dated 02 March 2012 between the Company and Höegh LNG Ltd (formerly Höegh LNG Limited) (hereinafter - the Agreement) and the 11 April 2014 Agreement of Novation between the Company, Höegh LNG Ltd and Hoegh LNG UAB Klaipeda (hereinafter - the Novation Agreement). By the Novation Agreement, part of the rights and obligations of Höegh LNG Ltd under the Agreement, with the exception of the rights and obligations arising from the Company's right of redemption of FSRU, were transferred to UAB Hoegh LNG Klaipeda. Accordingly, the Company has liabilities to both of these companies.

We note that if issued, the total value of the bank guarantee for both companies will not exceed 20 million. euros.

More detailed information on the Novation Agreement can be found in 11 April 2014 message:

https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=604219&messageId=748287

4. What is the value of the Subacius oil terminal as a property complex and what calculations were used to calculate this amount?

The submitted question is not related to the agenda items of the General Meeting of Shareholders to be convened on 27-11-2019 and 12-12-2019. In addition, requested information is confidential.

Please note that the Company uses independent qualified experts services to determine the value of the Subacius Oil Terminal.

5. How much it will cost KN to borrow up to 135 million EUR from NIB at fixed or variable interest and what impact on these costs will have the amount of the loan part requested to disburse?

KN borrowing costs will directly depend on the amount planned to borrow. They are not clear at the moment. We note that the Company's borrowing costs will be reimbursed through the LNG Security component.

6. For what reasons issues regarding the granting of a guarantee to the Ministry of Finance of the Republic of Lithuania and pledging of the security component for the benefit of the Ministry of Finance of the Republic of Lithuania will be resolved during the 12 December 2019 General Meeting of Shareholders, but not during 27 November 2019 General Meeting of Shareholders?

During the General Meeting of Shareholders convened on 12 December 2019, it is proposed to adopt new additional resolutions providing alternative possible guarantees provided by the Company for guarantees specified in the agenda of the meeting of 27 November 2019.

The management of the Company, in negotiating the terms of the borrowing, already after 27 November 2019 meeting has been convened identified an additional possible decision on the structure of the guarantee for the State guarantee. Accordingly, the Company seeks to provide its shareholders with two alternatives (at the meetings of 27 November 2019 and 12 December 2019) regarding the structure of pledge (guarantees) for the State guarantee.

Jonas Lenkšas, Chief Financial Officer, +370 694 80594.