Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) hereby reports that on 7 January 2019 the representatives of JSW, as the Borrower, and PKO BP S.A., Bank Polska Kasa Opieki S.A., Bank Gospodarstwa Krajowego and ICBC (Europe) S.A. Branch in Poland, and Agencja Rozwoju Przemysłu S.A., acting jointly as Lenders, signed a term sheet for the financing earmarked for the JSW Group (“JSW Group”) (“Term Sheet”). The Financing will be granted in the form of a term loan, renewable loan and acquisition loan, subject to obtaining the required corporate consents both on the part of the Lenders and on the part of the Company, executing acceptable financing documentation and establishing pertinent securities for the Lenders.

The Term Sheet provides for the Lenders’ total commitment of PLN 460.0 million and the PLN equivalent of the amount of approx. USD 81.0 million.

The planned Financing will be earmarked for refinancing JSW Group’s existing debt, financing JSW Group’s investments and financing JSW Group’s other general corporate needs. The acquisition loan will be slated to finance the purchase of shares of a company under the name Przedsiębiorstwo Budowy Szybów S.A.

The Financing is planned for a maximum term of 7 years, however the financing in the form of the renewable loan has been set for 5 years with the possibility of extending it by up to 2 years.

Legal basis: Article 17 Section 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on Market Abuse and Repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC