Body of the Report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) hereby reports that it adopted a resolution on redemption of JSW Stabilization Closed-end Investment Fund (“FIZ”) Investment Certificates of Series A in the amount of PLN 400 million and of series B in the amount of PLN 300 million.

The expected proceeds from the redemption of FIZ Certificates amount to PLN 300 million in February 2020 and PLN 400 million in April 2020. The monies obtained from the redemption of FIZ Certificates will be used both for the Company’s current operations and for investment activity.

At the same time, the Company reports that, in accordance with JSW’s Articles of Association, the decision on redemption of FIZ Investment Certificates requires the consent of the Company’s Supervisory Board.

FIZ was established by the Company to stabilize financial liquidity and curtail the impact of the risk of volatility of coal and coke prices on maintaining the continuity of the Group’s operations and investments. The carrying amount of the investments in the FIZ asset portfolio as at 30 September 2019 was PLN 1,860.5 million.

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.