Legal basis: Article 56 Section 1 Item 1 of the Act on Offerings – confidential information

Report content:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW S.A.”) hereby informs that in connection with the provisions of the Resolution adopted by the JSW S.A. Extraordinary Shareholder Meeting on 12 May 2011 (“Extraordinary Shareholder Meeting Resolution”) and JSW’s Prospectus (pp. 177-178), regarding the rules for distribution of JSW S.A.’s series “C” shares between persons eligible to acquire such shares, on 27 February 2012 the JSW S.A. Supervisory Board – subscribing to the stance of the JSW S.A. Management Board, prepared on the basis of the distribution model presented by the trade union organizations active in JSW S.A., expressed in the Resolution dated 27 February 2012 to determine the number shares for each group of Non-eligible Employees singled out on the basis of the period of employment – adopted a resolution approving the aforementioned Resolution of the Company’s Management Board. 

Pursuant to the aforementioned Resolution of JSW S.A.’s Management Board, the number of the Company’s series “C” shares earmarked for distribution between JSW Capital Group employees eligible to acquire them free of charge pursuant to the Extraordinary Shareholder Meeting Resolution was set at 2,157,886 (say: two million one hundred fifty seven thousand eight hundred eighty six) of JSW S.A.’s series “C” shares.

At the same time the JSW S.A. Management Board advices that in connection with the Resolutions adopted on 27 February 2012 pertaining to series “C” shares, the costs of issue of the Company’s series “C” shares posted in the ledgers and the financial statements for 2011 will decrease. The positive impact on the JSW Capital Group’s net financial result for 2011 caused by this event will amount to approx. PLN 243.9 million.

In addition, the JSW S.A. Management Board advices that as a consequence of the Resolution adopted by the JSW S.A. Supervisory Board, on 27 February 2012 it adopted a Resolution to recommend to the JSW S.A. Shareholder Meeting retirement of 1,796,324 (say: one million seven hundred ninety six thousand three hundred twenty four) series “C” shares through voluntary retirement without remuneration to the Shareholder – Powszechna Kasa Oszczędności Bank Polski S.A. Oddział – Dom Maklerski PKO Bank Polski w Warszawie seated in Warsaw.

The JSW S.A. Supervisory Board, by virtue of the Resolution dated 27 February 2012, issued a positive opinion on the motion submitted by the JSW S.A. Management Board to the JSW S.A. Shareholder Meeting in this matter.