Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) hereby reports that today it adopted a resolution on recognizing an additional non-current assets impairment loss in the coal segment in the amount of PLN 82.9 million.

In accordance with the provisions of IAS 36 Impairment of assets, an analysis of indications of impairment has been carried out, as a result of which it has been concluded that there are no new indications to suggest the possibility of an impairment of assets, nor has it been determined that indications identified in the past, forming the basis for recognizing such impairment losses, have ceased to exist.

At the same time, having regard for the fact that the discounted cash flow generated by a cash generating unit, i.e. the Jastrzębie-Bzie Coal Mine (“CGU”) has a negative value and the CGU has a recoverable value of zero, and the impairment loss for the CGU asset recognized in previous periods as well as the growth in CGU assets as of 31 March 2022, it became necessary to recognize an additional impairment loss for the non-current assets in the coal segment.

Recognition of the above impairment loss will reduce the operating result of JSW and the JSW Group but will not impact their liquidity position. The final value of the impairment loss will be presented in the standalone and consolidated financial statements of JSW and the JSW Group, respectively, for Q1 2022.

Please be advised that the above figure of the impairment loss is an estimate and is subject to change.

Legal basis: Article 17(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