Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. („JSW”, „Company”) reports that on 11 June 2018 it made the decision to undertake legal and formal actions to establish a third sub-portfolio designated for investment purposes in the JSW Closed-end Investment Fund about which the Company reported in Current Report No. 35/2017.

In connection with the strategic objective embraced in the JSW Strategy incorporating the JSW Group’s subsidiaries for 2018-2030 whereby it will secure access to coking coal resources and increase coal production and sales to a level above 18 million tons per annum by 2030, a third investment sub-portfolio is planned to be established as a stable source of financing investments regardless of current market conditions. The funds amassed in the sub-portfolio will be earmarked as equity in the financing structure for the capital expenditures planned in the long-term and medium-term associated with the execution of investment projects of strategic importance for JSW and the JSW Group, which will significantly contribute to curtailing the risk of disrupting the investment execution schedule.

The plan is to allocate an amount ranging from PLN 0.5 billion to PLN 1.0 billion to the newly-established sub-portfolio, where this will require securing the pertinent corporate consents, including the consent of the Company’s shareholder meeting.

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