Body of the Report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) hereby reports that it has completed analyses of the key indications of impairment of the carrying amount of assets of the Jastrzębska Spółka Węglowa S.A. Group (“JSW Group”) in accordance with the provisions of IAS 36 Impairment of Assets.

The first news from China regarding the SARS-CoV-2 coronavirus appeared at the end of 2019. In the first months of 2020, the virus spread across the globe and its negative impact gained momentum. The JSW Group has analyzed the effect of the epidemic during its review of the asset impairment risk and it evaluated indications of impairment of any of its assets.

The operations of the Company and its subsidiaries is likely to remain under the pressure of negative changes resulting from the pandemic and the expected deterioration of its financial standing. Accordingly, the JSW Management Board has identified the probability of revaluation of the non-current assets of its cash-generating units.

The figures will be estimated in accordance with the provisions of IAS 36 immediately after the price paths are determined and financial models updated for the individual cash-generating units; the results of the conducted tests will be provided in a separate report.

This update of the impairment losses recognized for assets of individual CGUs will be taken into account in the standalone financial statements of JSW and in the consolidated financial statements of JSW prepared as at 30 June 2020.

The update of the impairment losses on the carrying amount of assets will have a non-cash impact on the JSW Group’s consolidated operating result (it will not affect the liquidity situation of JSW and the JSW Group).

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.