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

Content of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. ("Company") announces that today, the Constitutional Tribunal ruled that Article 2 sec. 1 item 3, in connection with Article 1a sec. 1 item 2 of the Act of 12 January 1991 on local taxes and fees, construed in the way that it does not refer to underground mining headings and may refer to facilities and devices located in those headings, is consistent with the principle of statutory specificity of tax regulation and the principle of correct legislation derived from Article 217 in connection with Articles 84 and 2 of the Constitution. At the same time, the Tribunal believes that application of the fundamental rules of interpretation leads to a conclusion that taxation of underground headings with real estate tax is ruled out since they are not building structures (construction equipment) within the meaning of the Construction Law Act, but rather space within a land property or within a land formation created as a result of mining works, which clearly results from the Geological and Mining Law Act.

The ruling of the Constitutional Tribunal does not mean that the existing disputes would end automatically, however the Management Board estimates that the interpretation presented by the Tribunal will allow the Company, after positive rulings are issued in individual cases by administrative courts and tax authorities, to dissolve the established provisions in the total amount of approximately PLN 274 million and to recover tax paid in the amount of about PLN 161 million. The Company's Management Board estimates that the aggregated positive effect on the Company's financial results will be approx. PLN 435 million. The settlement will be announced by the Company in a separate current report.