Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) hereby reports that on 3 October 2018 the commission appointed by the State Mining Authority in Katowice (“Commission”) to investigate the causes of the shock wave in the rock mass in the Zofiówka section on 5 May 2018, reported by the Company in Current Report No. 16/2018, finished its work.

Following an analysis of the Commission’s findings and assessments and their impact on the operating results, the Company reports that by the end of 2018 the level of type 35 coal production will be reduced by approx. 500 thous. tons compared to the assumptions adopted in the JSW Strategy including JSW Group Subsidiaries for 2018-2030 (“Strategy”). At the same time, the Company hereby reports that actions have been taken to estimate the effects of the event in the Zofiówka section of 5 May 2018 on the operating results in the next years of the Strategy.

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.