Body of the Report:

The Management Board of JSW SA ("Company", "JSW") hereby announces that on 21 January 2015 it terminated in full the following Agreements concluded between JSW and the trade unions operating in the Company: the Agreement of 28 February 2011 on negotiations pertaining to the collective dispute launched on 11 February 2011, of 8 November 2012 on the collective dispute "concerning the 7% increase of basic salary rates to ensure salary increases in 2012" and partially the collective agreement of 5 May 2011 in the part pertaining to the application of remuneration principles and to granting of other benefits arising from the terminated company collective agreements and regulations.

The Management Board of JSW upheld in full the employment guarantees set forth in the Collective Agreement of 5 May 2011.

These actions have been taken to align the company's policies with the changing market conditions and to increase the efficiency of management, which is driven by the obligation of the JSW Management Board to ensure the proper operation of the Company. The difficult financial standing of the Company is an effect of the economic situation on the coal market and lack of prospects for improvement in the long term, as well as a failure to reach an agreement between the Company and trade unions regarding a temporary suspension or discontinuation of payment of certain remuneration components.

The Company will provide information on all relevant circumstances of the situation in subsequent current reports.