Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) reports that on 5 December 2017 the JSW Management Board and the representative trade union organizations operating in the Company entered into an agreement on withdrawing from certain provisions of the Agreement of 16 September 2015 (which the Company reported in Current Report no. 47/2015) suspending the payment of certain benefits, and on reinstating their payment on the rules from before the execution of the agreement. The agreement of September 2015 provided for the possibility of shortening the suspension of payment of certain remuneration components should the Company’s economic standing change.

Considering the improvement of JSW’s financial standing, to address the employees’ expectations, on 5 December 2017 the Company’s Management Board, having carried out negotiations with the trade unions and analyzed the bondholder agreement of 29 August 2016 (reported in Current Report no. 45/2016), signed an agreement under which the Company will pay out the reinstated benefits in 2018 and 2019. In 2018 the Company will pay our employee benefits in the total amount of approx. PLN 350 million and in 2019 approx. PLN 200 million.

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.