Body of the Report:

The Management Board of JSW SA ("JSW", the "Company") announces that as of today JSW adopted a resolution to waive the payment of coal equivalent for pensioners beginning as of 2016 and the dissolution of reserves created for this purpose in the total amount of PLN1.95 billion. At the same time, the Management Board passed a resolution to set up a reserve in the same amount arising from potential litigation related to the payment of this benefit. The Company estimates that the positive impact on cash flow in a year is about PLN 70 million, which means that the amount would remain at the disposal of the Company.