Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) hereby reports that it has completed analyses of the key indications that the carrying amount of assets may be impaired, in accordance with the provisions of IAS 36 Impairment of Assets.

In connection with the update of financial projections resulting from significant changes in long-term plans, also taking into account the change of certain technical and economic parameters constituting indications for recognition of impairment losses in previous years in respect of the fixed assets of the JSW Group, the JSW Management Board identifies a probability of updating the amount of the recognized impairment losses.

The numerical estimates will be calculated in accordance with the provisions of IAS 36 and the Company will inform about the test results in a separate current report.

Recognizing or reversing impairment losses for the assets of individual cash-generating units will be reflected in the standalone financial statements of JSW Group companies and in the consolidated financial statements of the JSW Group for 2021.

The update of the impairment losses on the carrying amount of assets will have a non-cash impact on the companies and JSW Group’s operating result (it will not affect the liquidity situation of the companies and the JSW Group).

Legal basis: Article 17(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.