Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) hereby reports that on 16 March 2017 it made a decision to suspend the application of the JSW dividend policy in respect of distribution of the financial results for the financial year ended 31 December 2016.

In accordance with the dividend policy applied by the Company, in 2017 the Company’s Management Board should recommend to the Shareholder Meeting of JSW S.A. to pay out a dividend in the amount of at least 30% of the consolidated net profit for 2016.

Considering the necessity to rebuild the supplementary and reserve capital depleted in previous years, the Company’s Management Board will not recommend to the Shareholder Meeting of JSW S.A. to pay out a dividend for the financial year ended 31 December 2016. 

Legal Basis: § 38 Section 1 Item 11 of the Regulation issued by the Finance Minister on 19 February 2009 on the Current and Periodic Information Transmitted by Securities Issuers and the Conditions for Recognizing the Information Required by the Regulations of a Non-Member State as Equivalent.