Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”), with reference to Current Report No. 5/2022, hereby reports that it has completed non-current assets impairment tests in accordance with the provisions of IAS 36 Impairment of Assets.

The test results point to impairment of the following non-current assets:

• in the Coal segment, i.e. the assets of KWK Budryk, KWK Borynia-Zofiówka - Zofiówka Section, KWK Borynia-Zofiówka - Borynia Section and KWK Jastrzębie-Bzie in the total amount of PLN 223.2 million,
• in the Coke segment, i.e. the assets of the Radlin Coking Plant and the Jadwiga Coking Plant in the total amount of PLN 420.6 million.

Recognition of the impairment loss will reduce the operating results of JSW and the JSW KOKS S.A., as well as the JSW Group, but will not impact their liquidity position.

At the same time, the Company hereby reports that it reverses the impairment loss taken in previous years:

• in the Coal segment - a portion of the previously established impairment loss for the assets of KWK Knurów-Szczygłowice in the amount of PLN 75.0 million,
• in the Coke segment - the entirety of the previously established impairment loss for the assets of the Przyjaźń Coking Plant in the amount of PLN 260.5 million.

The reversal of the impairment loss will increase the operating results of JSW and the JSW KOKS S.A., as well as the JSW Group, but will not impact their liquidity position.

At the same time the Company reports that the above figures are estimates and are subject to change and the final figures will be included in the standalone financial statements of JSW and JSW KOKS S.A., as well as in the consolidated financial statements of the JSW Group for 2021.

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.