Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) in reference to the Current Report No. 38/2016 of 9 August 2016 and Resolution No. 3 adopted by the Extraordinary Shareholder Meeting of JSW on 1 December 2016, hereby reports that on 31 March 2017, an agreement was signed by and between JSW and Spółka Restrukturyzacji Kopalń S.A. in Bytom (“SRK”) pertaining to the free-of-charge transfer of organized parts of JSW’s business in the form of the KWK Krupiński Mine to SRK. These measures are being taken under JSW Group’s restructuring process while following the procedure contemplated by the Act of 7 September 2007 on the Functioning of the Hard Coal Mining Industry.

As a consequence of the signed agreement, 1.1 thousand JSW employees are moving to SRK under the procedure contemplated by art. 231 of the Labor Code. In 2007-2016 the Krupiński Mine generated in total PLN 1.03 billion of cash loss, i.e. on average PLN 102.7 million per annum. Consequently, this transaction will contribute to cutting the Company’s operating expenses.

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.