Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“JSW”, “Company”) hereby reports that today it adopted a resolution to fund the JSW Stabilization Closed-end Investment Fund within an investment sub-portfolio (“Fund”), on the establishment of which the Company reported in Current Report no. 20/2018. According to plans, the amount of funding provided to the Fund will be up to PLN 700 million.

The purpose of the investment sub-portfolio established within the JSW Stabilization Investment Fund is to ensure a stable source of investment financing irrespective of the current market conditions. The funds amassed in the sub-portfolio will be earmarked as equity in the financing structure for the capital expenditures planned in the long-term and medium-term associated with the execution of investment projects of strategic importance for JSW and the JSW Group, which significantly contributes to curtailing the risk of disrupting the investment execution schedule.

Due to the fact that the Fund acts as a cash buffer for JSW that covers the Company’s financing needs in the periods of bad market conditions, it has been resolved that information on its funding with considerable financial resources is material.

At the same time the Company reports that, pursuant to Resolution 3 of the JSW Shareholder Meeting of 7 December 2018, the action described above requires a positive opinion of the JSW Supervisory Board.

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.