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JSW S.A. will gain approx. PLN 290 million from dissolved reserves.

|   Investors Relations - common

In light of the 13 September 2011 judgment of the Constitutional Tribunal, the Management Board of Jastrzębska Spółka Węglowa S.A. made a decision on 10 January 2012 to dissolve a substantial part of reserves established for real estate tax on underground workings. In order to provide a more detailed explanation, the Management Board of JSW S.A. hereby provides additional information on this issue.

On 10 January 2012, the following decisions were made:

1) to dissolve reserves of approx. PLN 196 million and keep reserves and liabilities on account of disputable real estate tax on underground workings in the amount of approx. PLN 66 million in connection with general risk related to pending disputes with municipalities,

2) to capture in the “Report on the financial standing” receivables from municipalities by virtue of paid disputable real estate tax on underground workings in the amount of approx. PLN 164 million.

The total impact of the above operations on the financial result before tax is approx. PLN 359 million, and after taking deferred income tax into account the total impact on the financial result after tax is approx. PLN 290 million. The press release of 13 September 2011 contained information that the total impact on the financial result before tax was approx. PLN 435 million, which after taking deferred income tax into account translated into the total impact on the financial result after tax of approx. PLN 352 million. 

“The differences in the values presented in these publications result from the establishment of new reserves in the second half of 2011 and payment of certain tax liabilities resulting from decisions of tax authorities. The differences are also due to our keeping of reserves and liabilities on account of disputable real estate tax in the Company’s accounting ledgers for 2011,” says Jarosław Zagórowski, CEO of JSW S.A., and adds: “I’m quite certain that the future will bring us favorable judgments and decisions in other disputes pending before the court or the Local Government Appeals Board in cases concerning real estate tax.”