Current Report No. 11/2019

Information on the results of the analysis of verifying the recoverable amount of assets

Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. ("JSW", "the Company") hereby reports that the analysis of the main economic parameters demonstrating the possibility of impairment of the carrying amount of JSW's assets has been completed, in accordance with the IAS 36 Impairment of Assets.

The change of some technical and economic parameters which constitute the reasons for recognition in previous years of write-downs of the Company's fixed assets and organizational changes in the separation of the mine under construction, JSW identifies the probability of updating the write-downs.

The numerical estimates will be calculated in accordance with the IAS 36, immediately after determining the price paths and updating financial models for individual cash-generating units, and the results of the tests will be disclosed by the Company in a separate regulatory filing.

Write-offs of individual cash-generating units will be included in the financial statements of JSW and the consolidated financial statements for 2018.

The revaluation write-offs for the impairment of the carrying amount of assets will have a non-cash impact on the consolidated operating profit of the JSW Group (without affecting the liquidity position of the Company and the Group).

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.