Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. („Company”, „JSW”) reports that on 12 March 2014 it made the decision to suspend the application of JSW’s dividend policy with respect to the financial results it generated in the financial year ended 31 December 2013.

According to the Company’s dividend policy as defined in the prospectus of 2011 (page 59), in 2014 the Company’s Management Board should propose the payment of a dividend to JSW S.A.’s Shareholder Meeting at a level of at least 30% of the consolidated net profit for 2013.

Having in mind:

-    the potential acquisition in 2014 of critical mining assets (JSW’s acquisition of an organized part of the business of Kompania Węglowa S.A. entailing the Knurów-Szczygłowice mine, which the Company announced in report no. 48/2013 of 18 November 2013),

-    the investment program under execution,

the JSW Management Board will not recommend the payment of a dividend for 2013 to JSW S.A.’s Shareholder Meeting.