Body of the report:

The Management Board of Jastrzębska Spółka Węglowa S.A. (“Company”, “JSW”) hereby reports that today, on 25 February 2022, the Supervisory Board adopted a resolution to approve the “Strategy for JSW and the Subsidiaries of the JSW Group for 2022-2030” adopted by the JSW Management Board (“Strategy”), which is an update of the currently pursued Strategy of the JSW Group, which the Company reported on in Current Report No. 8/2020.

According to the provisions of § 20 sec. 2 item 12) of the JSW Articles of Association, adoption of the Company's operating strategy requires its approval by the Company's Supervisory Board.

Accordingly, the publication of information on the adoption of the document entitled “Strategy for JSW and the Subsidiaries of the JSW Group for 2022-2030” by the Company's Management Board on the basis of Article 17 Section 1 and 4 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 (MAR) was delayed on 25 January 2022.

The Strategy for 2022-2030 set new directions of the actions and projects which support the efforts of the JSW Group (“JSW Group”) to increase the value of both the Company and the entire Group. Strategic objectives have been defined, which are parameterized in accordance with the current and forecast market standing of the company.

According to the accepted Strategy, the mission and the vision of the JSW Group are as follows:

Mission - Producing a strategic raw material for transforming the world.

Vision -  Leading supplier of raw materials to the steel and chemical industries.

In addition, JSW S.A. emphasizes its long-term commitment and action towards sustainable development. The main objective is to increase the value of the JSW Group.

The JSW Group’s strategic goals for 2022-2030 are as follows:

• Reducing the carbon footprint of the JSW Group’s organization by 30% by 2030 in relation to 2018 (Scope 1 and 2) and aiming to achieve climate neutrality by 2050 and minimizing environmental impacts in the remaining areas.
• Average EBITDA margin of at least 25% in 2022-2030.
• Securing the coking coal resource base - development investments to open up new deposits and new mining levels.
• Share of coking coal production above 90% from 2026.
• Diversification of revenues:

• Generating on average 10% of revenue on the sale of products unrelated to the core business in 2022-2030,
• Diversification of revenues (product and geographic).

• Product quality - production and sale of coking coal and coke with stable and desired quality parameters.
• Safe JSW - further increase of our high safety standards.
• Efficient JSW Group - optimization of the structure and level of costs (MCC, CCC).

The axis of the JSW Group's environmental priorities is provided by the upcoming regulatory changes and changes in the external market and technological environment, as well as clarification of the commitment to climate protection. The overarching goal for addressing climate change will be to strive to achieve climate neutrality by 2050. As JSW Group's medium-term goal, reduction of the carbon footprint (in Scopes 1 and 2) by 30% by 2030 relative to 2018 in line with the <2⁰C pathway of the Paris Agreement.

The JSW Group's key environmental protection efforts have been identified in 4 key areas:

Air protection and emissions reduction:

• Reduction of greenhouse gas emissions in accordance with the Paris Agreement.
• Bringing facilities into compliance with environmental emission requirements of best available techniques (BAT).
• Further optimization of energy consumption and utilization throughout the JSW Group's operations.
• Successful implementation of the investment projects planned in the JSW Group, covering the main sources of emissions until 2030, and continued development of innovative emission reduction technologies for further neutralization until 2050.
• Diversification of JSW Group's operations based on low-carbon and taxonomic products and services.

Water conservation and biodiversity:

• Continuation of rational water management activities.
• Protection of surface waters affected by the JSW Group related to the introduction of saline water from mining operations.
• Execution of the investment projects in development and optimization of infrastructure operations to support more effective water conservation.
• Implementation of projects enabling the restoration of biological and natural diversity in the areas affected by the JSW Group’s operations.

Striving towards circular economy:

• Continuation of activities consistent with the priorities of circular economy (CE) and the 5R principle (Refuse, Reduce, Reuse, Repurpose, Recycle).
• Reduction of the amount of waste generated.
• Planning and development of improved waste management practices.
• Production and sale of mining rock aggregates.

Land reclamation:

• Reclamation following the progress of the work front.
• Repairing mining damage.
• Inventory-taking of transformed and post-industrial sites, development of projects for their revitalization or use for construction of infrastructure, e.g. RES.

Strategic programs to achieve the goal of reducing emissions by 30% by 2030:

• Since 2018, JSW Group has been running a dedicated program entitled "Economic Utilization of Methane" (EUM), aimed at reducing methane emissions into the atmosphere and utilizing it for energy production.
• The second program planned for reducing methane emissions and increasing its economic utilization is “Reduction of Methane Emissions” (RME), which aims to increase methane capture to 50% and methane utilization to 95%.

Additional activities conducted:

• Continuation of optimization of electricity consumption and improvement of energy efficiency.
• Development of own RES capacity and increase of the share of "green energy" in the volume of energy purchased from the market.
• Implementation of innovative, developmental initiatives related to reducing ventilation air methane (VAM) emissions.

All the investments planned by 2030 to reduce emissions and protect the environment in the JSW Group involve capital expenditures of over PLN 4 billion, of which approximately 71% are for activities related to air protection, including reduction of the carbon footprint.

In the efforts to achieve climate neutrality by 2050, the planned directions of development include continuation of reduction of methane emissions, optimization of energy production and consumption, participation in research on the development of new technologies - ventilation air methane capture (VAM), carbon dioxide capture (CCUS) and hydrogen production.

Key development plans until 2030 will be based on, among other things:

• Securing the coking coal resource base through development investments to open up new deposits and new mining levels.
• Switching to production of mainly coking coal - increasing the share of coking coal production to over 90% from 2026 (coal with stable and high quality parameters).
• Optimization efforts in the mining and coking area and activities improving integration between the two operating areas.
• Maintaining coke production capacity.
• Ensuring JSW's energy independence (security) by developing generation capacity to the level ensuring maximum satisfaction of the JSW Group's needs in terms of energy sources, i.a. by using methane as an accompanying mineral in the coal mining process and coke oven gas generated during coke production for energy purposes.
• The aforementioned activities are planned to achieve:

- 198 MWe of installed generation capacity,

- 1.62 TWh/year of energy produced in the JSW Group in 2029 from methane, coke oven gas and PV installations,

- 114 GWh/year of energy produced from RES in the JSW Group in 2029.

• Growing the JSW Group’s profitability.
• Implementation of innovative solutions.

Regarding the operational assumptions:

• In accordance with the strategic objectives for the mining operations, the JSW Group will strive to increase annual bituminous coal production from approximately 14.5 million tons in 2022 to 16.1 million tons in 2030.
• In the mining area, the model envisages focusing of the mining processes on gradual increase in coking coal production levels, including in particular type 35 coal which obtains the highest prices in JSW S.A.'s product structure, thus leading to an increase in the profitability of the Group's product portfolio.
• The increase in the share of coking coal production to over 90% from 2026 is related to a change in the production profile as a result of implementation of the Company's operating model towards production of mainly coking coal, inter alia, through investments completed in the Coal Preparation Plants.
• The average annual roadway excavation works in JSW in the 2022-2030 period should amount to over 77 thousand running meters.
• During the term of the Strategy, JSW assumes an increase in efficiency (productivity) per employee, from roughly 620 tons to about 860 tons of coal per person in 2030, assuming the average annual headcount of about 19.9 thousand employees in 2022-2030.
• Sustainable volume of coke production and sales at a stable level of about 3.6 million tons per annum.
• The strategy for 2022-2030 envisages the JSW Group to incur capital expenditures in the total amount of about PLN 22.4 billion. Capital expenditures in the coal segment will amount to approx. PLN 17.8 billion and account for 79% of the JSW Group’s total capital expenditures.
• In the coke segment, capital expenditures of approx. PLN 2.8 billion are planned to be incurred in 2022-2030. The planned expenditures in 2022 and 2023 are the highest of all the years and altogether account for approx. 40% of the planned investments until 2030. In 2022-2023, the key investments at JSW KOKS will involve the modernization of battery no. 4 and the construction of a power unit at the Radlin Coking Plant.

The major objectives of the Company’s financing strategy include:

• Ensuring a stable financing structure, by achieving and maintaining at least 50% of the share in equity in the structure of equity and liabilities, and covering the value of non-current assets with fixed capitals.
• Taking actions to ensure the amount of financing which allows for maintaining continuity of operating and investing activity processes at the assumed levels.
• Aiming to maintain a cash buffer within the Group to ensure that key liabilities are met, including in particular payroll liabilities; the buffer will be used during periods of drastic declines in sales revenues.
• Creation of a stabilization fund in periods of favorable economic situation in the coal market so as to ensure an appropriate level of financial liquidity in the period of a downturn on the coal market - generating negative cash flows, which will allow to maintain financial liquidity until implementation of cost-side measures adjusting to the prevailing pricing conditions in the market.

Legal basis: Article 17(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.