Body of the Report:

The Management Board of Jastrzębska Spółka Węglowa S.A. [“Company”, “JSW”] hereby reports that today, 20 February 2024, it adopted a resolution on recognizing an additional impairment loss on non-current assets in the coal segment in the amount of PLN 169,4 million, to be charged to the Company’s profit and loss account for Q4 2023.

In accordance with the provisions of IAS 36 “Impairment of assets”, an analysis of indications of impairment has been carried out, as a result of which it has been concluded that there are no new indications which would suggest the possibility of impairment nor has it been found that the indications identified in previous periods as a result of which impairment losses had been established ceased to exist.

At the same time, due to the fact that the discounted cash flows generated by the cash generation unit, i.e. the “Borynia-Zofiówka-Bzie” Coal Mine, Bzie Section [“CGU”], are negative and that the CGU’s recoverable amount is zero, and in consideration of the impairment loss on the CGU’s assets recognized in previous periods and the increase in the CGU’s assets as at 31 December 2023, it became necessary to recognize an additional impairment loss on non-current assets in the coal segment.

The recognition of the above impairment loss will reduce the operating result of JSW and the JSW Group but will not impact their liquidity position. The final value of the impairment loss will be presented in the standalone and consolidated financial statements of JSW and the JSW Group, respectively, for 2023.

Please be advised that the above figure of the impairment loss is an estimate and is subject to change.

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.