Subject:Informationon recognition of an impairment loss on non-current assets in the coalsegment

Bodyof the Report:

TheManagement Board of Jastrzębska Spółka Węglowa S.A.["Company", "JSW"]hereby reports that today, 20 February 2024, it adopted a resolution onrecognizing an additional impairment loss on non-current assets in thecoal segment in the amount of PLN 169,4 million, to be charged to theCompany's profit and loss account for Q4 2023.

Inaccordance with the provisions of IAS 36 "Impairment of assets", ananalysis of indications of impairment has been carried out, as a resultof which it has been concluded that there are no new indications whichwould suggest the possibility of impairment nor has it been found thatthe indications identified in previous periods as a result of whichimpairment losses had been established ceased to exist.

Atthe same time, due to the fact that the discounted cash flows generatedby the cash generation unit, i.e. the "Borynia-Zofiówka-Bzie" Coal Mine,Bzie Section ["CGU"], are negative and that the CGU's recoverable amountis zero, and in consideration of the impairment loss on the CGU's assetsrecognized in previous periods and the increase in the CGU's assets asat 31 December 2023, it became necessary to recognize an additionalimpairment loss on non-current assets in the coal segment.

Therecognition of the above impairment loss will reduce the operatingresult of JSW and the JSW Group but will not impact their liquidityposition. The final value of the impairment loss will be presented inthe standalone and consolidated financial statements of JSW and the JSWGroup, respectively, for 2023.

Pleasebe advised that the above figure of the impairment loss is an estimateand is subject to change.

Legalbasis:Article 17[1] of Regulation [EU] No. 596/2014 of the European Parliamentand of the Council of 16 April 2014 on Market Abuse and RepealingDirective 2003/6/EC of the European Parliament and of the Council andCommission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.