Subject:Draftagreement between the Management Board and Representative Trade UnionOrganizations

Body ofthe report:

Withreference to Current Report No. 93/2025 on the commencement ofpreparations for the business restructuring process at JSW, theManagement Board of Jastrzębska Spółka Węglowa S.A. ["JSW," "Company"]hereby reports that the terms and conditions of the suspensionmemorandum of agreement ["Draft Suspension Memorandum of Agreement"] andthe implementation memorandum of agreement ["Draft ImplementationMemorandum of Agreement"] with the Representative Trade UnionOrganizations operating at JSW have been agreed upon.

Thedraft Suspension Memorandum of Agreement will be subject to a referendumamong the Company's employees.

Thesubject of the Draft Suspension Memorandum of Agreement is thesuspension of the application of the provisions of certain collectiveagreements concluded with trade unions and internal regulations in forceat JSW, and the exceptional, temporary application of less favorableterms and conditions of employment than those resulting from employmentcontracts concluded with employees to the extent specified in the DraftSuspension Memorandum of Agreement, including the suspension of theright to the 14th salary for 2026, postponement of the payment date ofthe 14th salary for2025 to 2027, the payment of the Miner's Festival bonus and the Miner'sFestival cash equivalent for 2025-2027 in installments, the suspensionof the payment of the free coal allowance and reduction of otherbenefits [inter alia reduction of meal subsidies].

TheDraft Suspension Memorandum of Agreement stipulates that if, during theterm of the Suspension Memorandum of Agreement, there is a significantimprovement in the economic standing of JSW, the Company will pay thesuspended benefits, without interest, taking into account the cash sweepmechanism, which assumes proportional distribution of cash surplus toemployees and financial institutions.

TheDraft Suspension Memorandum of Agreement provides that the SuspensionMemorandum of Agreement will enter into force on the date of itssigning, with effect from 1 February 2026, and will be concluded for aperiod of 23 months, i.e. until 31 December 2027.

Thesubject of the Draft Implementation Memorandum of Agreement is toestablish the mutual obligations and rights of the parties related tothe entry into force and implementation of the Suspension Memorandum ofAgreement. In accordance with the Draft Implementation Memorandum ofAgreement the Company will make every effort to raise the financingnecessary for the continued operation of JSW by the end of March 2026,with the proviso that such financing is conditional upon the Company'sManagement Board developing a JSW remedy program taking into account therules for financing JSW specified by the financial institutions.

Inthe Draft Implementation Memorandum of Agreement, the Company declaresthat it is conducting talks on raising new funds in the amount of up toPLN 2.9 billion, andthat it is taking steps to raise funds from the sale of assets - sharesin subsidiaries of JSW S.A. and other non-core assets of JSW S.A.

TheDraft Implementation Memorandum of Agreement provides that if JSW failsto obtain the financing by 31 March 2026, each party will have the rightto terminate the Suspension Memorandum of Agreement and theImplementation Memorandum of Agreement with 3 months' notice, providedthat obtaining financing during the notice period will render thetermination ineffective.

TheDraft Implementation Memorandum of Agreement provides that, under theImplementation Memorandum of Agreement, the Company will also undertake,within specified time limits, actions consisting in the sale orrestructuring of selected companies from the JSW Group, as well asreducing employment at the Production Support Unit and the ManagementBoard Office.

TheDraft Implementation Memorandum of Agreement stipulates that if thesale, restructuring, or recapitalization of certain assets is notcompleted by 31 December 2026, or 31 March 2027 [depending on theaction], trade union organizations will be entitled to terminate theSuspension Memorandum of Agreement and the Implementation Memorandum ofAgreement.

TheCompany will disclose information on further steps in this matter in aseparate current report.

TheDraft Suspension Memorandum of Agreement is attached as Appendix 1 tothis report.