Information on the results of the conducted tests for impairment

With respect to regulatory filing no. 46/2016 dated 13 December 2016,the Management Board of KGHM Polska Miedź S.A. ("Company") announcesthat the major work related to testing for the impairment ofinternational mining assets of the KGHM Polska Miedź S.A. Group has beencompleted.

For purposes of the tests conducted, the recoverable amount was setbased on an analysis of the discounted cash flow generated by individualassets, and took into consideration among others the current forecastsof pricing paths for individual commodities and the reviewed technicaland economic assumptions as regards mine lives, metals productionvolumes, reserves and resources, operating costs and the level ofcapital expenditures.

The price path for copper was set based on internal macroeconomicassumptions developed with the use of long-term forecasts available fromfinancial and analytical institutions. A detailed forecast is beingprepared for the period 2017 - 2021, while for subsequent years aforecast is based on long-term metal price of 6 614 USD/t (3.00 USD/lb).For comparative purposes, a long-term copper price of 7 075 USD/t (3.21USD/lb) was set for the purpose of conducting testing for impairment asat 31 December 2015.

Following are the major technical and economic assumptions applied toindividual assets:

Sierra Gorda--------------- Assumptions for the test------------------Assumptions for the test

------------------------------as at 31 December 2016------------------as at 31 December 2015

Mine life(years)----------24-------------------------------------------40

Copper production ------4 352----------------------------------------10750during mine life (kt)Averageoperating-------36%------------------------------------------42%marginduringmine lifeCapital expenditures---2004------------------------------------------5 623to be incurredduringmine life (mn USD)Following are the main factorsresponsible for the difference between the current and priorassumptions, in particular as regards production and mine life:

a) presented assumptions regarding production do not include mining andmetals production from the Pampa Lina deposit estimated at approx. 4 853thousand tonnes; for the purpose of the test as at 31 December 2016valuation of the Pampa Lina deposit was based on comparable markettransactions, which similarly to the valuation carried out as at 31December 2015 represented a marginal part of the value of the SierraGorda mine;

b) current assumptions do not include phase II of the mine'sdevelopment; taking into consideration current macroeconomic assumptionsfor the price of molybdenum and copper and the current level ofoperating efficiency of Sierra Gorda, it is presently assumed that phaseII of the project will not be commenced;

c) the independent technical and economic review of the mine conductedin 2016 using updated pricing paths and applying updated costsassumptions as well as the technical parameters of the processing plant.

Robinson----------------- Assumptions for the test------------------Assumptions for the test

-----------------------------as at 31 December 2016------------------asat 31 December 2015

Mine life(years)-----------6-------------------------------------------11

Copper production -------257----------------------------------------531duringmine life (kt)Averageoperating-------30%----------------------------------------34%marginduringmine lifeCapitalexpenditures-----316-----------------------------------------805tobe incurred duringmine life (mn USD)

The main factors responsible for the modification of forecastedassumptions regarding the life of the Robinson mine are related to thechange in projected copper price, further supported by independentreview of technical and economic assumptions of the mine's operatingplans conducted in 2016. It assumed optimised capital expenditures onthe mine and selection of the most advantageous mine developmentscenario in terms of the level of future cash flow.

Sudbury------------------- Assumptions for the test------------------Assumptions for the test

(Morrison and Victoria)--as at 31 December 2016------------------ as at31 December 2015

Mine life(years)-----------19-------------------------------------------19

Copper production -------305------------------------------------------378duringmine life (kt)Averageoperating--------61%------------------------------------------62%marginduringmine lifeCapital expenditures-----1616-----------------------------------------1 446to be incurredduringmine life (mn USD)

Ajax----------------------- Assumptions for the test------------------Assumptions for the test

-----------------------------as at 31 December 2016------------------ asat 31 December 2015

Mine life (years)----------19------------------------------------------21

Copper production ------1 005----------------------------------------1090during mine life (kt)Averageoperating-------40%----------------------------------------42%marginduringmine lifeCapital expenditures----1629-----------------------------------------1 544to be incurredduringmine life (mn USD)

With respect to the separate financial statements of KGHM Polska MiedźS.A. for the financial year ended 31 December 2016, the tests carriedout indicated justification to recognise an impairment loss in theamount of PLN 5 869.8 million, of which: PLN 4 770 million due to animpairment of the carrying amount of the interest in a holding companywhich owns 100% of KGHM International Ltd. and PLN 1 099.8 million dueto an impairment of the carrying amount of loans granted to thecompanies within the KGHM Polska Miedź S.A. Group.

With respect to the consolidated financial statements of KGHM PolskaMiedź S.A. for the financial year ended 31 December 2016, the testscarried out indicated justification to recognise the followingimpairment losses including the tax effect (amounts in USD together withtheir equivalents in PLN at the average exchange rate of the NationalBank of Poland as at 30 December 2016):

1. an impairment loss in the amount of USD 1 036.3 mn (PLN 4 331.0 mn)due to an impairment of the carrying amount of the loan granted toSierra Gorda SCM;

2. an impairment loss in the amount of USD 45.1 mn (PLN 188.7 mn) due toan impairment of the carrying amount of the assets of the Robinson mine;

3. an impairment loss in the amount of USD 61.3 mn (PLN 256.3 mn) due toan impairment of the carrying amount of the assets of the Sudbury Basinmines;

4. an impairment loss in the amount of USD 99.1 mn (PLN 414.4 mn) due toan impairment of the carrying amount of the assets of KGHM Ajax.

The total amount of the aforementioned impairment losses due toimpairment testing carried out in the consolidated financial statementsafter including the tax effect amounts to USD 1 241.8 million (PLN 5190.0 million).

The impairment losses recognised are a non-cash item and have no impacton the liquidity of the KGHM Polska Miedź S.A. Group.

The amounts presented above are estimates and are subject to change. Thefinal results of the testing will be presented in the separate andconsolidated financial statements for 2016, the publication of which isplanned for 16 March 2017.

Legal basis: Art. 17 (1) of MAR (Regulation (EU) No 596/2014 of theEuropean Parliament and of the Council of 16 April 2014 on market abuse(market abuse regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of theEuropean Union dated 12 June 2014, no. L 173/1)