The Management Board's recommendation regarding the coverage of loss for2016 and dividend payout in 2017

On 11 May 2017, the Management Board of KGHM Polska Miedź S.A. adopted aresolution in which it recommends that the Ordinary General Meeting ofKGHM Polska Miedź S.A. covers the loss for financial year 2016 in theamount of PLN 4 084 550 199.31 from the Company's reserve capital andthat it adopts a resolution on the dividend payout in the amount of PLN200 000 000 (or PLN 1.00 per share) from the Company's reserve capitalin that part arising from profit.

In developing its recommendation, the Management Board mainly took intoconsideration the financial condition of the KGHM Polska Miedź S.A.Group.

The Management Board of KGHM Polska Miedź S.A. recommends the followingdividend payment dates:

A dividend date (the date on which the right to dividend is set) of 14July 2017.

Dividend payment dates:

1st instalment on 17 August 2017: PLN 100 000 000.00;

2nd instalment on 16 November 2017: PLN 100 000 000.00.

The above recommendation of the Management Board was positively reviewedby the Supervisory Board of KGHM Polska Miedź S.A.

The final decision regarding the dividend payout will be made by theOrdinary General Meeting of KGHM Polska Miedź S.A.

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)