Changes to the conditions of the loan agreement

The Management Board of KGHM Polska Miedź S.A. ("KGHM") announces thaton 30 June 2017 it decided to express agreement to the changes to theconditions of the loan agreement signed by Sierra Gorda SCM on 8 March2012, the signing of which was announced by the Company in regulatoryfiling no. 13/2012.

The nature of the financing will change from project finance tocorporate credit, which will significantly decrease the limitations andduties of Sierra Gorda SCM and in particular will improve the elasticityof operating and financial activities of Sierra Gorda SCM. Moreover, thedocumentation related to financing will be modified, includingguarantees issued by Sumitomo Metal Mining Co., Ltd. and SumitomoCorporation and their term of validity will be maintained up to the endof the financing period, that is to 15 June 2021, since the Sierra GordaSCM mine did not achieve part of the production and cost parameters inthe deadline specified in the original financing agreement.

The condition precedent to the issuance of the aforementioned guaranteesis granting a re-guarantee of repayment of a specified part of paymentby KGHM towards Sumitomo Metal Mining Co., Ltd. and SumitomoCorporation. On 30 June 2017, the Management Board of KGHM grantedpermission to issue a re-guarantee of repayment of a specified part ofpayment, if it is made by Sumitomo Metal Mining Co., Ltd. and SumitomoCorporation towards the financing banks, in the amount equal to the prorata share of KGHM, but no more than the amount of USD 180 million.

As at 30 June 2017, the amount of financing due to the loan agreement isaround USD 760 million.

The changes will come into force once all of the formal conditionsspecified in the agreed upon documentation of the credit agreement ofSierra Gorda SCM have been met.

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)