Decision on Provincial and Federal Environmental Assessments for AjaxProject

The Management Board of KGHM Polska Miedź S.A. announces that itobtained information on 15 of December 2017 that the British ColumbiaMinister of Environment and Climate Change Strategy and Minister ofEnergy, Mines and Petroleum Resources (provincial government) havedeclined the issuance of an Environmental Assessment Certificate for theAjax copper-gold project near Kamloops, British Columbia.

The Federal Minister of Environment and Climate Change Canada issued anopinion that the project would produce significant adverse effects, andhas referred the project onwards to Fisheries and Oceans Canada andNatural Resources Canada. The responsible ministries will review thematter, and the federal cabinet (made up of the various federalministers) will ultimately determine whether the project's adverseeffects are justified such that the project can proceed in spite ofthose adverse effects.

The decisions follow an assessment review process, which involvedextensive engagement with provincial and federal government agencies,technical working and community advisory groups, First Nations and abroad array of stakeholder interest groups, including thousands ofcommunity members.

KGHM Ajax, following the review of the reasons for the provincialdecision, will consider the next steps, which may include judicialreview.

Ajax is an advanced stage copper-gold project that is owned by KGHM AjaxMining Inc. (KGHM Ajax), a joint venture company owned by KGHM PolskaMiedź S.A. (80%) and Abacus Mining and Exploration Corporation (20%).

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)