Federal decision received regarding the Ajax Project

The Management Board of KGHM Polska Miedź S.A., in reference toregulatory filing no. 34/2017, announces that on June 27, 2018, theGovernment of Canada, through the Governor-in-Council (Cabinet) issued anegative decision regarding the Ajax project as the project is likely tocause significant adverse environmental effects.

The Ajax Project is an advanced stage proposed copper-gold mine locatednear Kamloops, British Columbia. The project 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%).

Following a review of the federal decision, in conjunction with thepreviously issued provincial decision, KGHM Ajax will consider the nextsteps to be taken.

With respect to the updated valuation of the Ajax project as at 31December 2017, in respect of which - in accordance with the prudentvaluation principle - KGHM Polska Miedź S.A. adopted the value of realestate of KGHM Ajax as the upper limit in setting the recoverable amountof the assets of KGHM Ajax, this decision is not expected to have animpact on the recoverable amount of the project.

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).