Financing for Sierra Gorda

The Management Board of KGHM Polska Miedź S.A ("Company"), in referenceto regulatory filing no. 3/2020 dated 16 January 2020, hereby announcesa revision of a target of the Budget of KGHM Polska Miedź S.A. and theKGHM Polska Miedź S.A. Group for 2020 ("KGHM's Budget") with respect toother capital expenditures, by increasing the base amount of PLN 133million by the equivalent of USD 55 million (PLN 232 million per theexchange rate of the NBP from 11 May 2020).

The assumed increase in capital expenditures is directly related to theplan to provide owner's financing to Sierra Gorda in the amount of USD55 million.

The necessity to provide additional financing to Sierra Gorda isdetermined by macroeconomic conditions under which products are sold,which are different from those assumed in the Budget, i.e. lower metalprices. A key factor determining the said disparity is, among others,the impact of the COVID-19 pandemic on the global commodity markets.

Financing will be provided following the approval of the SupervisoryBoard 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)