Information on the results of the conducted tests for impairment

The Management Board of KGHM Polska Miedź S.A. ("the Company"), inreference to regulatory filing no. 33/2021 dated 12 July 2021, announcesthat as a result of the identification of indications of a possiblechange in the recoverable amount of key international assets, theCompany conducted tests to determine whether there occurred anyimpairment of these assets.

The recoverable amount of the international mining assets of the KGHMPolska Miedź S.A. Group was determined mainly on the basis of theanalysis of discounted cash flows generated by individual assets, andwhich took into account, among others, the current forecasts of pricingpaths of individual commodities and technical and economic assumptionsas to the mine life, production volumes, the size of the deposits,operating costs and investment expenditures.

The update of current forecasts of pricing paths, mainly copper, had asignificant impact on the level of future cash flows generated not onlyby the aforementioned mining assets of the Group, but also by SierraGorda S.C.M. (a joint venture), which are a significant element in theestimation of the recoverable amount of loans granted to finance theSierra Gorda S.C.M. project in the separate and consolidated financialstatements of KGHM Polska Miedź S.A.

With respect to the separate financial statements of KGHM Polska MiedźS.A. for the first half of the year ended 30 June 2021, the measurementof shares in the holding company Future 1 Sp. z o. o., which indirectlyholds 100% of the shares in KGHM INTERNATIONAL LTD., indicatedjustification for the reversal of a part of the impairment lossesrecognised in prior years in the amount of PLN 1 010 million and anincrease in the recoverable amount of the balance of loans granted tofinance the joint venture Sierra Gorda S.C.M. by the amount of PLN 1 585million.

With respect to the consolidated financial statements of KGHM PolskaMiedź S.A. for the first half of the year ended 30 June 2021, theperformed measurement indicated justification for the reversal of a partof the allowance for impairment recognised in prior years on the balanceof loans granted to the joint venture Sierra Gorda S.C.M. in the amountof PLN 1 655 million (USD 435 million converted at the average exchangerate announced by the National Bank of Poland as at 30 June 2021) and areversal of the impairment loss recognised in prior years on theRobinson mine's assets in the amount of PLN 39 million (USD 10 millionconverted at the average exchange rate announced by the National Bank ofPoland as at 30 June 2021).

The amounts presented above are estimates and may be subject to change.The final results of the testing will be presented in the separate andconsolidated financial statements for the first half of 2021, thepublication of which is planned for 17 August 2021.

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)