Strategy of the KGHM Group to 2030 with an outlook to 2040

The Management Board of KGHM Polska Miedź S.A. ("the Company", "KGHM")announces that on 14 January 2022 the Supervisory Board of the Companyapproved the Strategy of the KGHM Polska Miedź S.A. Group to the year2030 with an outlook to 2040 ("the Strategy") as presented by theManagement Board.

Three years have passed since the adoption of the Strategy of KGHMPolska Miedź S.A. for the years 2019-2023. As a result of thesubstantial changes which have occurred in the world during this time,the strategic assumptions were reviewed and refreshed.

The consistent advancement of the Strategy adopted in 2018 enabled theKGHM Group to take advantage of favourable macroeconomic trends toincrease the scale of its activities as well as to substantially improveits production results and financial condition.

The three years of advancement of KGHM's Strategy also involved bindingdecisions and areas requiring an update given current megatrends. Thedecision to update the Strategy was dictated in particular by:

? macroeconomic changes of strategic importance for the mining sector,in particular those arising from the green transformation,

? the need to clarify the Company's actions as regards the commencementof decarbonisation and commitments to protect the climate,

? a focus on securing access to the raw materials base for future copperproduction, but also actions aimed at developing mining capacity interms of other metals and mineral resources,

? the intensification of actions aimed at the implementation ofinnovation in the production process,

? the identification of opportunities to gain competitive advantages andto develop the Company in new, promising business areas.

The justification for this review and redefinition coincided with anextraordinary market situation driven by the SARS-CoV-2 epidemic.Despite the fact that KGHM was exceptionally successful compared toother companies on the market during this difficult time, the desire tomaintain its flexibility requires an update for plans regarding thefuture. The result of the Company's work is the Strategy to the year2030 with an outlook to 2040. The Company's mission and vision remainedunchanged. To reflect the changes in the general environment, the fourexisting strategic development directions (Flexibility/elasticity,Efficiency, Ecology and E-industry) were updated to include a fifthelement - Energy.

This "5E" Strategy is now comprised of 5 pillars based on 5 updateddevelopment directions. These pillars have been assigned individualisedmain goals as well as key performance indicators, as follows:

I. Pillar - Core business. Comprised of the following elements:

- Advanced technology and R_amp;D creating an intelligent production line;

- Optimisation of mine production domestically and abroad ensuringlong-term operational continuity;

- Leadership in the development of low-emissions mining capacity asregards new metals and minerals deposits in Poland;

- Development of metallurgy utilising efficient processing based onCircular Economy principles.

Main goal: Strengthen the position of the KGHM Group as a global playerin the mining and metallurgy sector

Goals for 2030:

1. Domestic copper production - approx. 600 thousand tonnes ofelectrolytic copper (including production based on a higher amount ofpurchased materials and copper from recycling).

2. International copper production - higher production by theinternational assets of KGHM by extending their life-of-mine, developingassets in the mine projects portfolio held and increasing the resourcebase thanks to advancement of the International Exploration Strategy.

3. Silver production - maintain the position amongst the world'stop-three producers of silver (approx. 1200 tonnes of silver annually).

4. Profitability - 10.2% (Average ROCE (return on capital employed) fromthe last 3 years).

5. Cost competitiveness - 3rd quartile.

II. Pillar - New activities, comprised of the following elements:

- To be one of the leading, environmentally-friendly electricityproducers, supporting Poland's energy transformation;

- Expansion along the value chain by developing the production of newproducts from copper and other metals (including initiatingrelationships with partners in Poland and abroad).

Main goal: Diversification and aiming at sustainable development bybuilding internal generation capacity from low-emission sources

Goals for 2030:

1. Energy produced - min. 50% of consumption

2. A reduction in estimated CO2 emissions resulting from electricityconsumed - 1.0 million tonnes of CO2

3. Diversification of the commercial offer in terms of metals -(increase in share of new semi-finished copper products and highlyprocessed copper products (OFE-Cu wire, OFE-Cu granules) and othermetals in the total sales of the KGHM Group) - 10%.

III. Pillar - Supporting activities, comprised of the following elements:

- To be a major supplier of Smart Mining solutions for products andservices sold in Poland and globally;

- Ensure the financial stability of the KGHM Group and implementsystemic solutions aimed at enhancing the Group's value.

Main goal: Redefine the way that existing assets supporting the corebusiness are utilised

Goals for 2030:

1. Recycling of scrap - approx. 350 thousand tonnes of copper scrap

2. Revenues from sales on foreign markets of selected Group companies -using 2020 as the base year = 100%: an increase by 2030 of 147% versusthe base year for the companies KGHM Zanam S.A., Nitroerg S.A. andPeBeKa S.A., and 163% versus the base year for the company DMC MiningServices Ltd.

IV. Pillar - Health, comprised of the following elements:

- Development of activities promoting health and health resorts (spas)as a contribution to extending the length and quality of life forcitizens.

Main goal: Development of the spa assets held as a contribution toextending the length and quality of life for society as a whole

Goals for 2030:

1. LTIFR - the goal of 0 accidents

2. TRIR - the goal of 0 accidents

3. Level of support for the area of Health carried out by the KGHMPolska Miedź Foundation - approx. PLN 7 million

V. Pillar - Support for Society, comprised of the following elements:

- Growth based on the idea of sustainable development and safety.

Main goal: Growth based on the idea of sustainable development and safety

Goals for 2030:

1. Support for the fair transformation of the mining sector

2. Number of volunteer projects advanced - 30

3. Level of support for the arts, sport and health approx. PLN 48 million

The Strategy of the KGHM Group to the year 2030 also includesclimate-related goals as respects reducing emissions by KGHM which areconsistent with the Climate Policy of KGHM Polska Miedź S.A., being acomplementary document to the Strategy.

The updated Strategy does not alter the Company's current approach toits business activities. KGHM Polska Miedź S.A. continues to actresponsibly and long-term thinking about the Company's future.

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)