KGHM Polska Miedź S.A.

Regulatory Filings • Jun 19, 2023

Adoption of a decision regarding the development of a feasibility studyon the evaporated salt plant

The Management Board of KGHM Polska Miedź S.A. (_quot;Company_quot;) announcesthat on 19 June 2023 it adopted a resolution regarding the developmentof a feasibility study on the construction of a plant to produceevaporated salt from the salty mine water pumped from the mines usingevaporation technology ("evaporated salt plant").

The basic assumption of the project is the selective management of minewater, aimed at concentrating the flow of water with a higher saltcontent to the region where the main dewatering pumping takes place,from whence it will be possible to direct it for further processing. Theutilisation of technological steam, available from existingtechnological processes, will enable the desalination of water flows andthe production of commercial salt products (evaporated salt) in amountsof up to 1 million tonnes annually. These actions, apart from theirmeasurable economic effects, will enable a reduction of the total amountof salt deposited in conjunction with water from dewatering the rockmass by approx. 50%, at the same time substantially reducing theCompany's environmental impact and contributing to the protection of theOdra river's ecosystem.

Estimated capital expenditures, based on preliminary calculations andrecent analogous investments, could reach up to PLN 1 billion. Theplanned investment period, taking into account the preparatory phase,according to preliminary estimates, may amount to 6 years.

In accordance with the circular economy principles, the goal of thepreparatory phase is to maximally restrict the generation of tailingsthrough their utilisation, amongst others, to meet agricultural needs.An additional expected use of the water arising from the desalinationprocess is in the cooling installations of the metallurgical plants,which will enable the efficient utilisation of resources and theoptimisation of costs.

The nearest actions planned to take place in 2023 will be aimed at adetailed analysis of investment expenditures and operating costs and theconduct of production trials of the aforementioned desalinationprocesses, including the management of tailings and the development of adetailed timeline for these investment activities. Once these tasks areaccomplished, a decision will be made as regards the selection oftechnology and the scale of the investment.

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).