JSW S.A.

Earnings Release • Jul 26, 2022

Subject:Informationon recognition of an impairment loss on non-current assets in the Coalsegment

Bodyof the report:

TheManagement Board of Jastrzębska Spółka Węglowa S.A.("Company", "JSW")hereby reports that today it adopted a resolution on recognizing anadditional impairment loss on non-current assets in the coal segment inthe amount of PLN 164.0 million, to be charged to the Company's profitand loss account for Q2 2022.

Inaccordance with the provisions of IAS 36 "Impairment of assets", ananalysis of indications of impairment has been carried out, as a resultof which it has been concluded that there are no new indications whichwould suggest the possibility of impairment nor has it been found thatthe indications identified in previous periods as a result of whichimpairment losses had been established ceased to exist.

Atthe same time, due to the fact that the discounted cash flows generatedby the cash generation unit, i.e. the "Jastrzębie-Bzie" Coal Mine("CGU"), are negative and that the CGU's recoverable amount is zero, andin consideration of the impairment loss on the CGU's assets recognizedin previous periods and the increase in the CGU's assets as at 30 June2022, it became necessary to recognize an additional impairment loss onnon-current assets in the coal segment.

Therecognition of the above impairment loss will reduce the operatingresult of JSW and the JSW Group but will not impact their liquidityposition. The final value of the impairment loss will be presented inthe standalone and consolidated financial statements of JSW and the JSWGroup, respectively, for the 6-month period ended 30 June 2022.

Pleasebe advised that the above figure of the impairment loss is an estimateand is subject to change.

Legalbasis:Article 17(1) of Regulation (EU) No. 596/2014 of the European Parliamentand of the Council of 16 April 2014 on Market Abuse and RepealingDirective 2003/6/EC of the European Parliament and of the Council andCommission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.