KGHM Polska Miedź S.A.

Regulatory Filings • Apr 20, 2022

Signing of a letter of intent regarding cooperation on generationsources utilising SMR nuclear power technology with Tauron PolskaEnergia S.A.

The Management Board of KGHM Polska Miedź S.A. ("the Company") announcesthat today a letter of intent was signed with Tauron Polska Energia S.A.("Tauron"), in which the parties consider undertaking strategiccooperation involving research and development and future investmentprojects with respect to the construction of energy generation sourcesutilising SMR nuclear power technology ("Letter of Intent").

The objective of the cooperation between the Parties to the Letter ofIntent is to set forth the possibilities, nature and particulars ofpotential joint involvement in the advancement of SMR-related investmentprojects. The subject of the cooperation will include, among others, ananalysis of available technology and the possibility of placinggenerating installations in neighbouring receiving infrastructure, aswell as the possibility of utilising the existing infrastructure ofexisting power blocks along with identification of the possibility ofobtaining optimum technology, investing in a different manner orengaging in other forms of cooperation with third parties which arealready advancing or planning to advance SMR-related investment projects.

The Management Board of the Company sees a significant potential andpossibility to achieve the effect of synergy by engaging in jointactions with Tauron aimed at investing in SMR technology. These actionsare in line with the Company's strategic goals, in particular thoseinvolving Energy - the new 5E development direction. According to it,the Company will implement low-emission energy sources in the CoreProduction Business, and in future could sell energy to third parties,at the same time generating new revenue sources.

The Company wishes to emphasise that the Letter of Intent is solely anexpression of the intentions of the Parties to establish cooperation,and that the resolutions of the Letter of Intent are not in any waybinding for the Parties. The Letter of Intent is in force until suchtime as one of the Parties expresses a desire to withdraw from furthercooperation.

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)