KGHM Polska Miedź S.A.

Capital/Financing Update • Mar 29, 2021

Signing of a bank loan agreement between Sierra Gorda S.C.M. and BankGospodarstwa Krajowego

The Management Board of KGHM Polska Miedź S.A. ("KGHM", "Company")announces that on 29 March 2021, a renewable revolving bank loanagreement was signed between Sierra Gorda S.C.M ("Sierra Gorda") andBank Gospodarstwa Krajowego with the maximum limit of USD 700 million(or PLN 2 751 million at the average exchange rate of the NBP dated 26March 2021). The bank loan will be used to refinance the current debtand potentially to finance Sierra Gorda's current activities. The fundsfrom the bank loan agreement will be available once the formalconditions precedent have been met. Obligations arising from the bankloan agreement entered into by Sierra Gorda will be secured by acorporate guarantee issued by the owners of Sierra Gorda (KGHM PolskaMiedź S.A., Sumitomo Metal Mining Co., Sumitomo Corporation).

The value of the guarantee which KGHM will be obliged to grant derivesfrom the shares held in Sierra Gorda (55% share) and from the totalamount of the bank loan (USD 700 million). The value of the guaranteeissued by KGHM will amount to USD 385 million (or PLN 1 513 million atthe average exchange rate of the NBP dated 26 March 2021).

If the aforementioned conditions precedent are not met, the Company willannounce this fact in a separate regulatory filing.

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)