KGHM Polska Miedź S.A.

Regulatory Filings • Feb 17, 2021

Identification of indications to verify the recoverable amount of Polishand international assets of the KGHM Polska Miedź S.A. Group

The Management Board of KGHM Polska Miedź S.A. ("the Company") announcesthat as a result of reviewing the technical and economic parameters ofkey international mining assets belonging to the KGHM Polska Miedź S.A.Group and current forecasts of pricing paths of commodities, indicationsof a possible change in the recoverable amount of the Franke mine wasidentified.

Moreover, as a result of reviewing the economic parameters of Polishassets belonging to subsidiaries in the context of current macroeconomicconditions, indications of possible impairment of the recoverable amountof a part of these assets was identified.

As a result, pursuant to IAS 36, it obliges the Company to conduct testsfor impairment as at the end of the last reporting period, i.e. 31December 2020 in order to estimate the recoverable amount with respectto :

1) International assets:

a) the Franke mine,

2) Polish assets:

a) assets of KGHM Polska Miedź S.A. in the form of shares insubsidiaries and Investment Certificates of Funds managed by KGHM TFIS.A. (to be recognised in the separate financial statements of KGHMPolska Miedź S.A.),

b) assets of units described in letter a), including shares in portfoliocompanies of Funds and their assets (to be recognised in theconsolidated financial statements of the KGHM Polska Miedź S.A.),

in which indications of possible impairment were identified.

For other international mining assets and Polish assets, indications toconduct tests have not been identified. The results of the tests will bedisclosed by the Company 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)