KGHM Polska Miedź S.A.

Legal Proceedings Report • Oct 8, 2020

Receipt of information on the commencement by Sumitomo of preparationsfor the disposal of its interest in the joint venture company SierraGorda SCM

The Management Board of KGHM Polska Miedź S.A. ("Company") announcesthat on 7 October 2020 the Management Board of the Company was informedby Sumitomo Metal Mining Co., Ltd., Sumitomo Corporation and SMM SierraGorda Inversiones Limitada ("Sumitomo") of the planned commencement ofthe process of sale of Sumitomo's 45% interest in the joint venturecompany Sierra Gorda SCM ("Sierra Gorda", "SG") ("Transaction") and ofpreparations preceding the formal commencement of the Transaction,including the planned commencement of marketing activities aimed atpotential investors.

The current Strategy of KGHM Polska Miedź S.A. for the years 2019-2023does not assume any changes in the scale of involvement of the Companyin Sierra Gorda. All of the efforts towards optimisation carried out todate, aimed at enhancing the value of Sierra Gorda, will be continued.They are yielding the expected results, which is reflected in thesurpassed half-year production budget targets for 2020.

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)