KGHM Polska Miedź S.A.

M&A Activity • Oct 1, 2020

Signing of a letter of intent on the sale of shares in the company PGEEJ 1 sp. z o.o.

The Management Board of KGHM Polska Miedź S.A. ("Company") announcesthat on 1 October 2020 the Company signed a letter of intent with theState Treasury represented by the President of the Council of Ministersand acting via the Government Plenipotentiary for Strategic EnergyInfrastructure ("State Treasury") on the acquisition of 100% of sharesby the State Treasury in the company PGE EJ 1 sp. z o.o. ("Letter ofintent").

The letter of intent was signed by all shareholders of the company PGEEJ 1 sp. z o.o., which is responsible for the preparation andrealisation of the investment involving the construction and operationof the first Polish nuclear power plant. The Company has 10% of sharesin PGE EJ1 sp. z o.o.

Signatories to the letter of intent are committed to take, in goodfaith, all the necessary steps to prepare and conclude a transactionaimed at acquisition by the State Treasury of shares in the company PGEEJ 1 sp. z o.o. ("Transaction"). The intent expressed in the Letter ofintent is that the State Treasury shall acquire shares in the companyPGE EJ 1 sp. z o.o. up to 31 December 2020, whereas the Parties did notspecify the period of validity of the Letter of intent. The Letter ofintent does not entail any obligations for the Parties to conclude theTransaction. The decision to conclude the Transaction will beconditional on the results of the negotiations, including the scope andfulfilment of other conditions specified in law in force or corporatedocuments.

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)