KGHM Polska Miedź S.A.

Capital/Financing Update • May 29, 2020

Sierra Gorda S.C.M. arranges an owner-guaranteed bank loan

The Management Board of KGHM Polska Miedź S.A. ("KGHM") announces thaton 29 May 2020, a bank loan agreement was signed between Sierra GordaS.C.M ("Sierra Gorda") and Bank Gospodarstwa Krajowego. The bank loanwill be used to support the on-going activities of Sierra Gorda giventhe current macroeconomic situation caused by COVID-19. The bank loanagreement will come into force once the formal conditions precedent havebeen met. The bank loan agreement entered into by Sierra Gorda will besecured by a corporate guarantee issued by the owners of Sierra Gorda.The value of the guarantee granted by KGHM derives from the shares heldin Sierra Gorda (55%) and from the total amount of the bank loan (USD200 million) and amounts to USD 110 million (or PLN 443 million at theaverage exchange rate of the NBP dated 28 May 2020).If theaforementioned bank loan agreement does not come into force, the Companywill announce 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)