KGHM Polska Miedź S.A.

Capital/Financing Update • Dec 19, 2019

Consent to sign a syndicated credit facility agreement

The Management Board of KGHM Polska Miedź S.A. announces that on 19December 2019 it consented to sign an unsecured syndicated creditfacility agreement in the amount of USD 1 500 million (approximately PLN5 742 million at the average exchange rate announced by the NationalBank of Poland for USD/PLN on 19 December 2019) with an internationalsyndicate of banks ("Agreement").

The Agreement has a five-year tenor and two one-year extension optionsexercisable at the request of KGHM Polska Miedź S.A. (at the discretionof each syndicate member). The credit facility will replace the currentrevolving syndicate credit facility in the amount of USD 2 500 milliondated 11 July 2014 (which was announced by the Company via a regulatoryfiling no. 22/2014). Following the signing of the aforementionedsyndicated credit facility Agreement, the credit facility agreement from2014 will be terminated on 27 December 2019.

The planned signing of the syndicated credit facility Agreement realisesthe Strategy of KGHM Polska Miedź S.A. for the years 2019 - 2023 withrespect to ensuring long-term financial stability by, among others,basing KGHM's financing structure on long-term instruments.

Moreover, the Management Board of KGHM Polska Miedź S.A. announces thatthe Agreement is planned to be signed on 20 December 2019. If theAgreement is not signed on 20 December 2019, the Company will announcethis fact in a separate regulatory filing.

The credit facility was arranged with a relational banks group of theKGHM Polska Miedź S.A. Group. The title of Lead Organizer and Bookrunnerwill be granted to Bank Polska Kasa Opieki S.A., Intesa Sanpaolo S.p.A.Spółka Akcyjna Oddział w Polsce, Banco Santander S.A., Santander BankPolska S.A. and Powszechna Kasa Oszczędności Bank Polski S.A.

As the credit facility was oversubscribed, there was a substantialreduction in allocation for the syndicate members.

According to the Agreement, the credit facility may be drawn in USD inthe form of up to 30 renewable tranches. The funds acquired from thecredit facility will be used to finance general corporate purposes.

Interest on the credit facility was set based on LIBOR plus a margin,which depends on the net debt/EBITDA financial ratio.

Other parameters of the credit facility agreement are similar to thestandard terms of these types of transactions.

The syndicate banks with which the Agreement will be entered into on 20December 2019 comprise: Bank Polska Kasa Opieki S.A., Intesa SanpaoloS.p.A. Spółka Akcyjna Oddział w Polsce, Banco Santander, S.A., SantanderBank Polska S.A., Powszechna Kasa Oszczędności Bank Polski S.A., BNPParibas Bank Polska S.A., Bank of China (Luxembourg) S.A. Spółka AkcyjnaOddział w Polsce, Bank Millennium S.A., Credit Agricole Bank PolskaS.A., Industrial and Commercial Bank of China (Europe) S.A. (SpółkaAkcyjna) Oddział w Polsce, Erste Group Bank AG, SMBC Bank EU AG, BankHandlowy w Warszawie S.A., Société Générale Spółka Akcyjna Oddział wPolsce, ING Bank Śląski S.A.

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)