KGHM Polska Miedź S.A.

AGM Information • May 20, 2020

The Management Board's recommendation regarding the appropriation ofprofit for the year ended 31 December 2019

The Management Board of KGHM Polska Miedź S.A. announces that on 20 May2020 it adopted a resolution in which it recommends that the OrdinaryGeneral Meeting of KGHM Polska Miedź S.A. adopts a resolution onappropriation of profit for the year ended 31 December 2019, in theamount of PLN 1 263 938 931.55, by transferring the entirety of theprofit to the Company's reserve capital, including PLN 6 666 666.67 tothe reserve capital created in accordance with art. 396 § 1 of theCommercial Partnerships and Companies Code.

The recommendation of the Management Board of KGHM Polska Miedź S.A.results from an assessment of the current financial capacities of theCompany, and takes into consideration the advancement of the program ofinvestments as well as the anticipated conditions on the commoditymarket.

The proposal of the Management Board of KGHM Polska Miedź S.A. iscompliant with the existing Dividend Policy of KGHM Polska Miedź S.A.,which provides for a balance to be maintained between the level ofdividends paid out and opportunities to effectively invest the Company'sfunds given the current level of debt of the KGHM Polska Miedź S.A.Group and uncertainty associated with further developments on thecommodity market due to the SARS-CoV-2 coronavirus pandemic.

The above recommendation of the Management Board was positively reviewedby the Supervisory Board of KGHM Polska Miedź S.A.

The final decision regarding the appropriation of KGHM Polska MiedźS.A.'s profit for the year ended 31 December 2019 will be made by theOrdinary General Meeting of KGHM Polska Miedź 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)