KGHM Polska Miedź S.A.

Earnings Release • Oct 27, 2017

Correction of a judgment on the functional currency of a subsidiary

In reference to regulatory filing no. 6/2017 dated 28 April 2017 onexchange differences in the first quarter of 2017, the Management Boardof KGHM Polska Miedź S.A. ("the Company") announces that today itdecided to correct its judgment on the functional currency of thesubsidiary Future 1 Sp. z o.o. (Future 1) and to change it from thePolish zloty (PLN) to the US dollar (USD) for the purposes of theconsolidated financial statements. The change was made as a result of areassessment of the currency of the primary economic environment inwhich Future 1 operates.

Below, we present in brief the impact of the aforementioned change onthe consolidated financial statements:

•as at 31 December 2016:

- an increase in accumulated other comprehensive income from PLN 855million to PLN 2 216 million - a change in the amount of PLN 1 361million,

- a decrease in retained earnings (undistributed profit) from PLN 13 100million to PLN 11 739 million - a change in the amount of PLN 1 361million,

- no impact on the financial result for 2016,

•for the period from 1 January 2017 to 31 March 2017:

-an increase in profit for the period from PLN 398 million to PLN 710million - a change in the amount of PLN 312 million,

- a decrease in other comprehensive income from PLN 462 million to PLN150 million - a change in the amount of PLN 312 million,

•for the period from 1 January 2017 to 30 June 2017:

- an increase in profit for the period from PLN 494 million to PLN 1 054million - a change in the amount of PLN 560 million,

- a decrease in other comprehensive income from PLN 981 million to PLN333 million - a change in the amount of PLN 648 million,

- a decrease in deferred tax assets from PLN 460 million to PLN 372million - a change in the amount of PLN 88 million.

Data for the first half of 2017 are of a preliminary nature and will beverified by the auditor.

The aforementioned change is of a non-cash nature and has no impact onthe liquidity of the KGHM Polska Miedź S.A. Group.

Correction of the functional currency will not have an impact on theseparate financial statements of KGHM Polska Miedź S.A.

The detailed impact of changes on the published consolidated results ofthe KGHM Polska Miedź S.A. Group are presented in appendix no. 1 to thisreport.

The consolidated financial statements of the KGHM Polska Miedź S.A.Group as at 30 September 2017, which are a part of the consolidatedquarterly report QSr 3/2017, will take into account the correction ofthe functional currency.

As a result of the correction of the judgment, the amended periodicreport for the first quarter of 2017 (QSr 1/2017) which will take intoaccount the aforementioned change, will be published without delay,while the amended periodic report for the first half of 2017 (PSr 2017),which will take into account the aforementioned changes, together withthe auditor's review report, will be published by the Company before thepublication of the consolidated quarterly report for the third quarterof 2017.

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) and § 6 sec. 5 of theDecree of the Minister of Finance dated 19 February 2009 regardingcurrent and periodic information published by issuers of securities andconditions for recognising as equivalent information required by thelaws of a non-member state (unified text: Journal of Laws 2014.133 withsubsequent amendments)