KGHM Polska Miedz S A : The Management Board’s recommendation regarding the appropriation of profit for the year ended 31 December 2019

The Management Board of KGHM Polska Miedź S.A. announces that on 20 May 2020 it adopted a resolution in which it recommends that the Ordinary General Meeting of KGHM Polska Miedź S.A. adopt a resolution on appropriation of profit for the year ended 31 December 2019, in the amount of PLN 1 263 938 931.55, by transferring the entirety of the profit to the Company's reserve capital, including PLN 6 666 666.67 to the reserve capital created in accordance with art. 396 § 1 of the Commercial 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 the Company, and takes into consideration the advancement of the program of investments as well as the anticipated conditions on the commodity market.

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

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

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

Legal basis: Art. 17 (1) of MAR (Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union dated 12 June 2014, no. L 173/1)