Federal decision received regarding the Ajax Project

Thursday, 28 June, 2018

The Management Board of KGHM Polska Miedź S.A., in reference to regulatory filing no. 34/2017, announces that on June 27, 2018, the Government of Canada, through the Governor-in-Council (Cabinet) issued a negative decision regarding the Ajax project as the project is likely to cause significant adverse environmental effects.

The Ajax Project is an advanced stage proposed copper-gold mine located near Kamloops, British Columbia. The project is owned by KGHM Ajax Mining Inc. (“KGHM Ajax”), a joint venture company owned by KGHM Polska Miedź S.A. (80%) and Abacus Mining and Exploration Corporation (20%).

Following a review of the federal decision, in conjunction with the previously issued provincial decision, KGHM Ajax will consider the next steps to be taken.

With respect to the updated valuation of the Ajax project as at 31 December 2017, in respect of which - in accordance with the prudent valuation principle – KGHM Polska Miedź S.A. adopted the value of real estate of KGHM Ajax as the upper limit in setting the recoverable amount of the assets of KGHM Ajax, this decision is not expected to have an impact on the recoverable amount of the project.

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).

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