Termination of deposit agreement and intent to conclude the GDR program

Friday, 18 September, 2009
Report no. 36/2009

The Management Board of KGHM Polska Miedź S.A. hereby announces that on 18 September 2009 KGHM Polska Miedź S.A. sent to Deutsche Bank Trust Company Americas (formerly Bankers Trust Company) (the „Depositary”) a termination notice of the Deposit Agreement, originally entered into by the Company and CITIBANK N.A., dated 14 July 1997, with subsequent amendments, pursuant to which the Depositary issues Global Depositary Receipts („GDRs”) based on KGHM Polska Miedź S.A. shares outside of the Republic of Poland. The Deposit Agreement will be terminated on 22 December 2009 (before the Stock Exchange opens). 

Simultaneously, the Management Board of KGHM Polska Miedź S.A. announces that on 18 September 2009 the Company sent a notice to the Financial Services Authority and to the London Stock Exchange on the cancellation of the listing of the Company’s GDRs on the London Stock Exchange as of 22 December 2009. 

The GDR program of KGHM Polska Miedź S.A. has ceased to be effective. Investor interest in this form of investment in the shares of KGHM Polska Miedź S.A. has become weak. The number of issued GDRs has fallen to around 0.5% of the share capital of the Company, and for several months has remained at this level. Investors prefer to directly purchase the Company’s ordinary shares on the Warsaw Stock Exchange, where they will continue to be listed. 

Legal basis: § 37 sec. 2 of the Decree of the Minister of Finance dated 19 February 2009 regarding current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-member state (Journal of Laws from 2009 No. 33, item 259 with subsequent amendments) and 5.2.8 of the United Kingdom Listing Authority listing rules.