KGHM POLSKA MIEDŹ SA Management Board recommendation on payment of dividend

The Management Board of KGHM Polska Miedź S.A. announces that it will recommend to the Ordinary General Meeting of KGHM Polska Miedź S.A. the payment of a dividend from profit for financial year 2013 in the amount of PLN 1 000 000 thousand (i.e. 5 PLN/share).

When preparing the recommendation, the Management Board took intoaccount:

- the situation on the commodity market and the level of volatility ofprices,

- the high sensitivity of the Company's results to market conditions,

- safe debt ratios level,

- the nature of the investment program carried out (long-term investingprocess), and

- the expenditures necessary in the Group to realise the developmentprogram.

Simultaneously, the Management Board of KGHM Polska Miedź S.A. announcesthat it will propose to the Ordinary General Meeting of KGHM Polska Miedź S.A. the following dates concerning the dividend from profit for financial year 2013:

- a right to dividend date of 8 July 2014,

- a date of payment of the first dividend installment of 2.50 PLN/shareof 18 August 2014,

- a date of payment of the second dividend installment of 2.50 PLN/shareof 18 November 2014.

The proposed period between the right to dividend date and the date ofpayment of the dividend is longer than the 15 working days recommended by the Code of Best Practice for Warsaw Stock Exchange-listed Companies.

Setting a longer period between these dates is justified by the need toexecute taxpayer obligations by KGHM with respect to the flat-rate corporate income tax on dividends paid in a timely manner and in accordance with laws in force.

The proposals of the Management Board were positively evaluated by theSupervisory Board of KGHM Polska Miedź S.A.

The final decision on the appropriation of profit of KGHM Polska MiedźS.A. for financial year 2013 and on the setting of a right to dividend date and dividend payment date will be made by the Ordinary General Meeting of KGHM Polska Miedź S.A.

Legal basis: § 38 sec. 1 point 11 of the Decree of the Minister ofFinance 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 (unified text: Journal of Laws 2014.133)

More information on page: biznes.pap.pl

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