Current Report No. 10/2023

Date of preparation: 26 May 2023

Subject: Recommendation of the Management Board on the payment of dividends from the profit for 2022

Legal basis: Article 17(1) of MAR – confidential information

Content:
The Management Board of Lubelski Węgiel Bogdanka S.A. ("Company"), with its registered office in Bogdanka, hereby reports that on 26 May 2023, it adopted a resolution on a motion to the Company's Ordinary Shareholder Meeting regarding the distribution of net profit for 2022.

The Management Board proposes to distribute the net profit earned by the Company in 2022 in the amount of PLN 175,757,067.26 (one hundred and seventy-five million seven hundred and fifty-seven thousand sixty-seven and 26/100 Polish zloty) as follows:

• The amount of PLN 87,755,062.20 (eighty-seven million seven hundred and fifty-five thousand sixty-two and 20/100 Polish zloty) to be allocated for dividends, i.e. PLN 2.58 per share.
• The remaining amount, i.e. PLN 88,002,005.06 (eighty-eight million two thousand five and 06/100 Polish zloty) to be allocated for the Company's reserve capital.

At the same time, the Company's Management Board proposed setting 6 July 2023 as the dividend record date and 21 July 2023 as the dividend payment date.

The above proposal is in line with the dividend policy announced by the Company and presented in the Development Strategy of the LW Bogdanka Group for 2023-2030 with an Outlook until 2040, adopted on 17 May 2023.

The Management Board's recommendation will be presented to the Company's Supervisory Board for its opinion, and the final decision on the distribution of profit for the 2022 financial year and the payment of dividends will be made by the Ordinary Shareholder Meeting of Lubelski Węgiel Bogdanka S.A.