Current Report No. 11/2023

Date of preparation: 29 May 2023

Subject: Supervisory Board’s assessment of the motion submitted by the Management Board of Lubelski Węgiel Bogdanka S.A. regarding the distribution of net profit for 2022

Legal basis: Article 17.1 of the MAR Regulation - Inside Information

Content:

The Management Board of Lubelski Węgiel Bogdanka S.A. (“Company”) with registered office in Bogdanka, informs you that on 29 May 2023 it positively evaluated the motion of the Management Board to the Annual General Shareholders Meeting regarding distribution of net profit for the financial year 2022.

Pursuant to the motion in question, the Management Board proposes to distribute the net profit generated 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.

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.

A final decision regarding the distribution of the 2022 profit will be made by the Annual General Shareholders Meeting of Lubelski Węgiel Bogdanka S.A.