Jastrzebska Spólka Weglowa S.A. Announces its Intention to Conduct an Initial Public Offering and to List on the Warsaw Stock Exchange

JASTRZEBIE- ZDROJ, Poland, May 31, 2011 (ots/PRNewswire) -

- Not for Release, Publication or Distribution, Directly or
Indirectly, in or Into the United States of America, Canada,
Australia or Japan.

Jastrzebska Spólka Weglowa S.A. ('JSW' or 'the Company' and
together with its subsidiaries 'the Group'), today announces its
intention to proceed with an Initial Public Offering of ordinary
shares to be listed on the main market of the Warsaw Stock Exchange.
The Group is the largest producer of high quality hard coking coal
and a leading coke producer in the European Union in terms of
production volume. The offering is expected to comprise existing
shares to be offered by the State Treasury of the Republic of Poland.
JSW also announces that on 12 May it filed a Polish language
prospectus with the Polish Financial Supervision Authority.

Group Overview

The Group is the largest producer of high quality hard coking
coal and is a leading coke producer in the European Union in terms of
production volume. The Group's core business centres on the
production and sale of both coking coal and steam coal, and the
production and sale of coke and coal derivatives.

Five active mines operate within the Group with an aggregate,
1.932 billion tonnes of JORC coal resources and 552 million tonnes of
JORC coal reserves. The Group intends to extend its coal reserves to
844 million tonnes, which the Company believes will enable it to
maintain its strong position in international markets for the next 60
years. The Group's total mining area of approximately 170 km2 is
located in the south-western portion of the Upper Silesian Coal
Basin, which is Poland's primary coal mining area. Overall, these
resources are among the largest high quality coking coal resources in
the European Union.

The Group also owns and operates the Koksownia Przyjazn coking
company which with five coking batteries is the largest
non-integrated (i.e. not operating within a steel mill business) coke
producer in the European Union. The acquisition of a second coking
company, KK Zabrze, with four coking batteries, is underway.
Completion of the final agreement on the acquisition of KK Zabrze is
conditional upon Pricing of the Offering. The Group is also the
majority owner of Polski Koks, one of the world's largest coke
sellers in terms of sales volume.

The Group intends to focus on the most crucial and profitable
investment projects, continue to implement cost optimisation
activities, exploit synergies between its coal mining and coking
operations and further exploit the benefits resulting from economies
of scale of its operations.

Coal Operations

In 2010, the Group produced approximately 13.3 million tonnes of
coal and sold approximately 13.1 million tonnes. Of this amount,
approximately 9.2 million tonnes of coal were sold to external
customers consisting of approximately 5.2 million tonnes of coking
coal and approximately 4.0 million tonnes of steam coal,
corresponding to 75.2% and 24.8% of the Group's revenues from
external sales of coal, respectively. The remaining volume of coal
(3.9 million tonnes) was used by the Group predominantly in its
coking operations. Approximately 7.3 million tonnes (82.9%) of the
8.8 million tonnes of coking coal sold was hard coking coal.

In the first three months of 2011, the Group produced 3.2 million
tonnes of coal and sold approximately 3.5 million tonnes, with
approximately 2.4 million tonnes sold to external customers. 1.5
million tonnes of coking coal were sold to external customers of
which approximately 93% was hard coking coal. 1.1 million tonnes of
coal was used by the Group predominantly in its coking operations.

Coking Operations

In 2010, Koksownia Przyjazn sold approximately 2.5 million tonnes
of predominantly metallurgical coke, corresponding to PLN 2,627.5
million, or 36.1% of the Group's revenues and in the first three
months of 2011 Koksownia Przyjazn sold approximately 0.7 million
tonnes of predominantly metallurgical coke, corresponding to PLN
811.5 million, or 35.8% of the Group's revenues. In 2010, KK Zabrze
produced approximately 1.2 million tonnes of metallurgical and
industrial heating coke. In the first three months of 2011, KK Zabrze
produced approximately 0.3 million tonnes of metallurgical and
industrial heating coke. Both coking plants produce high quality coke
using the Group's coking coal as well as, to a lesser extent,
utilising coal from third parties amounting to approximately 13.7%.

The Offering

Citi (comprising Citigroup Global Markets Limited, Bank Handlowy
w Warszawie S.A. and Dom Maklerski Banku Handlowego S.A.), Goldman
Sachs International, J.P. Morgan Securities Ltd. and UniCredit
(UniCredit CAIB Poland S.A. and UniCredit Bank AG London Branch) are
acting as Joint Global Coordinators and Joint Bookrunners.

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna Oddzial -
Dom Maklerski PKO Banku Polskiego w Warszawie is acting as Joint
Bookrunner and Offering Agent in connection with the Offering.
IPOPEMA Securities S.A. and Société Générale Corporate & Investment
Banking are acting as Joint Bookrunners and Dom Inwestycyjny BRE
Banku and Wood & Company Financial Services, A.S., Spólka Akcyjna,
Oddzial w Polsce are acting as Co-Managers.

The Offering and listing on the Warsaw Stock Exchange will be
subject to receipt of all necessary regulatory approvals, including
the relevant registrations, approvals and / or notifications by the
Polish Financial Supervision Authority, registration with the Polish
National Depository for Securities and admission to trading on the
main market of the Warsaw Stock Exchange.

The Offering will be made available to retail and institutional
investors in Poland and to selected institutional investors abroad
and is expected to be complete in Q3 2011, subject to market
conditions.

Aleksander Grad, Minister of State Treasury, said:

"The JSW public offering will be one of the most important
transactions on the Polish capital market in 2011 and a landmark
event on the Polish and European coal market. Given the expected
significant value of the transaction, we plan to offer JSW shares to
a wide audience of institutional investors in Poland as well as to
foreign investors worldwide."

JarosLaw Zagórowski, JSW's Chief Executive Officer, said:

"Since its inception in 1993, JSW has grown into a major force in
the European coal and coke market. The public offering of the
Company's shares will serve as the next stage in JSW's development,
as we aim to further strengthen our position as leaders in the
market.

"Our innovative strategy, focused on expanding reserves,
increasing production and maximizing efficiency, will ensure we are
well placed to meet growing demand and provide real value for our
shareholders."

Notes to Editors

Summary of Financial and Operating Information

The table below sets forth certain key performance indicators of
the Group for the first three months ended 31 March 2011 and 2010 and
the years ended 31 December 2010, 2009 and 2008.

Selected data from
Consolidated Financial
Statements* For three months ended For years ended 31
(PLN in million) 31 March December
2011 2010 2010 2009 2008
Sales revenues 2,267.2 1,483.7 7,288.9 4,470.1 7,646.1
Gross sales profit / 953.2 359.9 2,562.0 (152.5) 2,057.3
(loss)
EBITDA** 989.7 410.3 2,770.5 33.7 1,889.8
Net Income 619.4 149.3 1,501.9 -669.1 806.0

* Prepared in accordance with IFRS.

**EBITDA = operational profit (loss) + amortisation. EBITDA is
not a measure of operational results or liquidity, in accordance with
IFRS.

The information contained herein is not for publication or
distribution, directly or indirectly, in or into the United States of
America. The materials do not constitute an offer of securities for
sale in the United States, nor may the securities be offered or sold
in the United States absent registration or an exemption from
registration as provided in the U.S. Securities Act of 1933, as
amended, and the rules and regulations thereunder. There is no
intention to register any portion of the offering in the United
States of America or to conduct a public offering of securities in
the United States of America.

The information contained herein does not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any
sale of the securities referred to herein in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration, exemption from registration or qualification under the
securities laws of any such jurisdiction.

This communication shall not constitute an offer of securities to
the public in the United Kingdom. No prospectus has been or will be
approved in the United Kingdom in respect of the Securities. This
communication is being distributed to and is directed only at (i)
persons who are outside the United Kingdom or (ii) investment
professionals falling within Article 19(5) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"),
or (iii) high net worth companies, and other persons to whom it may
lawfully be communicated, falling within Article 49(2)(a) to (d) of
the Order (all such persons together being referred to as "relevant
persons"). The Securities will only be available to, and any
invitation, offer or agreement to subscribe, purchase or otherwise
acquire Securities will be engaged in only with, relevant persons.
Any person who is not a relevant person should not act or rely on
this document or any of its contents.

Copies of this announcement are not being made and may not be
distributed or sent into the United States, Canada, Australia or
Japan.

In connection with the sale of securities referred to herein, one
or more parties named as the stabilising manager(s) (or persons
acting on behalf of any stabilising manager(s)) may overallot
securities or effect transactions with a view to supporting the
market price of the securities at a level higher than that which
might otherwise prevail. However, there is no assurance that the
stabilising manager(s) (or persons acting on behalf of any
stabilising manager(s)) will undertake stabilisation action. Any
stabilisation action may start on the date of commencement of trading
of the securities on the regulated market and end no later than 30
calendar days thereafter. Any stabilisation action or overallotment
must be conducted by the relevant stabilising manager(s) (or
person(s) acting on behalf of any stabilising manager(s)) in
accordance with all applicable laws and rules.

This communication is for promotional purposes only and does not
constitute or form the offer or invitation, neither can be the base
for a decision to invest in the securities of the Jastrzebska Spólka
Weglowa S.A. (the "Company"). The prospectus (the "Prospectus") which
will be prepared for the purpose of the offering, admission and
introducing to trading of the Company's shares on the Warsaw Stock
Exchange is the only legally binding document containing information
regarding the Company and the public offering of its shares in the
territory of Poland. The Company will be entitled to conduct the
public offering in Poland after the approval of the Prospectus by the
Polish Financial Supervisory Authority. The Prospectus will be
published on the website of the Company - http://www.jsw.pl and on
the website of Powszechna Kasa Oszczednosci Bank Polski Spólka
Akcyjna Oddzial - Dom Maklerski PKO Banku Polskiego w Warszawie -
http://www.dm.pkobp.pl.

Enquiries:
Citi +44(0)-20-7986-4000
Pawel Graniewski / Tom Attenborough
Goldman Sachs International +44(0)20-7774-1000
Richard Cormack / Philip Lindop
J. P. Morgan
Paul Mihailovitch +44(0)207-325-1419
Jakub Leonkiewicz +48-22-528-66-98
Unicredit +48-22-586-24-52
Tomasz Witczak / Karol Poltorak
Financial Dynamics +44(0)207-269-7279
Ben Brewerton / Christopher Welsh

ots Originaltext: Jastrzebska Spolka Weglowa S.A
Im Internet recherchierbar: http://www.presseportal.de

Contact:
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