KGHM POLSKA MIEDZ SA

KGHM Polska reported on operations for its copper producing mines for the period ended Dec31/08. Ore extraction by dry weight in 2008 was lower by 0.8 million tonnes than in 2007. The decrease in extraction in 2008 was caused by the curtailment, at the request of the National Labour Inspectorate, of extraction in the mines on days legally free from work. There was also a decrease in copper and silver content in extracted ore, caused by work in areas having a lower content of copper ore. These factors caused a decrease in the extraction of copper in ore in comparison to 2007 by 24.3 thousand tonnes (5%) and silver by 54.7 t (4%). The decrease in copper and silver content in extracted ore directly affected the amount of copper and silver in concentrate, which in comparison to 2007 were lower respectively by 5% and 3%.

Reported the fourth quarter of 2007, KGHM Polska Miedz S.A. produced 133 661 tonnes of electrolytic copper, including 28 518 tonnes from purchased copper-bearing materials (in 2007 electrolytic copper production amounted to 532 974 tonnes, including 92 314 tonnes from purchased copper-bearing materials) and 299 tonnes of metallic silver (in 2007: 1 215 tonnes).

Reported that the second quarter of 2007 KGHM Polska Miedz S.A. produced 132 474 tonnes of electrolytic copper, including 19 245 tonnes from purchased copper-bearing materials (in the first half of 2007 electrolytic copper production amounted to 261 066 tonnes, including 36 309 tonnes from purchased copper-bearing materials) and 286 tonnes of metallic silver (a total of 608 tonnes in the first half of 2007).