Banco Mercantil do Brasil S.A. announced its offer to purchase for cash up to $50,000,000 of its outstanding 9.625% Subordinated Notes due 2020 from holders thereof, upon the terms and subject to the conditions set in the Offer to Purchase dated October 11, 2018 (as it may be amended or supplemented from time to time, the "Offer to Purchase"), which constitutes the Offer. As of the date hereof, the aggregate principal amount of Notes outstanding is $155,383,000. Subject to the terms and conditions set in the Offer to Purchase, the Bank hereby offers to pay each Holder that validly tenders its Notes on or prior to the Early Tender Deadline an amount in cash in U.S. dollars equal to the Total Consideration and Accrued Interest. The "Total Consideration" for each $1,000 principal amount of Notes validly tendered and not validly withdrawn is equal to $975.00, such price being rounded to the nearest $0.01 per $1,000 principal amount of Notes. The Total Consideration includes an early tender premium of $50.00 per $1,000 principal amount of Notes validly tendered on or prior to the Early Tender Deadline and not validly withdrawn on or prior to the Withdrawal Deadline. The "Tender Offer Consideration" for each $1,000 principal amount of Notes validly tendered and not withdrawn is equal to the Total Consideration less the Early Tender Premium. Holders who validly tender their Notes after the Early Tender Deadline but on or prior to the Expiration Deadline and do not withdraw their tender will be eligible to receive the Tender Offer Consideration. In each case, Holders whose Notes are accepted for purchase shall receive accrued and unpaid interest from, and including, the last interest payment date to, but not including, the applicable Settlement Date, payable on the applicable Settlement Date. Tenders of Notes will not be valid if submitted after the Expiration Deadline.