MARKET ANNOUNCEMENT

CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") hereby informs its shareholders and the market in general that, Agência Nacional de Energia Elétrica ("Aneel") has decided to address to the Ministry of Mines and Energy the proposal to apply an expiry penalty to the subsidiary Companhia Hidro Elétrica do São Francisco ("Chesf"), relating to the concession contracts no. 005/2007, no. 015/2012, no. 018/2011 and no. 019/2011, pursuant to article 38 of Law 8987/1995.

Chesf is monitoring each stage of the process and will take applicable measures.

Rio de Janeiro, Decebmer 28, 2017.

Armando Casado de Araujo CFO and Investor Relations Officer

EBR & EBR.B

LISTED

NYSE

Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 28 December 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 December 2017 23:14:05 UTC.

Original documenthttp://eletrobras.com/en/ri/ComunidadoseFatos/Market Announcement - 12.28.2017 - contracts Chesf.pdf

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