Material Fact

Material Fact

São Paulo, Brazil, May 14th, 2018 – COMPANHIA SIDERÚRGICA NACIONAL (“Company” or “CSN”) hereby informs its shareholders and the market in general that the Board of Directors approved, on this date, the sale, by its wholly-owned subsidiary CSN Steel S.L.U, total interest in Companhia Siderúrgica Nacional, LLC, (“LLC”), a company located in the United States with operations in stripping, cold rolling and galvanizing of flat steel, to Steel Dynamics, Inc. (“SDI”) (“Transaction”).

The base value of the Transaction, to be carried out on a debt and cash-free basis, and subject to adjustments established in the purchase and sale agreement entered into between the parties (“Agreement”), is US$ 400,000,000,00 (four hundred million dollars). This amount will be paid at closing, which is expected to occur within 90 days, subject only to the fulfillment of certain precedent conditions provided in the Agreement, common in this type of operation, including the authorization of United States regulating bodies (Federal Trade Commission and Department of Justice).

After closing, the purchase price will be adjusted according to the target working capital, defined in the Contract as US$ 60,000,000 (sixty million dollars). Based on the most up-to-date working capital of LLC, the final result of the Transaction, considering the sum of the base value and working capital adjustment, will be a reduction of CSN‘s net indebtedness of R$1.8 billion, considering the current exchange rate.

The Transaction is part of CSN‘s divestiture and deleverage plan, as already disclosed by the Company. CSN will maintain its commercial import and distribution activities in the North American market, through another subsidiary, to be set up for this purpose.

SDI was founded in 1993, and is currently one of the largest steel producers and recyclers in the United States, having in its portfolio hot and cold rolled products, coated steel sheets and long steels, among other products, as well as the production of liquid pig iron, processing and sale of ferrous and non-ferrous scrap.

The Company will keep the market informed on the progress of this Transaction.

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For further information, please contact:

Investor Relations
Marcelo Cunha Ribeiro
Investor Relations Executive Officer

Phone: +55 (11) 3049-7585