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, in order to clarify recent media reports, regarding the alleged multi-billion agreement between the Company and an international joint venture, AAE Management LLC, that such information is untrue. Eletrobras is not aware of any debts arising from securities defaulted by the Company, referred to in the reports to in the reports, or of any judicial or extrajudicial settlement with such joint venture.

Thus, it is important to clarify that, in spite of the alerts issued by the Company in its reports and website, some entities, in Brazil or abroad, mistakenly own or buy from third parties, Bearer Obligations instruments (cautelas de Obrigações ao Portador), which have expired or are unenforceable.

Eletrobras Bearer Obligations were issued to pay off the Compulsory Loan, for a specific period, according to Law No. 4,156/62 and Decree No. 20,910/32. The expiration of Eletrobras Bearer Obligations was confirmed by the Superior Court of Justice in a decision legally binding on all Brazilian courts, according to Special Appeal No. 1,050,190/RJ.

Rio de Janeiro, December 1, 2017.

Armando Casado de Araujo

CFO and Investor Relations Officer LISTED

LISTED

EBR & EBR.B

NYSE

Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 01 December 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 01 December 2017 22:31:05 UTC.

Original documenthttp://eletrobras.com/en/ri/ComunidadoseFatos/Market Announcement - Agreement Untruth News.pdf

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