Relevant Fact 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 the Company entered into a Memorandum of Understanding ("MoU") with Eletropaulo Metropolitana Eletricidade de São Paulo S.A. ("Eletropaulo"), in order to establish the criteria for the mediation procedure to negotiate the bases for a possible agreement to terminate the judicial dispute (judicial process No. 001002119.1989.8.19.0001) involving Eletrobras, Eletropaulo and other part, regarding the responsibility for the payment of a loan granted by Eletrobras to Eletropaulo in 1986.

Under the terms of the MoU, Eletrobras and Eletropaulo will request the suspension of legal proceeding no. 001002119.1989.8.19.0001 for a period of 60 (sixty) days, in order to conclude, during this period, the process of mediation.

This MoU does not constitute any novation, resignation or forgiveness of the debt by Eletrobras. It is an attempt to terminate the judicial dispute, in the interests of both parties.

The Company states that the execution of the MoU does not have any immediate impact on the Company's results, since the possible implementation of the agreement remains subject to certain prior conditions, including obtaining the necessary corporate approvals.

Rio de Janeiro, October 04, 2017.

Armando Casado de Araujo

CFO and Investor Relations Officer

Eletrobrás - Centrais Elétricas Brasileiras SA published this content on 04 October 2017 and is solely responsible for the information contained herein.
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Original documenthttp://eletrobras.com/en/ri/ComunidadoseFatos/Relevant Fact 10.04.2017 - MOU Eletropaulo x Eletrobras.pdf

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