JSL : Material Fact - Exercise of the Option to Purchase Borgato

MATERIAL FACT

EXERCISE OF THE OPTION TO PURCHASE BORGATO

JSL S.A. ('JSL' or 'Company'), (B3:JSLG3), a publicly-held company, further to the Material Fact dated October 18, 2017, hereby informs its shareholders and the market in general that on this date it exercised the option to purchase the entire capital stock of Borgato Maquinas S.A., Borgato Serviços Agrícolas S.A. and Borgato Caminhões S.A. ('Borgato Companies').

The acquisition of the entire capital stock of the Borgato Companies will be governed by an agreement yet to be entered into and will be subject to the usual conditions applicable to this type of transaction, including approval by the Brazilian antitrust authorities.

The purchase of the Borgato Companies is in line with JSL's growth strategy in the segment of rental and commercialization of heavy vehicles and machinery, complementing its current portfolio and contributing with the deleveraging of JSL.

JSL will keep the market informed about the transaction of acquisition of the Borgato Companies, including information about whether the provisions in article 256 of Law 6,404/76 shall apply and whether the Company's shareholders will be entitled to withdrawal rights.

São Paulo, November 24, 2017

Denys Marc Ferrez
Investor Relations Officer