BRF S A : Material Fact – Estimates for the Company’s Net Financial Leverage

BRF S.A.

PUBLICLY-HELD COMPANY

CNPJ 01.838.723/0001-27

NIRE 42.300.034.240

CVM Code 16269-2

MATERIAL FACT

BRF S.A. ("BRF" or the "Company") (B3: BRFS3; NYSE: BRFS), in continuation to the Material Facts disclosed on June 29th, 2018, February 07th, 2019 and June 03rd, 2019 and other information disclosed to the market since June 2018, informs its shareholders and the market in general that, as a result of the implementation of its Financial and Operational Restructuring Plan and the current prospects for the protein market, it updated the estimates for the Company's net financial leverage, measured by the ratio of net debt divided by Adjusted EBITDA of the last 12 months, which should be around 3.15x by the end of 2019. For the end of 2020, the Company estimates that its net financial leverage should be approximately 2.65x. BRF reinforces its commitment with the recovery of its operational margins and further decline of its financial leverage.

The Company will keep its shareholders and the market duly informed about any relevant developments regarding the matter.

São Paulo, August 9, 2019

Lorival Nogueira Luz Junior

Chief Executive Officer

Chief Financial and Investor and Relations Officer (Interim)

DISCLAIMER:

This Material Fact contains (i) "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange of 1934, as amended (for U.S. regulation purposes), and

1. projections ("projeções") within the meaning of Article 20 of Instruction CVM n. 480/2009 (for Brazilian regulation purposes). Statements contained herein that are not clearly historical in nature, including statements about the Company's strategies and business plans, are forward-looking, and the words "estimate," and "prospect" and similar expressions and future or conditional verbs such as "will," and "should," are generally intended to identify forward-looking statements. The Company may also make forward-looking statements including in its periodic reports and other written materials filed with the U.S. Securities and Exchange Commission (the "SEC") and the Brazilian Comissão de Valores Mobiliários (the "CVM").
   These forward-looking statements speak only as of the date they are made and are based, among other things, on the
   Company's current plans and expectations and are subject to a number of known and unknown uncertainties and risks, many of which are beyond the Company's control. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to (i) the general and economic conditions in
   Brazil and in other countries relevant to the Company's operations; (ii) the conditions of the market and the consumption sector in general, like competition, demand for animal protein, price evolution, etc.; (iii) operational situation of the plants; and (iv) conditions of the price inputs and of the products of the markets where the Company operates. Further information regarding these factors is included in the Company's filings with the SEC, including its annual report on Form 20-F, and with the CVM, including the Formulário de Referência. As a consequence, future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this Material Fact. You are cautioned

not to unduly rely on such forward-looking statements when evaluating the information presented as there is no guarantee that expected events, trends or results will actually occur.

This Material Fact may also contain forward-looking statements, estimates and other information concerning BRF's industry that are based on industry publications, surveys and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.