Marfrig Global Foods : Notice on Transactions with Related Parties

MARFRIG GLOBAL FOODS S.A.

Publicly Held Corporation Taxpayer ID (CNPJ/MF): 03.853.896/0001-40

(B3: MRFG3)

Notice on Related-Party Transactions

São Paulo, August 02, 2018 - Marfrig Global Foods S.A. ("Company" or "Marfrig" - B3: MRFG3 and Level 1 ADR: MRRTY), in compliance with Instruction 552 issued by the Securities and

Exchange Commission of Brazil on October 9, 2014 ("ICVM 552"), hereby informs the public that the Company entered into the following related-party transaction, concluded on July 24, 2018:

Names of the Related Parties	Marfrig Global Foods S.A. ("Marfrig"); Marcos Antonio Molina dos Santos ("Marcos") and Marcia Aparecida Pascoal Marçal dos Santos ("Marcia").
Relationship with the Issuer	Marcos and Marcia are controlling shareholders of the Issuer, directly as individuals and indirectly through the legal entity MMS Participações Ltda. They are also the sole shareholders of Igrapiúna.
Date of Conclusion of the Transaction	July 24, 2018.
Object of Agreement	Repurchase of cattle feedlot units previously owned by the Issuer, which are operated by MFG Agropecuária Ltda. ("MFG").
Main Terms and Conditions	Sale, by Marcos and Marcia, of all cattle feedlot operations of MFG, previously owned by the Issuer, through the direct or indirect acquisition of these assets. The total value of the transaction will be ninety-five million reais (R$95 million), to be adjusted by the variation of the assets and liabilities to be identified in the technical Valuation Report to be prepared by an Independent Audit firm. Payment will be due as follows: (i) down payment of R$10 million, due on October 3, 2018; and (ii) balance to be paid in nine (9) quarterly and consecutive installments, the first of which due on January 3, 2019. The transaction will be guaranteed by the assets object of the transaction and by a Promissory Note issued by Marfrig, in amount corresponding to 100% of the balance of the obligations.

IR CONTACTS

Av. Queiroz Filho, 1560 - Sabiá Tower - 3º floor (room 301) - Vila Hamburguesa - São Paulo - SP - Zip Code: 05319-000

Phone: [phone]www.marfrig.com.br/ire-mail:[e-mail]

Reasons for the issuer's management to consider that the related-party transaction has been entered into at an arm's length basis

The negotiation between Marfrig, Marcos and Marcia was conducted under conditions of sale of ownership interest strictly compatible with those practiced in the market. The transaction was the subject of consideration and approval by the Audit Committee and the Financial and Risk Management Committee of Marfrig, and will be supported by the technical Valuation Report to be prepared by an independent audit firm. The objective of the investment in the repurchase is aligned with the strategic plan since the expansion of Marfrig's primary processing capacity in the last year required it to maintain - due to commercial and food safety reasons - larger inventories of raw material (cattle). The transaction value is in line and in accordance with the values practiced by the market, as a significant portion of the assets is composed of head of cattle, whose value is publicly known and duly referenced by the market. Thus, the transaction pricing followed all of these parameters.

Possible participation of the counterparty, its partners or managers in issuer's decision-making process concerning the transaction or negotiation of transaction as representatives of the issuer, describing these participations

Marcos and Marcia abstained from the decisions related to the transaction made during the issuer's decision-making process.

IR CONTACTS

Av. Queiroz Filho, 1560 - Sabiá Tower - 3º floor (room 301) - Vila Hamburguesa - São Paulo - SP - Zip Code: 05319-000

Phone: [phone]www.marfrig.com.br/ire-mail:[e-mail]