Usinas Siderurgicas de Minas Gerais Usiminas : Update on the Ipatinga's Plant Accident

Usiminas Belo Horizonte

Rua Prof. José Vieira de Mendonça, 3011

31310-260 Belo Horizonte MG

T 55 31 3499-8000 F 55 31 3499-8899

(Free Translation: For reference only - Original in Portuguese)

www.usiminas.com

USINAS SIDERÚRGICAS DE MINAS GERAIS S.A. - USIMINAS

CNPJ/MF 60.894.730/0001-05

Publicly held Company

MATERIAL FACT

Usinas Siderúrgicas de Minas Gerais S.A. - USIMINAS ("Usiminas" or "Company"), in addition to the Material Fact dated of 08.10.2018, hereby informs its shareholders and the general public that the explosion in one of the four gas tanks of the Ipatinga Plant, occurred last Friday, was concentrated only on this equipment.

The Company's first concern was to guarantee the safety of the people (employees and community of Ipatinga) and, therefore, the Plant was immediately evacuated and its operations paralyzed.

Were recorded 34 (thirty four) occurrences, and none of the people were in serious condition and all were discharged from Márcio Cunha Hospital last Saturday.

Although the causes of the accident are still being investigated, both by the company and by the public authorities, the Company clarifies that all the preventive maintenance of the gas tanks of the Ipatinga Plant was carried out, following strict international standards.

With the support of the public authorities, a monitoring of the presence of gases in the community has been carried out and there are no records of abnormality. Despite the impacts at no moment was any risk for the community of Ipatinga.

The Company further clarifies that it has insurance for this type of event, including insurance of the equipment itself, reimbursement of damages to third parties and loss of profits, and is already taking the necessary measures with the insurer.

At this moment there is no estimate of operating, financial and material losses. The Company works to offset the loss of production during the year.

Regarding the operations of the Ipatinga Plant, the Company informs that it has carried out a rigorous inspection in all areas of the Plant, including the three remaining gas tanks, and, with a focus on safety, has already resumed the operations of Blast Furnaces No. 1 and 2 , Cold Rolling, Unigal and Dispatch. The forecast is that the Plate Mill and Hot Strip Mill to return respectively on Tuesday and Thursday of this week, and until next Wednesday, March 15th,

Blast Furnace No. 3 will resume operation.

Usiminas Belo Horizonte

Rua Prof. José Vieira de Mendonça, 3011

31310-260 Belo Horizonte MG

T 55 31 3499-8000 F 55 31 3499-8899

(Free Translation: For reference only - Original in Portuguese)

www.usiminas.com

The Company deeply regrets the incident and appreciates the support received from all its employees and partners, the city of Ipatinga, the Environmental Public Prosecutors' Office, Civil Defense, Fire Department, Military Police, Civil Police, and Government of Minas Gerais' State

The Company will maintain its shareholders and the market in general duly informed regarding the subject of the present material fact.

Belo Horizonte, August 13th, 2018.

Alberto Ono

Finance and Investors Relations Vice-President Officer