Centrais Eletricas Brasileiras S A Eletrobrás : Market Announcement - 02.04.2020 - Coal

MARKET ANNOUNCEMENT

CENTRAIS ELÉTRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26 | NIRE: 533.0000085-9

PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A ("Company" or "Eletrobras") (B3: ELET3, ELET5 & ELET6; NYSE:

EBR & EBR.B; LATIBEX: XELT.O & XELT.B) hereby informs its shareholders and the market in general that, in relation to the news published on this date, regarding the management by the company of the Energy Development Account (CDE), and related to its reimbursement through sectorial subsidies for the acquisition of national mineral coal for use in thermal plants of companies in the electric power sector, as follows:

In accordance with Aneel Normative Resolution No. 500, of July 17, 2012, Eletrobras as manager of CDE was exclusively responsible for reimbursing the cost of coal acquisition based on the invoices presented by the companies holding this right and that were entitled to reimbursement based on their contracts for the purchase of coal, as well as other documents established, all presented by the beneficiaries, allowing the determination of the reimbursement amount to be made by the CDE, disclosing such information so that they could later be inspected.

Therefore, Eletrobras was not responsible for inspecting the internal processes for the acquisition and use of coal in the beneficiaries' industrial plants, including due to the lack of legal and regulatory competence to do so.

It should also be clarified that the aforementioned report mistakenly contains the information that Eletrobras would have benefited from the improper reimbursement of coal, due to the alleged lack of explanation of expenses of BRL 205 million for the purchase of the raw material, when, as rule, the coal is reimbursed to the beneficiary agent, and he is responsible for proving the coal purchased. In addition, the recent inspection mentioned in the report deals with the reimbursement made to a company in the electric power sector that is not part of the Eletrobras System.

Considering the information above, it should be emphasized that the inspection was carried out directly with the beneficiary company, and Eletrobras does not have access to your content. Any refund differences, if effectively incurred, should, in Eletrobras' understanding, be charged directly to the said beneficiary agent.

Rio de Janeiro, February 04, 2020

Elvira Cavalcanti Presta

CFO and Investor Relations Officer

Internet: www.eletrobras.com/elb/ri

E-mail: [e-mail]

Address: Rua da Quitanda, 196 - 9º andar. 20091-005, Centro. Rio de Janeiro - RJ Telefone: (21) 2514-6333 / 4627

EBR & EBR.B
LISTED	ELET3 & ELET6
NYSE

This document may contain estimates and projections that are not statements of fact that occurred in the past but reflect our management beliefs and expectations and may constitute forward-looking statements and estimates under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words "believe", "may", "may", "estimate", "continue", "anticipate", "intend", "expect" and the like are intended to identify estimates that necessarily involve risks and uncertainties, known or unknown . Known risks and uncertainties include, but are not limited to: general economic, regulatory, political and commercial conditions in Brazil and abroad, changes in interest rates, inflation and value of the Real, changes in volumes and the pattern of electric energy use by consumer, competitive conditions, our level of indebtedness, the possibility of receiving payments related to our receivables, changes in rainfall and water levels in the reservoirs used to operate our hydroelectric power plants, our financing and capital investment plans, existing and future government regulations , and other risks described in our annual report and other documents filed with CVM and SEC. Estimates and projections refer only to the date they were expressed and we assume no obligation to update any of these estimates or projections due to the occurrence of new information or future events. Future results of the Company's operations and initiatives may differ from current expectations and the investor should not rely solely on the information contained herein. This material contains calculations that may not reflect accurate results due to rounding.