Companhia Siderúrgica Nacional S A : Material Fact - Metalgráfica Incorporation

COMPANHIA SIDERÚRGICA NACIONAL

Publicly Held Company

Corporate Taxpayer nº 33.042.730/0001-04

MATERIAL FACT

Companhia Siderúrgica Nacional ("CSN" or "Company") (B3: CSNA3; NYSE: SID), in continuity with the Material Fact released on November 24, 2021, inform its shareholders and the market in general as follows.

As disclosed to the market in the Material Fact of November 24, 2021, CSN and the controlling shareholders of Metalgráfica Iguaçu S.A. ("Metalgráfica") concluded, with intervention and the approval of Metalgráfica, an Investment Contract and Other Covenants ("Investment Agreement") through which the parties agreed to promote, once implemented the suspension conditions provided therein, the combination of the operations of both companies through the incorporation of all shares issued by Metalgráfica by CSN, making it its wholly-owned subsidiary ("Operation" or "Incorporation of Shares").

The Company informs that it was concluded between CSN, the controlling shareholders of Metalgráfica, and Companhia Metalúrgica Prada ("Prada"), with the intervention and approval of Metalgráfica, its first Investment Contract Additive ("Additive"), through which CSN, ceded and transferred to Prada, CSN's subsidiary, all rights and obligations arising from the Investment Agreement, including, but not limited to, the position of developer in the original agreement. In consequence, the Additive shall import the combination of the operations of the companies Metalgráfica and Prada, by means of the incorporation of shares of the first by the second.

The Transaction, to be submitted for approval by Prada and Metalgráfica shareholders, at their respective Extraordinary General Meetings will result, therefore (i) in the incorporation by Prada of all shares issued by Metalgráfica, making it its wholly-owned subsidiary; and (ii) in the exchange for the incorporation of shares, upon receipt by Metalgráfica shareholders of shares issued by Prada (to be issued in capital increase, with the expectation of a maximum dilution of 0.10% of Prada's share capital) in place of Metalgráfica's shares, the share exchange ratio is yet to be approved by the companies at an Extraordinary General Meeting.

The Additive is justified by the opportunity to obtaining greater synergies and integration between existing structures, since Prada already explores business lines related to those developed by Metalgráfica, such as the manufacture and trading of metallic and non-metallic packaging, industrialization, commercialization and reprocessing of products in iron, steel and other metals in general. Thus, it is more efficient to carry out the incorporation of shares of Metalgráfica by Prada, a subsidiary of CSN, and no longer by CSN itself, maintaining the other conditions of the Investment Agreement initially agreed, adjusted to the Additive.

Pursuant to the Additive, Prada and Metalgráfica agree that, for the purpose of fixing the replacement relationship of the shares, the economic value of Metalgráfica measured in a preliminary assessment conducted by a specialized company will be considered, and, in the case of Prada, the book value, calculated by a specialized company, on the same base date used to calculate the economic value of Metalgráfica.

The terms and conditions detailed by the Operation will be defined in a Protocol and Justification signed by Prada's and Metalgráfica's administrators and will be disclosed to the market in due course along with the other information's provided for CVM in Resolution No. 78/2022.

São Paulo, August 16, 2022.

COMPANHIA SIDERÚRGICA NACIONAL

Marcelo Cunha Ribeiro

Executive Director of Finance and Investor Relations