Magnesita Refratarios : Material Fact - Cacellation of Shares

MAGNESITA REFRATÁRIOS S.A.

Publicly Held Company

CNPJ (Corporate Taxpayer Registration) Nr. 08.684.547/0001-65 NIRE (Commercial Registry Number) 31.300.026.485

MATERIAL FACT

Magnesita Refratários S.A. ("Company"), pursuant to Law No. 6.404/76 and CVM Instruction No. 358/02, as amended, hereby informs its shareholders and the market in general that the Company's Board of Directors, at a meeting held on this date, approved the cancellation of 854,500 (eight hundred and fifty-four thousand, five hundred) common shares issued by the Company, held in treasury, acquired through the Company's 5th Share's Buyback Program, without reduction of the Company's capital stock.

Due to the deliberated cancellation of shares, from now on the Company's capital stock will be divided by 50,040,481 (fifty million, forty thousand, four hundred and eighty-one) common shares, book-entry shares with no par value.

The amendment of article 5 of the Company's Bylaws, to reflect the new number of shares representing the Company's capital stock, will be submitted to a General Meeting to be held opportunely.

São Paulo, October 11th, 2017.

Otávio Augusto Castro Lustosa Nogueira CFO and Investor Relations Officer Magnesita Refratários S.A.

1

CLASSIFICAÇÃO DO DOCUMENTO: PÚBLICO