Gol Linhas Aéreas S.A. sent a letter to acquire 47% stake in Smiles Fidelidade S.A. (BOVESPA:SMLS3) for BRL 2.4 billion on December 9, 2019. As on December 9, 2019, Gol Linhas Aéreas sent a letter communicating its proposal for a corporate reorganization of Smiles Fidelidade, into Gol Linhas Aéreas and its parent GOL Linhas Aéreas Inteligentes S.A. The reorganization, once implemented, will result in the migration of SMILES’s shareholder base to GOL Linhas Aéreas Inteligentes S.A. For each common share of SMILES, 0.6319 GLA Common Shares and 1654 GLA Redeemable Preferred Shares will be granted. SMILES’s shareholders may, at their sole discretion, elect to receive, for each common share of SMILES, 0.4213 Gol Linhas Aéreas S.A. Common Shares and 2480 Gol Linhas Aéreas S.A. Redeemable Preferred Shares. Each Gol Linhas Aéreas S.A.Redeemable Preferred Share, under each of the Base Swap Ratio and Optional Swap Ratio, will be redeemed for BRL 0.01. Before the issuance date of Gol Linhas Aéreas S.A. Common Shares, Gol Linhas Aéreas S.A.will implement a stock split or reverse stock split as may be necessary in order that the above swap ratios equal the swap ratios for GOL Linhas Aéreas Inteligentes S.A. Preferred Shares. In accordance with the reorganization’s proposed terms, each common share of SMILES will be entitled, at the end of the reorganization, to: (a) 0.6319 preferred shares of GOL Linhas Aéreas Inteligentes S.A. and BRL 16.54 (based on the redemption amount of redeemable preferred shares, as described below) (“Base Swap Ratio”); or, alternatively, (b) 0.4213 preferred shares of GOL Linhas Aéreas Inteligentes S.A. and BRL 24.80 (based on the redemption amount of redeemable preferred shares), at the discretion of SMILES’s shareholders which, in that case, shall exercise the option described in item 3 below (“Optional Swap Ratio”).The reorganization will be subject to approval of its terms and conditions by the majority of the holders of outstanding shares of SMILES. In determining the proposed swap ratio, GOL Linhas Aéreas Inteligentes S.A. and Gol Linhas Aéreas S.A. took into consideration the value of BRL 39.25 per GOL Linhas Aéreas Inteligentes S.A.'s preferred share and BRL 41.34 per SMILES common share. The amounts will be proportionately adjusted by any stock splits, reverse stock splits, stock dividends, dividends, interest on shareholders’ equity or capital decreases of GOL Linhas Aéreas Inteligentes S.A. and Gol Linhas Aéreas S.A. Beginning on the date hereof, any dividends, interest on shareholders’ equity or capital decreases to be distributed to SMILES shareholders will be proportionately deducted from the amount of GLA Redeemable Preferred Shares to be granted to SMILES shareholders as a result of the merger of SMILES common shares by Gol Linhas Aéreas S.A. . In addition, Brazilian income tax (imposto sobre a renda retido na fonte) on capital gains will be withheld, as applicable, and deducted from the amount of Gol Linhas Aéreas S.A. Redeemable Preferred Shares. The Reorganization includes the following steps, which will be implemented simultaneously and interdependently. First will be merger of SMILES common shares by Gol Linhas Aéreas S.A., with Gol Linhas Aéreas S.A's issuance of common shares and redeemable preferred shares to SMILES shareholders. Then, merger of Gol Linhas Aéreas S.A. shares by GOL Linhas Aéreas Inteligentes S.A. , with GOL Linhas Aéreas Inteligentes S.A.'s issuance of GOL Linhas Aéreas Inteligentes S.A. Preferred Shares and redeemable preferred shares (GOL Linhas Aéreas Inteligentes S.A.Redeemable Preferred Shares”) to Gol Linhas Aéreas S.A. shareholders. Finally, redemption of Gol Linhas Aéreas S.A.Redeemable Preferred Shares and GOL Linhas Aéreas Inteligentes S.A.Redeemable Preferred Shares, with payment in cash based on the redemption of GOL Linhas Aéreas Inteligentes S.A.Redeemable Preferred Shares to SMILES shareholders to be made on the settlement date of the reorganization. For each Gol Linhas Aéreas S.A.Common Share, one GOL Linhas Aéreas Inteligentes S.A. Preferred Share will be granted, and (ii) for each Gol Linhas Aéreas S.A. Redeemable Preferred Share, one GOL Linhas Aéreas Inteligentes S.A Redeemable Preferred Share will be granted. After the Merger of SMILES Shares, SMILES will remain a separate legal entity with its own equity and will become a wholly owned subsidiary of Gol Linhas Aéreas S.A. The reorganization’s terms and conditions, as set out in the letter and described below, will not be subject to negotiation with SMILES’s management and (ii) an independent special committee of SMILES will not be established, as provided in CVM Opinion (Parecer de Orientação) No. 35/2008. GOL Linhas Aéreas Inteligentes S.A. also informs that it does not intend to migrate its shares to the Novo Mercado listing segment of the B3 S.A. – Brasil, Bolsa, Balcão, on which SMILES common shares trade, and, therefore, the reorganization will also be subject to approval by SMILES’s minority shareholders. GOL Linhas Aéreas Inteligentes S.A. and Gol Linhas Aéreas S.A. have requested that SMILES’s management (i) hold a meeting of SMILES’s Board of Directors to inform the terms of the Reorganization, (ii) cooperate with GOL’s management and with the appraisal company that will prepare a valuation report of the net equity of SMILES and Gol Linhas Aéreas S.A., as provided in article 8 of the Brazilian Corporations Act and (iii) engage an appraisal company to prepare a valuation report of the net equity of SMILES and GLA, adjusted to market prices and under the same criteria, pursuant to article 264 of the Brazilian Corporations Act. Upon approval of the Reorganization, the Merger of SMILES Shares by Gol Linhas Aéreas S.A. and the Merger of Gol Linhas Aéreas S.A. Shares by GOL Linhas Aéreas Inteligentes S.A. will settle on the same date.