CIA DE FERRO LIGAS DA BAHIA - FERBASA (B3: FESA3 e FESA4) hereby informs its shareholders and the market in general, that the Board of Directors’ Meeting on this date, approved the distribution of interest on equity (IOE) totaling R$ 8,361,507.00 (eight million, three hundred and sixty-one thousand, five hundred and seven reais).

The interest on equity will be credited with funds from the results of the 4 th Quarter of 2018 and the individual credit will be based on shareholding positions at the close of trading on December 27, 2018 and the Company’s shares will be traded ex-interest-on-equity as of December 28, 2018.

The gross amounts to be credited and paid as IOE will be, respectively, R$ 0.0922228054 for each common share and R$ 0.1014450860 for each preferred share, and the payment will be effected in January 22, 2019, by "Banco Bradesco", Custody Agent of FERBASA’s shares, by means of credit in the current bank account of the registered shareholders.

To access the shareholders notice in its entirety: click here (Portuguese only)

Salvador, December 18, 2018

Marcio Lopes Fernandes de Barros