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Rule 12g3-2(b) Exemption # 82-35186 Company: Responsible for the information: Banco do Brasil S.A. Vice-presidency of Financial Management and Investor Relations Recipient : Comissão de Valores Mobiliários (CVM) and Stock Exchanges Category: Local and date: Information to the Market Brasília, 06.16.2017 Name: Position held: Phone Number: Bernardo Rothe Head of IR (55) 61 3493-5601 INFORMATION TO THE MARKET Ms. NILZA MARIA SILVA DE OLIVEIRA Gerente da Superintendência de Relações com Empresas Gerência de Acompanhamento de Empresas 1 (GEA-1) Superintendência de Relações com Empresas (SEP) Comissão de Valores Mobiliários Subject: Response to request for clarification about news - Proceeding CVM nº 19957.005790/2017-03 – Notice nº 230/2017/CVM/SEP/GEA-1 Dear Manager, In consideration of the request for information received, Banco do Brasil hereby presents the relevant information and provides the necessary clarification as follows: 2. Initially, it would not be possible to confirm the veracity of the information released in the news about Banco do Brasil. In fact, news reported in April 2017 already referred to the same facts, now released again by the press. 3. Since last April, when the testimonies provided by Odebrecht employees under Operation Lava-Jato were disclosed mentioning the name of Mr. Aldemir Bendine, former CEO of Banco do Brasil, the bank's Internal Audit, as requested by the Board of Officers, started an internal diligence process in order to analyze the alleged facts cited in the statements and in the news released by the press. 4. It is important to note that, on June 9, 2017, Judge Sérgio Moro, in the case of Criminal Representation Number 5022683-50.2017.4.04.7000 / PR1, granted a request from the Federal Prosecutor’s Office (MPF) to establish an investigation with "the purpose of investigating the possible occurrence of crimes (...) consubstantiated in the alleged payments of undue advantages made by Odebrecht in favor of Aldemir Bendine so that he, as Petrobras' CEO, defended interests of the contractor in the state-owned enterprise”2. 5. Therefore, at first analysis of the testimonies made public and according to the understanding of the MPF itself and of the Judge of the 13th Federal Court of Curitiba, the facts 1 Dispatch of the Federal Court and Petition of the Federal Prosecutor’s Office extracted from the website of the newspaper Estadão, as of June 16, 2017 - http://politica.estadao.com.br/blogs/fausto-macedo/moro-autoriza-inquerito-contra-aldemir-bendine/ 2 Free translation by Banco do Brasil. thus far disclosed indicate that Banco do Brasil would not be involved in the supposed payments of undue advantages. 6. It is also important to mention that Banco do Brasil conducts its businesses based on technical and objective criteria, always making decisions through committees, reasons that have led the bank to be a model in transparency and corporate governance. 7. Finally, while reiterating our commitment to seek a thorough clarification of the facts reported in the notice sent by this CVM, the Bank will inform this Commission as soon as the work of its Internal Audit is completed, in which opportunity it will provide any additional relevant information and the conclusions reached. Best regards, Alberto Monteiro de Queiroz Netto CFO Notice nº 230/2017/CVM/SEP/GEA-1 Rio de Janeiro, June 14th, 2017. Mr. ALBERTO MONTEIRO DE QUEIROZ NETTO CFO AND RESPONSIBLE FOR THE INVESTOR RELATIONS DIVISION BANCO DO BRASIL S.A. SAUN Quadra 5, Lote B, Torre Central, Edifício BB, 4º andar, Setor de Autarquias, Asa Norte Brasília - DF - CEP: 70040-912 Fax: (61) 3493-5602/Phone: (61) 3493-5601 E-mail: [email protected] Subject: Request for clarification on News - Proceeding CVM nº 19957.005790/2017-03. 1. We refer to the news published on June 13, 2017 in the newspaper Valor Econômico under the title "Moro authorizes investigation of Bendine, former CEO of Petrobras and BB"3 and on June 14, 2017, in the newspaper O Globo, under the title "Bendine will be investigated for Odebrecht's bribe" which contain the following statements: "Judge Sergio Moro has authorized the opening of an investigation on bribe requests by Aldemir Bendine, former president of Banco do Brasil and Petrobras, to the Odebrecht Group. According to three of the contractor's whistleblower, including businessman Marcelo Odebrecht, Bendine received R$ 3 million in cash, delivered in three installments in São Paulo, between June 17 and 3 Free translation by Banco do Brasil. July 1, 2016. When the bribe was paid, Marcelo had already been arrested, and LavaJato was in its third year. According to the statements, between 2014 and 2015, Odebrecht executives were contacted several times by the publicist André Gustavo Vieira da Silva, who spoke on behalf of Bendine and requested that a 1% rate to be paid on a prolongation of OdebrechtAmbiental's debt with Banco do Brasil. Initially, the company resisted paying, since the negotiation with the bank's technical area normally took place. The requests, however, became more and more insistent. In one of the meetings with the executive Fernando Cunha, the publicist would have said that Bendine was dissatisfied, as he was under orders from Guido Mantega, the coordinator of the government negotiations, and "in the end did not see anything." Initially, it asked from R$ 58 million to R$ 87 million in bribes. Then, it lowered the percentage to 1%, which meant R$ 17 million, according to Marcelo Odebrecht's statement. The businessman's first contact with Bendine would have occurred in January 2015 at Banco do Brasil's headquarters in São Paulo. Bendine would have arrived at the meeting room with a green briefcase, bearing the Presidency of the Republic's coat of arms, which contained a note that Marcelo himself addressed to Aloizio Mercadante, who served as Minister of the Civil House of former President Dilma Roussef between February 2014 and October of 2015. In the conversation, he would have introduced himself as "interlocutor of the President of the Republic" and said that he would coordinate solutions with the Banking Industry, with power to mitigate advances of the Lava-Jato.” 2. In this regard, we request your statement about the veracity of the statements in the news and, if so, we request a manifestation of the measures being taken by the Company in respect thereof. 3. Such statement must include a copy of this Notice and be sent to the IPE System, category "Information to the Market", type "Clarifications on CVM / BOVESPA requirements". 4. We also recall the obligation set forth in the sole paragraph of article. 4 CVM Instruction 358/02, to inquire the Company's management and controlling shareholders, with the purpose of ascertaining whether they would have knowledge of information that should be disclosed to the market and material fact occurred or related to their business, as well as to ensure Its broad and immediate dissemination, simultaneously in all markets in which such securities are admitted to trading. 5. We would like to point out that, according to the Superintendence of Corporate Relations, in the use of its legal attributions, and based on item II of article 9, Law 6,385/76, and CVM Instruction 452/07, a fine of R$ 1,000.00 (one thousand reais) may apply, without prejudice to other administrative sanctions, for failure to comply with the requirement contained in this Notice, sent exclusively by e-mail, until June 16, 2017, provided for in the sole paragraph of art. 6 of CVM Instruction 358/02. Regards, Document signed electronically by Nilza Maria Silva de Oliveira, Manager, on 06/14/2017, at 5:30 pm, pursuant to art. 1st, III, "b", of Law 11,419 / 2006. .