Magnesita Refratarios : Material Fact - Divestiture of Oberhausen business

CNPJ (Corporate Taxpayer Registry) no. 08.684.547/0001-65 NIRE (Commercial Registry Number) 31.300.026.485

Magnesita Refratários S.A. ("Company"), pursuant to the terms of Law no. 6,404/76 and Rule no. 358/02 of Comissão de Valores Mobiliários ("CVM"), hereby informs its shareholders and the market in general and in connection with the transaction disclosed in the Material Fact dated October 5, 2016, by which Alumina Holdings, LLC ("Alumina"), Rearden L. Holdings 3 S.À

R.L. ("Rearden") and RHI AG ("RHI") signed an agreement with the purpose of combining the operations of RHI and the Company to create a leading company in refractory solutions ("Transaction") and in addition to information disclosed in the Material Fact dated June 28, 2017:

On the date hereof, Magnesita has entered into a definitive agreement with Intocast AG to divest its business related to the production and supply of magnesia carbon bricks produced at the Company's Oberhausen facility, in Germany, for a purchase price of €20.3 million. The scope of the divesture includes, but is not limited, to an offtake agreement to provide to Intocast AG the right to acquire up to 32,000 (thirty two thousand) tonnes per annum of sintered magnesia, for a period of 12 years, as required and under the terms established by the European Commission - Directorate General for Competition.

The divestment will be conditioned to customary closing conditions, including the completion of the Transaction, and is expected for the fourth quarter of 2017.

As already announced, the next step fot the completion of the Transaction includes the admission of RHI Magnesita shares in the premium segment of the Official List on the Main Market of the London Stock Exchange, which is expected for October 2017.

The Company will keep its shareholders and the market in general informed regarding the development of the Transaction.

São Paulo, September 8, 2017.

CLASSIFICAÇÃO DO DOCUMENTO: PÚBLICO