<SEC-DOCUMENT>0001292814-15-000140.txt : 20150413
<SEC-HEADER>0001292814-15-000140.hdr.sgml : 20150413
<ACCEPTANCE-DATETIME>20150126130245
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001292814-15-000140
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20150126

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATIONAL STEEL CO
		CENTRAL INDEX KEY:			0001049659
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		RUA LAURO MULLER
		STREET 2:		116 36 ANDAR
		CITY:			RIO DE JANEIRO RJ BR
		STATE:			D5
		ZIP:			00000
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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<P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 12pt 324pt" align=right><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">January 26, 2015</FONT></P>

<P style="MARGIN: 0cm 0cm 12pt"><B><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Via EDGAR Transmission</FONT></U></B></P>

<P style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Mr. Terence O&#8217;Brien<BR>Branch Chief <BR>Division of Corporation Finance<BR>United States Securities and Exchange Commission<BR>100 F Street, N.E.<BR>Washington, D.C. 20549-4631</FONT></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 72pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">National Steel Company<BR>Form 20-F for the fiscal year ended December 31, 2013<BR>Filed April 30, 2014<BR>File No. 1-14732<BR>Response to Staff Comment Letter dated December 23, 2014</FONT></P>

<P style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Dear Mr. O&#8217;Brien:</FONT></P>

<P style="MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Companhia Sider&#250;rgica Nacional (the &#8220;</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Company</FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&#8221;) received two comment letters from the staff of the United States Securities and Exchange Commission (the &#8220;</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Staff</FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&#8221;) on December 23, 2014, concerning the Company&#8217;s annual report on Form 20-F filed on April 30, 2014 (the &#8220;</FONT><U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">2013 Form 20-F</FONT></U><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">&#8221;).&nbsp; This letter provides the Company&#8217;s responses to the Staff&#8217;s comments in the first letter. For your convenience, we have reproduced below in italics the Staff&#8217;s comments numbered 1 through 5 and have provided responses immediately below such comments. All page numbers referred to herein are to the 2013 Form 20-F.</FONT></P>

<P><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 1.</FONT></B></P>

<P><I><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Note 9-Investments, page FS-30</FONT></U></I></P>

<P><I><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">a) Events in 2013</FONT></U></I></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 6pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">1)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Please address the following points with respect to the disproportionate spin-off of Transnordestina Log&#237;stica S.A. (&#8220;TLSA&#8221;): </FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 6pt 2cm"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Tell us, with a view toward disclosure, how you determined the R$1,984,204 fair value of the remaining investment in TLSA.</FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 6pt 2cm"><FONT style="FONT-SIZE: 12pt" lang=EN-US face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Tell us why it was necessary to separately adjust for the capitalized interest of R$185,206. Specifically address why these capitalized costs were not included in the R$1,714,232 carry amount of net assets.</FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 6pt 2cm"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note that you have included the R$1,452,074 December 31, 2012 investment balance of TLSA in your rollforward of the investment balance from December 31, </FONT></I><I><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">2012 to December 31, 2013, as well as the R$659,106 gain on loss of control over TLSA. Tell us why you have included these amounts rather than the R$1,984,204 fair value of the TLSA investment.</FONT></I></P>

<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 6pt 2cm"><EM></EM>&nbsp;</P>

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<H1 style="TEXT-ALIGN: center; LINE-HEIGHT: 10pt; PAGE-BREAK-AFTER: avoid; MARGIN: 0cm 18pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 9pt" face="Times New Roman">Companhia Sider&#250;rgica Nacional</FONT></B></H1></TD></TR></TABLE></DIV>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT style="DISPLAY: none; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Escrit&#243;rio Central<BR></FONT><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio<BR></FONT><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Financial Faria Lima Center</FONT> <BR><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Cep: 04538-132 - S&#227;o Paulo - SP</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 6pt" lang=EN-US face="Times New Roman"></FONT></P>

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   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">1</FONT></P></TD></TR></TABLE></DIV>

<P style="MARGIN: 0cm 0cm 0pt"><FONT style="text-underline: none" color=black face="Times New Roman"><FONT><FONT style="TEXT-TRANSFORM: none; FONT-STYLE: normal; FONT-SIZE: 8pt; FONT-WEIGHT: normal; TEXT-DECORATION: none" lang=EN-US color=black face="Times New Roman">#4842-1185-4369v3</FONT></FONT></FONT></P></DIV></DIV>

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<P style="TEXT-INDENT: -21.25pt; MARGIN: 0cm 0cm 12pt 2cm"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face=symbol>&#183;</FONT><FONT style="FONT-SIZE: 7pt" lang=EN-US color=black face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">With a view towards future disclosure, clarify the accounting for, and financial statement implications of, the decline in your equity interests of FTL from 99.99% to 88.41%. </FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 1. </FONT></B></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Fair value of the remaining investment in TLSA</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The fair value of the remaining investment in TLSA was determined in accordance with IFRS 13 &#8211; Fair value measurement. The Company used the income approach technique to determine the fair value of the future cash flows from investments, net revenues and expenses obtained from the operation of the Railway System II, based on its business plan for TLSA, which included the system capacity volumes for each type of goods transported and market prices and conditions, among others. In addition, the Company took into consideration &nbsp;in determining fair value the following: (i) TLSA&#8217;s concession agreement expires in 2057, (ii) the rate of return established in TLSA&#8217;s concession agreement may not exceed 6.75% p.a. plus inflation, as calculated by the IPCA,&nbsp;during the life of the concession, and (iii) in the event the rate of return reaches the concession-rate limit before 2057, the concession agreement will expire at that time. </FONT></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Capitalized interest</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The Company chose to separately adjust for capitalized interest in connection with TLSA because this amount was recorded separately under &#8220;property, plant &amp; equipment &#8211; construction in progress&#8221; in the different legal entities. In other words, the investments were recorded under the legal entity TLSA and the capitalized interest under the parent company (CSN), and both are presented together in the consolidated financial statements. </FONT></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The Company notes that the presentation of these amounts separately does not affect the gain on loss of control, as presented in Note 24 &#8211; Other Operating Income (Expenses), FS 63, as shown below:</FONT></P>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">As presented: separate amounts</FONT></B></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Alternative: single amount</FONT></B></P></TD></TR>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="30%" colSpan=2>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><I><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(in thousands of R$)</FONT></I></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="70%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(+) Fair value of the remaining investment</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,984,204</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,984,204</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="70%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(-) Carrying amount of net assets</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,714,232</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,899,438</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="70%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(+) Carrying amount of non-controlling interests</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">389,133</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">389,133</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="70%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(=) Gain on loss of control over Transnordestina</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">659,105</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">473,899</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="70%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(-) Capitalized interest written off</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">185,206</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">-</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="70%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(=) Gain on loss of control over Transnordestina</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">473,899</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">473,899</FONT></B></P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT></I>&nbsp;</P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Investment balance of TLSA and rollforward of the investment balance</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The Company notes that other items that affected its investment in TLSA were reflected under other line items together with the overall effect under these line items for all of the Company&#8217;s investments during 2013.</FONT></P>

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<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P></DIV>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Please find below a reconciliation of the R$1,984,204 thousand and the amounts included in the table on page FS-31:</FONT></P>

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<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Amount<BR></FONT></B><I><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(in thousands of R$) </FONT></I></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">TLSA investment balance as of December, 2012</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,452,074</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Capital Increase</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">152,973</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Capital reduction of net assets merged into FTL</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">(153,305)</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Comprehensive income</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,422</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Loss for the year</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">(128,066)</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Gain on loss of control over TLSA</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">659,106</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="85%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">TLSA investment balance as of December, 2013</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,984,204</FONT></B></P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt 36pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Additionally, please find below an alternative presentation considering adjustment of reconciliation in the rollforward of the investment balance that we are proposing to present in future filings:</FONT></P>

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<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">As presented</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Reconciliation</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Alternative - In a single amount</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Opening balance of investments</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">10,839,787</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">10,839,787</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Transnordestina Investment balance</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">1,452,074</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">532,130</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">1,984,204</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Capital Increase/acquisition of shares</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">164,941</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(152,973)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">11,968</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Capital reduction</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(153,305)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">153,305</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Dividends</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(85,998)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(85,998)</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Comprehensive income</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">73,213</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(1,422)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">71,791</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Share of profits of investees</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">542,711</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">128,066</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">670,777</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Gain on loss of control over Transnordestina</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">659,106</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(659,106)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Other</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(5,506)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(5,506)</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="55%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Closing balance of investments</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">13,487,023</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="15%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">13,487,023</FONT></B></P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=PT-BR face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Decline in equity interests of FTL from 99.99% to 88.41%</FONT></I></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">In December of 2013, as part of an amendment to the Concession Agreement of the Northeast Railway System and the new Shareholders&#8217; Agreement of TLSA, there was a partial spin-off of TLSA into FTL, pursuant to which the assets and liabilities relating to Railway System I were transferred to FTL and the Company maintained control of Railway System I and FTL.</FONT></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">As a result, FTL received a capital increase, from the Company and its partner in TLSA (Taquari Participa&#231;&#245;es S.A.), in an amount equivalent to the net assets of Railway System I as follows:</FONT></P>

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<H1 style="TEXT-ALIGN: center; LINE-HEIGHT: 10pt; MARGIN: 0cm 18pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 9pt" face="Times New Roman">Companhia Sider&#250;rgica Nacional</FONT></B></H1></TD></TR></TABLE></DIV>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Escrit&#243;rio Central<BR></FONT><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio<BR></FONT><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Financial Faria Lima Center</FONT> <BR><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Cep: 04538-132 - S&#227;o Paulo - SP</FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 6pt" lang=EN-US face="Times New Roman"></FONT></P>

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="PADDING-BOTTOM: 0cm; PADDING-LEFT: 3.55pt; PADDING-RIGHT: 3.55pt; PADDING-TOP: 0cm" vAlign=top width="33%">

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">3</FONT></P></TD></TR></TABLE></DIV>

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<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P></DIV>

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<TABLE style="BORDER-BOTTOM: medium none; BORDER-LEFT: medium none; WIDTH: 100%; MARGIN-LEFT: 0pt; BORDER-TOP: medium none; BORDER-RIGHT: medium none" border=0 cellSpacing=0 cellPadding=0>



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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">FTL Capital before TLSA Spin-Off</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">% </FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Capital increase due to TLSA Spin-Off</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">FTL capital after TLSA Spin-Off</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">% </FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">CSN</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">152,937</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">100%</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">153,305</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">306,242</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">88.41%</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Taquari</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">40,145</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">40,145</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">11.59%</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Total</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">152,937</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">100%</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">193,450</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">346,387</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="16%">

   <P style="TEXT-ALIGN: right; MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">100%</FONT></B></P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt 36pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The capital increase in FTL was a result of the partial spin-off of TLSA, both recorded at the same book value, and, thus, had no effect on the Company&#8217;s consolidated financial statements. Although the percentage interest the Company holds in FTL has decreased, the Company still controls FTL, which is fully consolidated on its financial statements.</FONT></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT></B>&nbsp;</P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 2.</FONT></B></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US face="Times New Roman">b) Changes in investments in joint ventures, associates, and other investments, page FS-31</FONT></U></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">2)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Please clarify whether the share of profit of jointly controlled entities relates only to your joint ventures as the title of this table would indicate. If not, given that we note that you proportionately consolidate your direct interests in joint arrangements, please address the appropriateness of this presentation, including the inclusion of R$542,711 in your rollforward of your investment balance. Please separately identify the entities comprising the R$542,711 and address the nature of the reclassified portions of your share of profit of jointly controlled entities to cost of sales, finance costs, and taxes for the years presented. </FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 2. </FONT></B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The table presented on page FS-31 represents the total share of profit of the Company&#8217;s joint arrangements classified as joint ventures, which are accounted for under the equity pick up method, and our related equity interests in an associate, as follows:</FONT></P>

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<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="56%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman"></FONT></B>&nbsp;</P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="12%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">% Equity interest</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Classification under IFRS</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Share of Profits FY2014</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="56%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Arvedi Metalfer do Brasil S.A.</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="12%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">20.0</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Associate</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">(3,617)</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="56%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">MRS Log&#237;stica S.A. (&#8220;MRS&#8221;)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="12%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">33.3</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Joint Venture</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">127,225</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="56%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Transnordestina Log&#237;stica S.A.</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="12%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">77.3</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Joint Venture</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">(128,066)</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="56%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Nacional Min&#233;rios S.A. (&#8220;Namisa&#8221;)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="12%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">60.0</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Joint Venture</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">544,695</FONT></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="56%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">CBSI &#8211; Companhia Brasileira de Servi&#231;os de Infraestrutura</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="12%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">50.0</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Joint Venture</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">2,474</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="56%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Total share of profits of joint ventures and associate</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="12%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="18%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">-</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="14%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">542,711</FONT></B></P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 0pt 35.3pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">During 2014, the Company and its joint-ventures MRS and Namisa entered into transactions classified in both categories (upstream and downstream) related to railway transportation services, port services and iron ore ROM sales. Accordingly, the results of the transactions were eliminated, net of taxes, as required by IAS 28, as follows:</FONT></P>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Reclassifications</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid" vAlign=top width="25%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Amount<BR></FONT></B><I><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(in thousands of R$)</FONT></I></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid" vAlign=top width="53%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Nature</FONT></B></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid" vAlign=top width="22%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">To cost of sales</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid" vAlign=top width="25%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(137,418)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid" vAlign=top width="53%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Railway transportation services provided by MRS to the Company</FONT></P></TD></TR>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">To finance costs</FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(624,096)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-RIGHT: windowtext 1pt solid" vAlign=top width="53%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Interest income on advances made by Namisa to the Company for port services and ROM agreement</FONT></P></TD></TR>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">To taxes</FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">258,914</FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Effect of taxes on the amounts above</FONT></P></TD></TR></TABLE></DIV>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt 35.45pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman"></FONT>&nbsp;</P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 3.</FONT></B></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">3)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Please tell us, with a view towards future disclosure the nature of the R$120,102 elimination of TSLA&#8217;s profit and how such amount was determined.</FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 3. </FONT></B></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The amount of R$542,711 thousand includes the Company&#8217;s share of the net results of TLSA &nbsp;in the amount of R$ 128,066 as demonstrated in the Company&#8217;s response to the Staff&#8217;s Comment 1 above. The amount of R$120,102 thousand refers to the Company&#8217;s share of TLSA&#8217;s net results &nbsp;from January 1, 2013 to November 30, 2013. </FONT></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The difference between these amounts relate to the one month period ended on December 31, 2013 and was recorded as a share of profits of joint ventures. As a result, the Company&#8217;s consolidated income statement was presented with the inclusion of this difference under the equity pick up method in the amount of R$7,964 thousand.</FONT></P>

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<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 4.</FONT></B></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">4)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">You indicate in note 1 on page FS-11 that some joint arrangements were considered &#8220;as joint operation in 2013 due to the application of IFRS 11&#8221; and indicated that further details were provided in note 3. Please identify these entities and where the additional details have been provided. </FONT></I></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 4. </FONT></B></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The Company included in note 2, FS-10, a table with all of the Company&#8217;s investments (direct and indirect) segregated by classification under specifics IFRS requirements. Joint arrangements classified as joint operations were included as &#8220;</FONT><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">direct interest in jointly controlled entities: proportionate consolidation</FONT></I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">.&#8221; The entities comprised in that classification were:</FONT></P>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">% Equity interest</FONT></B></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Core business</FONT></B></P></TD></TR>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">It&#225; Energ&#233;tica S.A.</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="22%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=#000000 face="Times New Roman">48.75</FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Electric power generation</FONT></P></TD></TR>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">CGPAR - Constru&#231;&#227;o Pesada S.A.</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="22%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=#000000 face="Times New Roman">50.00</FONT></P></TD>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Mining support services and equity interests</FONT></P></TD></TR>

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   <P style="MARGIN: 0cm 0cm 2.35pt"><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Cons&#243;rcio da Usina Hidrel&#233;trica de Igarapava</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="22%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=#000000 face="Times New Roman">17.92</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="29%">

   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><FONT style="FONT-SIZE: 11.5pt" color=black face="Times New Roman">Electric power consortium</FONT></P></TD></TR></TABLE></DIV>

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<H1 style="TEXT-ALIGN: center; LINE-HEIGHT: 10pt; MARGIN: 0cm 18pt 0pt 0cm" align=center><B><FONT style="FONT-SIZE: 9pt" face="Times New Roman">Companhia Sider&#250;rgica Nacional</FONT></B></H1></TD></TR></TABLE></DIV>

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<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">It is important to clarify that there were no changes in the accounting for these joint controlled entities from 2012 to 2013 as a result of the adoption of IFRS 11.</FONT></P>

<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Note 3 provides details about technical analysis and relevant effects on financial statements related to the reclassification of investments in joint ventures but without including specific details on the three joint operations.</FONT></P>

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<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">SEC Comment No. 5.</FONT></B></P>

<P style="TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><U><FONT style="FONT-SIZE: 11.5pt" lang=EN-US face="Times New Roman">Note 10- Property, Plant, and Equipment, page FS-36</FONT></U></P>

<P style="TEXT-INDENT: -36pt; MARGIN: 0cm 0cm 12pt 36pt"><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">5)</FONT></I><I><FONT style="FONT-SIZE: 7pt" lang=EN-US face="times new roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></I><I><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">We note your disclosure stating that due to the disproportionate spin-off of TLSA, TLSA assessed the future performance of its operating assets related to Railway System I, and the analysis resulted in recognition of an impairment loss of R$279,296, recognized in line item &#8220;Other operating expenses&#8221; in subsidiary and consolidated of R$216,446. Please tell us the whether this loss was contemplated and reflected before or after the Company determined the fair value of the remaining investment in TLSA as disclosed on page FS-31. Specifically address the timing of both the gain and loss recognition. </FONT></I></P>

<P style="PAGE-BREAK-AFTER: avoid; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><B><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">Response to Comment No. 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></P>

<P style="MARGIN: 0cm 0cm 0pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">On September 20, 2013, in connection with the execution of an amendment to the Concession Agreement of the Northeast Railway System which provided for the split of the system into two cash generation units (Railway System I and Railway System II), the Company began the assessment of the future performance of its operating assets related to Railway System I (the unit for which the Company retained control) separately.</FONT></P>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 0pt" align=center><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Escrit&#243;rio Central<BR></FONT><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Av. Brigadeiro Faria Lima, 3400 &#8211; 20&#186; andar - Edificio<BR></FONT><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Financial Faria Lima Center</FONT> <BR><FONT style="FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">Cep: 04538-132 - S&#227;o Paulo - SP</FONT></P>

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<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">In October of 2013, the Company completed this analysis and recorded an impairment loss of R$279,296 thousand, under &#8220;Other operating expenses,&#8221; in connection with Railway System I. The recoverable amount of these assets was determined based on the value in use and the discount rate used to measure the value in use was 9.15% per year. </FONT></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">In December of 2013, the Company&#8217;s shareholders approved the disproportionate spin-off of TLSA, completing the segregation of Railway System I and Railway System II. As a result, assets related to Railway System I were spun-off and merged into FTL at book value, net of the impairment loss recorded in October 2013. The remaining balance of TLSA at book value was compared with the fair value of the Railway System II and generated the gain on loss of control in the amount of R$473,899 thousand before taxes, that was recorded in December 2013. The complete accounting effects of the Northeast Railway System split were recorded in the fourth quarter of 2013. </FONT></P>

<P style="TEXT-ALIGN: justify; TEXT-INDENT: 0cm; MARGIN: 0cm 0cm 12pt"><FONT style="FONT-SIZE: 12pt" lang=EN-US face="Times New Roman">The table below presents a summary of the events in the Company&#8217;s share of the net equity of TLSA:</FONT></P>

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   <P style="TEXT-ALIGN: center; MARGIN: 0cm 0cm 2.35pt" align=center><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">Amount<BR></FONT></B><I><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(in thousands of R$) </FONT></I></P></TD></TR>

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   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">TLSA balance before spin-off</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,999,569 </FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt 15.5pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(+) Capital increase</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">26,460</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt 15.5pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(-) Share of profit of TLSA of the period between September and December, 2013, which includes the impairment on Railway System I on October, 2013 in amount of R$ 279,296</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=bottom width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">(112,680)</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt 15.5pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(-) other</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">(5,667)</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">TLSA balance as of December, before spin-off</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,907,682</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt 15.5pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(-) Spin-off of Railway System I merged into FTL</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">(193,450)</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">TLSA net assets as of December, before the loss of control</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,714,232</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">CSN Interest on TLSA &#8211; 77.30%</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,325,099</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt 15.5pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(+) Capitalized interest under the Parent company (CSN)</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">185,206</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt 1.3pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">TOTAL TLSA investment as of December, 2013, before the loss of control</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,510,305</FONT></B></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt 15.5pt"><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">(+) Gain on loss of control over TLSA</FONT></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">473,899</FONT></P></TD></TR>

<TR>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-LEFT: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="77%">

   <P style="MARGIN: 0cm 0cm 2.35pt"><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=black face="Times New Roman">TLSA investment balance as of December, 2013</FONT></B></P></TD>

   <TD style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 0cm; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; BORDER-RIGHT: windowtext 1pt solid; PADDING-TOP: 0cm" vAlign=top width="23%" align=right>

   <P style="MARGIN: 0cm 0cm 2.35pt" align=right><B><FONT style="FONT-SIZE: 11.5pt" lang=EN-US color=#000000 face="Times New Roman">1,984,204</FONT></B></P></TD></TR></TABLE></DIV>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
