ebr20170605_6k.htm - Generated by SEC Publisher for SEC Filing

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MARKET ANNOUNCEMENT

CENTRAIS ELETRICAS BRASILEIRAS S/A

CNPJ: 00.001.180/0001-26

PUBLIC COMPANY

Centrais Elétricas Brasileiras S/A (“Company” or “Eletrobras”) hereby informs its shareholders and the market in general that, in addition to the Market Announcement disclosed on May 16, 2017, Eletrosul, a subsidiary of Eletrobras, and SPTDE, a subsidiary of the Chinese company Shanghai Electric, signed a preliminary agreement aiming the full transfer of the set of projects of Lot A, resulting from Aneel Auction No 004/2014, which foresees the implementation and operation of energy transmission projects in Rio Grande do Sul.

The investment was budgeted at R$ 3.27 billion for the viability of 1.9 thousand kilometers of transmission lines, seven new substations, and the extension of sixteen existing substations.

The next stage of the negotiations will establish the detailed conditions of the business through a binding agreement, including issues related to the implementation and operation schedule.

Shanghai Electric shall constitute a Specific Purpose Company (SPE) for the construction, operation and maintenance of the future enterprises. The agreement provides the possibility of Eletrosul exercise the right to obtain up to 25% of participation in the SPE.

The agreement with Shanghai Electric is the result of the Public Call launched by Eletrosul in 2015 to the selection of companies interested in establishing a partnership for the implementation of Lot A enetrprises, auctioned by Aneel in November 2014.

Rio de Janeiro, June 5, 2017.

Armando Casado de Araujo

CFO and Investor Relations Officer

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS

By:	/S/ Armando Casado de Araujo
	Armando Casado de Araujo Chief Financial and Investor Relation Officer