YPF YPF Sociedad Anonima

The purpose of this letter is to comply with the requirements of Article 23 of Chapter VII of the Buenos Aires Stock Exchange Regulations.

In that connection, and in continuance of our previous communications dated December 23, 2015 and May 24, 2013, and the information in the Company's Financial Statements as of December 31, 2015, please be informed that YPF S.A. ("YPF" or the "Company") was notified on April 26, 2016 of the majority decision issued before the International Chamber of Commerce ("CCI") Arbitration 16232/JRF/CA "YPF vs. AESU and TGM", whereby the Company was ordered to pay U.S.$184,525,848 in damages to AES Uruguaiana Emprendimientos S.A. ("AESU") for the early termination of the gas export contract in 2009, and as a penalty of the delivery or pay clause in such contract, and U.S.$319,067,022 in damages to Transportadora de Gas del Mercosur S.A. ("TGM") in invoices, nonrefundable deposits and compensation for the early termination of the transportation contract.

The decision was made by the Arbitral Tribunal even though the Federal Administrative Court – Room IV (Cámara Contencioso Administrativo Federal – Sala IV) declared invalid the partial award issued in CCI Arbitration   16232/JRF/CA "YPF vs. AESU and TGM", which held YPF responsible for the rescission that took place in 2009 of gas export and transportation contracts entered with AESU and TGM, which decision is not final, and was reported as a Relevant Fact on December 23, 2015.

Additionally, please be informed that on April 26, 2016, the Federal Administrative Court – Room IV (Cámara Contencioso Administrativo Federal – Sala IV) set aside and declared invalid all acts performed by the parties and the Arbitral Tribunal in connection with damages, rendering them legally ineffective, and the Company notified the Arbitral Tribunal and the CCI   of such.

YPF informs that it will use all legal remedies to defend its interests and those of its shareholders, as it considers the arbitration award null.