The purpose of this letter is to comply with the requirements of Article 23, Section 3 of the Buenos Aires Stock Exchange Regulations.

 

The Board of Directors decided to pay a dividend in cash of 2.26 Argentine pesos per share with no distinction among the classes of the Company's stock. Such dividend shall be made available to all shareholders on July 7, 2016, or on any subsequent date due to the application of the rules governing the jurisdictions where the Company's shares are listed. The exchange rate to be used for payment of the ADRs shall be that of the United States dollar in the free exchange market –selling rate– at the close of the business date prior to the date the dividends shall be made available in the Republic of Argentina.

 

Additionally, please be informed that from the amount to be paid as a dividend, there will be a deduction – if applicable – for the amount paid by the Company for the Personal Asset Tax (according to the unnumbered article after article 25 of Law 23,966, as amended), corresponding to the 2015 fiscal year. In addition, as a result of changes introduced during 2013 to the Income Tax Law, a 10% one-time income tax withholding has been put in place on dividends and profits distributed by the entities mentioned in subsection a), paragraphs 1, 2, 3, 6 and 7 and subsection b), of article 69 of the Income Tax Law, thus please be informed that we will proceed to withhold that amount for individuals residing in the country and foreign beneficiaries.

 

In the case of ADRs, for operational reasons, the tax will be withheld for all holders, and a system on our website (www.ypf.com) will be made available on the day following the payment date, in order to request a refund, in cases where such tax does not apply.