Assignment of Stake Interest in Río Neuquén and Colpa and Caranda Blocks

Buenos Aires, October 28, 2016. Pampa Energía S.A. (‘Pampa’ or the ‘Company’; NYSE: PAM; BCBA: PAMP) informs that on the date of today, the Board of Directors of the Company, in relation to the merger announced between Pampa – as the surviving company (the ‘Surviving Company’), and Petrobras Argentina S.A. (‘Petrobras’) as the merged company, resolved to incorporate two companies that are 100% controlled, either directly or indirectly, by Petrobras as merged companies as well. Those companies are Petrobras Energia Internacional S.A. (‘PEISA’) and Albares Renovables Argentina S.A. (‘Albares’ and, together with PEISA and Petrobras, the ‘Merged Companies’). The merger of said companies will bring important benefits for the Company and the whole corporate group to which it belongs since it will allow more resource efficiencies and take advantage of the scale and expertise provided by Pampa as the Surviving Company.

Moreover, it is informed that the Surviving Company and the Merged Companies are working on a Special Merger Financial Statement and a Consolidated Special Merger Financial Statement as of October 31, 2016. Consequently, the Board of Directors resolved that the abovementioned merger will be effective as of November 1, 2016; subject to all necessary corporate approvals, both from the Board of Directors and the Shareholders Meeting as well as the registration of the merger and the dissolution without liquidating of the Merged Companies before the Public Registry.

For further information, contact:

Gustavo Mariani – Vice-President and Co-Chief Executive Officer
Ricardo Torres – Vice-President and Co-Chief Executive Officer
Mariano Batistella – Planning, Strategy and Related Companies Executive Director
Lida Wang – Investor Relations Officer

Maipú 1, (C1084ABA), Buenos Aires, Argentina
Phone: +54 (11) 4344 6000