MATERIAL FACT

São Paulo, June 24, 2010, - BRASIL ECODIESEL INDÚSTRIA E COMÉRCIO DE BIOCOMBUSTÍVEIS E ÓLEOS VEGETAIS S.A., ("Company"), a publicly held company, with headquarters in the city and state of São Paulo, at Avenida Brigadeiro Faria Lima, 1.461, Bloco II, 4º andar, Torre Sul, Pinheiros, CEP 01452-921, whose common shares were admitted for trading on the Novo Mercado Special Corporate Governance segment of the Bovespa under ticker symbol ECOD3, in compliance with article 157, paragraph 4, of Law 6,404/76, as well as Brazilian Securities and Exchange Commission (CVM) Rule 358/2002, hereby announces:

In a session of the First Panel of the Supreme Court of Justice - STJ, yesterday, June 23, 2010, the ground of action for the claim submitted by the Company on March 11, 2010, was deemed unsubstantiated.

Thus, the Company was hindered in its attempt to appeal the decision of the Ministry of Agrarian Development - MAD to suspend the use of the Social Fuel Seal by the Itaqui and Iraquara units for the period of one year.

The Supreme Courts decision did not alter, in any way, the sale of 34,000 m³ of biodiesel by the Rosário and Porto Nacional units, at the 18^th National Oil, Natural Gas and Biofuel Agency - ANP Auction.

The Company will use its best efforts to ensure the sale of  biodiesel produced by the Iraquara and Itaqui units in lots for plants without the Social Fuel Seal in the next auctions organized by ANP, in addition to recover, with the governament agencies, the units Social Fuel Seals.