It looks as if commands entered at the mysql> prompt need to be terminated by a delimiter, which defaults to a semicolon:
mysql> CREATE USER 4h77lgs@localhost IDENTIFIED BY PASSWORD '12345';
mysql> GRANT ALL ON database1.* TO 4h77lgs@localhost IDENTIFIED BY '12345';
mysql> SET PASSWORD FOR 4h77lgs = PASSWORD('12345');
-- This message may have been cut off and the rest will only be shown to members. To become a member, click here --